Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 001-41705

Azitra, Inc.

(Exact name of registrant as specified in its charter)


Delaware						46-4478536
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

21 Business Park Drive

Branford, CT 06405

(Address of principal executive offices and zip code)

(203)-646-6446

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock: Par value $0.0001

AZTR

NYSE American, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant's common stock outstanding as of August 12, 2024 was 7,625,056.

AZITRA, INC.

TABLE OF CONTENTS


		Page

	PART I - FINANCIAL INFORMATION	F-1

Item 1.	Financial Statements	F-1

	Condensed Balance Sheets	F-1

	Condensed Statements of Operations	F-3

	Condensed Statements of Changes in Stockholders' Equity (Deficit)	F-4

	Condensed Statements of Cash Flows	F-5

	Notes to Unaudited Condensed Financial Statements	F-7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	9

Item 4.	Controls and Procedures	10

	PART II - OTHER INFORMATION	11

Item 1A.	Risk Factors	11

Item 5	Other Information	11

Item 6.	Exhibits	12

PART I FINANCIAL INFORMATION

ITEM 1. Financial Statements.

AZITRA, INC.

CONDENSED BALANCE SHEETS




	June 30, 2024		December 31, 2023
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$	803,082	$	1,795,989
Accounts receivable	1,125		8,255
Accounts receivable - related party	—		90,000
Tax credits receivable	96,535		118,383
Income tax receivable	14,235		6,836
Deferred offering costs	42,809		67,859
Prepaid expenses	378,019		448,257
Total current assets	1,335,805		2,535,579

Property and equipment, net	658,731		710,075
Financing lease right-of-use asset	32,262		40,002
Operating lease right-of-use asset	672,799		828,960
Intangible assets, net	221,630		210,881
Deferred patent costs	882,223		742,229
Deferred issuance costs	31,700		—
Other assets	47,404		47,760
Total assets	$	3,882,554	$	5,115,486

LIABILITIES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	996,700		897,272
Current financing lease liability	15,317		14,600
Current operating lease liability	293,026		307,655
Accrued expenses	434,103		383,668

Total current liabilities	1,739,146		1,603,195

Long-term financing lease liability	18,329		26,169
Long-term operating lease liability	395,987		537,523
Warrant liability	2,926		35,453

Total liabilities	2,156,388		2,202,340

Commitments and contingencies (Note 12)

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-1

PART I FINANCIAL INFORMATION

ITEM 1. Financial Statements.

AZITRA, INC.

CONDENSED BALANCE SHEETS


Stockholders' equity
Preferred stock; $0.0001 par value; 10,000,000 shares authorized at June 30, 2024 and December 31, 2023; 0 shares issued and outstanding at June 30, 2024 and December 31, 2023	—		—
Common stock; $0.0001 par value, 100,000,000 shares authorized at June 30, 2024 and December 31, 2023, 960,146 and 403,255 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	96		40
Additional paid-in capital	55,889,271		51,510,269
Accumulated deficit	(54,163,201)		(48,597,163)
Total stockholders' equity	1,726,166		2,913,146
Total liabilities, and stockholders' equity	$	3,882,554	$	5,115,486

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-2

AZITRA, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)


	For the Three Months		For the Three Months		For the Six Months		For the Six Months
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Service revenue - related party	$	7,500	$	172,000	$	7,500	$	285,300
Total revenue	7,500		172,000		7,500		285,300

Operating expenses:
General and administrative	1,549,228		844,639		3,037,755		1,687,649
Research and development	1,118,552		754,951		2,591,522		1,583,987
Total operating expenses	2,667,780		1,599,590		5,629,277		3,271,636

Loss from operations	(2,660,280)		(1,427,590)		(5,621,777)		(2,986,336)

Other income (expense):
Interest income	16,268		264		23,877		549
Interest expense	(1,782)		(76,187)		(2,697)		(166,019)


Change in fair value of convertible note	—		(2,830,100)		—		(3,630,100)
Change in fair value of warrants	4,272		(94,232)		32,527		(88,611)
Other income (expense)	9,529		(1,683)		3,202		(6,475)
Total other income (expense)	28,287		(3,001,938)		56,909		(3,890,656)

Loss before income taxes	(2,631,993)		(4,429,528)		(5,564,868)		(6,876,992)

Income tax expense	—		—		—		(9,715)

Net loss	(2,631,993)		(4,429,528)		(5,564,868)		(6,886,707)
Dividends on preferred stock	—		(643,267)		—		(1,355,347)
Net loss attributable to common shareholders	$	(2,631,993)	$	(5,072,795)	$	(5,564,868)	$	(8,242,054)

Net loss per share, basic and diluted	$	(2.74)	$	(70.83)	$	(6.82)	$	(154.05)

Weighted average common stock outstanding, basic and diluted	960,146		71,622		816,450		53,503

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-3

AZITRA, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

(unaudited)



	Series A Convertible Preferred Stock			Series A-1 Convertible Preferred Stock			Series B Convertible Preferred Stock			Common Stock			Additional Paid-in-Capital		Accumulated Deficit		Total Stockholders' Equity (Deficit)
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance - December 31, 2022	205,385	$	3,272,944	380,657	$	14,100,533	391,303	$	16,321,065	34,800	$	3	$	1,054,239	$	(37,314,552)	$	(36,260,310)
Issuance of Series B Convertible Preferred Stock	—	—		—	—		23,432	1,124,759		—	—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—	—		38,794		—		38,794
Exercise of stock options	—	—		—	—		—	—		—	—		—		—		—
Net loss	—	—		—	—		—	—		—	—		—		(2,457,180)		(2,457,180)
Balance, March 31, 2023	205,385	$	3,272,944	380,657	$	14,100,533	414,735	$	17,445,824	34,800	$	3	$	1,093,033	$	(39,771,732)	$	(38,678,696)
Stock-based compensation	—	—		—	—		—	—		—	—		38,794		—		38,794
Conversion of convertible notes payable										61,534	6		9,495,066				9,495,072
Conversion of preferred stock	(205,385)	(3,272,944)		(380,657)	(14,100,533)		(414,735)	(17,445,824)		256,921	26		34,819,275				34,819,301
Initial public offering, net of issuance costs of $1,508,641										50,000	5		5,991,354				5,991,359
Net loss	—	—		—	—		—	—		—	—		—		(4,429,528)		(4,429,528)
Balance, June 30, 2023	—	—		—	—		—	—		403,255	$	40	$	51,437,522	$	(44,201,260)	$	7,236,302




	Series A Convertible Preferred Stock			Series A-1 Convertible Preferred Stock			Series B Convertible Preferred Stock			Common Stock			Additional Paid-in-Capital		Accumulated Deficit		Total Stockholders' Equity (Deficit)
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance - December 31, 2023	—	$	—	—	$	—	—	$	—	403,246	$	40	$	51,511,439	$	(48,598,333)	$	2,913,146
Follow-on public offering, net of issuance costs of $709,426	—	—		—	—		—	—		555,567	56		4,290,618		—		4,290,674

Stock-based compensation	—	—		—	—		—	—		—	—		34,171		—		34,171
Exercise of stock options	—	—		—	—		—	—		1,333	—		19,100		—		19,100
Net loss	—	—		—	—		—	—		—	—		—		(2,932,875)		(2,932,875)
Balance, March 31, 2024	—	$	—	—	$	—	—	$	—	960,146	$	96	$	55,855,328	$	(51,531,208)	$	4,324,216
Conversion of convertible notes payable	—	—		—	—		—	—		—	—		—		—		—
Conversion of preferred stock	—	—		—	—		—	—		—	—		—		—		—
Follow-on public offering issuance costs adjustment	—	—		—	—		—	—		—	—		(227)		—		(227)
Stock-based compensation	—	—		—	—		—	—		—	—		34,170		—		34,170
Net loss	—	—		—	—		—	—			—				(2,631,993)		(2,631,993)
Balance, June 30, 2024	—	—		—	—		—	—		960,146	$	96	$	55,889,271	$	(54,163,201)	$	1,726,166

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-4

AZITRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)


	For the Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(5,564,868)	$	(6,886,707)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	64,953		64,806

Amortization of right-of-use assets	163,901		139,738
Change in foreign currency rates on remeasurement of Canadian fixed assets	(8,526)		—
Accrued interest on convertible notes	—		165,939
Stock based compensation	68,341		77,587
Change in fair value of warrant liability	(32,527)		88,711
Change in fair value of convertible notes	—		3,630,100
Forgiveness of accounts payable	—		(56,285)



Changes in operating assets and liabilities:
Accounts receivable	97,130		(262,300)
Prepaid expenses	70,238		111,610
Other assets	356		(237)
Tax credits receivable	21,848		27,220
Income tax receivable	(7,399)		—
Accounts payable and accrued expenses	160,763		(149,780)

Operating lease liability	(156,165)		(136,624)
Contract liabilities	—		154,700
Net cash used in operating activities	(5,121,955)		(3,031,522)

Cash flows from investing activities:
Purchases of property and equipment	—		(17,578)

Deferred patent costs	(155,826)		(119,170)
Capitalization of licenses	—		(15,263)
Capitalization of patent and trademark costs	—		(10,127)
Net cash used in investing activities	(155,826)		(162,138)

Cash flows from financing activities

Payment of deferred offering/issuance costs	(17,550)		—
Principal payments on finance leases	(7,123)		—
Proceeds from public offering, net	4,290,447		5,991,359
Proceeds from exercise of stock options	19,100		—
Net cash provided by financing activities	4,284,874		5,991,359

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-5

AZITRA, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)



Net change in cash and cash equivalents	(992,907)		2,797,699

Cash and cash equivalents at beginning of period	1,795,989		3,492,656
Cash and cash equivalents at end of period	$	803,082	$	6,290,355

Supplemental disclosure of non-cash investing and financing information:



Deferred issuance/offering costs	$	56,959	$	—
Conversion of note to common stock	$	—	$	9,495,152
Conversion of note to Series B Convertible Preferred Stock	$	—	$	1,124,759

1. Organization and Nature of Operations

Azitra, Inc. (the "Company") was founded on January 2, 2014. It is a synthetic biology company focused on screening and genetically engineering microbes of the skin. The mission is to discover and develop novel therapeutics to create a new paradigm for treating skin disease. The Company’s discovery platform is screened for naturally occurring bacterial cells with beneficial effects. These microbes are then genomically sequenced and engineered to make cellular therapies, recombinant therapeutic proteins, peptides and small molecules for precision treatment of dermatology diseases. On May 17, 2023, the Company changed its name to from “Azitra Inc” to “Azitra, Inc.”

The Company maintains a location in Montreal, Canada for certain research activities. The Company also opened a manufacturing and laboratory space in Groton, Connecticut during 2021.

Stock Splits, Change in Par Value, and Initial and Follow-on Public Offerings

In June 2023, the Company completed its initial public offering (IPO) in which it issued and sold 50,000 shares of its common stock at a price to the public of $150.00 per share. The shares began trading on the NYSE American on June 16, 2023 under the symbol “AZTR”. The net proceeds received by the Company from the offering were $6.0 million, after deducting underwriting discounts, commissions and other offering expenses.

Immediately prior to the effectiveness of the Company’s registration statement, the Company effected a 7.1-for-1 forward stock split of its issued and outstanding shares of common stock (the Forward Stock Split). On May 17, 2023, the Company changed the par value of its capital stock from $0.01 to $0.0001. Accordingly, all share and per share amounts for all periods presented in the accompanying unaudited condensed financial statements and notes thereto have been adjusted retroactively, unless otherwise noted, to reflect the effect of the Forward Stock Split. Refer to Note 7 for additional details relating to the Forward Stock Split.

In February 2024, the Company completed a follow-on public offering in which it issued and sold 555,567 shares of its common stock at a price to the public of $9.00 per share. The net proceeds received by the Company from the follow-on public offering were $4.3 million, after deducting underwriting discounts, commissions and other offering expenses.

On July 1, 2024 the Company effected a 30-for-1 reverse stock split of its issued and outstanding shares of common stock (the Reverse Stock Split) and began trading on a split-adjusted basis the same day. There was no change in par value. Accordingly, all share and per share amounts for all periods presented in the accompanying unaudited condensed financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the effect of the Reverse Stock Split. Refer to Note 7 for additional details relating to the Reverse Stock Split.

The accompanying notes are an integral part of these unaudited condensed financial statements.

F-6

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Going Concern Matters

The unaudited condensed financial statements have been prepared on the going concern basis, which assumes that the Company will continue in operation for the foreseeable future, and which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, management has identified the following conditions and events that created an uncertainty about the ability of the Company to continue as a going concern. As of and for the six months ended June 30, 2024, the Company has an accumulated deficit of $54.2 million, a loss from operations of $5.6 million, used $5.1 million to fund operations and had approximately $(0.4) million of working capital. These factors among others raise substantial doubt about the Company’s ability to continue as a going concern.

The Company will require a significant amount of additional funds to complete the development of its product and to fund additional losses which the Company expects to incur over the next few years. The Company is still in its pre-commercialization phase and therefore does not yet have product revenue. Management plans to continue to raise funds through equity and debt financing to fund operating and working capital needs, however, there can be no assurance that the Company will be successful in securing additional financing, if needed, to meet its operating needs.

These conditions and events create substantial doubt about the ability of the Company to continue as a going concern for twelve months from the date that the financial statements are available to be issued. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Reclassification

Certain prior period amounts and disclosures have been reclassified to conform to the current period’s financial presentation.

F-7

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

2. Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Company are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”).

Unaudited Interim Financial Information

The unaudited interim condensed financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim unaudited condensed financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim unaudited condensed financial statements related to the three months and six months ended are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These interim unaudited condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2023, and notes thereto that are included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 15, 2024.

Deferred Offering Costs

The Company capitalized deferred offering costs, which primarily consisted of direct, incremental legal, professional, accounting, and other third-party fees relating to the Company’s initial public offering and follow-on offerings. In June 2023 and February 2024, the Company consummated its IPO and a follow-on offering, respectively, and recorded such amounts against the gross proceeds of these offerings within the statements of stockholders’ equity during the periods ended March 31, 2024 and December 31, 2023. In July 2024, the Company consummated a second follow-on offering as disclosed further in Note 16.

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (“Topic 842”). ASU 2016-02 requires lessees to present right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. See Note 2 – Recently Adopted Accounting Pronouncements.

In calculating the effect of ASU 2016-02, the Company elected the transition method thereby not restating comparable periods. The Company elected to account for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgments, including making estimates related to the lease term, lease payments, and discount rate. In accordance with the guidance, the Company recognized ROU assets and lease liabilities for all leases with a term greater than 12 months. Leases are classified as either operating or financing leases based on the economic substance of the agreement.

The Company has operating leases for buildings. The Company has 3 operating leases with a ROU asset and lease liability totaling $1,418,502 as of January 1, 2022. The basis, terms and conditions of the leases are determined by the individual agreements. The Company’s option to extend certain leases ranges from 36 – 52 months. All options to extend have been included in the calculation of the ROU asset and lease liability. The leases do not contain residual value guarantees, restrictions, or covenants that could incur additional financial obligations to the Company. There are no subleases, sale-leaseback, or related party transactions.

At June 30, 2024, the Company had operating right-of-use assets with a net value of $672,799 and current and long-term operating lease liabilities of $293,026 and $395,987, respectively.

In 2023, the Company entered into a lease for the use of certain equipment that is classified as a finance lease. The finance lease has a term of 36 months. At June 30, 2024, the Company had financing right-of-use assets with a net value of $32,262 and current and long-term operating lease liabilities of $15,317 and $18,329, respectively.

Research and Development

The Company accounts for research and development costs in accordance with Accounting Standards Codification (ASC) subtopic 730-10, Research and Development. Accordingly, internal research and development costs are expensed as incurred. Research and development costs consist of costs related to labor, materials and supplies. Research and development costs incurred were $1,118,552 and $2,591,522 during the three and six months ended June 30, 2024, respectively.

F-8

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

At June 30, 2024 and December 31, 2023, the Company has a state tax credit receivable of $86,778 for pending refunds related to the selling of research and development tax credits back to the State of Connecticut. At June 30, 2024 and December 31, 2023, the Company has $0 and $20,040, respectively for pending refunds related to Canadian Scientific Research and Experimental Development (SRED) credits. At June 30, 2024 and December 31, 2023, the Company has also recorded $9,757 and $11,565, respectively, related to refunds of Canadian Goods and Services Tax (GST) and Quebec Sales Tax (QST). Receipts of refunds are recorded in research and development on the statements of operations.

Certain Risks and Uncertainties

The Company’s activities are subject to significant risks and uncertainties including the risk of failure to secure additional funding to properly execute the Company’s business plan. The Company is subject to risks that are common to companies in the pharmaceutical industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, reliance on third party manufacturers, protection of proprietary technology, and compliance with regulatory requirements.

Recent Accounting Pronouncements

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

3. Property and Equipment

Property and equipment consisted of the following at:


	June 30, 2024		December 31, 2023
Laboratory equipment	$	1,018,452	$	1,013,134
Computers and office equipment	30,825		30,825
Furniture and fixtures	24,316		24,316
Leasehold improvements	28,855		28,855
Building equipment	14,932		14,932
Total property and equipment	1,117,380		1,112,062
Less accumulated depreciation & amortization	(458,649)		(401,987)
Total property and equipment, net	$	658,731	$	710,075

Depreciation and amortization expense was $29,935 and $59,870 for the three and six months ended June 30, 2024 respectively. Depreciation and amortization expense was $30,877 and $61,429 for the three and six months ended June 30, 2023, respectively.

4. Intangible Assets

Intangible assets consisted of the following at:

June 30, 2024:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	59,474	$	—	$	—	$	59,474
Patents	17 years	183,021		20,865		—		162,156

Intangible assets		$	242,495	$	20,865	$	—	$	221,630

F-9

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

December 31, 2023:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	57,474	$	—	$	—	$	57,474
Patents	17 years	169,190		15,783		—		153,407

Intangible assets		$	226,664	$	15,783	$	—	$	210,881

During the three and six months ended June 30, 2024, amortization expense related to intangible assets was $2,571 and $5,082, respectively. During the three and six months ended June 30, 2023, amortization expense related to intangible assets was $1,780 and $3,377, respectively.

5. Accrued Expenses

Accrued expenses consisted of the following at:


	June 30, 2024		December 31, 2023
Employee payroll and bonuses	$	297,416	$	207,556
Vacation	74,359		31,074
Research and development projects	50,837		85,767

Professional fees	3,945		35,624
Other	7,546		23,647
Total accrued expenses	$	434,103	$	383,668

The Company accrues expenses related to development activities performed by third parties based on an evaluation of services received and efforts expended pursuant to the terms of the contractual arrangements. Payments under some of these contracts depend on research and non-clinical trial milestones. There may be instances in which payments made to the Company’s vendors will exceed the level of services provided and result in a prepayment of expense. In accruing service fees, the Company estimates the period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual or prepaid expense accordingly. The Company has not experienced any material differences between accrued costs and actual costs incurred since its inception.

6. Convertible Debt

Effective January 5, 2021, the Company entered into a Note Purchase Agreement to issue up to $2,000,000 of convertible promissory notes. On the same date, the Company entered into a convertible promissory note (2021 Convertible Note) with one investor for $1,000,000. The 2021 Convertible Note bears interest at a rate of 6% per annum and is due and payable in full on January 5, 2023. The 2021 Convertible Note automatically converts upon a qualified equity financing, as defined in the note agreement to the number of preferred shares equal to all principal and accrued interest divided by the conversion price of $48.00 on a basis unadjusted for the Forward Stock Split and the Reverse Stock Split, which is subject to adjustment as defined in the note agreement. The 2021 Convertible Note is also optionally convertible as defined in the note agreement for certain non-qualified financing, a change in control, or upon the maturity date of the 2021 Convertible Note. The Company incurred issuance costs of $15,613 related to the 2021 Convertible Note, which has been recorded as a debt discount and will be amortized over the term of the 2021 Convertible Note.

In September 2022, the Company entered into a Convertible Note Purchase Agreement (the Agreement) to issue up to $4,500,000 convertible promissory notes. On the same day, the Company entered into convertible promissory notes (2022 Convertible Notes) with three investors totaling $4,350,000. The 2022 Convertible Notes mature on January 13, 2023 or the occurrence of an Event of Default (as defined) and bear interest at a rate of 8% per annum which shall accrue but is not due and payable until conversion or full repayment of outstanding principal. The principal and interest outstanding under the 2022 Convertible Notes is automatically converted a) upon the closing of a Qualified Financing resulting in gross proceeds to the Company of at least $20 million into securities issued in connection with the Qualified Financing, at a discount of 30% per share; b) upon the closing of a Change of Control event into shares of capital stock of the Company or Series B preferred stock; and c) upon the closing of a Public Company Event, into shares of capital stock being issued to investors equal to two-times (2x) the amount of the outstanding principal and accrued interest then outstanding divided by the public offering price per share. The principal and interest outstanding under the 2022

F-10

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Convertible Notes is convertible, at the option of the holders, at the maturity date into a new class of Company’s Preferred Stock (Series C Preferred) equal to the quotient of the outstanding principal amount plus interest divided by the Capped Price, which is defined as the price per share equal to the Valuation Cap of $30 million divided by the Company Capitalization, as defined in the Agreement.

In January 2023, the Company elected to convert the 2021 Convertible Note, including interest accrued but not yet paid of $124,759 at a conversion price of $48.00 into 23,432 shares of its Series B Preferred Stock on a basis unadjusted for the Forward Stock Split and the Reverse Stock Split in accordance with the terms outlined in the Note Purchase Agreement.

In February 2023, the 2022 Convertible Notes were amended to extend the maturity date to March 31, 2023 and to change the conversion price upon a Qualified Financing or Change in Control event to $30 million divided by the number of shares of the Company’s common stock issued and outstanding, on a fully diluted basis, immediately prior to the close of the Qualified Financing or Change in Control event.

During April and June 2023, the 2022 Convertible Notes were further amended to extend the maturity date to September 30, 2023 and allow for the sale of additional notes of $500,000 for a total aggregate principal of $4,850,000.

Effective June 21, 2023, the 2022 Convertible Notes were converted to 61,534 shares of the Company’s common stock equal to $9,495,072. During the three and six months ended June 30, 2023, the Company recorded a loss on the change in the fair value of $2,830,100 and 3,630,100, respectively.

Interest expense was $0 and $166,019 during the six months ended June 30, 2024 and June 30, 2023,respectively.

7. Stockholders’ Equity

On May 17, 2023, the Company effected a 7.1-for-1 forward stock split (the “Forward Stock Split”) of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s preferred stock. The par value of the common stock was adjusted as a result of the Forward Stock Split from $0.01 to $0.0001 and the authorized shares were increased to 100,000,000 shares of common stock in connection with the Forward Stock Split. In lieu of any fractional shares issued as a result of the split the Company paid a cash amount to the holder of such fractional share. The accompanying financial statements and notes to the financial statements give retroactive effect to the Forward Stock Split for all periods presented. Shares of common stock underlying outstanding stock-based awards and other equity instruments were proportionately increased and the respective per share value and exercise prices, if applicable, were proportionately decreased in accordance with the terms of the agreements governing such securities.

On July 1, 2024, the Company effected a 30-for-1 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding shares of common stock and began trading on a split-adjusted basis the same day. There was no change to the par value of the common stock. In lieu of any fractional shares issued as a result of the split the Company paid a cash amount to the holder of such fractional share. The accompanying financial statements and notes to the financial statements give retroactive effect to the Reverse Stock Split for all periods presented unless otherwise noted. Shares of common stock underlying outstanding stock-based awards and other equity instruments were proportionately decreased and the respective per share value and exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities.

Common Stock

At June 30, 2024 and December 31, 2023, per the Company’s amended and restated Certificate of Incorporation, the Company was authorized to issue 100,000,000 shares of $0.0001 par value common stock.

Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders.

The Company currently has 74,622 shares of common stock reserved for future issuance for the potential exercise of stock options and warrants outstanding at June 30, 2024.

Preferred Stock

At June 30, 2024 and December 31, 2023, per the Company’s amended and restated Certificate of Incorporation, the Company has authorized 10,000,000 shares of $0.0001 par value preferred stock.

F-11

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Upon the close of the Company’s IPO in June 2023, all of the then outstanding preferred stock converted to common stock, resulting in the issuance of 48,608, 98,828, and 109,485 shares of common stock in exchange for outstanding Series A, Series A-1, and Series B Preferred Stock, respectively. There was no gain or loss upon conversion.

8. Warrants

The Company issued warrants to purchase 1,596 shares of common stock in 2018 in conjunction with convertible debt financing that have a redemption provision providing the holder the right to have the Company redeem all or any portion of the warrant (or shares it has converted into) at a purchase price equal to the fair market value of the shares as determined by the board of directors or an independent appraiser. As a result of this redemption provision, the warrants have been classified as a liability in the financial statements based on ASC 480 – Distinguishing Liabilities from Equity. These warrants have an exercise price of $14.40 per share and a term of 10 years. The warrants are marked to market each reporting period. The fair value is $2,926 and $35,453 at June 30, 2024 and December 31, 2023, respectively.

The Company issued 2,000 and 22,223 warrants to its underwriters as part of our initial public offering in fiscal 2023 and follow-on offering in fiscal 2024, respectively. The underwriter warrants have a term of 10 years.

The Company also issued warrants in 2019, 2023, and 2024 which did not meet the criteria under ASC 480 to be classified as a liability, and instead meet equity classification criteria.

The following table summarizes information about warrants outstanding at June 30, 2024:


			Warrants Outstanding				Warrant Exercisable
Year Granted	Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

2018	$	14.40	1,596	3.8 years	$	14.40	1,596	3.8 years	$	14.40
2019	$	158.40	7,195	1.6 years	$	158.40	7,195	1.6 years	$	158.40
2023	$	187.50	2,000	4.0 years	$	187.50	2,000	4.0 years	$	187.50
2024	$	11.40	22,223	4.7 years	$	11.40	22,223	4.7 years	$	11.40
			33,014		$	54.25	33,014		$	54.25

9. Stock Options

In March 2023, the Company’s Board of Directors and stockholders approved the 2023 Stock Incentive Plan (“2023 Plan”). The 2023 Plan allows the Compensation Committee to grant up to 66,667 shares of Common Stock in the form of incentive and non-statutory stock options, restricted stock awards, restricted stock units, and other stock-based awards to employees, directors, and non-employees. As of June 30, 2024, options to purchase 1,333 shares of common stock had been granted and were outstanding under the 2023 Plan and 65,334 shares of common stock were available for grant under the plan.

During 2016, the Company established the Azitra Inc. 2016 Stock Incentive Plan ("2016 Plan") which provides for the grant up to 49,687 shares of Common Stock in the form of stock options and restricted shares to the Company’s employees, officers, directors, advisors and consultants. As of June 30, 2024, options to purchase 40,275 shares of common stock had been granted and 7,457 shares of common stock were available for grant under the 2016 Plan.

During the three and six months ended June 30, 2024 and 2023 the Company did not grant any equity awards under the 2016 or 2023 Plans. During the three and six months ended June 30, 2024, the Company recognized stock compensation expense of $34,171 and $68,341, respectively, relating to the issuance of service-based stock options. During the three and six months ended June 30, 2023, the Company recognized stock compensation expense of $38,794 and $77,587, respectively, relating to the issuance of service-based stock options. At June 30, 2024, there was $258,097 of unamortized compensation expense that will be amortized over the remaining vesting period. At June 30, 2024 and 2023, there were 437 performance-based options outstanding with a fair value of $109,551.

F-12

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

During the three and six months ended June 30, 2024 the Company did not recognize any compensation expense for performance-based options. The Company determined the options qualified as plain vanilla under the provisions of SAB 107 and the simplified method was used to estimate the expected option life.

The following table summarizes information about options outstanding and exercisable at June 30, 2024:


		Options Outstanding				Options Exercisable
Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

$	14.32	6,871	1.5 years	$	14.32	6,871	1.5 years	$	14.32
$	27.80	6,735	1.5 years	$	27.80	6,735	1.5 years	$	27.80
$	51.08	26,669	6.8 years	$	51.08	20,798	6.6 years	$	51.08
$	62.10	1,333	9.2 years	$	62.10	167	9.2 years	$	62.10
		41,608				34,571

Total stock option activity for the six months ended June 30, 2024, is summarized as follows:


	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	42,941	$	41.10
Granted	—	—
Exercised	(1,333)	14.32
Forfeited	—	—
Outstanding at June 30, 2024	41,608	$	41.60

10. Fair Value Measurements

The following tables summarize the fair values and levels within the fair value hierarchy in which the fair value measurements fall for assets and liabilities measured on a recurring basis as of:

June 30, 2024


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	2,926	$	2,926
Total	$	—	$	—	$	2,926	$	2,926

F-13

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

December 31, 2023


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	35,453	$	35,453

Total	$	—	$	—	$	35,453	$	35,453

The following table presents the changes in Level 3 instruments measured on a recurring basis for the period ended June 30, 2024:


Balance at December 31, 2023	$	35,453
Changes in fair value of warrants	(28,155)

Balance at March 31, 2024	$	7,298
Changes in fair value of warrants	(4,372)


Balance at June 30, 2024	$	2,926

At June 30, 2024 and December 31, 2023, the Company estimated the fair value of the warrants using the Black-Scholes option pricing model with the following assumptions:


	June 30, 2024			December 31, 2023
Underlying common stock value	$	2.76		$	27.60
Expected term (years)	3.79			4.29
Expected volatility	139		%	99		%
Risk free interest rate	4		%	4		%
Dividend yield	—		%	—		%

Fluctuation in the fair value of the Company’s Common stock is the primary driver for the change in the common stock warrant liability valuation during each year. As the fair value of the Common stock increases the value to the holder of the instrument generally increases.

Prior to their redemption, fluctuations in the various inputs, including the enterprise value, time to liquidity, volatility, and discount rate are the primary drivers for the changes in valuation of the 2022 Convertible Notes each reporting period. As the fair value of the enterprise value, estimated time to liquidity, volatility, and discount rate increase, the value to the holder of the 2022 Convertible Notes generally increases.

11. Net Loss Per Share

Basic and diluted net loss per share were calculated as follows:

The denominator is as follows at:


	Three Months Ended		Six Months Ended
	2024	2023	2024	2023
Weighted average common stock outstanding, basic and diluted	960,146	71,240	816,450	53,121
$0.01 warrants	—	382	—	382
Total	960,146	71,622	816,450	53,503

The following potential common stock equivalents, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:

F-14

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS


	June 30,
	2024	2023
Options to purchase shares of common stock	41,608	42,023
Warrants outstanding	33,014	10,791
Total	74,622	52,814

12. Commitments and Contingencies

Legal

The Company is subject to legal proceedings or claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

License Agreement

Effective January 26, 2022, the Company entered into an Exclusive License Agreement (the License Agreement) with an unrelated third party. Under the License Agreement, the Company is granted an exclusive license for certain patents and a non-exclusive license for certain know-how. The License Agreement continues until the later of the expiration of the last to expire licensed patent or ten years after the first commercial sale of the first licensed therapeutic or non-therapeutic product. The Company may terminate the License Agreement at any time by providing at least 30 days written notice to the third party. The License Agreement is also terminated upon breach of a material obligation under the agreement or bankruptcy. Upon any termination of the License Agreement, neither party is relieved of obligations incurred prior to the termination.

During the three and six months ended June 30, 2024 the Company did not capitalize any payments made under this license agreement. During the three and six months ended June 30, 2023, the Company capitalized payments made under this license agreement in the amount of $11,405 and $15,263, respectively.

Operating Leases

The Company leases office and lab space in Branford, CT; Groton, CT; and Montreal, Quebec. The Company’s leases expire at various dates through May 31, 2027. Most leases are for a fixed term and for a fixed amount.

During 2019, the Company entered into a new lease agreement for office and laboratory space in Montreal, Quebec. The Montreal lease required monthly payments of $6,906, CAD which increases approximately 4% in each of the following years. The Montreal lease was increased to $8,130 CAD in 2021 upon leasing additional space. The Montreal lease was initially for a one-year term, renewable annually. The Montreal lease also requires the Company to pay additional common area maintenance.

During 2020, the Company entered into a new lease agreement for the Company’s primary office and laboratory space in Branford, CT. The Branford lease requires monthly payments of $13,033 for the first year of the lease, which increases approximately 2% in each of the following years. The Branford lease also requires the Company to pay a pro-rata share of common area maintenance.

During May 2021, the Company entered into a new lease for office and laboratory space in Groton, CT. The Groton lease required monthly payments of $4,234, which was increased to $6,824 in September 2021 upon leasing additional space. The Groton lease is initially for a one-year term, renewable annually for up to three additional years.

Future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year during each of the next five years follow:

F-15

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS


2024 (Remaining 6 months)	$	158,115
2025	282,408
2026	205,038
2027	80,397
2028	—
Thereafter	—
Total future undiscounted lease payments	725,958
Less interest	(36,945)
Present value of minimum lease payments	$	689,013

Rent expense for all operating leases was $169,428 and $169,428 for the six months ended June 30, 2024 and June 30, 2023, respectively. The weighted average lease term for all operating leases is 2.5 years. The weighted average discount rate for all operating leases is 4.25%.

Finance Leases

During 2023, the Company entered into an agreement with Hewlett Packard to lease equipment. The lease requires monthly payments of $1,478, including tax. The lease is for a 3 years term with option of purchase or extension at term end. The remaining lease term is 2.1 years and the discount rate is 9.60%.

The following is a schedule showing the future minimum lease payments under finance leases by years and the present value of the minimum payments as of June 30, 2024.


2024 (Remaining 6 months)	$	8,870
2025	17,740
2026	10,351
2027	—
Thereafter	—
Total future undiscounted lease payments	36,961
Less interest	(3,315)
Present value of minimum lease payments	$	33,646

Lease expense for the finance lease was $7,740 and $0 for the six months ended June 30, 2024 and June 30, 2023, respectively. Interest expense for the finance lease was $1,745 and $0 for the six months ended June 30, 2024 and June 30, 2023, respectively.

13. Retirement Plan

Effective January 1, 2019, the Company sponsors a 401(k) plan that covers substantially all employees. In order to be eligible to participate, an employee must complete two consecutive months of service and work a minimum of two hundred fifty hours or work 1,000 hours in their first year of service. Employees may make pre-tax deferrals upon meeting the Plan eligibility requirements. Effective January 1, 2020, the Plan was transitioned to a safe harbor plan in which highly compensated employees are not eligible for matching contributions and non-highly compensated employees earn 100% match on first 3% contributed and 50% on the next 2% contributed. Total employer matching contributions were $3,522 and $7,648 for the three and six months ended June 30, 2024, respectively. Total employer matching contributions were $2,633 and $4,824 for the three and six months ended June 30, 2023, respectively.

14. Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk consist principally of cash and accounts receivable.

F-16

AZITRA, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2024 and 2023, all service revenue was from one customer.

The cash balance identified in the balance sheet is held in an account with a financial institution and insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times, cash maintained on deposit may be in excess of FDIC limits.

15. Related Parties

Total related party revenue was $7,500 and $7,500 for the three and six months ended June 30, 2024, respectively. Total related party revenue was $172,000 and $285,300 for the three and six months ended June 30, 2023. respectively. Accounts receivable due from the related party was $0 and $90,000 at June 30, 2024 and December 31, 2023, respectively.

In September 2022, the Company entered into a convertible promissory note totaling $4,350,000 of which $4,000,000 was attributable to an entity who was also an investor in the Company’s Series A, A-1, and B Preferred Stock financing (See Note 6). This entity received 1,697,490 shares of common stock on a basis unadjusted for a Forward Stock Split and a Reverse Stock Split, upon conversion of the promissory notes for principal and interest of $4,243,726.

16. Subsequent Events

The Company has evaluated events subsequent to the balance sheet date through August 12, 2024, the date these condensed financial statements are issued.

On July 25, 2024, the Company completed a follow-on offering of an aggregate of 6,665,000 shares of its common stock, and Class A warrants to purchase up to 13,330,000 shares of common stock, at a combined public offering price of $1.50 per share and accompanying warrants. The Class A warrant will have an initial exercise price of $1.50 per share, are exercisable immediately upon issuance, and will expire on the fifth anniversary of the original issuance date. However on the date that is 30 calendar days immediately following the date of issuance of the Class A Warrants, or August 24, 2024 (the “Reset Date”), if the Reset Price, as defined below, is less than the exercise price at such time, the exercise price will be decreased to the Reset Price. “Reset Price” shall mean 100% of the trailing five-day VWAP immediately preceding the Reset Date, provided, that in no event shall the Reset Price be less than $0.32 (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions), which represents 20% of the most recent closing price for the Common Stock at the time of execution of the Agency Agreement. The number of shares of Common Stock issuable upon exercise of the Class A Warrants will not be proportionately adjusted in the event of a reset of the exercise price.

In consideration for Maxim Group LLC serving as the placement agent of the Offering (the “Placement Agent”), the Company paid the Placement Agent a cash fee equal to 7% of the aggregate gross proceeds of the Offering and reimbursed the Placement Agent for certain expenses and legal fees up to $100,000. The Company also issued warrants to designees of the Placement Agent (the “Placement Agent Warrants”) exercisable for an aggregate of 266,600 shares of Common Stock (the “Placement Agent Warrant Shares”). The Placement Agent Warrants have substantially the same terms as the Class A Warrants, except that the Placement Agent Warrants have an exercise price equal to $1.875 per share (125% of the $1.50 offering price of the Common Share and accompanying Class A Warrants), have an initial exercise date of January 23, 2025 and expire on July 23, 2029.

The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, were approximately $10.0 million.

F-17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto contained elsewhere in this report. The information contained in this quarterly report on Form 10-Q is not a complete description of our business or the risks associated with an investment in our common stock. We urge you to carefully review and consider the various disclosures made by us in this report and in our other filings with the Securities and Exchange Commission, or SEC, including our Form 10-K for the year ended December 31, 2023 and filed with the SEC on March 15, 2024.

In this report we make statements, and from time to time we otherwise make written and oral statements regarding our business and prospects, such as projections of future performance, statements of management’s plans and objectives, forecasts of market trends, and other matters that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements containing the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimates,” “projects,” “believes,” “expects,” “anticipates,” “intends,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions identify forward-looking statements, which may appear in our documents, reports, filings with the SEC, and news releases, and in written or oral presentations made by officers or other representatives to analysts, stockholders, investors, news organizations and others, and in discussions with management and other of our representatives.

Our future results, including results related to forward-looking statements, involve a number of risks and uncertainties, including those risks included in the “Risk Factors” section in our Form 10-K for the year ended December 31, 2023 and filed with the SEC on March 15, 2024. No assurance can be given that the results reflected in any forward-looking statements will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made. Our forward-looking statements are based upon assumptions that are sometimes based upon estimates, data, communications and other information from suppliers, government agencies and other sources that may be subject to revision. Except as required by law, we do not undertake any obligation to update or keep current either (i) any forward-looking statement to reflect events or circumstances arising after the date of such statement or (ii) the important factors that could cause our future results to differ materially from historical results or trends, results anticipated or planned by us, or which are reflected from time to time in any forward-looking statement.

General

We were formed in January 2014 as a biopharmaceutical company focused on developing innovative therapies for precision dermatology using engineered proteins and live biotherapeutic products. We are an early-stage clinical biopharmaceutical company and have not commenced commercial operations.

To date, we have capitalized our operations primarily through a series of private placements of our convertible preferred stock and convertible promissory notes and our initial public offering, IPO, of common stock which closed on June 21, 2023. In connection with our IPO, we issued 50,000 shares of our common stock at a public offering price of $150 per share. Concurrent with the close of our IPO, all of our outstanding shares of convertible preferred stock and convertible promissory notes converted into a total of 298,384 shares of our common stock. In February 2024, we completed a follow-on public offering in which we issued and sold 555,567 shares of our common stock at a price to the public of $9.00 per share. On July 25, 2024, the Company completed a follow-on offering of an aggregate of 6,665,000 shares of its common stock, and Class A warrants to purchase up to 13,330,000 shares of common stock, at a combined public offering price of $1.50 per share and accompanying warrants.

As of August 12, 2024, we had 7,625,056 shares of our common stock issued and outstanding. Except as otherwise indicated, all share and share price this report gives effect to a reverse stock split effected on July 1, 2024 at a ratio of 30-for-1.

Overview

We focus on developing innovative therapies for precision dermatology using engineered proteins and topical live biotherapeutic products. We have built a proprietary platform that includes a microbial library comprised of approximately 1,500 unique bacterial strains that can be screened for unique therapeutic characteristics. The platform is augmented by an artificial intelligence and machine learning technology that analyzes, predicts and helps screen our library of strains for drug like molecules. The platform also utilizes a licensed genetic engineering technology, which can enable the transformation of previously genetically

intractable strains. Our initial focus is on the development of genetically engineered strains of Staphylococcus epidermidis, or S. epidermidis, which we consider to be an optimal therapeutic candidate species for engineering of dermatologic therapies. The particular species demonstrates a number of well-described properties in the skin. As of the date of this report, we have identified among our microbial library over 60 distinct bacterial species that we believe are capable of being engineered to create living organisms or engineered proteins with significant therapeutic effect.

We are a pioneer in genetically engineered bacteria for therapeutic use in dermatology. Our goal is to leverage our platforms and internal microbial library bacterial strains to create new therapeutics that are either engineered living organisms or engineered proteins or peptides to treat skin diseases. Our initial focus is on the development of our current product candidates, including:

•ATR-12, a genetically modified strain of S. epidermidis for treating the orphan disease, Netherton syndrome, a chronic and sometimes fatal disease of the skin estimated to affect approximately one in every 100,000, but its prevalence may be underestimated due to misdiagnosis caused by similarities to other skin diseases. We received Pediatric Rare Disease Designation for ATR-12 by the United States Food and Drug Administration, or FDA, in 2019. In December 2022, we submitted an investigational new drug application, or IND, for a Phase 1b clinical trial of ATR-12 in Netherton syndrome patients, and on January 27, 2023 we received notification from the FDA that the “study may proceed” with respect to the proposed Phase 1b clinical trial. After submitting post-IND manufacturing reports, we have commenced operating activities for our Phase 1b clinical trial in December 2023 and the trial has been opened for patient enrollment. We expect to report initial safety results by year-end 2024.

•ATR-04, a genetically modified strain of S. epidermidis for treating the papulopustular rash experienced by cancer patients undergoing epidermal growth factor receptor inhibitor, or EGFRi, targeted therapy. We intend to submit an IND for a Phase 1b clinical trial in certain cancer patients undergoing EGFRi targeted therapy in the third quarter of 2024. Subject to FDA clearance of our IND, we expect to commence our Phase 1b clinical trial in the fourth quarter of 2024.

•ATR-01, a genetically modified strain of S. epidermidis that expresses an engineered recombinant human filaggrin protein for treating ichthyosis vulgaris, a chronic, xerotic (abnormally dry), scaly skin disease with an estimated incidence and prevalence of 1 in 250, which suggests a total patient population of 1.3 million in the United States. We are planning to perform lead optimization and IND-enabling studies in 2024 to support an IND filing targeted for the second half of 2025.

•Two separate strains of bacterial microbes being investigated and developed by us and Bayer Consumer Care AG, the consumer products division of Bayer AG, or Bayer, the international life science company. We entered into a Joint Development Agreement, or JDA, with Bayer in December 2019. Under the terms of the JDA, we are responsible for testing our library of bacterial strains and their natural products for key preclinical properties. After screening through hundreds of strains, we and Bayer have selected two particular strains to move forward into further development. Bayer holds the exclusive option to license the patent rights to these strains. In December 2020, Bayer purchased $8 million of our Series B preferred stock, which converted into 48,324 shares of our common stock.

We also have established partnerships with teams from Carnegie Mellon University and the Fred Hutchinson Cancer Center, or Fred Hutch, two of the premier academic centers in the United States. Our collaboration with the Carnegie Mellon based team also takes advantage of the power of whole genome sequencing. This partnership is mining our proprietary library of bacterial strains for novel, drug like peptides and proteins. The artificial intelligence/machine learning technology developed by this team predicts the molecules made by microbes from their genetic sequences. The system then compares the predictions to the products actually made through tandem mass spectroscopy and/or nuclear magnetic resonance imaging to refine future predictions. The predictions can be compared to publicly available 2D and 3D protein databases to select drug like structures.

We hold an exclusive, worldwide license from Fred Hutch regarding the use of its patented SyngenicDNA Minicircle Plasmid, or SyMPL, technologies for all fields of genetic engineering, including to discover, develop and commercialize engineered microbial therapies and microbial-derived peptides and proteins for skin diseases. We are utilizing our licensed patent rights to build plasmids in order to make genetic transformations that have never been previously achieved. To date, our team has successfully engineered our lead therapeutic candidates without the SyMPL technology. However, we believe that SyMPL will open up the ability to make genetic transformations of an expanded universe of microbial species, and we expect that some or all of our future product candidates will incorporate the SyMPL technology.

Our Strategy

Beyond our three lead product candidates and collaboration with Bayer, our goal is to develop a broad portfolio of product candidates focused on expanding the application of our platforms for precision dermatology. We believe that we have established a unique position in advancing the development of biologics for precision dermatology.

We intend to create a broad portfolio of product candidates for precision dermatology through our development of genetically engineered proteins selected from our proprietary microbial library of approximately 1,500 unique bacterial strains. Our strategy is as follows:

•Build a sustainable precision dermatology company. Our goal is to build a leading precision dermatology company with a sustainable pipeline of product candidates. To that end, we are focused on rapidly advancing our current pipeline of live biotherapeutic candidates while actively developing additional product candidates. Each of our current product candidates are

proprietary and subject to pending patent applications. We expect that most, if not all, genetically engineered product candidates we develop will be eligible for patent protection.

•Advance our lead product candidates, ATR-12 and ATR-04, through clinical trials. In 2022, we obtained pre-IND correspondence with the FDA for purposes of discussing our proposed regulatory pathway for ATR-12 and obtaining guidance from the FDA on the preclinical plan leading to the filing and acceptance of an IND for ATR-12. In December 2022, we filed an IND for a first-in-human trial of ATR-12 in Netherton syndrome patients. On January 27, 2023, we received notification from the FDA that the “study may proceed” with respect to the proposed Phase 1b clinical trial. In April 2024, we held a pre-IND meeting with the FDA to discuss an IND filing for a first-in-human Phase 1b/2a clinical trial in patients with EGFRi-associated rash. We expect to report initial safety results of our Phase 1b clinical trial for our ATR-12 in Netherton syndrome patients by year-end and are currently planning to commence a Phase 1b trial of our ATR-04 in certain cancer patients undergoing EGFRi therapy in the fourth quarter of 2024. We have a cleared IND for ATR-12 and expect to file an IND for ATR-04 in the third quarter of 2024.

•Broaden our platform by selectively exploring strategic partnerships that maximize the potential of our precision dermatology programs. We intend to maintain significant rights to all of our core technologies and product candidates. However, we will continue to evaluate partnering opportunities in which a strategic partner could help us to accelerate development of our technologies and product candidates, provide access to synergistic combinations, or provide expertise that could allow us to expand into the treatment of different types of skin diseases. We may also broaden the reach of our platform by selectively in-licensing technologies or product candidates. In addition, we will consider potentially out-licensing certain of our proprietary technologies for indications and industries that we are not ourselves pursuing. We believe our genetic engineering techniques and technologies have applicability outside of the field of medicine, including cosmetics and in the generation of clean fuels and bioremediation.

•Leverage our academic partnerships. We currently have partnerships with investigators at the Fred Hutchinson Cancer Center, Yale University, Jackson Laboratory for Genomic Medicine, and Carnegie Mellon University. We expect to leverage these partnerships and potentially expand them or form other academic partnerships to bolster our engineering platforms and expand our research and development pipeline.

•Expand on our other potential product candidates. Beyond our three lead product candidates, our goal is to develop a broad portfolio of product candidates focused on expanding the application of our platforms for precision dermatology. We have a proprietary platform for discovering and developing therapeutic products for precision dermatology. Our platform is built around a microbial library comprised of approximately 1,500 unique bacterial strains to allow screening for unique therapeutic characteristics and utilizes a microbial genetic technology that analyzes, predicts and engineers the proteins, peptides and molecules made by skin microbes. Our ability to genetically engineer intractable microbial species is uniquely leveraged by our exclusive license to the SyMPL technology.

Results of Operations

We are an early-stage clinical biopharmaceutical company, formed in January 2014, and have limited operating history. We have not commenced revenue-producing operations apart from limited service revenue derived through our JDA with Bayer. Under the terms of the JDA, we are responsible for testing our library of microbial strains and their natural products for key preclinical properties and Bayer reimburses us for our development costs. To date, our operations have consisted of the development of our proprietary microbial library, the identification, characterization and testing of certain bacterial species from our microbial library that we believe are capable of being engineered to provide significant therapeutic effect and the development of our initial product candidates.

Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023

The following table summarizes our results of operations with respect to the items set forth below for the three months ended June 30, 2024 and 2023, together with the percentage change for those items.


	Three Months Ended June 30,
	2024		2023		$ Change		% Change

Service revenue - related party	$	7,500	$	172,000	$	(164,500)	(96)	%
Total revenue	7,500		172,000		(164,500)		(96)	%

Operating expenses:
General and administrative	1,549,228		844,639		704,589		83	%
Research and development	1,118,552		754,951		363,601		48	%
Total operating expenses	2,667,780		1,599,590		1,068,190		67	%

Loss from operations	(2,660,280)		(1,427,590)		(1,232,690)		86	%

Other income (expense):
Interest income	16,268		264		16,004		6,062	%
Interest expense	(1,782)		(76,187)		74,405		(98)	%


Change in fair value of convertible note	—		(2,830,100)		2,830,100		(100)	%
Change in fair value of warrants	4,272		(94,232)		98,504		(105)	%
Other income (expense)	9,529		(1,683)		11,212		(666)	%
Total other income (expense)	28,287		(3,001,938)		3,030,225		(101)	%

Loss before income taxes	(2,631,993)		(4,429,528)		1,797,535		(41)	%



Net loss	(2,631,993)		(4,429,528)		1,797,535		(41)	%
Dividends on preferred stock	—		(643,267)		643,267		(100)	%
Net loss attributable to common shareholders	$	(2,631,993)	$	(5,072,795)	$	2,440,802	(48)	%

Service Revenue - Related Party

We generated $7,500 of service revenue under the Bayer JDA during the second quarter of fiscal 2024 compared to service revenue of $172,000 under the JDA for the comparable period in fiscal 2023. The decrease of $164,500 in service revenue is attributable to a decrease in the amount of reimbursable development costs incurred in 2024.

General and Administrative

General and administrative costs during the second quarter of fiscal 2024 increased by $704,589, or 83%, to $1,549,228 from the comparable prior period. The increase was primarily related to the costs incurred following, and as a result of, our emergence as a public company in June 2023, including $157,000 of salaries and benefits primarily related to the hiring of our COO, an increase of $139,000 primarily related to the hiring of our CFO consultant, an increase of $257,000 primarily related to costs associated with listing on the NYSE, an increase of $89,000 primarily related to the cost of directors and officers insurance, an increase of $88,000 in public relations expenditures, an increase of $77,000 in legal costs, an increase of $18,000 in Board member costs, an increase of $18,000 in conference expense offset by a decrease of $136,000 in accounting and audit expenses and a net decrease of $2,409 in other overhead expenses.

Research and Development

Research and development expenses include salaries and benefits of all research personnel, payments to contract research organizations, payments to research consultants, and the purchase of lab supplies. These expenses are offset by income earned from government grant payments and research and development tax credits. We generate grant revenue on contracts with various federal agencies and nonprofit research institutions for general research conducted by us. These grant arrangements also do not meet the criteria for revenue recognition and amounts earned under these grant contracts are recorded as a negative research and development expense.

During the second quarter of fiscal 2024, research and development expenses increased by $363,601, or 48%, to $1,118,552 from the comparable prior period. The increase was primarily related to an increase of $12,000 in research and development related costs attributable to our efforts in moving our ATR-12 program forward into the clinic, an increase of $149,000 attributable to the use of clinical consultants, an increase of $191,000 attributable to moving our ATR-04 program forward and a net increase of $11,601 in other costs. There was no government and nonprofit grant revenue received by us during the second quarter of fiscal 2024 and 2023. There were no refundable tax credits for the three-month periods ended June 30, 2024 and 2023.

We expect our research and development expenses to significantly increase in the future due primarily to our planned clinical trial activity and continued development of product candidates.

Other Income (Expense)

Our other income (expense) consists valuation of warrants, loss on foreign currency translation, change in fair value of the convertible note and interest expense. During the second quarter of fiscal 2024, other income (expense) decreased by $3,030,225, or 101%, compared to the comparable period in fiscal 2023. The decrease was primarily related to a decrease of $2,830,100 attributable to the change in fair value of the convertible note, a decrease of $74,405 attributable to interest expense, a decrease of $98,504 in warrant value and a net decrease of $27,216 attributable to other income and expense.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023

The following table summarizes our results of operations with respect to the items set forth below for the for the six months ended June 30, 2024 and 2023 together with the percentage change for those items.


	Six Months Ended June 30,
	2024		2023		$ Change		% Change
Service revenue - related party
Total revenue	$	7,500	$	285,300	$	(277,800)	(97)	%
	7,500		285,300		(277,800)		(97)	%
Operating expenses:
General and administrative	3,037,755		1,687,649		1,350,106		80	%
Research and development	2,591,522		1,583,987		1,007,535		64	%
Total operating expenses	5,629,277		3,271,636		2,357,641		72	%
	—		—		—		—	%
Loss from operations	(5,621,777)		(2,986,336)		(2,635,441)		88	%
	—		—		—		—	%
Other income (expense):
Interest income	23,877		549		23,328		4249	%
Interest expense	(2,697)		(166,019)		163,322		(98)	%


Change in fair value of convertible note	—		(3,630,100)		3,630,100		(100)	%
Change in fair value of warrants	32,527		(88,611)		121,138		—	%
Other income (expense)	3,202		(6,475)		9,677		(149)	%
Total other income (expense)	56,909		(3,890,656)		3,947,565		(101)	%

Loss before income taxes	(5,564,868)		(6,876,992)		1,312,124		(19)	%

Income tax expense	—		(9,715)		9,715		(100)	%

Net loss	(5,564,868)		(6,886,707)		1,321,839		(19)	%
Dividends on preferred stock	—		(1,355,347)		1,355,347		(100)	%
Net loss attributable to common shareholders	$	(5,564,868)	$	(8,242,054)	$	2,677,186	(32)	%

Service Revenue - Related Party

We generated $7,500 of service revenue under the Bayer JDA during the first six months of fiscal 2024 compared to service revenue of $285,300 under the JDA for the comparable period in fiscal 2023. The decrease of $277,800 in service revenue is attributable to a decrease in the amount of reimbursable development costs in 2024.

General and Administrative

General and administrative costs during the first six months of fiscal 2024 increased by $1,350,106, or 80%, to $3,037,755 from the prior year period. The increase was primarily related to the costs incurred following, and as a result of, our emergence as a public company in June 2023, including an increase of $299,000 of salaries and benefits primarily related to the hiring of or COO, an increase of $260,000 primarily related to the hiring of our CFO consultant, an increase of $342,000 primarily related to costs associated with listing on the NYSE, an increase of $204,000 primarily related to the cost of directors and officers insurance, an increase of $123,000 in public relations expenditures, an increase of $147,000 in legal costs, an increase of $48,000 in Board member costs, an increase of $32,000 in conference expense offset by a decrease of $142,000 in accounting and audit expenses and a net increase of $37,106 in other overhead expenses.

Research and Development

Research and development expenses include salaries and benefits of all research personnel, payments to contract research organizations, payments to research consultants, and the purchase of lab supplies. These expenses are offset by income earned from government grant payments. We generate grant revenue on contracts with various federal agencies and nonprofit research institutions for general research conducted by us. These grant arrangements also do not meet the criteria for revenue recognition and amounts earned under these grant contracts are recorded as a negative research and development expense.

During the first six months of fiscal 2024, research and development expenses increased by $1,007,535, or 64%, to $2,591,522 from the prior year period. The increase was primarily related to a increase of $153,000 in research and development related costs attributable to our efforts in moving our ATR-12 program forward into the clinic, an increase of $272,000 attributable to the use of clinical consultants, an increase of $642,000 attributable to moving our ATR-04 program forward offset by a decrease of $56,000 related to the forgiveness of an accounts payable amount and a net decrease of $3,464 in other cost. There was $0 and $1,145 in government and nonprofit grant revenue received by us during the first six months of fiscal 2024 and 2023, respectively.

We expect our research and development expenses to significantly increase in the future due primarily to our planned clinical trial activity and continued development of product candidates.

Other Income (Expense)

Our other income (expense) consists valuation of warrants, loss on foreign currency translation, change in fair value of the convertible note and interest expense. During the first six months of fiscal 2024, other income (expense) decreased by $3,947,565, or 101%, compared to the comparable period in fiscal 2023. The decrease was primarily related to an decrease of $3,630,100 attributable to the change in fair value of the convertible note, an decrease of $163,323 attributable to interest expense, an decrease of $121,138 in warrant value and a net decrease of $33,004 attributable to other income and expense.

Financial Condition

As of June 30, 2024, we had total assets of approximately $3.9 million and working capital of approximately $(0.4) million. As of June 30, 2024, our liquidity included approximately $0.8 million of cash and cash equivalents. Following the quarter end, in July 2024, we completed a follow-on offering of an aggregate of 6,665,000 shares of our common stock and Class A warrants to purchase up to 13,330,000 shares of common stock, at a combined public offering price of $1.50 per share and accompanying warrants, for the net proceeds of $8.95 million. After giving effect to the July 2024 offering we believe that our cash on-hand as of the date of this report may not be sufficient to cover our proposed plan of operations over the next twelve months. We intend to seek additional funds through various financing sources, including the sale of our equity and debt securities, federal grants, licensing fees for our technology and joint ventures with industry partners. In addition, we will consider alternatives to our current business plan that may enable us to achieve revenue producing operations and meaningful commercial success with a smaller amount of capital. However, there can be no guarantees that such funds will be available on commercially reasonable terms, if at all. If such financing is not available on satisfactory terms, we may be unable to further pursue our business plan and we may be unable to continue operations.

To the extent that we raise additional capital through the sale of equity or convertible debt securities, our common stockholders’ ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect rights as a common stockholder. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to delay, limit, reduce or terminate our research, product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

As of the date of this filing, management has determined there is substantial doubt about our ability to continue as a going concern based on our lack of revenue from commercial operations, significant losses, and the need to raise additional capital to support ongoing operations.

Cash Flows

The following table shows a summary of our cash flows for the periods indicated:


	Six Months Ended June 30,
	2024		2023

Net cash used in operating activities	$	(5,121,955)	$	(3,031,522)

Net cash used in investing activities	$	(155,826)	$	(162,138)

Net cash provided by financing activities	$	4,284,874	$	5,991,359

Net (decrease) increase in cash	$	(992,907)	$	2,797,699

Operating Activities

During the first six months of fiscal 2024, operating activities used $5.1 million of cash primarily driven by our net loss of $5.6 million offset by non-cash items of $0.5 million. During the comparable period of fiscal 2023, operating activities used $3.0 million of cash primarily driven by our net loss of $6.9 offset by non-cash items of $3.9 million.

Investing Activities

During the first six months of fiscal 2024, investing activities used $155,826 of cash driven by $155,826 trademark and patent costs. During the comparable period of fiscal 2023, investing activities used $162,138 of cash driven by $129,297 of trademark and patent costs, $17,578 for the purchase of furniture and equipment, and $15,263 of license costs.

Financing Activities

During the first six months of fiscal 2024, financing activities provided $4.3 million in cash primarily driven by proceeds from our February 2024 follow-on public offering. During the comparable period of fiscal 2023, financing activities used $6.0 million in cash primarily driven by deferred offering costs for our June 2023 IPO.

Critical Accounting Policies

During the six months ended June 30, 2024, there were no material changes to our critical accounting policies previously disclosed in our Form 10-K dated December 31, 2023 and filed with the SEC on March 15, 2024.

Critical Accounting Estimates

Our management’s discussion and analysis of our financial condition and results of operations are based on our condensed financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these condensed financial statements requires us to make judgments and estimates that affect the reported amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities in our condensed financial statements. We base our estimates on historical experience, known trends and events, and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. On an ongoing basis, we evaluate our judgments and estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates, if any, will be reflected in the condensed financial statements prospectively from the date of change in estimates. There were no material changes to our critical accounting estimates as reported in our Form 10-K for the year ended December 31, 2023 and filed with the SEC on March 15, 2024.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures, pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as of June 30, 2024. In the course of that evaluation, we identified a material weakness as it relates to a lack of adequate segregation of accounting functions. We intend to increase staffing within our accounting infrastructure sufficient to facilitate proper segregation of accounting functions and to enable appropriate review of our internally prepared financial statements. Based upon the foregoing, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective as of June 30, 2024.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include our expectations, beliefs, intentions and strategies regarding the future. You should carefully consider the risk factors discussed in the “Risk Factors” section in our Form 10-K for the year ended December 31, 2023 as, in light of those risks, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in our forward-looking statements. Other than as set forth below, there have been no material changes in the risk factors included in our 2023 Form 10-K. The risk factors described in our 2023 Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

In December 2019, we entered into a Joint Development Agreement, or JDA, with Bayer pursuant to which we agreed to the joint development of certain strains selected from our proprietary microbial library. We have granted Bayer an option to acquire an exclusive royalty bearing license for up to six strains subject to development activities under the JDA, including an exclusive royalty bearing license to any related patent rights. We continue to conduct joint development work with Bayer and discuss the proposed royalty bearing license. While we remain optimistic concerning the successful completion of a royalty bearing license agreement with Bayer, there can be no assurance we will be able to conclude a licensing agreement or, if we are, that the terms of such license agreement will be favorable to us. Assuming our joint development work is successful, our ability to convert the successful development work into a commercial license with Bayer is dependent on a number of risks and factors, many of which are outside our control, including:

•Bayer’s internal evaluation of the economic benefits of marketing a dermatological product that may be competitive with other products currently in development or commercial sale by Bayer regardless of the perceived benefits or advantages of the microbial strain;

•Pharmaceutical regulations vary by country and, depending on Bayer’s marketing plans for the product based on our microbial strain, the pharmaceutical regulations in countries to be targeted by Bayer may render the clinical development of the product to be too expensive, time consuming or at risk for regulatory approval;

•Bayer’s internal budgetary and product development issues, including their ability to commit the capital and human resources towards the development and commercialization of our microbial strain; and

•Bayer’s willingness to accept our requirements for upfront fees and ongoing royalties.

In addition, we believe that in many cases our potential partners or licensee, including Bayer, may engage with us in the early-stage feasibility testing as part of their evaluation of multiple drug and drug delivery options and prior to making any decision or commitment to the development of a new drug product. Consequently, even if our joint development activities with Bayer are successful, for reasons unrelated to the performance of our technology, we may not be able to conclude a licensing agreement with Bayer.

Item 5. Other Information

Resignation of Andrew McClary

On August 9, 2024, Andrew McClary resigned from our Board Directors effective as of such date.

Bylaw Amendment

On August 8, 2024, our Board of Directors approved an amendment (“Amendment”) to Section 1.5 of our Second Amended and Restated Bylaws for purposes of lowering the quorum requirement for a stockholder meeting from the holders of a majority in voting power of the outstanding shares of capital stock of the Company to the holders of 33 1/3% in voting power of the outstanding shares of capital stock of the Company. The Amendment is effective as of August 8, 2024. The Amendment is filed as Exhibit 3.3 to this report and incorporated herein by this reference.

Item 6. Exhibits

Exhibit Number

Description

Method of Filing

1.1

Placement Agency Agreement dated July 23, 2024 between the Registrant and Maxim Group LLC

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on July 26, 2024

3.1

Amended and Restated Certificate of Incorporation of the Registrant

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on June 21, 2023

3.2

Second Amended and Restated Bylaws of the Registrant

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on June 21, 2023

3.3

Amendment to Second Amended and Restated Bylaws of the Registrant

Filed electronically herewith

4.1

Form of Class A Warrant

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on July 26, 2024

4.2

Form of Placement Agent Warrant

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on July 26, 2024

4.3

Warrant Agent Agreement dated July 25, 2024 between the Registrant and VStock Transfer LLC

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on July 26, 2024

10.1

Form of Securities Purchase Agreement between the Registrant

Incorporated by reference from the Registrant’s Current Report on Form 8-K filed on July 26, 2024

31.1

Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed electronically herewith

31.2

Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed electronically herewith

32.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

Filed electronically herewith

101 INS

Inline XBRL Instance Document.

Filed electronically herewith

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

Filed electronically herewith

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

Filed electronically herewith

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

Filed electronically herewith

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

Filed electronically herewith

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

Filed electronically herewith

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Filed electronically herewith

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	AZITRA, INC.

Date: August 12, 2024	By:	/s/ Francisco D. Salva
		Francisco D. Salva,
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: August 12, 2024	By:	/s/ Norman Staskey
		Norman Staskey
		Chief Financial Officer
		(Principal Financial Officer)

Exhibit 3.3

Amendment No. 1 to

Second Amended and Restated Bylaws

Of Azitra, Inc.

(Adopted on August 8, 2024)

Section 1.5 of the Second Amended and Restated Bylaws of Azitra, Inc. is deleted in its entirety and replaced with the following:

“Section 1.5 Quorum. Except as otherwise provided by applicable law, the Certificate of Incorporation or these Bylaws, at each meeting of stockholders the presence in person or by proxy of the holders of 33 1/3% in voting power of the outstanding shares of capital stock of the Corporation entitled to vote at the meeting shall be necessary and sufficient to constitute a quorum. In the absence of a quorum, the chairman of the meeting or the stockholders so present may, by a majority in voting power thereof, adjourn the meeting from time to time in the manner provided in Section 1.4 of these Bylaws until a quorum is present or represented. Shares of the Corporation’s capital stock shall neither be entitled to vote nor be counted for quorum purposes if such shares belong to (a) the Corporation, (b) another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation or (c) any other entity, if a majority of the voting power of such other entity is held, directly or indirectly, by the Corporation or if such other entity is otherwise controlled, directly or indirectly by the Corporation; provided, however, that the foregoing shall not limit the right of the Corporation or any subsidiary of the Corporation to vote stock, including but not limited to its own capital stock, held by it in a fiduciary capacity.”

Exhibit 31.1

CERTIFICATIONS

I, Francisco D. Salva, certify that:

(1)I have reviewed this Form 10-Q of Azitra, Inc. (the “Company”);

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4)The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d- 15(f)) for the company and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; And

(5)The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


	AZITRA, INC.

August 12, 2024	By:	/s/ Francisco D. Salva
		Francisco D. Salva, Chief Executive Officer

Exhibit 31.2

CERTIFICATIONS

I, Norman Staskey, certify that:

(1)I have reviewed this Form 10-Q of Azitra, Inc. (the “Company”);

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


	AZITRA, INC.

August 12, 2024	By:	/s/ Norman Staskey
		Norman Staskey, Chief Financial Officer (Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18

U.S.C. 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Azitra, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Francisco D. Salva, the Chief Executive Officer, and Norman Staskey, the Chief Financial Officer, of the Company, respectively, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


By:	/s/ Francisco D. Salva	August 12, 2024
	Francisco D. Salva,
	Title: President and Chief Executive Officer

By:	/s/ Norman Staskey	August 12, 2024
	Norman Staskey,
	Title: Chief Financial Officer

This certification is made solely for the purposes of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-41705
Entity Registrant Name	Azitra, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4478536
Entity Address, Address Line One	21 Business Park Drive
Entity Address, City or Town	Branford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06405
City Area Code	(203)
Local Phone Number	646-6446
Title of 12(b) Security	Common stock: Par value $0.0001
Trading Symbol	AZTR
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,625,056
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Amendment Flag	false
Entity Central Index Key	0001701478

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 803,082	$ 1,795,989
Tax credits receivable	96,535	118,383
Income tax receivable	14,235	6,836
Deferred offering costs	42,809	67,859
Prepaid expenses	378,019	448,257
Total current assets	1,335,805	2,535,579
Property and equipment, net	658,731	710,075
Financing lease right-of-use asset	32,262	40,002
Operating lease right-of-use asset	672,799	828,960
Intangible assets, net	221,630	210,881
Deferred patent costs	882,223	742,229
Deferred issuance costs	31,700	0
Other assets	47,404	47,760
Total assets	3,882,554	5,115,486
Current liabilities:
Accounts payable	996,700	897,272
Current financing lease liability	15,317	14,600
Current operating lease liability	293,026	307,655
Accrued expenses	434,103	383,668
Total current liabilities	1,739,146	1,603,195
Long-term financing lease liability	18,329	26,169
Long-term operating lease liability	395,987	537,523
Warrant liability	2,926	35,453
Total liabilities	2,156,388	2,202,340
Commitments and contingencies (Note 12)
Stockholders' equity
Preferred stock; $0.0001 par value; 10,000,000 shares authorized at June 30, 2024 and December 31, 2023; 0 shares issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Common stock; $0.0001 par value, 100,000,000 shares authorized at June 30, 2024 and December 31, 2023, 960,146 and 403,255 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	96	40
Additional paid-in capital	55,889,271	51,510,269
Accumulated deficit	(54,163,201)	(48,597,163)
Total stockholders' equity	1,726,166	2,913,146
Total liabilities, and stockholders' equity	3,882,554	5,115,486
Nonrelated Party
Current assets:
Accounts receivable	1,125	8,255
Related Party
Current assets:
Accounts receivable	$ 0	$ 90,000

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value per share (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	960,146	403,255
Common stock, shares outstanding (in shares)	960,146	403,255

CONDENSED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Service [Member]	Service [Member]	Service [Member]	Service [Member]
Service revenue - related party	$ 7,500	$ 172,000	$ 7,500	$ 285,300
Total revenue	7,500	172,000	7,500	285,300
Operating expenses:
General and administrative	1,549,228	844,639	3,037,755	1,687,649
Research and development	1,118,552	754,951	2,591,522	1,583,987
Total operating expenses	2,667,780	1,599,590	5,629,277	3,271,636
Loss from operations	(2,660,280)	(1,427,590)	(5,621,777)	(2,986,336)
Other income (expense):
Interest income	16,268	264	23,877	549
Interest expense	(1,782)	(76,187)	(2,697)	(166,019)
Change in fair value of convertible note	0	(2,830,100)	0	(3,630,100)
Change in fair value of warrant liability	4,272	(94,232)	32,527	(88,611)
Other income (expense)	9,529	(1,683)	3,202	(6,475)
Total other income (expense)	28,287	(3,001,938)	56,909	(3,890,656)
Loss before income taxes	(2,631,993)	(4,429,528)	(5,564,868)	(6,876,992)
Income tax expense	0	0	0	(9,715)
Net loss	(2,631,993)	(4,429,528)	(5,564,868)	(6,886,707)
Dividends on preferred stock	0	(643,267)	0	(1,355,347)
Net loss attributable to common shareholders	$ (2,631,993)	$ (5,072,795)	$ (5,564,868)	$ (8,242,054)
Net loss per share, basic (in dollars per share)	$ (2.74)	$ (70.83)	$ (6.82)	$ (154.05)
Net loss per share, diluted (in dollars per share)	$ (2.74)	$ (70.83)	$ (6.82)	$ (154.05)
Weighted average common stock outstanding, basic (in shares)	960,146	71,622	816,450	53,503
Weighted average common stock outstanding, diluted (in shares)	960,146	71,622	816,450	53,503

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) - USD ($)	Total	Common Stock	Additional Paid-in-Capital	Accumulated Deficit	Series A Convertible Preferred Stock	Series A-1 Convertible Preferred Stock	Series B Convertible Preferred Stock
Convertible preferred stock, beginning balance (in shares) at Dec. 31, 2022					205,385	380,657	391,303
Convertible preferred stock, beginning balance at Dec. 31, 2022					$ 3,272,944	$ 14,100,533	$ 16,321,065
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series B Convertible Preferred Stock (in shares)							23,432
Issuance of Series B Convertible Preferred Stock							$ 1,124,759
Convertible preferred stock, ending balance (in shares) at Mar. 31, 2023					205,385	380,657	414,735
Convertible preferred stock, beginning balance at Mar. 31, 2023					$ 3,272,944	$ 14,100,533	$ 17,445,824
Beginning balance (in shares) at Dec. 31, 2022		34,800
Beginning balance at Dec. 31, 2022	$ (36,260,310)	$ 3	$ 1,054,239	$ (37,314,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	38,794		38,794
Net loss	(2,457,180)			(2,457,180)
Ending balance (in shares) at Mar. 31, 2023		34,800
Ending balance at Mar. 31, 2023	(38,678,696)	$ 3	1,093,033	(39,771,732)
Convertible preferred stock, beginning balance (in shares) at Dec. 31, 2022					205,385	380,657	391,303
Convertible preferred stock, beginning balance at Dec. 31, 2022					$ 3,272,944	$ 14,100,533	$ 16,321,065
Convertible preferred stock, ending balance (in shares) at Jun. 30, 2023					0	0	0
Convertible preferred stock, beginning balance at Jun. 30, 2023					$ 0	$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2022		34,800
Beginning balance at Dec. 31, 2022	(36,260,310)	$ 3	1,054,239	(37,314,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,886,707)
Ending balance (in shares) at Jun. 30, 2023		403,255
Ending balance at Jun. 30, 2023	7,236,302	$ 40	51,437,522	(44,201,260)
Convertible preferred stock, beginning balance (in shares) at Mar. 31, 2023					205,385	380,657	414,735
Convertible preferred stock, beginning balance at Mar. 31, 2023					$ 3,272,944	$ 14,100,533	$ 17,445,824
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of preferred stock (in shares)		256,921			(205,385)	(380,657)	(414,735)
Conversion of preferred stock	34,819,301	$ 26	34,819,275		$ (3,272,944)	$ (14,100,533)	$ (17,445,824)
Convertible preferred stock, ending balance (in shares) at Jun. 30, 2023					0	0	0
Convertible preferred stock, beginning balance at Jun. 30, 2023					$ 0	$ 0	$ 0
Beginning balance (in shares) at Mar. 31, 2023		34,800
Beginning balance at Mar. 31, 2023	(38,678,696)	$ 3	1,093,033	(39,771,732)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Follow-on public offering, net of issuance costs (in shares)		50,000
Public offering, net of issuance costs	5,991,359	$ 5	5,991,354
Stock-based compensation	38,794		38,794
Conversion of preferred stock (in shares)		256,921			(205,385)	(380,657)	(414,735)
Conversion of preferred stock	34,819,301	$ 26	34,819,275		$ (3,272,944)	$ (14,100,533)	$ (17,445,824)
Conversion of convertible notes payable (in shares)		61,534
Conversion of convertible notes payable	9,495,072	$ 6	9,495,066
Net loss	(4,429,528)			(4,429,528)
Ending balance (in shares) at Jun. 30, 2023		403,255
Ending balance at Jun. 30, 2023	$ 7,236,302	$ 40	51,437,522	(44,201,260)
Beginning balance (in shares) at Dec. 31, 2023	403,255	403,246
Beginning balance at Dec. 31, 2023	$ 2,913,146	$ 40	51,511,439	(48,598,333)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Follow-on public offering, net of issuance costs (in shares)		555,567
Public offering, net of issuance costs	4,290,674	$ 56	4,290,618
Stock-based compensation	34,171		34,171
Exercises of stock options (in shares)		1,333
Exercise of stock options	19,100		19,100
Net loss	(2,932,875)			(2,932,875)
Ending balance (in shares) at Mar. 31, 2024		960,146
Ending balance at Mar. 31, 2024	$ 4,324,216	$ 96	55,855,328	(51,531,208)
Beginning balance (in shares) at Dec. 31, 2023	403,255	403,246
Beginning balance at Dec. 31, 2023	$ 2,913,146	$ 40	51,511,439	(48,598,333)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises of stock options (in shares)	1,333
Net loss	$ (5,564,868)
Ending balance (in shares) at Jun. 30, 2024	960,146	960,146
Ending balance at Jun. 30, 2024	$ 1,726,166	$ 96	55,889,271	(54,163,201)
Beginning balance (in shares) at Mar. 31, 2024		960,146
Beginning balance at Mar. 31, 2024	4,324,216	$ 96	55,855,328	(51,531,208)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Follow-on public offering issuance costs adjustment	(227)		(227)
Stock-based compensation	34,170		34,170
Net loss	$ (2,631,993)			(2,631,993)
Ending balance (in shares) at Jun. 30, 2024	960,146	960,146
Ending balance at Jun. 30, 2024	$ 1,726,166	$ 96	$ 55,889,271	$ (54,163,201)

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Stock issuance costs	$ 709,426	$ 1,508,641

CONDENSED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (5,564,868)	$ (6,886,707)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	64,953	64,806
Amortization of right-of-use assets	163,901	139,738
Change in foreign currency rates on remeasurement of Canadian fixed assets	(8,526)	0
Accrued interest on convertible notes	0	165,939
Stock based compensation	68,341	77,587
Change in fair value of warrant liability	(32,527)	88,711
Change in fair value of convertible notes	0	3,630,100
Forgiveness of accounts payable	0	(56,285)
Changes in operating assets and liabilities:
Accounts receivable	97,130	(262,300)
Prepaid expenses	70,238	111,610
Other assets	356	(237)
Tax credits receivable	21,848	27,220
Income tax receivable	(7,399)	0
Accounts payable and accrued expenses	160,763	(149,780)
Operating lease liability	(156,165)	(136,624)
Contract liabilities	0	154,700
Net cash used in operating activities	(5,121,955)	(3,031,522)
Cash flows from investing activities:
Purchases of property and equipment	0	(17,578)
Deferred patent costs	(155,826)	(119,170)
Capitalization of licenses	0	(15,263)
Capitalization of patent and trademark costs	0	(10,127)
Net cash used in investing activities	(155,826)	(162,138)
Cash flows from financing activities
Payment of deferred offering/issuance costs	(17,550)	0
Principal payments on finance leases	(7,123)	0
Proceeds from public offering, net	4,290,447	5,991,359
Proceeds from exercise of stock options	19,100	0
Net cash provided by financing activities	4,284,874	5,991,359
Net change in cash and cash equivalents	(992,907)	2,797,699
Cash and cash equivalents at beginning of period	1,795,989	3,492,656
Cash and cash equivalents at end of period	803,082	6,290,355
Supplemental disclosure of non-cash investing and financing information:
Deferred issuance/offering costs	56,959	0
Conversion of note to common stock	0	9,495,152
Conversion of note to Series B Convertible Preferred Stock	$ 0	$ 1,124,759

Organization and Nature of Operations	6 Months Ended
Organization and Nature of Operations	Jun. 30, 2024
Accounting Policies [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations Azitra, Inc. (the "Company") was founded on January 2, 2014. It is a synthetic biology company focused on screening and genetically engineering microbes of the skin. The mission is to discover and develop novel therapeutics to create a new paradigm for treating skin disease. The Company’s discovery platform is screened for naturally occurring bacterial cells with beneficial effects. These microbes are then genomically sequenced and engineered to make cellular therapies, recombinant therapeutic proteins, peptides and small molecules for precision treatment of dermatology diseases. On May 17, 2023, the Company changed its name to from “Azitra Inc” to “Azitra, Inc.” The Company maintains a location in Montreal, Canada for certain research activities. The Company also opened a manufacturing and laboratory space in Groton, Connecticut during 2021. Stock Splits, Change in Par Value, and Initial and Follow-on Public Offerings In June 2023, the Company completed its initial public offering (IPO) in which it issued and sold 50,000 shares of its common stock at a price to the public of $150.00 per share. The shares began trading on the NYSE American on June 16, 2023 under the symbol “AZTR”. The net proceeds received by the Company from the offering were $6.0 million, after deducting underwriting discounts, commissions and other offering expenses. Immediately prior to the effectiveness of the Company’s registration statement, the Company effected a 7.1-for-1 forward stock split of its issued and outstanding shares of common stock (the Forward Stock Split). On May 17, 2023, the Company changed the par value of its capital stock from $0.01 to $0.0001. Accordingly, all share and per share amounts for all periods presented in the accompanying unaudited condensed financial statements and notes thereto have been adjusted retroactively, unless otherwise noted, to reflect the effect of the Forward Stock Split. Refer to Note 7 for additional details relating to the Forward Stock Split. In February 2024, the Company completed a follow-on public offering in which it issued and sold 555,567 shares of its common stock at a price to the public of $9.00 per share. The net proceeds received by the Company from the follow-on public offering were $4.3 million, after deducting underwriting discounts, commissions and other offering expenses. On July 1, 2024 the Company effected a 30-for-1 reverse stock split of its issued and outstanding shares of common stock (the Reverse Stock Split) and began trading on a split-adjusted basis the same day. There was no change in par value. Accordingly, all share and per share amounts for all periods presented in the accompanying unaudited condensed financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the effect of the Reverse Stock Split. Refer to Note 7 for additional details relating to the Reverse Stock Split. Going Concern Matters The unaudited condensed financial statements have been prepared on the going concern basis, which assumes that the Company will continue in operation for the foreseeable future, and which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, management has identified the following conditions and events that created an uncertainty about the ability of the Company to continue as a going concern. As of and for the six months ended June 30, 2024, the Company has an accumulated deficit of $54.2 million, a loss from operations of $5.6 million, used $5.1 million to fund operations and had approximately $(0.4) million of working capital. These factors among others raise substantial doubt about the Company’s ability to continue as a going concern. The Company will require a significant amount of additional funds to complete the development of its product and to fund additional losses which the Company expects to incur over the next few years. The Company is still in its pre-commercialization phase and therefore does not yet have product revenue. Management plans to continue to raise funds through equity and debt financing to fund operating and working capital needs, however, there can be no assurance that the Company will be successful in securing additional financing, if needed, to meet its operating needs. These conditions and events create substantial doubt about the ability of the Company to continue as a going concern for twelve months from the date that the financial statements are available to be issued. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Reclassification Certain prior period amounts and disclosures have been reclassified to conform to the current period’s financial presentation.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Accounting The financial statements of the Company are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Unaudited Interim Financial Information The unaudited interim condensed financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim unaudited condensed financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim unaudited condensed financial statements related to the three months and six months ended are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These interim unaudited condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2023, and notes thereto that are included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 15, 2024. Deferred Offering Costs The Company capitalized deferred offering costs, which primarily consisted of direct, incremental legal, professional, accounting, and other third-party fees relating to the Company’s initial public offering and follow-on offerings. In June 2023 and February 2024, the Company consummated its IPO and a follow-on offering, respectively, and recorded such amounts against the gross proceeds of these offerings within the statements of stockholders’ equity during the periods ended March 31, 2024 and December 31, 2023. In July 2024, the Company consummated a second follow-on offering as disclosed further in Note 16. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (“Topic 842”). ASU 2016-02 requires lessees to present right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. See Note 2 – Recently Adopted Accounting Pronouncements. In calculating the effect of ASU 2016-02, the Company elected the transition method thereby not restating comparable periods. The Company elected to account for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgments, including making estimates related to the lease term, lease payments, and discount rate. In accordance with the guidance, the Company recognized ROU assets and lease liabilities for all leases with a term greater than 12 months. Leases are classified as either operating or financing leases based on the economic substance of the agreement. The Company has operating leases for buildings. The Company has 3 operating leases with a ROU asset and lease liability totaling $1,418,502 as of January 1, 2022. The basis, terms and conditions of the leases are determined by the individual agreements. The Company’s option to extend certain leases ranges from 36 – 52 months. All options to extend have been included in the calculation of the ROU asset and lease liability. The leases do not contain residual value guarantees, restrictions, or covenants that could incur additional financial obligations to the Company. There are no subleases, sale-leaseback, or related party transactions. At June 30, 2024, the Company had operating right-of-use assets with a net value of $672,799 and current and long-term operating lease liabilities of $293,026 and $395,987, respectively. In 2023, the Company entered into a lease for the use of certain equipment that is classified as a finance lease. The finance lease has a term of 36 months. At June 30, 2024, the Company had financing right-of-use assets with a net value of $32,262 and current and long-term operating lease liabilities of $15,317 and $18,329, respectively. Research and Development The Company accounts for research and development costs in accordance with Accounting Standards Codification (ASC) subtopic 730-10, Research and Development. Accordingly, internal research and development costs are expensed as incurred. Research and development costs consist of costs related to labor, materials and supplies. Research and development costs incurred were $1,118,552 and $2,591,522 during the three and six months ended June 30, 2024, respectively. At June 30, 2024 and December 31, 2023, the Company has a state tax credit receivable of $86,778 for pending refunds related to the selling of research and development tax credits back to the State of Connecticut. At June 30, 2024 and December 31, 2023, the Company has $0 and $20,040, respectively for pending refunds related to Canadian Scientific Research and Experimental Development (SRED) credits. At June 30, 2024 and December 31, 2023, the Company has also recorded $9,757 and $11,565, respectively, related to refunds of Canadian Goods and Services Tax (GST) and Quebec Sales Tax (QST). Receipts of refunds are recorded in research and development on the statements of operations. Certain Risks and Uncertainties The Company’s activities are subject to significant risks and uncertainties including the risk of failure to secure additional funding to properly execute the Company’s business plan. The Company is subject to risks that are common to companies in the pharmaceutical industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, reliance on third party manufacturers, protection of proprietary technology, and compliance with regulatory requirements. Recent Accounting Pronouncements Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

Property and Equipment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following at:


	June 30, 2024		December 31, 2023
Laboratory equipment	$	1,018,452	$	1,013,134
Computers and office equipment	30,825		30,825
Furniture and fixtures	24,316		24,316
Leasehold improvements	28,855		28,855
Building equipment	14,932		14,932
Total property and equipment	1,117,380		1,112,062
Less accumulated depreciation & amortization	(458,649)		(401,987)
Total property and equipment, net	$	658,731	$	710,075

Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of the following at:

June 30, 2024:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	59,474	$	—	$	—	$	59,474
Patents	17 years	183,021		20,865		—		162,156

Intangible assets		$	242,495	$	20,865	$	—	$	221,630

December 31, 2023:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	57,474	$	—	$	—	$	57,474
Patents	17 years	169,190		15,783		—		153,407

Intangible assets		$	226,664	$	15,783	$	—	$	210,881

Accrued Expenses

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following at:


	June 30, 2024		December 31, 2023
Employee payroll and bonuses	$	297,416	$	207,556
Vacation	74,359		31,074
Research and development projects	50,837		85,767

Professional fees	3,945		35,624
Other	7,546		23,647
Total accrued expenses	$	434,103	$	383,668

Convertible Debt	6 Months Ended
Convertible Debt	Jun. 30, 2024
Debt Disclosure [Abstract]
Convertible Debt	Convertible Debt Effective January 5, 2021, the Company entered into a Note Purchase Agreement to issue up to $2,000,000 of convertible promissory notes. On the same date, the Company entered into a convertible promissory note (2021 Convertible Note) with one investor for $1,000,000. The 2021 Convertible Note bears interest at a rate of 6% per annum and is due and payable in full on January 5, 2023. The 2021 Convertible Note automatically converts upon a qualified equity financing, as defined in the note agreement to the number of preferred shares equal to all principal and accrued interest divided by the conversion price of $48.00 on a basis unadjusted for the Forward Stock Split and the Reverse Stock Split, which is subject to adjustment as defined in the note agreement. The 2021 Convertible Note is also optionally convertible as defined in the note agreement for certain non-qualified financing, a change in control, or upon the maturity date of the 2021 Convertible Note. The Company incurred issuance costs of $15,613 related to the 2021 Convertible Note, which has been recorded as a debt discount and will be amortized over the term of the 2021 Convertible Note. In September 2022, the Company entered into a Convertible Note Purchase Agreement (the Agreement) to issue up to $4,500,000 convertible promissory notes. On the same day, the Company entered into convertible promissory notes (2022 Convertible Notes) with three investors totaling $4,350,000. The 2022 Convertible Notes mature on January 13, 2023 or the occurrence of an Event of Default (as defined) and bear interest at a rate of 8% per annum which shall accrue but is not due and payable until conversion or full repayment of outstanding principal. The principal and interest outstanding under the 2022 Convertible Notes is automatically converted a) upon the closing of a Qualified Financing resulting in gross proceeds to the Company of at least $20 million into securities issued in connection with the Qualified Financing, at a discount of 30% per share; b) upon the closing of a Change of Control event into shares of capital stock of the Company or Series B preferred stock; and c) upon the closing of a Public Company Event, into shares of capital stock being issued to investors equal to two-times (2x) the amount of the outstanding principal and accrued interest then outstanding divided by the public offering price per share. The principal and interest outstanding under the 2022 Convertible Notes is convertible, at the option of the holders, at the maturity date into a new class of Company’s Preferred Stock (Series C Preferred) equal to the quotient of the outstanding principal amount plus interest divided by the Capped Price, which is defined as the price per share equal to the Valuation Cap of $30 million divided by the Company Capitalization, as defined in the Agreement. In January 2023, the Company elected to convert the 2021 Convertible Note, including interest accrued but not yet paid of $124,759 at a conversion price of $48.00 into 23,432 shares of its Series B Preferred Stock on a basis unadjusted for the Forward Stock Split and the Reverse Stock Split in accordance with the terms outlined in the Note Purchase Agreement. In February 2023, the 2022 Convertible Notes were amended to extend the maturity date to March 31, 2023 and to change the conversion price upon a Qualified Financing or Change in Control event to $30 million divided by the number of shares of the Company’s common stock issued and outstanding, on a fully diluted basis, immediately prior to the close of the Qualified Financing or Change in Control event. During April and June 2023, the 2022 Convertible Notes were further amended to extend the maturity date to September 30, 2023 and allow for the sale of additional notes of $500,000 for a total aggregate principal of $4,850,000. Effective June 21, 2023, the 2022 Convertible Notes were converted to 61,534 shares of the Company’s common stock equal to $9,495,072. During the three and six months ended June 30, 2023, the Company recorded a loss on the change in the fair value of $2,830,100 and 3,630,100, respectively. Interest expense was $0 and $166,019 during the six months ended June 30, 2024 and June 30, 2023,respectively.

Stockholders’ Equity	6 Months Ended
Stockholders’ Equity	Jun. 30, 2024
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity On May 17, 2023, the Company effected a 7.1-for-1 forward stock split (the “Forward Stock Split”) of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s preferred stock. The par value of the common stock was adjusted as a result of the Forward Stock Split from $0.01 to $0.0001 and the authorized shares were increased to 100,000,000 shares of common stock in connection with the Forward Stock Split. In lieu of any fractional shares issued as a result of the split the Company paid a cash amount to the holder of such fractional share. The accompanying financial statements and notes to the financial statements give retroactive effect to the Forward Stock Split for all periods presented. Shares of common stock underlying outstanding stock-based awards and other equity instruments were proportionately increased and the respective per share value and exercise prices, if applicable, were proportionately decreased in accordance with the terms of the agreements governing such securities. On July 1, 2024, the Company effected a 30-for-1 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding shares of common stock and began trading on a split-adjusted basis the same day. There was no change to the par value of the common stock. In lieu of any fractional shares issued as a result of the split the Company paid a cash amount to the holder of such fractional share. The accompanying financial statements and notes to the financial statements give retroactive effect to the Reverse Stock Split for all periods presented unless otherwise noted. Shares of common stock underlying outstanding stock-based awards and other equity instruments were proportionately decreased and the respective per share value and exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities. Common Stock At June 30, 2024 and December 31, 2023, per the Company’s amended and restated Certificate of Incorporation, the Company was authorized to issue 100,000,000 shares of $0.0001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. The Company currently has 74,622 shares of common stock reserved for future issuance for the potential exercise of stock options and warrants outstanding at June 30, 2024. Preferred Stock At June 30, 2024 and December 31, 2023, per the Company’s amended and restated Certificate of Incorporation, the Company has authorized 10,000,000 shares of $0.0001 par value preferred stock. Upon the close of the Company’s IPO in June 2023, all of the then outstanding preferred stock converted to common stock, resulting in the issuance of 48,608, 98,828, and 109,485 shares of common stock in exchange for outstanding Series A, Series A-1, and Series B Preferred Stock, respectively. There was no gain or loss upon conversion.

Warrants

6 Months Ended

Jun. 30, 2024

Warrants [Abstract]

Warrants

The Company also issued warrants in 2019, 2023, and 2024 which did not meet the criteria under ASC 480 to be classified as a liability, and instead meet equity classification criteria.

The following table summarizes information about warrants outstanding at June 30, 2024:


			Warrants Outstanding				Warrant Exercisable
Year Granted	Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

2018	$	14.40	1,596	3.8 years	$	14.40	1,596	3.8 years	$	14.40
2019	$	158.40	7,195	1.6 years	$	158.40	7,195	1.6 years	$	158.40
2023	$	187.50	2,000	4.0 years	$	187.50	2,000	4.0 years	$	187.50
2024	$	11.40	22,223	4.7 years	$	11.40	22,223	4.7 years	$	11.40
			33,014		$	54.25	33,014		$	54.25

Stock Options

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Stock Options

The following table summarizes information about options outstanding and exercisable at June 30, 2024:


		Options Outstanding				Options Exercisable
Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

$	14.32	6,871	1.5 years	$	14.32	6,871	1.5 years	$	14.32
$	27.80	6,735	1.5 years	$	27.80	6,735	1.5 years	$	27.80
$	51.08	26,669	6.8 years	$	51.08	20,798	6.6 years	$	51.08
$	62.10	1,333	9.2 years	$	62.10	167	9.2 years	$	62.10
		41,608				34,571

Total stock option activity for the six months ended June 30, 2024, is summarized as follows:


	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	42,941	$	41.10
Granted	—	—
Exercised	(1,333)	14.32
Forfeited	—	—
Outstanding at June 30, 2024	41,608	$	41.60

Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables summarize the fair values and levels within the fair value hierarchy in which the fair value measurements fall for assets and liabilities measured on a recurring basis as of:

June 30, 2024


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	2,926	$	2,926
Total	$	—	$	—	$	2,926	$	2,926

December 31, 2023


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	35,453	$	35,453

Total	$	—	$	—	$	35,453	$	35,453

The following table presents the changes in Level 3 instruments measured on a recurring basis for the period ended June 30, 2024:


Balance at December 31, 2023	$	35,453
Changes in fair value of warrants	(28,155)

Balance at March 31, 2024	$	7,298
Changes in fair value of warrants	(4,372)


Balance at June 30, 2024	$	2,926

At June 30, 2024 and December 31, 2023, the Company estimated the fair value of the warrants using the Black-Scholes option pricing model with the following assumptions:


	June 30, 2024			December 31, 2023
Underlying common stock value	$	2.76		$	27.60
Expected term (years)	3.79			4.29
Expected volatility	139		%	99		%
Risk free interest rate	4		%	4		%
Dividend yield	—		%	—		%

Net Loss Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

Basic and diluted net loss per share were calculated as follows:

The denominator is as follows at:


	Three Months Ended		Six Months Ended
	2024	2023	2024	2023
Weighted average common stock outstanding, basic and diluted	960,146	71,240	816,450	53,121
$0.01 warrants	—	382	—	382
Total	960,146	71,622	816,450	53,503


	June 30,
	2024	2023
Options to purchase shares of common stock	41,608	42,023
Warrants outstanding	33,014	10,791
Total	74,622	52,814

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal

License Agreement

Operating Leases

Future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year during each of the next five years follow:


2024 (Remaining 6 months)	$	158,115
2025	282,408
2026	205,038
2027	80,397
2028	—
Thereafter	—
Total future undiscounted lease payments	725,958
Less interest	(36,945)
Present value of minimum lease payments	$	689,013

Finance Leases

The following is a schedule showing the future minimum lease payments under finance leases by years and the present value of the minimum payments as of June 30, 2024.


2024 (Remaining 6 months)	$	8,870
2025	17,740
2026	10,351
2027	—
Thereafter	—
Total future undiscounted lease payments	36,961
Less interest	(3,315)
Present value of minimum lease payments	$	33,646

Retirement Plan	6 Months Ended
Retirement Plan	Jun. 30, 2024
Retirement Benefits [Abstract]
Retirement Plan	Retirement Plan Effective January 1, 2019, the Company sponsors a 401(k) plan that covers substantially all employees. In order to be eligible to participate, an employee must complete two consecutive months of service and work a minimum of two hundred fifty hours or work 1,000 hours in their first year of service. Employees may make pre-tax deferrals upon meeting the Plan eligibility requirements. Effective January 1, 2020, the Plan was transitioned to a safe harbor plan in which highly compensated employees are not eligible for matching contributions and non-highly compensated employees earn 100% match on first 3% contributed and 50% on the next 2% contributed. Total employer matching contributions were $3,522 and $7,648 for the three and six months ended June 30, 2024, respectively. Total employer matching contributions were $2,633 and $4,824 for the three and six months ended June 30, 2023, respectively.

Concentration of Credit Risk	6 Months Ended
Concentration of Credit Risk	Jun. 30, 2024
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and accounts receivable. For the three and six months ended June 30, 2024 and 2023, all service revenue was from one customer. The cash balance identified in the balance sheet is held in an account with a financial institution and insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times, cash maintained on deposit may be in excess of FDIC limits.

Related Parties	6 Months Ended
Related Parties	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Parties	Related Parties Total related party revenue was $7,500 and $7,500 for the three and six months ended June 30, 2024, respectively. Total related party revenue was $172,000 and $285,300 for the three and six months ended June 30, 2023. respectively. Accounts receivable due from the related party was $0 and $90,000 at June 30, 2024 and December 31, 2023, respectively. In September 2022, the Company entered into a convertible promissory note totaling $4,350,000 of which $4,000,000 was attributable to an entity who was also an investor in the Company’s Series A, A-1, and B Preferred Stock financing (See Note 6). This entity received 1,697,490 shares of common stock on a basis unadjusted for a Forward Stock Split and a Reverse Stock Split, upon conversion of the promissory notes for principal and interest of $4,243,726.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated events subsequent to the balance sheet date through August 12, 2024, the date these condensed financial statements are issued. On July 25, 2024, the Company completed a follow-on offering of an aggregate of 6,665,000 shares of its common stock, and Class A warrants to purchase up to 13,330,000 shares of common stock, at a combined public offering price of $1.50 per share and accompanying warrants. The Class A warrant will have an initial exercise price of $1.50 per share, are exercisable immediately upon issuance, and will expire on the fifth anniversary of the original issuance date. However on the date that is 30 calendar days immediately following the date of issuance of the Class A Warrants, or August 24, 2024 (the “Reset Date”), if the Reset Price, as defined below, is less than the exercise price at such time, the exercise price will be decreased to the Reset Price. “Reset Price” shall mean 100% of the trailing five-day VWAP immediately preceding the Reset Date, provided, that in no event shall the Reset Price be less than $0.32 (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions), which represents 20% of the most recent closing price for the Common Stock at the time of execution of the Agency Agreement. The number of shares of Common Stock issuable upon exercise of the Class A Warrants will not be proportionately adjusted in the event of a reset of the exercise price. In consideration for Maxim Group LLC serving as the placement agent of the Offering (the “Placement Agent”), the Company paid the Placement Agent a cash fee equal to 7% of the aggregate gross proceeds of the Offering and reimbursed the Placement Agent for certain expenses and legal fees up to $100,000. The Company also issued warrants to designees of the Placement Agent (the “Placement Agent Warrants”) exercisable for an aggregate of 266,600 shares of Common Stock (the “Placement Agent Warrant Shares”). The Placement Agent Warrants have substantially the same terms as the Class A Warrants, except that the Placement Agent Warrants have an exercise price equal to $1.875 per share (125% of the $1.50 offering price of the Common Share and accompanying Class A Warrants), have an initial exercise date of January 23, 2025 and expire on July 23, 2029. The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, were approximately $10.0 million.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Reclassification	Reclassification Certain prior period amounts and disclosures have been reclassified to conform to the current period’s financial presentation.
Basis of Accounting	Basis of Accounting The financial statements of the Company are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”).
Unaudited Interim Financial Information	Unaudited Interim Financial Information The unaudited interim condensed financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim unaudited condensed financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim unaudited condensed financial statements related to the three months and six months ended are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These interim unaudited condensed financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2023, and notes thereto that are included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 15, 2024.
Deferred Offering Costs	Deferred Offering Costs The Company capitalized deferred offering costs, which primarily consisted of direct, incremental legal, professional, accounting, and other third-party fees relating to the Company’s initial public offering and follow-on offerings. In June 2023 and February 2024, the Company consummated its IPO and a follow-on offering, respectively, and recorded such amounts against the gross proceeds of these offerings within the statements of stockholders’ equity during the periods ended March 31, 2024 and December 31, 2023. In July 2024, the Company consummated a second follow-on offering as disclosed further in Note 16.
Leases	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (“Topic 842”). ASU 2016-02 requires lessees to present right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. See Note 2 – Recently Adopted Accounting Pronouncements. In calculating the effect of ASU 2016-02, the Company elected the transition method thereby not restating comparable periods. The Company elected to account for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgments, including making estimates related to the lease term, lease payments, and discount rate. In accordance with the guidance, the Company recognized ROU assets and lease liabilities for all leases with a term greater than 12 months. Leases are classified as either operating or financing leases based on the economic substance of the agreement. The Company has operating leases for buildings. The Company has 3 operating leases with a ROU asset and lease liability totaling $1,418,502 as of January 1, 2022. The basis, terms and conditions of the leases are determined by the individual agreements. The Company’s option to extend certain leases ranges from 36 – 52 months. All options to extend have been included in the calculation of the ROU asset and lease liability. The leases do not contain residual value guarantees, restrictions, or covenants that could incur additional financial obligations to the Company. There are no subleases, sale-leaseback, or related party transactions. At June 30, 2024, the Company had operating right-of-use assets with a net value of $672,799 and current and long-term operating lease liabilities of $293,026 and $395,987, respectively. In 2023, the Company entered into a lease for the use of certain equipment that is classified as a finance lease. The finance lease has a term of 36 months. At June 30, 2024, the Company had financing right-of-use assets with a net value of $32,262 and current and long-term operating lease liabilities of $15,317 and $18,329, respectively.
Research and Development	Research and Development The Company accounts for research and development costs in accordance with Accounting Standards Codification (ASC) subtopic 730-10, Research and Development. Accordingly, internal research and development costs are expensed as incurred. Research and development costs consist of costs related to labor, materials and supplies. Research and development costs incurred were $1,118,552 and $2,591,522 during the three and six months ended June 30, 2024, respectively. At June 30, 2024 and December 31, 2023, the Company has a state tax credit receivable of $86,778 for pending refunds related to the selling of research and development tax credits back to the State of Connecticut. At June 30, 2024 and December 31, 2023, the Company has $0 and $20,040, respectively for pending refunds related to Canadian Scientific Research and Experimental Development (SRED) credits. At June 30, 2024 and December 31, 2023, the Company has also recorded $9,757 and $11,565, respectively, related to refunds of Canadian Goods and Services Tax (GST) and Quebec Sales Tax (QST). Receipts of refunds are recorded in research and development on the statements of operations.
Certain Risks and Uncertainties	Certain Risks and Uncertainties The Company’s activities are subject to significant risks and uncertainties including the risk of failure to secure additional funding to properly execute the Company’s business plan. The Company is subject to risks that are common to companies in the pharmaceutical industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, reliance on third party manufacturers, protection of proprietary technology, and compliance with regulatory requirements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property And Equipment

Property and equipment consisted of the following at:


	June 30, 2024		December 31, 2023
Laboratory equipment	$	1,018,452	$	1,013,134
Computers and office equipment	30,825		30,825
Furniture and fixtures	24,316		24,316
Leasehold improvements	28,855		28,855
Building equipment	14,932		14,932
Total property and equipment	1,117,380		1,112,062
Less accumulated depreciation & amortization	(458,649)		(401,987)
Total property and equipment, net	$	658,731	$	710,075

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following at:

June 30, 2024:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	59,474	$	—	$	—	$	59,474
Patents	17 years	183,021		20,865		—		162,156

Intangible assets		$	242,495	$	20,865	$	—	$	221,630

December 31, 2023:


	Estimated Useful Life	Gross Amount		Accumulated Amortization		Impairment		Net Amount
Trademarks	Indefinite	$	57,474	$	—	$	—	$	57,474
Patents	17 years	169,190		15,783		—		153,407

Intangible assets		$	226,664	$	15,783	$	—	$	210,881

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following at:


	June 30, 2024		December 31, 2023
Employee payroll and bonuses	$	297,416	$	207,556
Vacation	74,359		31,074
Research and development projects	50,837		85,767

Professional fees	3,945		35,624
Other	7,546		23,647
Total accrued expenses	$	434,103	$	383,668

Warrants (Tables)

6 Months Ended

Jun. 30, 2024

Warrants [Abstract]

Schedule of Warrants Outstanding

The following table summarizes information about warrants outstanding at June 30, 2024:


			Warrants Outstanding				Warrant Exercisable
Year Granted	Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Warrants at 06/30/2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

2018	$	14.40	1,596	3.8 years	$	14.40	1,596	3.8 years	$	14.40
2019	$	158.40	7,195	1.6 years	$	158.40	7,195	1.6 years	$	158.40
2023	$	187.50	2,000	4.0 years	$	187.50	2,000	4.0 years	$	187.50
2024	$	11.40	22,223	4.7 years	$	11.40	22,223	4.7 years	$	11.40
			33,014		$	54.25	33,014		$	54.25

Stock Options (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Options Outstanding and Exercisable

The following table summarizes information about options outstanding and exercisable at June 30, 2024:


		Options Outstanding				Options Exercisable
Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Options at June 30, 2024	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price

$	14.32	6,871	1.5 years	$	14.32	6,871	1.5 years	$	14.32
$	27.80	6,735	1.5 years	$	27.80	6,735	1.5 years	$	27.80
$	51.08	26,669	6.8 years	$	51.08	20,798	6.6 years	$	51.08
$	62.10	1,333	9.2 years	$	62.10	167	9.2 years	$	62.10
		41,608				34,571

Schedule of Stock Option Activity

Total stock option activity for the six months ended June 30, 2024, is summarized as follows:


	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	42,941	$	41.10
Granted	—	—
Exercised	(1,333)	14.32
Forfeited	—	—
Outstanding at June 30, 2024	41,608	$	41.60

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements for Assets and Liabilities

The following tables summarize the fair values and levels within the fair value hierarchy in which the fair value measurements fall for assets and liabilities measured on a recurring basis as of:

June 30, 2024


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	2,926	$	2,926
Total	$	—	$	—	$	2,926	$	2,926

December 31, 2023


Description	Level 1		Level 2		Level 3		Total

Liabilities
Common stock warrants	$	—	$	—	$	35,453	$	35,453

Total	$	—	$	—	$	35,453	$	35,453

Schedule of Changes in Level 3 Instruments Measured on a Recurring Basis

The following table presents the changes in Level 3 instruments measured on a recurring basis for the period ended June 30, 2024:


Balance at December 31, 2023	$	35,453
Changes in fair value of warrants	(28,155)

Balance at March 31, 2024	$	7,298
Changes in fair value of warrants	(4,372)


Balance at June 30, 2024	$	2,926

Schedule of Fair Value of Warrants Using Black Scholes Option Pricing Model

At June 30, 2024 and December 31, 2023, the Company estimated the fair value of the warrants using the Black-Scholes option pricing model with the following assumptions:


	June 30, 2024			December 31, 2023
Underlying common stock value	$	2.76		$	27.60
Expected term (years)	3.79			4.29
Expected volatility	139		%	99		%
Risk free interest rate	4		%	4		%
Dividend yield	—		%	—		%

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Numerator for Basic and Diluted Weighted Average Common Stock Outstanding

The denominator is as follows at:


	Three Months Ended		Six Months Ended
	2024	2023	2024	2023
Weighted average common stock outstanding, basic and diluted	960,146	71,240	816,450	53,121
$0.01 warrants	—	382	—	382
Total	960,146	71,622	816,450	53,503

Schedule of Calculation of Diluted Net Loss Per Share


	June 30,
	2024	2023
Options to purchase shares of common stock	41,608	42,023
Warrants outstanding	33,014	10,791
Total	74,622	52,814

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments Under Operating Leases

Future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year during each of the next five years follow:


2024 (Remaining 6 months)	$	158,115
2025	282,408
2026	205,038
2027	80,397
2028	—
Thereafter	—
Total future undiscounted lease payments	725,958
Less interest	(36,945)
Present value of minimum lease payments	$	689,013

Schedule of Future Minimum Payments Under Finance Leases

The following is a schedule showing the future minimum lease payments under finance leases by years and the present value of the minimum payments as of June 30, 2024.


2024 (Remaining 6 months)	$	8,870
2025	17,740
2026	10,351
2027	—
Thereafter	—
Total future undiscounted lease payments	36,961
Less interest	(3,315)
Present value of minimum lease payments	$	33,646

Organization and Nature of Operations (Details)				1 Months Ended		3 Months Ended		6 Months Ended
Organization and Nature of Operations (Details)	Jul. 25, 2024 USD ($) $ / shares shares	Jul. 01, 2024	May 17, 2023 $ / shares	Feb. 29, 2024 USD ($) shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares	May 16, 2023 $ / shares
Property, Plant and Equipment [Line Items]
Proceeds from initial public offering								$ 4,290,447	$ 5,991,359
Stock split conversion ratio			7.1
Common stock, par value per share (in dollars per share) \| $ / shares			$ 0.0001			$ 0.0001		$ 0.0001		$ 0.0001	$ 0.01
Accumulated deficit						$ 54,163,201		$ 54,163,201		$ 48,597,163
Loss from operations						$ 2,660,280	$ 1,427,590	5,621,777	2,986,336
Net cash used in operating activities								5,121,955	$ 3,031,522
Working capital								$ (400,000)
Subsequent Event
Property, Plant and Equipment [Line Items]
Sale of stock, price per share (in dollars per share) \| $ / shares	$ 1.50
Stock split conversion ratio		0.0333
IPO
Property, Plant and Equipment [Line Items]
Shares issued in connection with public offering (in shares) \| shares					50,000
Sale of stock, price per share (in dollars per share) \| $ / shares					$ 150.00		$ 150.00		$ 150.00
Proceeds from initial public offering					$ 6,000,000.0
Follow-On Public Offering
Property, Plant and Equipment [Line Items]
Shares issued in connection with public offering (in shares) \| shares				555,567
Sale of stock, price per share (in dollars per share) \| $ / shares					$ 9.00		$ 9.00		$ 9.00
Net proceeds from follow-on public offering				$ 4,300,000
Follow-On Public Offering \| Subsequent Event
Property, Plant and Equipment [Line Items]
Shares issued in connection with public offering (in shares) \| shares	6,665,000
Net proceeds from follow-on public offering	$ 10,000,000

Summary of Significant Accounting Policies (Details)		3 Months Ended		6 Months Ended
Summary of Significant Accounting Policies (Details)	Jan. 01, 2022 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) lease	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Property, Plant and Equipment [Line Items]
Number of operating leases \| lease				3
Obtaining a right-of-use asset in exchange for lease liability	$ 1,418,502
Operating lease right-of-use asset		$ 672,799		$ 672,799		$ 828,960
Current operating lease liability		293,026		293,026		307,655
Long-term operating lease liability		395,987		395,987		$ 537,523
Lessee, finance lease, renewal term						36 months
Financing right-of-use assets, net value		32,262		32,262		$ 40,002
Finance lease liability current		15,317		15,317		14,600
Long term finance lease liability		18,329		18,329		26,169
Research and development		1,118,552	$ 754,951	2,591,522	$ 1,583,987
State tax credit receivable		86,778		86,778		86,778
Deferred tax assets, tax credit carryforwards, research		0		0		20,040
Deferred tax assets, tax credit carryforwards, other		$ 9,757		$ 9,757		$ 11,565
Minimum
Property, Plant and Equipment [Line Items]
Lessee, operating lease, remaining lease term		36 months		36 months
Maximum
Property, Plant and Equipment [Line Items]
Lessee, operating lease, remaining lease term		52 months		52 months

Property and Equipment - Schedule of Property And Equipment (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,117,380	$ 1,112,062
Less accumulated depreciation & amortization	(458,649)	(401,987)
Total property and equipment, net	658,731	710,075
Laboratory equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,018,452	1,013,134
Computers and office equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	30,825	30,825
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	24,316	24,316
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	28,855	28,855
Building equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 14,932	$ 14,932

Property and Equipment - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 29,935	$ 30,877	$ 59,870	$ 61,429

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Gross [Abstract]
Accumulated Amortization	$ 20,865	$ 15,783
Impairment	0	0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross Amount	242,495	226,664
Accumulated Amortization	20,865	15,783
Impairment	0	0
Net Amount	221,630	210,881
Trademarks
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Gross Amount	59,474	57,474
Impairment	0	0
Net Amount	$ 59,474	$ 57,474
Patents
Finite-Lived Intangible Assets, Gross [Abstract]
Estimated Useful Life	17 years	17 years
Gross Amount	$ 183,021	$ 169,190
Accumulated Amortization	20,865	15,783
Impairment	0	0
Net Amount	162,156	153,407
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	20,865	15,783
Impairment	$ 0	$ 0

Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Intangible Assets - Narrative (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 2,571	$ 1,780	$ 5,082	$ 3,377

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Employee payroll and bonuses	$ 297,416	$ 207,556
Vacation	74,359	31,074
Research and development projects	50,837	85,767
Professional fees	3,945	35,624
Other	7,546	23,647
Total accrued expenses	$ 434,103	$ 383,668

Convertible Debt (Details)		1 Months Ended			3 Months Ended		6 Months Ended
Convertible Debt (Details)	Jun. 21, 2023 USD ($) shares	Feb. 28, 2023 USD ($)	Jan. 31, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) investor	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jan. 05, 2021 USD ($) investor $ / shares
Debt Instrument [Line Items]
Conversion of convertible notes payable						$ 9,495,072
Change in fair value of convertible notes					$ 0	2,830,100	$ 0	$ 3,630,100
Convertible Debt
Debt Instrument [Line Items]
Convertible notes, capital stock issued, ratio				2
Interest expense							$ 0	166,019
Convertible Debt \| Note Purchase Agreement
Debt Instrument [Line Items]
Debt instrument, aggregate principal									$ 2,000,000
Convertible Debt \| 2021 Convertible Note
Debt Instrument [Line Items]
Debt instrument, aggregate principal									$ 1,000,000
Number of investors \| investor									1
Debt instrument, interest rate									6.00%
Convertible debt instrument, conversion price (in dollars per share) \| $ / shares									$ 48.00
Debt issuance costs									$ 15,613
Interest accrued but not yet paid			$ 124,759
Convertible Debt \| Convertible Note Purchase Agreement
Debt Instrument [Line Items]
Debt instrument, aggregate principal				$ 4,500,000
Convertible Debt \| 2022 Convertible Notes
Debt Instrument [Line Items]
Debt instrument, aggregate principal				$ 4,350,000		4,850,000		$ 4,850,000
Number of investors \| investor				3
Debt instrument, interest rate				8.00%
Proceeds from convertible debt				$ 20,000,000
Debt discount, percentage				30.00%
Valuation cap				$ 30,000,000
Convertible debt instrument, conversion price, numerator		$ 30,000,000
Proceeds from sale of notes receivable						$ 500,000
Notes converted to common stock (in shares) \| shares	61,534
Conversion of convertible notes payable	$ 9,495,072
Convertible Debt \| Series B Preferred Stock
Debt Instrument [Line Items]
Convertible debt instrument, conversion price (in dollars per share) \| $ / shares			$ 48.00
Issuance of conversion shares (in shares) \| shares			23,432

Stockholders’ Equity (Details)			6 Months Ended
Stockholders’ Equity (Details)	Jul. 01, 2024	May 17, 2023 $ / shares shares	Jun. 30, 2024 vote $ / shares shares	Dec. 31, 2023 $ / shares shares	Jun. 30, 2023 shares	May 16, 2023 $ / shares
Class of Stock [Line Items]
Stock split conversion ratio		7.1
Common stock, par value per share (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001	$ 0.0001		$ 0.01
Common stock, shares authorized (in shares)		100,000,000	100,000,000	100,000,000
Common stockholders, number of votes \| vote			1
Common stock reserved for future issuance (in shares)			74,622
Preferred stock, shares authorized (in shares)			10,000,000	10,000,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Subsequent Event
Class of Stock [Line Items]
Stock split conversion ratio	0.0333
Series A Preferred Stock \| IPO
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares)					48,608
Series A-1 Convertible Preferred Stock \| IPO
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares)					98,828
Series B Preferred Stock \| IPO
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares)					109,485

Warrants - Narrative (Details) - USD ($)	3 Months Ended
Warrants - Narrative (Details) - USD ($)	Mar. 31, 2019	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2018
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)				$ 14.40
Warrants outstanding, term				10 years
Underwriter
Class of Warrant or Right [Line Items]
Warrants outstanding, term		10 years
Over-Allotment Option \| Underwriter
Class of Warrant or Right [Line Items]
Warrants issued to underwriters (in shares)		22,223	2,000
Common Stock
Class of Warrant or Right [Line Items]
Convertible debt, warrants issued (in shares)	1,596
Warrant
Class of Warrant or Right [Line Items]
Fair value of warrants		$ 2,926	$ 35,453

Warrants - Schedule of Warrants Outstanding (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2018
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise Price (in dollars per share)		$ 14.40
Warrant
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding (in shares)	33,014
Weighted Average Exercise Price, Warrants Outstanding (in dollars per share)	$ 54.25
Number of Warrants Exercisable (in shares)	33,014
Weighted Average Exercise Price, Warrants Exercisable (in dollars per share)	$ 54.25
2018
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 14.40
2018 \| Warrant
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding (in shares)	1,596
Warrants Outstanding, Weighted Average Remaining Contractual Life	3 years 9 months 18 days
Weighted Average Exercise Price, Warrants Outstanding (in dollars per share)	$ 14.40
Number of Warrants Exercisable (in shares)	1,596
Weighted Average Remaining Contractual Life, Warrants Exercisable	3 years 9 months 18 days
Weighted Average Exercise Price, Warrants Exercisable (in dollars per share)	$ 14.40
2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 158.40
2019 \| Warrant
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding (in shares)	7,195
Warrants Outstanding, Weighted Average Remaining Contractual Life	1 year 7 months 6 days
Weighted Average Exercise Price, Warrants Outstanding (in dollars per share)	$ 158.40
Number of Warrants Exercisable (in shares)	7,195
Weighted Average Remaining Contractual Life, Warrants Exercisable	1 year 7 months 6 days
Weighted Average Exercise Price, Warrants Exercisable (in dollars per share)	$ 158.40
2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 187.50
2023 \| Warrant
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding (in shares)	2,000
Warrants Outstanding, Weighted Average Remaining Contractual Life	4 years
Weighted Average Exercise Price, Warrants Outstanding (in dollars per share)	$ 187.50
Number of Warrants Exercisable (in shares)	2,000
Weighted Average Remaining Contractual Life, Warrants Exercisable	4 years
Weighted Average Exercise Price, Warrants Exercisable (in dollars per share)	$ 187.50
2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 11.40
2024 \| Warrant
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding (in shares)	22,223
Warrants Outstanding, Weighted Average Remaining Contractual Life	4 years 8 months 12 days
Weighted Average Exercise Price, Warrants Outstanding (in dollars per share)	$ 11.40
Number of Warrants Exercisable (in shares)	22,223
Weighted Average Remaining Contractual Life, Warrants Exercisable	4 years 8 months 12 days
Weighted Average Exercise Price, Warrants Exercisable (in dollars per share)	$ 11.40

Stock Options - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
Stock Options - Narrative (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2016
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock compensation expense		$ 34,171	$ 38,794	$ 68,341	$ 77,587
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unamortized compensation expense		$ 258,097		$ 258,097
Number of performance-based options outstanding (in shares)				437	437
Fair value of stock options				$ 109,551	$ 109,551
Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options granted (in shares)				0
2023 Stock Incentive Plan \| Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options granted (in shares)	66,667			1,333
Stock options available for grants (in shares)				65,334
2016 Stock Incentive Plan \| Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options granted (in shares)				40,275		49,687
Stock options available for grants (in shares)				7,457

Stock Options - Schedule of Options Outstanding and Exercisable (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Number of Options Outstanding (in shares)	41,608	42,941
Number of Options Exercisable (in shares)	34,571
Exercise Price $0.48
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 14.32
Number of Options Outstanding (in shares)	6,871
Options Outstanding, Weighted Average Remaining Contractual Life	1 year 6 months
Number of Options Exercisable (in shares)	6,871
Options Exercisable, Weighted Average Remaining Contractual Life	1 year 6 months
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 14.32
Exercise Price $0.93
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 27.80
Number of Options Outstanding (in shares)	6,735
Options Outstanding, Weighted Average Remaining Contractual Life	1 year 6 months
Number of Options Exercisable (in shares)	6,735
Options Exercisable, Weighted Average Remaining Contractual Life	1 year 6 months
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 27.80
Exercise Price $1.70
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 51.08
Number of Options Outstanding (in shares)	26,669
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 9 months 18 days
Number of Options Exercisable (in shares)	20,798
Options Exercisable, Weighted Average Remaining Contractual Life	6 years 7 months 6 days
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 51.08
Exercise Price $2.07
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 62.10
Number of Options Outstanding (in shares)	1,333
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 2 months 12 days
Number of Options Exercisable (in shares)	167
Options Exercisable, Weighted Average Remaining Contractual Life	9 years 2 months 12 days
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 62.10

Stock Options - Schedule of Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Shares
Outstanding, beginning balance (in shares) \| shares	42,941
Exercised (in shares) \| shares	(1,333)
Forfeited (in shares) \| shares	0
Outstanding, ending balance (in shares) \| shares	41,608
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 41.10
Granted (in dollars per share)	0
Exercised (in dollars per share)	14.32
Forfeited (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	$ 41.60

Fair Value Measurements - Schedule of Fair Value Measurements for Assets and Liabilities (Details) - Fair Value, Recurring - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 2,926	$ 35,453
Common stock warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,926	35,453
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 \| Common stock warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2 \| Common stock warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,926	35,453
Level 3 \| Common stock warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 2,926	$ 35,453

Fair Value Measurements - Schedule of Changes in Level 3 Instruments Measured on a Recurring Basis (Details) - Warrant Liability - USD ($)	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 7,298	$ 35,453
Changes in fair value of warrants	(4,372)	(28,155)
Ending balance	$ 2,926	$ 7,298

Fair Value Measurements - Schedule of Fair Value of Warrants Using Black Scholes Option Pricing Model (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Underlying common stock value (in dollars per share)	$ 2.76	$ 27.60
Expected term (years)	3 years 9 months 14 days	4 years 3 months 14 days
Expected volatility	139.00%	99.00%
Risk free interest rate	4.00%	4.00%
Dividend yield	0.00%	0.00%

Net Loss Per Share - Schedule of Numerator for Basic and Diluted Weighted Average Common Stock Outstanding (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Warrants, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Weighted average common stock outstanding, basic (in shares)	960,146	71,622	816,450	53,503
Weighted average common stock outstanding, diluted (in shares)	960,146	71,622	816,450	53,503
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common stock outstanding, basic (in shares)	960,146	71,240	816,450	53,121
Weighted average common stock outstanding, diluted (in shares)	960,146	71,240	816,450	53,121
Warrant
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common stock outstanding, basic (in shares)	0	382	0	382
Weighted average common stock outstanding, diluted (in shares)	0	382	0	382

Net Loss Per Share - Schedule of Calculation of Diluted Net Loss Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from calculation of diluted net loss per share because including them would have had an anti-dilutive effect (in shares)	74,622	52,814
Options to purchase shares of common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from calculation of diluted net loss per share because including them would have had an anti-dilutive effect (in shares)	41,608	42,023
Warrants outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from calculation of diluted net loss per share because including them would have had an anti-dilutive effect (in shares)	33,014	10,791

Commitments and Contingencies - Narrative (Details)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
Commitments and Contingencies - Narrative (Details)	Sep. 30, 2021 USD ($)	May 31, 2021 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2021 CAD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CAD ($)	Jan. 26, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
License agreement, term											10 years
License agreement, length of written notice required for termination			30 days		30 days
Rent expense for operating leases					$ 169,428	$ 169,428
Operating lease, weighted average remaining lease term			2 years 6 months		2 years 6 months
Operating lease, weighted average discount rate			4.25%		4.25%
Finance lease monthly payments							$ 1,478
Finance lease term							3 years
Finance lease, remaining lease term							2 years 1 month 6 days
Finance lease, discount rate							9.60%
Finance lease expense					$ 7,740	0
Finance lease, interest expense					$ 1,745	0
Laval, Quebec
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease payments								$ 8,130		$ 6,906
Operating lease payments, percentage increase per year										0.04
Operating lease, initial lease term										1 year
Branford. CT
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease payments									$ 13,033
Operating lease payments, percentage increase per year					0.02
Groton. CT
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease payments	$ 6,824	$ 4,234
Operating lease, initial lease term		1 year
Operating lease, renewal term		3 years
Exclusive License Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from license fees received			$ 0	$ 11,405	$ 0	$ 15,263

Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-cancelable Operating Leases (Details)	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024 (Remaining 6 months)	$ 158,115
2025	282,408
2026	205,038
2027	80,397
2028	0
Thereafter	0
Total future undiscounted lease payments	725,958
Less interest	(36,945)
Present value of minimum lease payments	$ 689,013

Commitments and Contingencies - Schedule of Future Minimum Payments Under Finance Leases (Details)	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024 (Remaining 6 months)	$ 8,870
2025	17,740
2026	10,351
2027	0
Thereafter	0
Total future undiscounted lease payments	36,961
Less interest	(3,315)
Present value of minimum lease payments	$ 33,646

Retirement Plan (Details)	3 Months Ended		6 Months Ended
Retirement Plan (Details)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) hour	Jun. 30, 2023 USD ($)
Retirement Benefits [Abstract]
Consecutive months of service required			2 months
Minimum work hours			250
Minimum work hours in their first year of service			1,000
Percent of match on first three percent			100.00%
Employer matching contribution, percent of employees' gross pay			3.00%
Percent of match on next two percent			0.50
Employer matching contribution, additional percent of employees' gross pay			0.02
Employer matching contributions \| $	$ 3,522	$ 2,633	$ 7,648	$ 4,824

Related Parties (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
Related Parties (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Revenues		$ 7,500	$ 172,000	$ 7,500	$ 285,300
Stock issued during conversion			$ 9,495,072
Common Stock
Related Party Transaction [Line Items]
Stock issued during conversion (in shares)			61,534
Stock issued during conversion			$ 6
2022 Convertible Notes
Related Party Transaction [Line Items]
Debt instrument, aggregate principal	$ 4,350,000
Related Party
Related Party Transaction [Line Items]
Revenues		7,500	$ 172,000	7,500	$ 285,300
Accounts receivable		$ 0		$ 0		$ 90,000
Investor \| Common Stock
Related Party Transaction [Line Items]
Stock issued during conversion (in shares)	1,697,490
Stock issued during conversion	$ 4,243,726
Investor \| 2022 Convertible Notes
Related Party Transaction [Line Items]
Debt instrument, aggregate principal	$ 4,000,000

Subsequent Events - Narrative (Details)		1 Months Ended
Subsequent Events - Narrative (Details)	Jul. 25, 2024 USD ($) $ / shares shares	Feb. 29, 2024 USD ($) shares	Jun. 30, 2023 $ / shares	Dec. 31, 2018 $ / shares
Subsequent Event [Line Items]
Exercise price of warrants (in dollars per share)				$ 14.40
Warrants outstanding, term				10 years
Follow-On Public Offering
Subsequent Event [Line Items]
Shares issued in connection with follow-on offering (in shares) \| shares		555,567
Sale of stock, price per share (in dollars per share)			$ 9.00
Net proceeds from follow-on public offering \| $		$ 4,300,000
Subsequent Event
Subsequent Event [Line Items]
Sale of stock, price per share (in dollars per share)	$ 1.50
Placement agent fee, percentage of gross offering proceeds	0.07
Payments to placement agent for expenses and legal fees, maximum \| $	$ 100,000
Subsequent Event \| Class A Warrant
Subsequent Event [Line Items]
Warrants to purchase common stock (in shares) \| shares	13,330,000
Exercise price of warrants (in dollars per share)	$ 1.50
Warrants outstanding, term	5 years
Reset price, number of days following issuance	30 days
Warrant reset price, percentage of volume weighted average price	1
Class of warrant or right, volume weighted average price, number of trading days	5 days
Reset price, floor (in dollars per share)	$ 0.32
Warrant reset price, floor, percentage of closing stock price	0.20
Subsequent Event \| Placement Agent Warrants
Subsequent Event [Line Items]
Warrants to purchase common stock (in shares) \| shares	266,600
Exercise price of warrants (in dollars per share)	$ 1.875
Subsequent Event \| Follow-On Public Offering
Subsequent Event [Line Items]
Shares issued in connection with follow-on offering (in shares) \| shares	6,665,000
Net proceeds from follow-on public offering \| $	$ 10,000,000