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

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO 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 001-39531

Processa Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Delaware		45-1539785
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

7380 Coca Cola Drive, Suite 106,

Hanover, Maryland 21076

(443) 776-3133

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

Title of Each Class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value per share		PCSA		The Nasdaq Stock Market 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 during the preceding 12 months (or for 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 emerging growth company. See definition 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 outstanding shares of the registrant’s common stock at August 1, 2024 was 3,256,944.

PROCESSA PHARMACEUTICALS, INC.

TABLE OF CONTENTS

Part I. Financial Information		3
	Item 1: Financial Statements	3
	Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
	Item 3. Quantitative and Qualitative Disclosures about Market Risk	21
	Item 4. Controls and Procedures	21
Part II. Other Information		21
	Item 1. Legal Procedures	21
	Item 1A. Risk Factors	22
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22
	Item 3. Defaults Upon Senior Securities	22
	Item 4. Mine Safety Disclosures	22
	Item 5. Other Information	23
	Item 6. Exhibits	23
Signatures		24

Part I: Financial Information

Item 1: Financial Statements

Processa Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30, 2024			December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	5,571,120		$	4,706,197
Prepaid expenses and other		1,906,854			926,300
Total Current Assets		7,477,974			5,632,497

Property and Equipment, net		2,276			2,554

Other Assets
Lease right-of-use assets, net of accumulated amortization		115,191			146,057
Security deposit		5,535			5,535
Total Other Assets		120,726			151,592
Total Assets	$	7,600,976		$	5,786,643

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current maturities of lease liabilities	$	93,181		$	83,649
Accounts payable		953,086			311,617
Due to licensor		-			189,000
Due to related parties		-			39
Accrued expenses		505,397			146,274
Total Current Liabilities		1,551,664			730,579
Non-current Liabilities
Non-current lease liabilities		25,648			66,905
Total Liabilities		1,577,312			797,484

Commitments and Contingencies		-			-

Stockholders’ Equity
Common stock, par value $0.0001, 100,000,000 shares authorized: 2,873,883 issued and 2,868,883 outstanding at June 30, 2024; and 1,291,000 issued and 1,286,000 outstanding at December 31, 2023		287			129
Additional paid-in capital		87,429,165			80,658,111
Treasury stock at cost — 5,000 shares at June 30, 2024 and December 31, 2023		(300,000	)		(300,000	)
Accumulated deficit		(81,105,788	)		(75,369,081	)
Total Stockholders’ Equity		6,023,664			4,989,159
Total Liabilities and Stockholders’ Equity	$	7,600,976		$	5,786,643

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

Processa Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Operating Expenses
Research and development expenses	$	1,730,444		$	1,688,164		$	3,269,555		$	3,342,509
General and administrative expenses		1,351,580			1,026,301			2,622,067			3,477,490

Operating Loss		(3,082,024	)		(2,714,465	)		(5,891,622	)		(6,819,999	)

Other Income (Expense), net		71,698			101,900			154,915			185,361

Net Operating Loss Before Income Tax Benefit		(3,010,326	)		(2,612,565	)		(5,736,707	)		(6,634,638	)
Income Tax Benefit		-			-			-			-

Net Loss	$	(3,010,326	)	$	(2,612,565	)	$	(5,736,707	)	$	(6,634,638	)

Net Loss per Common Share - Basic and Diluted	$	(1.01	)	$	(1.94	)	$	(2.11	)	$	(5.34	)

Weighted Average Common Shares Used to Compute Net Loss Applicable to Common Shares - Basic and Diluted		2,983,283			1,346,808			2,724,903			1,243,475

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

Processa Pharmaceuticals, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Shares		Amount		Capital		Shares			Amount			Deficit			Total
					Additional
	Common Stock				Paid-In		Treasury Stock						Accumulated
	Shares		Amount		Capital		Shares			Amount			Deficit			Total
Balance at January 1, 2023		806,774	$	80	$	72,018,222		(5,000	)	$	(300,000	)	$	(64,247,561	)	$	7,470,741
Stock-based compensation		3,195		1		341,503		-			-			-			341,504
Shares issued in connection with capital raises, net of transaction costs		421,611		42		6,352,035		-			-			-			6,352,077
Net loss		-		-		-		-			-			(4,022,073	)		(4,022,073	)
Balance, March 31, 2023		1,231,580		123		78,711,760		(5,000	)		(300,000	)		(68,269,634	)		10,142,249
Stock-based compensation		-		-		319,123		-			-			-			319,123
Warrants issued in connection with a consulting agreement		-		-		1,310,875		-			-			-			1,310,875
Net loss		-		-		-		-			-			(2,612,565	)		(2,612,565	)
Balance, June 30, 2023		1,231,580	$	123	$	80,341,758		(5,000	)	$	(300,000	)	$	(70,882,199	)	$	9,159,682

							Additional
	Common Stock						Paid-In			Treasury Stock						Accumulated
	Shares			Amount			Capital			Shares			Amount			Deficit			Total
Balance at January 1, 2024		1,291,000		$	129		$	80,658,111			(5,000	)	$	(300,000	)	$	(75,369,081	)	$	4,989,159
Stock-based compensation		13,176			1			167,642			-			-			-			167,643
Shares issued in connection with capital raise, net of transaction costs		1,555,555			156			6,282,274			-			-			-			6,282,430
Shares issued in connection with license agreement		5,000			1			188,999			-			-			-			189,000
Settlement of stock award		-			-			(8,561	)		-			-			-			(8,561	)
Shares withheld to pay income taxes on stock-based compensation		(3,750	)		(1	)		(9,923	)		-			-			-			(9,924	)
Net loss		-			-			-			-			-			(2,726,381	)		(2,726,381	)
Balance, March 31, 2024		2,860,981			286			87,278,542			(5,000	)		(300,000	)		(78,095,462	)		8,883,366
Balance		2,860,981			286			87,278,542			(5,000	)		(300,000	)		(78,095,462	)		8,883,366
Stock-based compensation		14,167			1			152,631			-			-			-			152,632
Shares withheld to pay income taxes on stock-based compensation		(1,265	)		-			(2,008	)		-			-			-			(2,008	)
Net loss		-			-			-			-			-			(3,010,326	)		(3,010,326	)
Balance, June 30, 2024		2,873,883		$	287		$	87,429,165			(5,000	)	$	(300,000	)	$	(81,105,788	)	$	6,023,664
Balance		2,873,883		$	287		$	87,429,165			(5,000	)	$	(300,000	)	$	(81,105,788	)	$	6,023,664

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

Processa Pharmaceuticals, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	2024			2023
	Six Months Ended June 30,
	2024			2023
Cash Flows From Operating Activities
Net loss	$	(5,736,707	)	$	(6,634,638	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		278			-
Non-cash lease expense for right-of-use assets		42,670			39,982
Stock-based compensation		320,275			660,627
Warrant issued to purchase 158,007 shares of common stock in connection with a consulting agreement		-			1,310,875

Net changes in operating assets and liabilities:
Prepaid expenses and other		(980,554	)		662,984
Operating lease liability		(41,228	)		(38,233	)
Accounts payable		641,469			(88,526	)
Due to related parties		(39	)		(51	)
Accrued expenses		359,123			(91,559	)
Net cash used in operating activities		(5,394,713	)		(4,178,539	)

Cash Flows From Financing Activities
Net proceeds from issuance of stock		6,282,430			6,352,077
Shares withheld to pay taxes on stock-based compensation		(11,932	)		-
Settlement of stock award		(8,561	)		-
Payment of finance lease obligation		(2,301	)		-
Net cash provided by financing activities		6,259,636			6,352,077

Net Increase in Cash		864,923			2,173,538
Cash and Cash Equivalents – Beginning of Period		4,706,197			6,503,595
Cash and Cash Equivalents – End of Period	$	5,571,120		$	8,677,133

Non-Cash Financing Activities
Issuance of 5,000 shares of common stock in connection with a licensing agreement which had previously been recorded as a due to licensor	$	189,000		$	-

Right-of-use asset	$	11,804		$	-
Financing lease liability		(11,804	)		-
Net	$	-		$	-

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

Processa Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 – Organization and Summary of Significant Accounting Policies

Organization

We are a clinical-stage biopharmaceutical company focused on incorporating our Regulatory Science Approach into the development of our Next Generation Chemotherapy (“NGC”) drugs to improve the safety and efficacy of cancer treatment. Our NGC drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution in the body, while maintaining the well-established existing mechanisms of killing the cancer cells. By modifying the NGC drugs in this manner, we believe our three NGC treatments will provide improved safety-efficacy profiles when compared to their currently marketed counterparts.

On January 22, 2024, we filed a Certificate of Amendment to our Certificate of Incorporation, as amended with the Secretary of State of Delaware that effected a 1-for-20 reverse stock split of our common stock, par value $0.0001 per share (the “Reverse Stock Split”). Pursuant to the Certificate of Amendment, our issued common stock decreased from 24,706,474 shares to 1,291,000 shares and our outstanding common stock decreased from 24,606,474 to 1,286,000. The Reverse Stock Split did not affect our authorized common stock of 100,000,000 shares or our common stock par value. All shares of common stock, including common stock underlying warrants, stock options, restricted stock awards and restricted stock units, as well as exercise prices and per share information in these condensed consolidated financial statements give retroactive effect to the Reverse Stock Split.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions of the Securities and Exchange Commission (“SEC”) on Form 10-Q and Article 8 of Regulation S-X.

Accordingly, they do not include all the information and disclosures required by U.S. GAAP for complete financial statements. All material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results of operations and cash flows for the periods presented. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any other interim period or for the full year.

Liquidity

Our condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. We have incurred losses since inception, are currently devoting substantially all of our efforts toward research and development of our NGC drug product candidates, including conducting clinical trials and providing general and administrative support for these operations, and have an accumulated deficit of $81.1 million at June 30, 2024. During the six months ended June 30, 2024, we generated a net loss of $5.7 million and used $5.4 million in net cash for operating activities from continuing operations. To date, none of our drug candidates have been approved for sale, and therefore we have not generated any product revenue and do not expect positive cash flow from operations in the foreseeable future.

We have financed our operations primarily through public equity issuances, including an offering we closed on January 30, 2024, where we sold 476,000 shares of our common stock, pre-funded warrants to purchase up to 1,079,555 shares of our common stock, and warrants for the purchase of up to 1,555,555 shares of our common stock for net proceeds of $6.3 million, after deducting placement agent fees and offering-related expenses. Simultaneously with the closing of the sale, the pre-funded warrants were exercised in exchange for 1,079,555 shares of our common stock.

In May 2024, we filed with the SEC a registration statement on Form S-3 (Registration No. 333-279588) (the “Registration Statement”), including a base prospectus relating to the offering of up to $50,000,000 in the aggregate of the securities identified in the base prospectus from time to time in one or more offerings; and a prospectus supplement relating to the shares of our common stock that may be issued and sold under a sales agreement dated May 21, 2024 (the “Sales Agreement”) between us and A.G.P./Alliance Global Partners (the “Sales Agent”), through which we may issue and sell in a registered “at the market offering” shares of our common stock having an aggregate offering price of up to $2.4 million (subject to adjustment) from time to time through or to our Sales Agent (the “ATM Offering”). We expect to use net proceeds, if any, from the ATM Offering over time for continued research and development for our portfolio of drug candidates, especially our oncology products, and working capital and general corporate purposes. The shares under the ATM Offering will be sold and issued pursuant to the Registration Statement.

At June 30, 2024, we had cash and cash equivalents totaling $5.6 million which, based on our current business plans, we believe these funds will satisfy our operating needs into late 2024, including the beginning of our Phase 2 trial of NGC-Cap in breast cancer. Our ability to execute our longer-term operating plans, including future preclinical studies and clinical trials for our portfolio of drugs depend on our ability to obtain additional funding from the sale of equity and/or debt securities, a strategic transaction or other funding transactions. We will continue to be dependent upon equity and/or debt financing until we are able to generate positive cash flows from our operations.

We plan to raise additional funds in the future through a combination of public or private equity offerings, debt financings, collaborations, strategic alliances, licensing arrangements and other marketing and distribution arrangements, but will only do so if the terms are acceptable to us. If we are unable to obtain adequate financing when needed, we may have to delay, reduce the scope of, or suspend our current or planned future clinical trial plans, or research and development programs. This may also cause us to not meet obligations contained in certain of our license agreements and put these assets at risk. To the extent that we raise additional capital through marketing and distribution arrangements or other collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our product candidates, future revenue streams, research programs or product candidates or to grant licenses on terms that may not be favorable to us. If we raise additional capital through public or private equity offerings, the ownership interest of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect our stockholders’ rights. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt or making capital expenditures. There can be no assurance that future funding will be available when needed.

Absent additional funding, we believe that our cash and cash equivalents will not be sufficient to fund our operations for a period of one year or more after the date that these condensed consolidated financial statements are available to be issued based on the timing and amount of our projected net loss from continuing operations and cash to be used in operating activities during that period of time. As a result, substantial doubt exists about our ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are available to be issued. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be different should we be unable to continue as a going concern based on the outcome of these uncertainties described above.

Use of Estimates

In preparing our condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC, we make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to preclinical and clinical trial expenses, stock-based compensation, intangible assets, future milestone payments and income taxes. These estimates and assumptions are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While we believe the estimates to be reasonable, actual results could differ materially from those estimates and could impact future results of operations and cash flows.

Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the basis of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. At June 30, 2024 and December 31, 2023, we recorded a valuation allowance equal to the full recorded amount of our net deferred tax assets since it is more-likely-than-not that such benefits will not be realized. The valuation allowance is reviewed quarterly and will be maintained until sufficient positive evidence exists to support its reversal.

Under ACS 740-270 Income Taxes – Interim Reporting, we are required to project our annual federal and state effective income tax rate and apply it to the year-to-date ordinary operating tax basis loss before income taxes. Based on the projection, no current income tax benefit or expense is expected for 2024 and the foreseeable future since we expect to generate taxable net operating losses.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of our cash and cash equivalents. We utilize only well-established banks and financial institutions with high credit ratings. Balances on deposit are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to specified limits. Total cash held by our banks at June 30, 2024, exceeded FDIC limits.

Recent Accounting Pronouncements

From time to time, the Financial Accounting Standards Board (“FASB”) or other standard setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”). We have implemented all new accounting pronouncements that are in effect and that may impact our condensed consolidated financial statements. We have evaluated recently issued accounting pronouncements and determined that there is no material impact on our condensed consolidated financial position or results of operations.

Note 2 – Stockholders’ Equity

Preferred Stock

There were no issued or outstanding shares of preferred stock at either June 30, 2024 or December 31, 2023.

Common Stock

During the six months ended June 30, 2024, we sold 476,000 shares of common stock, pre-funded warrants to purchase up to 1,079,555 shares of common stock in lieu of shares of common stock (the “Pre-Funded Warrants”), and warrants to purchase up to 1,555,555 shares of our common stock (the “Common Warrants’) in a public offering (the “Offering”). The Common Warrants have an exercise price of $4.50, are immediately exercisable and expire on January 30, 2029. The shares of common stock were offered at a combined public offering price of $4.50 per share and accompanying Common Warrant and $4.4999 per Pre-Funded Warrant and accompanying Common Warrant. The Pre-Funded Warrants had an exercise price of $0.0001 and were exercised in full simultaneously with the closing of the Offering in exchange for 1,079,555 shares of our common stock. Gross proceeds in connection with the Offering were $7.0 million. We received $6.3 million in net proceeds from the Offering, after deducting the fees of the placement agent and other offering-related expenses. We also issued to the placement agent warrants to purchase 62,222 shares of common stock, exercisable at $5.625 per share that expire on February 1, 2027.

During the six months ended June 30, 2024, we also issued: 5,000 shares of common stock to Elion Oncology, Inc. (“Elion”) in satisfaction of the third milestone event under the license agreement; 10,000 shares of common stock to a consultant in accordance with their consulting agreement; and 12,328 shares of common stock to certain employees and consultants, net of 5,015 shares of common stock withheld for income taxes owed upon distribution of the shares.

Note 3 - Stock-based Compensation

On June 19, 2019, our stockholders approved, and we adopted, the Processa Pharmaceuticals Inc. 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). The 2019 Plan allows us, under the direction of our Board of Directors or a committee thereof, to make grants of stock options, restricted and unrestricted stock and other stock-based awards to employees, including our executive officers, consultants and directors. On June 28, 2024, our shareholders approved an increase of shares available under the 2019 Plan, which now provides for the aggregate issuance of 800,000 shares of our common stock. At June 30, 2024, we have 503,129 shares available for future grants.

Stock Compensation Expense

We recorded stock-based compensation expense for the three and six months ended June 30, 2024 and 2023 as follows:

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Research and development	$	45,583	$	102,678	$	76,704	$	209,526
General and administrative		107,049		216,445		243,571		451,101
Total	$	152,632	$	319,123	$	320,275	$	660,627

Stock Options

Stock options to purchase 4,245 shares of common stock with a weighted-average exercise price of $336.00 expired during the six months ended June 30, 2024. At June 30, 2024, we had outstanding and exercisable options for the purchase of 2,747 shares with a weighted average exercise price of $409.09 and a weighted average remaining contractual life of 4.2 years. At June 30, 2024, we did not have any unrecognized stock-based compensation expense related to our granted stock options.

Restricted Stock Awards

During the six months ended June 30, 2024, we vested 1,250 Restricted Stock Awards (“RSAs”) with a weighted average grant-date fair value of $9.26 per share. We had no RSAs outstanding at June 30, 2024.

Restricted Stock Units

Activity with respect to our Restricted Stock Units (“RSUs”) during the six months ended June 30, 2024 was as follows:

	Number of shares			Weighted- average grant-date fair value per share
Outstanding at January 1, 2024		222,722		$	45.82
Granted		39,202			2.24
Forfeited		(10,775	)		58.37
Issued		(12,328	)		99.86
Outstanding at June 30, 2024		238,821			35.31
Vested and unissued		143,793			50.71

Unvested at June 30, 2024		95,028		$	12.00

On June 28, 2024, we granted RSUs for the future issuance of 39,202 shares of common stock to our employees which vest accordingly: RSUs for the future issuance of 14,969 shares of common stock vest on January 1, 2025; RSUs for the future issuance of 18,173 shares of common stock vest over a three-year period upon meeting service requirements; RSUs for the future issuance of 3,030 shares of common stock vested upon grant due to regaining Nasdaq compliance; and RSUs for the future issuance of 3,030 shares of common stock vest upon dosing the first patient in our Phase 2 study in NGC-Cap.

At June 30, 2024, unrecognized stock-based compensation expense of approximately $538,000 for RSUs is expected to be fully recognized over a weighted average period of 1.7 years. The unrecognized expense excludes approximately $420,000 of expense related to certain grants of RSUs with performance milestones that are not probable of occurring at this time.

Holders of our vested RSUs will be issued shares of our common stock upon meeting the distribution restrictions contained in their Restricted Stock Unit Award Agreement. The distribution restrictions are different (longer) than the vesting schedule, imposing an additional restriction on the holder. Unlike RSAs, while certain employees may hold fully vested RSUs, the individual does not hold any shares or have any rights of a shareholder until the distribution restrictions are met. Upon distribution to the employee, each RSU converts into one share of our common stock. The RSUs contain dividend equivalent rights.

Warrants

During the six months ended June 30, 2024, we did not grant any warrants to purchase shares of our common stock other than warrants to purchase 1,617,777 shares of common stock as part of the Offering (see Note 2). Warrants to purchase 5,000 shares of our common stock expired unexercised. We also repurchased a warrant issued to a consultant in 2023 for the purchase of 15,000 shares of our common stock in exchange for a payment of $10,000.

At June 30, 2024, we had outstanding stock purchase warrants for the purchase of an aggregate of 1,778,284 shares with a weighted average exercise price of $6.17 and a weighted average remaining contractual life of 4.3 years. All the outstanding stock purchase warrants are exercisable as of June 30, 2024. We did not have any unrecognized stock-based compensation expense related to our granted stock purchase warrants at June 30, 2024.

Note 4 – Net Loss per Share of Common Stock

Net Loss Per Share

Basic net loss per share is computed by dividing our net loss available to common shareholders by the weighted average number of shares of common stock outstanding (which excludes unvested RSAs and includes vested RSUs) during the period. Diluted loss per share is computed by dividing our net loss available to common shareholders by the diluted weighted average number of shares of common stock (which includes the potentially dilutive effect of stock options, unvested RSAs, unvested RSUs and warrants) during the period. Since we experienced a net loss for all periods presented, basic and diluted net loss per share are the same. As such, diluted loss per share for the three and six months ended June 30, 2024 and 2023 excludes the impact of potentially dilutive common shares since those shares would have an anti-dilutive effect on net loss per share.

The computation of net loss per share for the three and six months ended June 30, 2024 and 2023 was as follows:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic and diluted net loss per share:
Net loss available to common stockholders	$	(3,010,326	)	$	(2,612,565	)	$	(5,736,707	)	$	(6,634,638	)
Weighted average number of common shares-basic and diluted		2,983,283			1,346,808			2,724,903			1,243,475

Basic and diluted net loss per share	$	(1.01	)	$	(1.94	)	$	(2.11	)	$	(5.34	)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Weighted-average number of common shares outstanding – basic and diluted		2,849,192		1,217,095		2,590,530		1,114,324
Weighted-average number of vested RSUs– basic and diluted		134,091		129,713		134,373		129,151
Weighted-average number of common shares-basic and diluted		2,983,283		1,346,808		2,724,903		1,243,475

Our diluted net loss per share for the three and six months ended June 30, 2024 and 2023 excluded 1,876,059 and 254,314 of potentially dilutive common shares, respectively, related to outstanding stock options, warrants and unvested restricted stock since those shares would have had an anti-dilutive effect on net loss per share during the periods then ended.

Note 5 – Leases

We lease our office space under an operating lease agreement. This lease does not have significant rent escalation, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. Our office space lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. We also lease office equipment under a financing lease. Our leases do not provide an implicit rate and, as such, we have used our incremental borrowing rate of 8% in determining the present value of the lease payments based on the information available at the lease commencement date.

Lease costs included in our condensed consolidated statements of operations totaled approximately $23,000 and $24,000 for the three months ending June 30, 2024 and 2023, respectively, and approximately $45,000 and $49,000 for the six months ended June 30, 2024, and 2023, respectively. The weighted average remaining lease terms and discount rate for our leases were as follows at June 30, 2024:

Remaining lease term (years) for our facility lease	1.3
Remaining lease term (years) for our equipment lease	1.6
Weighted average discount rate for our facility and equipment leases	8.0	%

Annual lease liabilities for the operating lease were as follows at June 30, 2024:


2024	$	45,797
2025		70,040
Total lease payments		115,837
Less: Interest		(6,511	)
Present value of lease liabilities		109,326
Less: current maturities		(87,495	)
Non-current lease liability	$	21,831

Annual lease liabilities for the financing lease were as follows at June 30, 2024:


2024	$	3,232
2025		6,820
2026		488
Total lease payments		10,540
Less: Interest		(1,037	)
Present value of lease liabilities		9,503
Less: current maturities		(5,686	)
Non-current lease liability	$	3,817

Note 6 – Related Party Transactions

CorLyst, LLC (“CorLyst”) reimburses us for shared costs related to payroll, health insurance and rent based on actual costs incurred, which are recognized as a reduction of our general and administrative operating expenses being reimbursed in our condensed consolidated statement of operations. We recorded approximately $27,000 and $34,000 of reimbursements during the three months ended June 30, 2024 and 2023, respectively, and approximately $50,000 and $64,000 for the six months ended June 30, 2024 and 2023, respectively. No amounts were due from CorLyst at June 30, 2024 or 2023. Our President of Research and Development is the CEO of CorLyst, and CorLyst is a shareholder.

Note 7 – Commitments and Contingencies

Purchase Obligations

We enter into contracts in the normal course of business with contract research organizations (“CROs”) and subcontractors to further develop our products. The contracts are cancelable, with varying provisions regarding termination. If we terminated a cancelable contract with a specific vendor, we would only be obligated for products or services that we received at the effective date of the termination and any applicable cancellation fees. At June 30, 2024, we are contractually obligated to pay up to $14.3 million of future services under the agreements with the CROs. Our actual contractual obligations will also vary depending on the progress and results of the remaining clinical trials.

Note 8 – Subsequent Event

On July 16, 2024, Russell Skibsted was appointed as our Chief Financial Officer (“CFO”). Mr. Skibsted has nearly 30 years of experience in the pharmaceutical industry, including expertise in financial management, global business development, capital markets, investor relations and operations. In connection with his employment, Mr. Skibsted will be paid an annual base salary of $400,000 and will be eligible for a $50,000 base salary increase upon a cumulative (one or multiple) financing of at least $15 million that he leads and substantially participates in. He is also eligible to participate in an executive bonus pool with a target bonus of 35% of his base compensation. In addition, the Compensation Committee awarded 28,000 RSUs to Mr. Skibsted, which vest accordingly: 14,000 RSUs vest on July 16, 2025; 7,000 RSUs vest upon Processa reaching a market capitalization (i.e. total value of Processa’s outstanding shares of stock at the then current market price) of at least $30 million; and 7,000 RSUs vest upon a cumulative (one or multiple) financing of at least $15 million that he leads and substantially participates in. He will also be eligible for other benefits as described in his employment agreement.

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

Forward Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties. Forward-looking statements frequently are identified by the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases. Similarly, statements herein that describe the Company’s objectives, plans or goals also are forward-looking statements. Actual results could differ materially from those projected, implied or anticipated by the Company’s forward-looking statements. Some of the factors that could cause actual results to differ include: our limited operating history, limited cash and history of losses; our ability to achieve profitability; our ability to obtain adequate financing to fund our business operations in the future; our ability to secure required FDA or other governmental approvals for our product candidates and the breadth of the indication sought; the impact of competitive or alternative products, technologies and pricing; whether we are successful in developing and commercializing our technology, including through licensing; the adequacy of protections afforded to us and/or our licensors by the anticipated patents that we own or license and the cost to us of maintaining, enforcing and defending those patents; our and our licensors’ ability to protect non-patented intellectual property rights; our exposure to and ability to defend third-party claims and challenges to our and our licensors’ anticipated patents and other intellectual property rights; and our ability to continue as a going concern. For a discussion of these and all other known risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which is available on the SEC’s website at www.sec.gov. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this Quarterly Report on Form 10-Q to reflect events or circumstances after the date hereof.

For purposes of this Management’s Discussion and Analysis of Financial Condition and Results of Operations, references to the “Company,” “we,” “us” or “our” refer to the operations of Processa Pharmaceuticals, Inc. and its direct and indirect subsidiaries for the periods described herein.

Overview

We are a clinical-stage biopharmaceutical company focused on utilizing our Regulatory Science Approach, which includes the principles associated with FDA’s Project Optimus Oncology initiative and the related FDA Draft Guidance, in the development of Next Generation Chemotherapy (“NGC”) oncology drug products. Our mission is to provide better treatment options than those that presently exist by extending a patient’s survival and/or improving a patient’s quality of life. This is achieved by improving upon FDA-approved, widely used oncology drugs or the cancer-killing metabolites of these drugs by altering how they are metabolized and/or distributed in the body, including how they are distributed to the actual cancer cells.

Our Regulatory Science Approach was conceived in the early 1990s when the founders of Processa and other faculty at the University of Maryland worked with the FDA to develop multiple FDA Guidance Documents. Regulatory science is the science of developing new tools, standards, and approaches to assess the safety, efficacy, quality, and performance of all FDA-regulated products. Over the last 30 years, two of our founders, Dr. David Young and Dr. Sian Bigora, have expanded the original regulatory science concept by adding focused pre-clinical and clinical studies to justify the benefit-risk assessment required for FDA approval when designing the development programs of new drug products.

Our Regulatory Science Approach identifies the scientific information that the FDA requires to determine whether the benefit outweighs the risk of a drug in a specific population of patients and at a specific dosage regimen for a specific drug product. The studies are designed to obtain the necessary scientific information to support the regulatory decision.

Recently, the FDA has taken steps to define some of the regulatory science required for the FDA approval of oncology products. Through the FDA’s Project Optimus Oncology Initiative and the related Draft Guidance on determining the “optimal” dosage regimen for an oncology drug, the FDA has chosen to make the development of oncology drugs more science-based than in the past. Since the principles of the FDA’s Project Optimus and the related Draft Guidance have been used by our Regulatory Science Approach in a number of non-oncology drugs in the past, our experience with the principles of Project Optimus differentiates us from other biotechnology companies by focusing us not only on the clinical science, but also on the equally important regulatory process. We believe utilizing our Regulatory Science Approach provides us with three distinct advantages:

	●	greater efficiencies (e.g., the right trial design and trial readouts);
	●	greater possibility of drug approval by the FDA or other regulatory authorities; and
	●	greater ability to evaluate the benefit-risk of a drug compared to existing therapy, which allows prescribers to provide better treatment options for each patient.

Our strategic prioritization is to advance our pipeline of NGC proprietary small molecule oncology drugs. The NGC products are new chemical entities that change the metabolism, distribution and/or elimination of already FDA-approved cancer drugs, or their active metabolites, while maintaining the drug’s proven mechanism of action in killing cancer cells. We believe our NGC treatments will provide improved safety-efficacy profiles when compared to their currently marketed counterparts – capecitabine, gemcitabine, and irinotecan.

Our Drug Pipeline

Our pipeline currently consists of NGC-Cap, NGC-Gem and NGC-Iri (also identified as PCS6422, PCS3117 and PCS11T, respectively) and two non-oncology drugs (PCS12852 and PCS499). The non-oncology drugs are not included in the pipeline chart above, as we are exploring our options for those drugs, which may include out-licensing or partnership opportunities. A summary of each drug is provided below.

Next Generation Chemotherapy

Historically, much of oncology drug development has searched for novel or different ways to treat cancer. Our approach is to take three current FDA-approved cancer drugs, e.g. capecitabine, gemcitabine and irinotecan, and modify and improve how the human body metabolizes and/or distributes these NGC treatments compared to their presently approved counterpart chemotherapy drugs while maintaining the cancer-killing mechanism of action; thus, our reason for calling our drugs Next Generation Chemotherapy treatments. Part of the development includes determining the optimal dosage regimen based on the dose-response relationship as described in the FDA’s Project Optimus Initiative and Draft Optimal Dosage Regimen Oncology Guidance. To date, we have data that we believe suggests our NGC treatments are likely to have a better safety-efficacy profile than the current widely used marketed counterpart drugs, not only potentially making the development and approval process more efficient, but also clearly differentiating our NGC treatments from the existing treatment. We believe our NGC treatments have the potential to extend the survival and/or quality of life for more patients diagnosed with cancer while decreasing the number of patients who are required to dose-adjust or discontinue treatment because of side effects or lack of response.

Next Generation Chemotherapy Pipeline

	●	Next Generation Capecitabine (“NGC-Cap”) is a combination of PCS6422 and a lower dose of the FDA-approved cancer drug capecitabine. PCS6422 is an orally administered irreversible inhibitor of the enzyme dihydropyrimidine dehydrogenase (“DPD”). DPD metabolizes 5-Fluorouracil (“5-FU”), the major metabolite of capecitabine and widely used itself as an intravenous chemotherapeutic agent in many types of cancer, to multiple metabolites classified as catabolites. These catabolites do not have any cancer-killing properties but frequently cause dose-limiting side effects that may require dose adjustments or discontinuation of therapy.

		Capecitabine, as presently prescribed and FDA-approved, forms the cancer drug 5-FU which is then further metabolized to anabolites (which kill both cancer cells and normal duplicating cells) and catabolites (which cause side effects and have no cancer killing properties). When capecitabine is given in combination with PCS6422 in NGC-Cap, PCS6422 significantly changes the metabolism of 5-FU, which results in a change in the distribution of 5-FU within the body. Due to this change in metabolism and the overall metabolite profile of anabolites and catabolites, the side effect and efficacy profile of NGC-Cap has been found to be different from capecitabine given without PCS6422. Since the potency of NGC-Cap is also greater than FDA-approved capecitabine based on the 5-FU systemic exposure per mg of capecitabine administered, the amount of capecitabine anabolites formed from 1 mg of capecitabine administered in NGC-Cap will, therefore, be much greater than formed from the administration of 1 mg of existing capecitabine.

		The Phase 1B trial in patients with advanced refractory gastrointestinal tract tumors demonstrated that the irreversible inhibition of DPD by PCS6422 could alter the metabolism, distribution and elimination of 5-FU, making NGC-Cap significantly (up to 50 times) more potent than capecitabine alone and potentially leading to higher levels of anabolites which can kill replicating cancer and normal cells. By administering NGC-Cap to cancer patients, the balance between anabolites and catabolites changes depending on the dosage regimens of PCS6422 and capecitabine used, making the efficacy-safety profile of NGC-Cap different than that of FDA-approved capecitabine and requiring further evaluation of the PCS6422 and capecitabine regimens to determine the optimal NGC-Cap regimens for patients.

		In order for NGC-Cap to provide a safer and more efficacious profile for cancer patients compared to existing chemotherapy, understanding how the different regimens of PCS6422 and capecitabine may affect the systemic and tumor exposure to the anabolites, as well as the systemic exposure to the catabolites, is required. This can be achieved by following the timeline of DPD irreversible inhibition and the formation of new DPD using the plasma concentrations of 5-FU and its catabolites.

		In an effort to better estimate the timeline of DPD inhibition and formation of new DPD, we modified the protocol for the Phase 1B trial and began enrolling patients in the amended Phase 1B trial in April 2022. On November 1, 2022, we announced that data from the Phase 1B trial identified multiple dosage regimens with potentially better safety and efficacy profiles than currently existing chemotherapy regimens. Since 5-FU exposure is dependent on both the PCS6422 regimen and the capecitabine regimen, safe regimens were identified as well as regimens that cause dose-limiting toxicities (“DLTs”). One of the early regimens in the Phase 1B trial did cause DLTs in two patients, one of whom died. No other DLTs were noted in the study. The Phase 1B trial has now completed enrollment and we are currently conducting trial close-out activities. We submitted a new IND for the treatment of advanced and metastatic breast cancer and received IND clearance from the FDA on July 24, 2024. The Phase 2 trial is currently being initiated and will be a global multicenter, open-label, adaptive design trial comparing two different doses of NGC-Cap to FDA-approved monotherapy capecitabine in approximately 60 to 90 patients with advanced or metastatic breast cancer. The trial is designed to evaluate the safety-efficacy profile of NGC-Cap versus monotherapy capecitabine, to determine the potential optimal dosage regimens of NGC-Cap as required by the FDA Project Optimus Initiative. Our license agreement with Elion for NGC-Cap requires us to use commercially reasonable efforts, at our sole cost and expense, to research, develop and commercialize products in one or more countries, including meeting specific diligence milestones that include dosing a first patient with a product in a Phase 2 or 3 clinical trial on or before October 2, 2024. We expect the first patient to be dosed before the conclusion of the third quarter of 2024, ahead of the required diligence milestone.

●

NGC-Gem is a cytidine analog similar to gemcitabine (Gemzar®), but different enough in chemical structure that some patients are more likely to respond to PCS3117 than gemcitabine. In addition, we believe those patients inherently resistant or who acquire resistance to gemcitabine are likely not to be resistant to NGC-Gem. The difference in response occurs because NGC-Gem is metabolized to its active metabolite through a different enzyme system than gemcitabine. We continue to evaluate the potential use of NGC-Gem in patients with pancreatic and other potential cancers and to evaluate ways to identify patients who are more likely to respond to NGC-Gem than gemcitabine. We plan to meet with the FDA to discuss potential trial designs including implementation of the Project Optimus initiative as part of the design. Similar to NGC-Cap, we will need to obtain additional funding before we can begin the Phase 2 trial for NGC-Gem.

		Our license agreement with Ocuphire Pharma, Inc. (“Ocuphire”) for NGC-Gem requires us to use commercially reasonable efforts, at our sole cost and expense to oversee such commercialization efforts, to research, develop and commercialize products in one or more countries, including meeting specific diligence milestones that consist of: (i) dosing a patient in a clinical trial prior to June 16, 2024; and (ii) dosing a patient in a pivotal clinical trial or in a clinical trial for a second indication of the drug prior to June 16, 2026. We are currently in discussions with Ocuphire to extend these deadlines.

	●	NGC-Iri is an analog of SN38 (SN38 is the active metabolite of irinotecan) and should have an improved safety/efficacy profile in every type of cancer that irinotecan is presently used. The manufacturing process and sites for drug substance and drug product are presently being evaluated and IND-enabling toxicology studies will then be initiated. In addition, we are defining the potential paths to approval, which include defining the targeted patient population and the type of cancer. In 2025, we plan to expand the preclinical analysis, including additional preclinical efficacy and toxicity studies; evaluate manufacturing options for PCS11T; and conduct chemistry, manufacturing and control (CMC) activities and pre-IND enabling studies.

We are focused on drug products that improve the survival and/or quality of life for patients by improving the safety and/or efficacy of the drug in a targeted patient population, while providing a more efficient and probable path to FDA approval and differentiating our drugs from those on the market or are currently being developed.

Other Drugs in Our Pipeline

In 2023, we completed our Phase 2A trial for PCS12852 in gastroparesis patients with positive results. Additionally, in February 2023, due primarily to the inability to identify and enroll patients in our rare disease Phase 2 trial for PCS499 in ulcerative Necrobiosis Lipoidica, we decided to cease further enrollment in the PCS499 trial and terminated the trial. We did not experience any safety concerns during the conduct of either the PCS12852 or PCS499 trial. We continue to evaluate options to monetize these non-core drug assets, which may include out-licensing or partnering these assets with one or more third parties.

Recent Developments

Reverse Stock Split

On January 22, 2024, we effected a 1-for-20 reverse stock split, reducing the number of our common shares issued on that date from 24,706,474 shares to 1,291,000 shares. There is no corresponding reduction in the number of authorized shares of common stock and no change in the par value per share. All share and per share amounts and conversion and exercise prices presented herein have been adjusted retroactively to reflect this change.

Public Offering

On January 30, 2024, we raised gross proceeds of $7.0 million (net proceeds of $6.3 million) from the sale of 476,000 shares of our common stock, pre-funded warrants to purchase up to 1,079,555 shares of our common stock and warrants to purchase 1,555,555 shares of our common stock in a public offering, as described in Note 2. Simultaneously with the closing of the sale, the pre-funded warrants were exercised in exchange for 1,079,555 shares of our common stock. We are using the net proceeds from this financing for continued research and development for NCG-Cap, and working capital and general corporate purposes.

ATM Offering

New Chief Financial Officer

Results of Operations

Comparison of the three and six months ended June 30, 2024 and 2023

The following table summarizes our net loss during the periods indicated:

	Three Months Ended June 30,									Six Months Ended June 30,
	2024			2023			Change			2024			2023			Change
Operating Expenses
Research and development expenses	$	1,730,444		$	1,688,164		$	42,280		$	3,269,555		$	3,342,509		$	(72,954	)
General and administrative expenses		1,351,580			1,026,301			325,279			2,622,067			3,477,490			(855,423	)

Operating Loss		(3,082,024	)		(2,714,465	)					(5,891,622	)		(6,819,999	)

Other Income (Expense), net		71,698			101,900			(30,141	)		154,915			185,361			(30,309	)

Net Operating Loss Before Income Tax Benefit		(3,010,326	)		(2,612,565	)					(5,736,707	)		(6,634,638	)
Income Tax Benefit		-			-						-			-

Net Loss	$	(3,010,326	)	$	(2,612,565	)				$	(5,736,707	)	$	(6,634,638	)

Revenues

We do not currently have any revenue under contract or any immediate sales prospects.

Research and Development Expenses

Our research and development costs are expensed as incurred. Research and development expenses include (i) program and testing related expenses including external consulting and professional fees related to the product testing and our development activities and (ii) internal research and development staff salaries and other payroll costs including stock-based compensation, payroll taxes and employee benefits.

Costs for the three- and six-month periods for the periods ended June 30, 2024 and 2023 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Research and development salaries and benefits		468,724		502,626		976,554		1,048,294
Preclinical, clinical trial and other costs		1,261,720		1,185,538		2,293,001		2,294,215
Total	$	1,730,444	$	1,688,164	$	3,269,555	$	3,342,509

During the three months ended June 30, 2024, our preclinical, clinical trial and other costs increased when compared to the same period in 2023. This was attributable to an increase of approximately $146,000 for ongoing testing and related expenses related to our Phase 1B trial for NGC-Cap and the IND/initiation of our Phase 2 trial for NGC-Cap and offset by a decrease in professional fees of approximately $70,000, mostly attributable to a decrease in patent-related legal fees. During the same period in 2023, in addition to clinical trial costs for NGC-Cap, we were incurring closing costs in our clinical trial for PCS12852 and PCS499. We also had an approximately $23,000 increase in salaries and related costs during the three months ended June 30, 2024 when compared to the same period in 2023 due to one-time bonuses and increased salary rates for the research and development team in 2024. This was offset by a decrease in stock-based compensation of approximately $57,000 as we waited for shareholder approval to increase the number of shares available under the 2019 Plan.

During the six months ended June 30, 2024, we had increases in testing and related expenses of approximately $132,000, and in salaries and related costs of approximately $61,000, when compared to the same period in 2023. These increases were offset by decreases in professional fees of approximately $133,000 and in stock-based compensation of approximately $133,000. The reasons for the changes between the six-month periods in 2024 and 2023 are the same as the reasons between the three-month periods in 2024 and 2023.

On July 24, 2024 we received approval of our IND for our Phase 2 trial for NGC-Cap in breast cancer. As we begin this Phase 2 trial and complete our Phase 1B clinical trial for NGC-Cap, we anticipate our research and development costs will increase. We will also continue incurring nominal costs for NGC-Gem as we prepare to meet with the FDA to discuss potential study designs and for NGC-Iri should we decide to conduct IND-enabling and toxicology studies.

The funding necessary to bring a drug candidate to market is subject to numerous uncertainties. Once a drug candidate is identified, the further development of that drug candidate may be halted or abandoned at any time due to a number of factors. These factors include, but are not limited to, funding constraints, safety or a change in market demand. For each of our drug candidate programs, we periodically assess the scientific progress and merits of the programs to determine if continued research and development is economically viable. Some programs may be terminated due to the lack of scientific progress and lack of prospects for ultimate commercialization.

Our clinical trial cost accruals are based on estimates of patient enrollment and related costs at clinical investigator sites, as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and CROs that conduct and manage clinical trials on our behalf.

We estimate preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on our behalf. In accruing service fees, we estimate the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, we will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses and expensed when the services are rendered.

General and Administrative Expenses

Our general and administrative expenses for the three months ended June 30, 2024 increased by approximately $325,000 to $1.4 million from $1.0 million for the three months ended June 30, 2023. This increase was due primarily as a result of an approximately $308,000 increase in professional fees, mostly attributable to an increase of legal fees; an approximately $115,000 increase in salaries and other payroll-related costs from increased salary rates, primarily paid to our executive officers; and a net increase of approximately $17,000 in travel, office and other miscellaneous expenses. These increases were offset by a decrease in employee stock-based compensation of approximately $123,000. We also received approximately $8,000 less in reimbursements from CorLyst during the three months ended June 30, 2024 when compared to the same period in 2023.

During the six months ended June 30, 2024, our general and administrative expenses decreased by approximately $855,000 to $2.6 million from $3.5 million for the six months ended June 30, 2023. This was due primarily to a decrease in professional fees of approximately $955,000 as a result of the non-recurring expense that was incurred during 2023 in connection with the stock purchase warrant granted to the placement agent for our registered direct offering in February 2023; and a decrease in employee stock-based compensation of approximately $247,000 as we waited for shareholder approval to increase the number of shares available under the 2019 Plan. These decreases were primarily offset by increases in salaries and other payroll-related expenses of approximately $296,000 and in office and other related expenses of approximately $37,000. We also received approximately $14,000 less in reimbursements from CorLyst during the six months ended June 30, 2024 when compared to the same period in 2023.

Other Income, net

Other income represents interest income of approximately $72,000 and $102,000 for the three months ended June 30, 2024 and 2023, respectively, and approximately $155,000 and $185,000 for the six months ended June 30, 2024 and 2023, respectively.

Income Tax Benefit

We did not recognize any income tax benefit for the three or six months ended June 30, 2024 or 2023.

Cash Flows

The following table sets forth our sources and uses of cash and cash equivalents for the six months ended June 30, 2024 and 2023:

	Six months ended June 30,
	2024			2023
Net cash (used in) provided by:
Operating activities	$	(5,394,713	)	$	(4,178,539	)
Financing activities		6,259,636			6,352,077
Net increase in cash	$	864,923		$	2,173,538

Net cash used in operating activities

We used net cash in our operating activities of $5,394,713 and $4,178,539 during the six months ended June 30, 2024 and 2023, respectively. The increase in cash used in operating activities was primarily attributable to the prepayment of expenses paid to our CRO for our Phase 2 trial for NGC-Cap during the six months ended June 30, 2024.

As we continue our development of NGC-Cap and evaluate the other NGC drugs in our portfolio, we anticipate our research and development efforts and ongoing general and administrative costs will continue to generate negative cash flows from operating activities for the foreseeable future. As we begin our Phase 2 clinical trial for NGC-Cap in the second half of 2024, we anticipate our clinical trial costs will increase when compared to prior periods since our current activities are related primarily to the completion of our Phase 1b trial for NGC-Cap.

Net cash provided by financing activities

During the six months ended June 30, 2024, we sold 476,000 shares of common stock, pre-funded warrants to purchase up to 1,079,555 shares of common stock in lieu of shares of common stock, all of which were exercised into shares of our common stock, and warrants to purchase up to 1,555,555 shares of our common stock pursuant to a public offering for net proceeds of $6.3 million. We also used cash classified as financing activities of $12,000 to pay income taxes owed on stock-based compensation, $8,600 for the settlement of a stock award and $2,300 for payments owed under a financing lease obligation.

During the six months ended June 30, 2023, we raised net proceeds of $6.4 million from the sale of 421,611 shares of our common stock.

Liquidity

During the six months ended June 30, 2024, we began initiation activities for our Phase 2 trial for NGC-Cap in breast cancer. At June 30, 2024, we had cash and cash equivalents totaling $5.6 million which, based on our current business and drug development plans, we believe will satisfy our operating needs into late 2024. Absent additional funding, our current cash and cash equivalents will not be sufficient to fund our planned operations for a period of one year or more after the date that these condensed consolidated financial statements were available to be issued based on the timing and amount of our projected net loss from continuing operations and the related amount of cash to be used in operating activities during that period of time. Our ability to execute our longer-term operating plans, including future preclinical studies and clinical trials for our portfolio of drugs depend on our ability to obtain additional funding from the sale of equity and/or debt securities, a strategic transaction or other funding transactions.

We have incurred losses since inception, currently devoting substantially all of our efforts toward research and development of our next generation chemotherapy drug product candidates, including conducting clinical trials and providing general and administrative support for these operations, and have an accumulated deficit of $81.1 million at June 30, 2024. During the six months ended June 30, 2024, we generated a net loss of $5.7 million and used $5.4 million in net cash for operating activities from continuing operations. To date, none of our drug candidates have been approved for sale, and therefore we have not generated any product revenue and do not expect positive cash flow from operations in the foreseeable future.

We have financed our operations primarily through public equity issuances, including an offering we closed on January 30, 2024 in which we sold 476,000 shares of our common stock, pre-funded warrants to purchase up to 1,079,555 shares of our common stock, and warrants for the purchase of up to 1,555,555 shares of our common stock for net proceeds of $6.3 million, after deducting placement agent fees and offering-related expenses. Simultaneously with the closing of the sale, the pre-funded warrants were exercised in exchange for 1,079,555 shares of our common stock. We will continue to be dependent upon equity and/or debt financing until we are able to generate positive cash flows from our operations.

Further, in May 2024, we filed with the SEC a registration statement on Form S-3 (Registration No. 333-279588) (the “Registration Statement”), including a base prospectus relating to the offering of up to $50,000,000 in the aggregate of the securities identified in the base prospectus from time to time in one or more offerings; and a prospectus supplement relating to the shares of our common stock that may be issued and sold under a sales agreement dated May 21, 2024 (the “Sales Agreement”) between us and A.G.P./Alliance Global Partners (the “Sales Agent”), through which we may issue and sell in a registered “at the market offering” shares of our common stock having an aggregate offering price of up to $2.4 million (subject to adjustment) from time to time through or to our Sales Agent (the “ATM Offering”). We expect to use net proceeds, if any, from the ATM Offering over time for continued research and development for our portfolio of drug candidates, especially our oncology products, and working capital and general corporate purposes. The shares under the ATM Offering will be sold and issued pursuant to the Registration Statement.

Contractual Obligations and Commitments

There have been no significant changes to the contractual obligations reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Off Balance Sheet Arrangements

At June 30, 2024, we did not have any off-balance sheet arrangements.

Critical Accounting Policies and Use of Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities.

We believe that the estimates, assumptions and judgments involved in the accounting policies described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our most recent Annual Report on Form 10-K have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Actual results could differ from the estimates we use in applying our critical accounting policies. We are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.

There have been no changes in our critical accounting policies from those included in our most recent Annual Report on Form 10-K.

Recently Issued Accounting Pronouncements

We have evaluated recently issued accounting pronouncements and determined that there is no material impact on our financial position or results of operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 3 is not applicable to us as a smaller reporting company and has been omitted.

Item 4. Controls and Procedures

At June 30, 2024, management, with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the evaluation of its disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at June 30, 2024 to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Changes in Internal Control over Financial Reporting

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

Part II. Other Information

Item 1. Legal Proceedings

As of the date of this report, to our knowledge, there are no legal proceedings or regulatory actions material to us to which we are a party, or have been a party to, or of which any of our property is or was the subject matter of, and no such proceedings or actions are known by us to be contemplated, except as provided below:

As previously disclosed in our Current report on Form 10-Q for the period ended March 31, 2024, on May 7, 2024, the Company received notification from Elion purporting to terminate the license agreement by and between the Company and Elion as a result of the Company’s alleged breach thereof. The Company believes that Elion’s claims are without merit and disputes that the license agreement has been validly terminated. On May 10, 2024, the Company filed a summons with notice for damages, declaratory and injunctive relief against Elion in New York State Court. On June 14, 2024, Elion filed a demand for complaint. On July 5, 2024, the Company filed a complaint seeking monetary damages, declaratory judgement and injunctive relief. The Company intends to enforce its rights under the license agreement and will pursue such other remedies as it determines are appropriate.

Item 1A. Risk Factors

There have been no material changes to our risk factors as described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, other than the addition of the following risk factor:

Our licenses are subject to termination by the licensor in certain circumstances.

Our rights to practice the inventions claimed in the licensed patents and patent applications are subject to our licensors abiding by the terms of those licenses and not terminating them. Our licenses may be terminated by the licensor if we are in material breach of certain terms or conditions of the license agreement or in certain other circumstances. Our license agreements each include provisions that allow the licensor to terminate the license if (i) we breach any payment obligation or other material provision under the agreement and fail to cure the breach within a fixed time following written notice of termination; (ii) we or any of our affiliates, licensees or sublicensees directly or indirectly challenge the validity, enforceability, or extension of any of the licensed patents; or (iii) we declare bankruptcy or dissolve. The majority of license agreements require us to satisfy due diligence milestones that relate to the development of new products containing the licensed drug or the agreement may be terminated by such counterparty. Our rights under these licenses are subject to our continued compliance with the terms of the license, including the payment of royalties due under the licenses. Termination of any of these licenses could prevent us from marketing some or all of our products. Because of the complexity of our products and the patents we have licensed, determining the scope of the license and related royalty obligations can be difficult and can lead to disputes between us and the licensor. An unfavorable resolution of such a dispute could lead to an increase in the royalties payable pursuant to the license. If a licensor believed we were not paying the royalties due under the license or were otherwise not in compliance with the terms of the license, the licensor might attempt to revoke the license. If such an attempt were successful, we might be barred from producing and selling some or all of our products.

As previously disclosed in our Current Report on Form 10-Q for the period ended March 31, 2024, on May 7, 2024, the Company received notification from Elion purporting to terminate the license agreement by and between us and Elion as a result of the Company’s alleged breach thereof. The Company believes that Elion’s claims are without merit and disputes that the license agreement has been validly terminated. On May 10, 2024, the Company filed a summons with notice for damages, declaratory and injunctive relief against Elion in New York State Court. On June 14, 2024, Elion filed a demand for complaint. On July 5, 2024, the Company filed a complaint seeking monetary damages, declaratory judgement and injunctive relief. The Company intends to enforce its rights under the license agreement and will pursue such other remedies as it determines are appropriate.

If we are unsuccessful or are unable to enforce our rights under the license agreement, our business and results of operations may be adversely affected.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Recent Sale of Unregistered Securities

On June 6, 2024, we issued 10,000 shares of common stock to Paramount Advisors, LLC in connection with a consulting agreement. The sale of shares was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Section 4(a)(2) of the Securities Act.

There were no other sales of unregistered securities during the three months ended June 30, 2024.

(b) Use of Proceeds from Public Offering of Common Stock

None.

(c) Issuer Purchases of Equity Securities

We did not repurchase any shares of our common stock during the six months ended June 30, 2024.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended June 30, 2024, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

SEC Ref. No.		Title of Document
1.1		Sales Agreement, dated May 21, 2024, by and among Processa Pharmaceuticals, Inc. and A.G.P./Alliance Global Partners (incorporated by reference to Exhibit 1.2 to the Registration Statement on Form S-3 filed on May 21, 2024)
10.1#		Employment Agreement dated July 16, 2024 by and between Russell Skibsted and Processa Pharmaceuticals, Inc. (incorporated by reference to Exhibit 10.1 to Form 8-K filed on July 17, 2024)
31.1*		Rule 153-14(a) Certification by Principal Executive Officer
31.2*		Rule 153-14(a) Certification by Principal Financial Officer
32.1*++		Section 1350 Certification of Principal Executive Officer and Principal Financial Officer
99.1		XBRL Files
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

# Indicates management contract or compensatory plan or arrangement.

++ This certification is being furnished solely to accompany this Quarterly Report pursuant to 18 U.S.C. Section 1350 and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PROCESSA PHARMACEUTICALS, INC.

	By:	/s/ George Ng
		George Ng
		Chief Executive Officer
		(Principal Executive Officer)
		Dated: August 13, 2024

	By:	/s/ Russell Skibsted
		Russell Skibsted
		Chief Financial Officer
		(Principal Financial and Accounting Officer)
		Dated: August 13, 2024

Exhibit 31.1

CERTIFICATION

I, George Ng, Chief Executive Officer of PROCESSA PHARMACEUTICALS, INC. certify that:

1. I have reviewed this quarterly report on Form 10-Q of PROCESSA PHARMACEUTICALS, INC. for the six months ended June 30, 2024;

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 registrant at, and for, the periods presented in this report;

4. I am 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 Rules13a-15(f) and 15d-15 (f)) for the registrant 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 registrant, 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 registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, at the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing 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 registrant’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 registrant’s internal control over financial reporting.

	By:	/s/ George Ng
		George Ng
		Chief Executive Officer (Principal Executive Officer)
	Date:	August 13, 2024

Exhibit 31.2

CERTIFICATION

I, Russell Skibsted, Chief Financial Officer of PROCESSA PHARMACEUTICALS, INC. certify that:

1. I have reviewed this quarterly report on Form 10-Q of PROCESSA PHARMACEUTICALS, INC. for the six months ended June 30, 2024;

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

	By:	/s/ Russell Skibsted
		Russell Skibsted
		Chief Financial Officer (Principal Financial and Accounting Officer)
	Date:	August 13, 2024

Exhibit 32.1

Written Statement of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. §1350

Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Executive Officer of Processa Pharmaceuticals, Inc. (the “Company”), hereby certify, to the best of my knowledge, that the quarterly report on Form 10-Q of the Company for the quarter ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This certification is being furnished solely to accompany this Report pursuant to 18 U.S.C. 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

	By:	/s/ George Ng
		George Ng
		Chief Executive Officer (Principal Executive Officer)
	Date:	August 13, 2024

Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Financial Officer of Processa Pharmaceuticals, Inc. (the “Company”), hereby certify, to the best of my knowledge, that the quarterly report on Form 10-Q of the Company for the quarter ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	By:	/s/ Russell Skibsted
		Russell Skibsted
		Chief Financial Officer (Principal Financial and Accounting Officer)
	Date:	August 13, 2024

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-39531
Entity Registrant Name	Processa Pharmaceuticals, Inc.
Entity Central Index Key	0001533743
Entity Tax Identification Number	45-1539785
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	7380 Coca Cola Drive
Entity Address, Address Line Two	Suite 106
Entity Address, City or Town	Hanover
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21076
City Area Code	443
Local Phone Number	776-3133
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	PCSA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,256,944

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 5,571,120	$ 4,706,197
Prepaid expenses and other	1,906,854	926,300
Total Current Assets	7,477,974	5,632,497
Property and Equipment, net	2,276	2,554
Other Assets
Lease right-of-use assets, net of accumulated amortization	115,191	146,057
Security deposit	5,535	5,535
Total Other Assets	120,726	151,592
Total Assets	7,600,976	5,786,643
Current Liabilities
Current maturities of lease liabilities	93,181	83,649
Accounts payable	953,086	311,617
Due to licensor		189,000
Due to related parties		39
Accrued expenses	505,397	146,274
Total Current Liabilities	1,551,664	730,579
Non-current Liabilities
Non-current lease liabilities	25,648	66,905
Total Liabilities	1,577,312	797,484
Commitments and Contingencies
Stockholders’ Equity
Common stock, par value $0.0001, 100,000,000 shares authorized: 2,873,883 issued and 2,868,883 outstanding at June 30, 2024; and 1,291,000 issued and 1,286,000 outstanding at December 31, 2023	287	129
Additional paid-in capital	87,429,165	80,658,111
Treasury stock at cost — 5,000 shares at June 30, 2024 and December 31, 2023	(300,000)	(300,000)
Accumulated deficit	(81,105,788)	(75,369,081)
Total Stockholders’ Equity	6,023,664	4,989,159
Total Liabilities and Stockholders’ Equity	$ 7,600,976	$ 5,786,643

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	2,873,883	1,291,000
Common stock, shares outstanding	2,868,883	1,286,000
Treasury stock shares	5,000	5,000

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating Expenses
Research and development expenses	$ 1,730,444	$ 1,688,164	$ 3,269,555	$ 3,342,509
General and administrative expenses	1,351,580	1,026,301	2,622,067	3,477,490
Operating Loss	(3,082,024)	(2,714,465)	(5,891,622)	(6,819,999)
Other Income (Expense), net	71,698	101,900	154,915	185,361
Net Operating Loss Before Income Tax Benefit	(3,010,326)	(2,612,565)	(5,736,707)	(6,634,638)
Income Tax Benefit
Net Loss	$ (3,010,326)	$ (2,612,565)	$ (5,736,707)	$ (6,634,638)
Net Loss per Common Share - Basic	$ (1.01)	$ (1.94)	$ (2.11)	$ (5.34)
Net Loss per Common Share - Diluted	$ (1.01)	$ (1.94)	$ (2.11)	$ (5.34)
Weighted Average Common Shares Used to Compute Net Loss Applicable to Common Shares - Basic	2,983,283	1,346,808	2,724,903	1,243,475
Weighted Average Common Shares Used to Compute Net Loss Applicable to Common Shares - Diluted	2,983,283	1,346,808	2,724,903	1,243,475

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 80	$ 72,018,222	$ (300,000)	$ (64,247,561)	$ 7,470,741
Balance. shares at Dec. 31, 2022	806,774		(5,000)
Stock-based compensation	$ 1	341,503			341,504
Stock-based compensation, shares	3,195
Shares issued in connection with capital raise, net of transaction costs	$ 42	6,352,035			6,352,077
Shares issued in connection with capital raise, net of transaction costs, shares	421,611
Net loss				(4,022,073)	(4,022,073)
Balance at Mar. 31, 2023	$ 123	78,711,760	$ (300,000)	(68,269,634)	10,142,249
Balance. shares at Mar. 31, 2023	1,231,580		(5,000)
Balance at Dec. 31, 2022	$ 80	72,018,222	$ (300,000)	(64,247,561)	7,470,741
Balance. shares at Dec. 31, 2022	806,774		(5,000)
Net loss					(6,634,638)
Balance at Jun. 30, 2023	$ 123	80,341,758	$ (300,000)	(70,882,199)	9,159,682
Balance. shares at Jun. 30, 2023	1,231,580		(5,000)
Balance at Mar. 31, 2023	$ 123	78,711,760	$ (300,000)	(68,269,634)	10,142,249
Balance. shares at Mar. 31, 2023	1,231,580		(5,000)
Stock-based compensation		319,123			319,123
Net loss				(2,612,565)	(2,612,565)
Warrants issued in connection with a consulting agreement		1,310,875			1,310,875
Balance at Jun. 30, 2023	$ 123	80,341,758	$ (300,000)	(70,882,199)	9,159,682
Balance. shares at Jun. 30, 2023	1,231,580		(5,000)
Balance at Dec. 31, 2023	$ 129	80,658,111	$ (300,000)	(75,369,081)	4,989,159
Balance. shares at Dec. 31, 2023	1,291,000		(5,000)
Stock-based compensation	$ 1	167,642			167,643
Stock-based compensation, shares	13,176
Shares issued in connection with capital raise, net of transaction costs	$ 156	6,282,274			6,282,430
Shares issued in connection with capital raise, net of transaction costs, shares	1,555,555
Net loss				(2,726,381)	(2,726,381)
Shares issued in connection with license agreement	$ 1	188,999			189,000
Shares issued in connection with license agreement, shares	5,000
Settlement of stock award		(8,561)			(8,561)
Shares withheld to pay income taxes on stock-based compensation	$ (1)	(9,923)			(9,924)
Shares withheld to pay income taxes on stock-based compensation, shares	(3,750)
Balance at Mar. 31, 2024	$ 286	87,278,542	$ (300,000)	(78,095,462)	8,883,366
Balance. shares at Mar. 31, 2024	2,860,981		(5,000)
Balance at Dec. 31, 2023	$ 129	80,658,111	$ (300,000)	(75,369,081)	4,989,159
Balance. shares at Dec. 31, 2023	1,291,000		(5,000)
Net loss					(5,736,707)
Balance at Jun. 30, 2024	$ 287	87,429,165	$ (300,000)	(81,105,788)	6,023,664
Balance. shares at Jun. 30, 2024	2,873,883		(5,000)
Balance at Mar. 31, 2024	$ 286	87,278,542	$ (300,000)	(78,095,462)	8,883,366
Balance. shares at Mar. 31, 2024	2,860,981		(5,000)
Stock-based compensation	$ 1	152,631			152,632
Stock-based compensation, shares	14,167
Net loss				(3,010,326)	(3,010,326)
Shares withheld to pay income taxes on stock-based compensation		(2,008)			(2,008)
Shares withheld to pay income taxes on stock-based compensation, shares	(1,265)
Balance at Jun. 30, 2024	$ 287	$ 87,429,165	$ (300,000)	$ (81,105,788)	$ 6,023,664
Balance. shares at Jun. 30, 2024	2,873,883		(5,000)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows From Operating Activities
Net loss	$ (5,736,707)	$ (6,634,638)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	278
Non-cash lease expense for right-of-use assets	42,670	39,982
Stock-based compensation	320,275	660,627
Warrant issued to purchase 158,007 shares of common stock in connection with a consulting agreement		1,310,875
Net changes in operating assets and liabilities:
Prepaid expenses and other	(980,554)	662,984
Operating lease liability	(41,228)	(38,233)
Accounts payable	641,469	(88,526)
Due to related parties	(39)	(51)
Accrued expenses	359,123	(91,559)
Net cash used in operating activities	(5,394,713)	(4,178,539)
Cash Flows From Financing Activities
Net proceeds from issuance of stock	6,282,430	6,352,077
Shares withheld to pay taxes on stock-based compensation	(11,932)
Settlement of stock award	(8,561)
Payment of finance lease obligation	(2,301)
Net cash provided by financing activities	6,259,636	6,352,077
Net Increase in Cash	864,923	2,173,538
Cash and Cash Equivalents – Beginning of Period	4,706,197	6,503,595
Cash and Cash Equivalents – End of Period	5,571,120	8,677,133
Non-Cash Financing Activities
Issuance of 5,000 shares of common stock in connection with a licensing agreement which had previously been recorded as a due to licensor	189,000
Right-of-use asset	11,804
Financing lease liability	(11,804)
Net

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Common Stock [Member]
Shares issued in connection with license agreement	5,000
Consulting Agreement [Member] \| Spartan Capital Securites LLC [Member]
Warrants to purchase shares		158,007

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (3,010,326)	$ (2,726,381)	$ (2,612,565)	$ (4,022,073)	$ (5,736,707)	$ (6,634,638)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Organization and Summary of Significant Accounting Policies

Note 1 – Organization and Summary of Significant Accounting Policies

Organization

Basis of Presentation

Liquidity

Use of Estimates

Income Taxes

Concentration of Credit Risk

Recent Accounting Pronouncements

Stockholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders’ Equity

Note 2 – Stockholders’ Equity

Preferred Stock

There were no issued or outstanding shares of preferred stock at either June 30, 2024 or December 31, 2023.

Common Stock

Stock-based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Note 3 - Stock-based Compensation

Stock Compensation Expense

We recorded stock-based compensation expense for the three and six months ended June 30, 2024 and 2023 as follows:

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Research and development	$	45,583	$	102,678	$	76,704	$	209,526
General and administrative		107,049		216,445		243,571		451,101
Total	$	152,632	$	319,123	$	320,275	$	660,627

Stock Options

Restricted Stock Awards

Restricted Stock Units

Activity with respect to our Restricted Stock Units (“RSUs”) during the six months ended June 30, 2024 was as follows:

	Number of shares			Weighted- average grant-date fair value per share
Outstanding at January 1, 2024		222,722		$	45.82
Granted		39,202			2.24
Forfeited		(10,775	)		58.37
Issued		(12,328	)		99.86
Outstanding at June 30, 2024		238,821			35.31
Vested and unissued		143,793			50.71

Unvested at June 30, 2024		95,028		$	12.00

Warrants

Net Loss per Share of Common Stock

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Loss per Share of Common Stock

Note 4 – Net Loss per Share of Common Stock

Net Loss Per Share

The computation of net loss per share for the three and six months ended June 30, 2024 and 2023 was as follows:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic and diluted net loss per share:
Net loss available to common stockholders	$	(3,010,326	)	$	(2,612,565	)	$	(5,736,707	)	$	(6,634,638	)
Weighted average number of common shares-basic and diluted		2,983,283			1,346,808			2,724,903			1,243,475

Basic and diluted net loss per share	$	(1.01	)	$	(1.94	)	$	(2.11	)	$	(5.34	)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Weighted-average number of common shares outstanding – basic and diluted		2,849,192		1,217,095		2,590,530		1,114,324
Weighted-average number of vested RSUs– basic and diluted		134,091		129,713		134,373		129,151
Weighted-average number of common shares-basic and diluted		2,983,283		1,346,808		2,724,903		1,243,475

Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

Note 5 – Leases

Remaining lease term (years) for our facility lease	1.3
Remaining lease term (years) for our equipment lease	1.6
Weighted average discount rate for our facility and equipment leases	8.0	%

Annual lease liabilities for the operating lease were as follows at June 30, 2024:


2024	$	45,797
2025		70,040
Total lease payments		115,837
Less: Interest		(6,511	)
Present value of lease liabilities		109,326
Less: current maturities		(87,495	)
Non-current lease liability	$	21,831

Annual lease liabilities for the financing lease were as follows at June 30, 2024:


2024	$	3,232
2025		6,820
2026		488
Total lease payments		10,540
Less: Interest		(1,037	)
Present value of lease liabilities		9,503
Less: current maturities		(5,686	)
Non-current lease liability	$	3,817

Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions

Note 6 – Related Party Transactions

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 7 – Commitments and Contingencies

Purchase Obligations

Subsequent Event

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Event

Note 8 – Subsequent Event

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Organization	Organization We are a clinical-stage biopharmaceutical company focused on incorporating our Regulatory Science Approach into the development of our Next Generation Chemotherapy (“NGC”) drugs to improve the safety and efficacy of cancer treatment. Our NGC drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution in the body, while maintaining the well-established existing mechanisms of killing the cancer cells. By modifying the NGC drugs in this manner, we believe our three NGC treatments will provide improved safety-efficacy profiles when compared to their currently marketed counterparts. On January 22, 2024, we filed a Certificate of Amendment to our Certificate of Incorporation, as amended with the Secretary of State of Delaware that effected a 1-for-20 reverse stock split of our common stock, par value $0.0001 per share (the “Reverse Stock Split”). Pursuant to the Certificate of Amendment, our issued common stock decreased from 24,706,474 shares to 1,291,000 shares and our outstanding common stock decreased from 24,606,474 to 1,286,000. The Reverse Stock Split did not affect our authorized common stock of 100,000,000 shares or our common stock par value. All shares of common stock, including common stock underlying warrants, stock options, restricted stock awards and restricted stock units, as well as exercise prices and per share information in these condensed consolidated financial statements give retroactive effect to the Reverse Stock Split.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions of the Securities and Exchange Commission (“SEC”) on Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by U.S. GAAP for complete financial statements. All material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results of operations and cash flows for the periods presented. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any other interim period or for the full year.
Liquidity	Liquidity Our condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. We have incurred losses since inception, are currently devoting substantially all of our efforts toward research and development of our NGC drug product candidates, including conducting clinical trials and providing general and administrative support for these operations, and have an accumulated deficit of $81.1 million at June 30, 2024. During the six months ended June 30, 2024, we generated a net loss of $5.7 million and used $5.4 million in net cash for operating activities from continuing operations. To date, none of our drug candidates have been approved for sale, and therefore we have not generated any product revenue and do not expect positive cash flow from operations in the foreseeable future. We have financed our operations primarily through public equity issuances, including an offering we closed on January 30, 2024, where we sold 476,000 shares of our common stock, pre-funded warrants to purchase up to 1,079,555 shares of our common stock, and warrants for the purchase of up to 1,555,555 shares of our common stock for net proceeds of $6.3 million, after deducting placement agent fees and offering-related expenses. Simultaneously with the closing of the sale, the pre-funded warrants were exercised in exchange for 1,079,555 shares of our common stock. In May 2024, we filed with the SEC a registration statement on Form S-3 (Registration No. 333-279588) (the “Registration Statement”), including a base prospectus relating to the offering of up to $50,000,000 in the aggregate of the securities identified in the base prospectus from time to time in one or more offerings; and a prospectus supplement relating to the shares of our common stock that may be issued and sold under a sales agreement dated May 21, 2024 (the “Sales Agreement”) between us and A.G.P./Alliance Global Partners (the “Sales Agent”), through which we may issue and sell in a registered “at the market offering” shares of our common stock having an aggregate offering price of up to $2.4 million (subject to adjustment) from time to time through or to our Sales Agent (the “ATM Offering”). We expect to use net proceeds, if any, from the ATM Offering over time for continued research and development for our portfolio of drug candidates, especially our oncology products, and working capital and general corporate purposes. The shares under the ATM Offering will be sold and issued pursuant to the Registration Statement. At June 30, 2024, we had cash and cash equivalents totaling $5.6 million which, based on our current business plans, we believe these funds will satisfy our operating needs into late 2024, including the beginning of our Phase 2 trial of NGC-Cap in breast cancer. Our ability to execute our longer-term operating plans, including future preclinical studies and clinical trials for our portfolio of drugs depend on our ability to obtain additional funding from the sale of equity and/or debt securities, a strategic transaction or other funding transactions. We will continue to be dependent upon equity and/or debt financing until we are able to generate positive cash flows from our operations. We plan to raise additional funds in the future through a combination of public or private equity offerings, debt financings, collaborations, strategic alliances, licensing arrangements and other marketing and distribution arrangements, but will only do so if the terms are acceptable to us. If we are unable to obtain adequate financing when needed, we may have to delay, reduce the scope of, or suspend our current or planned future clinical trial plans, or research and development programs. This may also cause us to not meet obligations contained in certain of our license agreements and put these assets at risk. To the extent that we raise additional capital through marketing and distribution arrangements or other collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our product candidates, future revenue streams, research programs or product candidates or to grant licenses on terms that may not be favorable to us. If we raise additional capital through public or private equity offerings, the ownership interest of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect our stockholders’ rights. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt or making capital expenditures. There can be no assurance that future funding will be available when needed. Absent additional funding, we believe that our cash and cash equivalents will not be sufficient to fund our operations for a period of one year or more after the date that these condensed consolidated financial statements are available to be issued based on the timing and amount of our projected net loss from continuing operations and cash to be used in operating activities during that period of time. As a result, substantial doubt exists about our ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are available to be issued. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be different should we be unable to continue as a going concern based on the outcome of these uncertainties described above.
Use of Estimates	Use of Estimates In preparing our condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC, we make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to preclinical and clinical trial expenses, stock-based compensation, intangible assets, future milestone payments and income taxes. These estimates and assumptions are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While we believe the estimates to be reasonable, actual results could differ materially from those estimates and could impact future results of operations and cash flows.
Income Taxes	Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the basis of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. At June 30, 2024 and December 31, 2023, we recorded a valuation allowance equal to the full recorded amount of our net deferred tax assets since it is more-likely-than-not that such benefits will not be realized. The valuation allowance is reviewed quarterly and will be maintained until sufficient positive evidence exists to support its reversal. Under ACS 740-270 Income Taxes – Interim Reporting, we are required to project our annual federal and state effective income tax rate and apply it to the year-to-date ordinary operating tax basis loss before income taxes. Based on the projection, no current income tax benefit or expense is expected for 2024 and the foreseeable future since we expect to generate taxable net operating losses.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of our cash and cash equivalents. We utilize only well-established banks and financial institutions with high credit ratings. Balances on deposit are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to specified limits. Total cash held by our banks at June 30, 2024, exceeded FDIC limits.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, the Financial Accounting Standards Board (“FASB”) or other standard setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update (“ASU”). We have implemented all new accounting pronouncements that are in effect and that may impact our condensed consolidated financial statements. We have evaluated recently issued accounting pronouncements and determined that there is no material impact on our condensed consolidated financial position or results of operations.

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

We recorded stock-based compensation expense for the three and six months ended June 30, 2024 and 2023 as follows:

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Research and development	$	45,583	$	102,678	$	76,704	$	209,526
General and administrative		107,049		216,445		243,571		451,101
Total	$	152,632	$	319,123	$	320,275	$	660,627

Schedule of Restricted Stock Units (“RSUs”) Activity

Activity with respect to our Restricted Stock Units (“RSUs”) during the six months ended June 30, 2024 was as follows:

	Number of shares			Weighted- average grant-date fair value per share
Outstanding at January 1, 2024		222,722		$	45.82
Granted		39,202			2.24
Forfeited		(10,775	)		58.37
Issued		(12,328	)		99.86
Outstanding at June 30, 2024		238,821			35.31
Vested and unissued		143,793			50.71

Unvested at June 30, 2024		95,028		$	12.00

Net Loss per Share of Common Stock (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Net Loss Per Share Basic and Diluted

The computation of net loss per share for the three and six months ended June 30, 2024 and 2023 was as follows:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic and diluted net loss per share:
Net loss available to common stockholders	$	(3,010,326	)	$	(2,612,565	)	$	(5,736,707	)	$	(6,634,638	)
Weighted average number of common shares-basic and diluted		2,983,283			1,346,808			2,724,903			1,243,475

Basic and diluted net loss per share	$	(1.01	)	$	(1.94	)	$	(2.11	)	$	(5.34	)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Weighted-average number of common shares outstanding – basic and diluted		2,849,192		1,217,095		2,590,530		1,114,324
Weighted-average number of vested RSUs– basic and diluted		134,091		129,713		134,373		129,151
Weighted-average number of common shares-basic and diluted		2,983,283		1,346,808		2,724,903		1,243,475

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases

Schedule of Weighted Average Remaining Lease Terms and Discount Rate for Operating and Financing Leases

Remaining lease term (years) for our facility lease	1.3
Remaining lease term (years) for our equipment lease	1.6
Weighted average discount rate for our facility and equipment leases	8.0	%

Schedule of Annual Lease Liabilities for all Operating Leases

Annual lease liabilities for the operating lease were as follows at June 30, 2024:


2024	$	45,797
2025		70,040
Total lease payments		115,837
Less: Interest		(6,511	)
Present value of lease liabilities		109,326
Less: current maturities		(87,495	)
Non-current lease liability	$	21,831

Schedule of Annual Lease Liabilities for all Financing Leases

Annual lease liabilities for the financing lease were as follows at June 30, 2024:


2024	$	3,232
2025		6,820
2026		488
Total lease payments		10,540
Less: Interest		(1,037	)
Present value of lease liabilities		9,503
Less: current maturities		(5,686	)
Non-current lease liability	$	3,817

Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($)					3 Months Ended				6 Months Ended
	May 31, 2024	May 21, 2024	Jan. 30, 2024	Jan. 22, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 21, 2024	Dec. 31, 2023
OrganizationLineItems [Line Items]
Reverse stock split				1-for-20 reverse stock split
Common stock, par value				$ 0.0001	$ 0.0001				$ 0.0001			$ 0.0001
Common stock shares issued				1,291,000	2,873,883				2,873,883		24,706,474	1,291,000
Common stock shares outstanding				1,286,000	2,868,883				2,868,883		24,606,474	1,286,000
Common stock shares authorized				100,000,000	100,000,000				100,000,000			100,000,000
Accumulated deficit					$ 81,105,788				$ 81,105,788			$ 75,369,081
Net loss					3,010,326	$ 2,726,381	$ 2,612,565	$ 4,022,073	5,736,707	$ 6,634,638
Net cash for operating activities from continuing operations									5,394,713	4,178,539
Net proceeds			$ 6,300,000						6,282,430	$ 6,352,077
Shares issued initial offering	$ 50,000,000					$ 6,282,430		$ 6,352,077
Cash and cash equivalents					$ 5,571,120				$ 5,571,120			$ 4,706,197
Purchase Agreement [Member]
OrganizationLineItems [Line Items]
Number of shares sold			476,000						476,000
Net proceeds									$ 6,300,000
Purchase Agreement [Member] \| Warrant [Member]
OrganizationLineItems [Line Items]
Warrants to purchase shares			1,555,555		1,555,555				1,555,555
Purchase Agreement [Member] \| Pre-Funded Warrants [Member]
OrganizationLineItems [Line Items]
Warrants to purchase shares			1,079,555		1,079,555				1,079,555
Warrant exercised			1,079,555		1,079,555				1,079,555
Sales Agreement [Member] \| Alliance Global Partners [Member] \| Maximum [Member] \| ATM Offering [Member]
OrganizationLineItems [Line Items]
Maximum value to be sold at the market offering		$ 2,400,000

Stockholders’ Equity (Details Narrative) - USD ($)		6 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Jan. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Preferred stock, shares issued		0		0
Preferred stock, shares outstanding		0		0
Proceeds from Issuance of Common Stock	$ 6,300,000	$ 6,282,430	$ 6,352,077
Stock withheld for income taxes		5,015
Employees and Consultants [Member]
Class of Stock [Line Items]
Shares issued		12,328
Purchase Agreement [Member]
Class of Stock [Line Items]
Shares issued	476,000	476,000
Gross proceeds from issuance of common stock		$ 7,000,000.0
Proceeds from Issuance of Common Stock		$ 6,300,000
Purchase Agreement [Member] \| Placement Agent [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 5.625
Class of Warrant or Right, Outstanding		62,222
Warrants and Rights Outstanding, Maturity Date		Feb. 01, 2027
Purchase Agreement [Member] \| Warrant [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,555,555	1,555,555
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.50
Warrants exercisable and maturity date		Jan. 30, 2029
Purchase Agreement [Member] \| Pre-Funded Warrants [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,079,555	1,079,555
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.0001
Shares Issued, Price Per Share		$ 4.4999
[custom:StockIssuedDuringPeriodSharesWarrantExercised-0]	1,079,555	1,079,555
License Agreement [Member] \| Elion Oncology, Inc. [Member]
Class of Stock [Line Items]
Shares issued		5,000
Consulting Agreement [Member] \| Consultant [Member]
Class of Stock [Line Items]
Shares issued		10,000

Schedule of Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 152,632	$ 319,123	$ 320,275	$ 660,627
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	45,583	102,678	76,704	209,526
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 107,049	$ 216,445	$ 243,571	$ 451,101

Schedule of Restricted Stock Units (“RSUs”) Activity (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Beginning balance \| shares	222,722
Weighted-average grant-date fair value per share, Beginning balance \| $ / shares	$ 45.82
Number of shares, granted \| shares	39,202
Weighted-average grant-date fair value per share, granted \| $ / shares	$ 2.24
Number of shares, forfeited \| shares	(10,775)
Weighted-average grant-date fair value per share, forfeited \| $ / shares	$ 58.37
Number of shares, issued \| shares	(12,328)
Weighted-average grant-date fair value per share, shares issued \| $ / shares	$ 99.86
Number of shares, ending balance \| shares	238,821
Weighted-average grant-date fair value per share, ending balance \| $ / shares	$ 35.31
Number of shares, vested and unissued \| shares	143,793
Weighted-average grant-date fair value per share, vested and unissued \| $ / shares	$ 50.71
Number of shares, unvested \| shares	95,028
Weighted-average grant-date fair value per share, unvested \| $ / shares	$ 12.00

Stock-based Compensation (Details Narrative) - USD ($)		6 Months Ended
Stock-based Compensation (Details Narrative) - USD ($)	Jun. 28, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Payments for settlement of stock awards		$ 8,561
Warrant [Member] \| Offering [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrants to purchase shares		1,617,777
Consulting Agreement [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrants, expired		5,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Forfeitures		15,000
Payments for settlement of stock awards		$ 10,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options, forfeited		4,245
Options, forfeited weighted average exercise price		$ 336.00
Options exercisable, shares		2,747
Options exercisable weighted average exercise price		$ 409.09
Exercisable weighted average remaining contractual term		4 years 2 months 12 days
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, vested		1,250
Weighted-average grant-date fair value per share, shares vested		$ 9.26
Number of shares, outstanding		0
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, outstanding		238,821		222,722
Number of shares, granted		39,202
Unrecognized share based compensation expense		$ 538,000
Weighted average period for recognition		1 year 8 months 12 days
Unrecognized share based compensation expense.		$ 420,000
Restricted Stock Units (RSUs) [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	39,202
Service Based RSUs [Member] \| 3-Year Vesting [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	18,173
Service Based RSUs [Member] \| Employees [Member] \| January 1, 2025 Vesting [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	14,969
First Performance Based RSUs [Member] \| Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	3,030
Second Performance Based RSUs [Member] \| Employees [Member] \| Next Generation Capecitabine - Cap [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, granted	3,030
Warrant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrants to purchase shares		1,778,284
Weighted average exercise price		$ 6.17
Weighted average remaining contractual life		4 years 3 months 18 days
2019 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum equity available for issuance	800,000
Shares available for future grants		503,129

Schedule of Net Loss Per Share Basic and Diluted (Details) - USD ($)	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]
Net loss available to common stockholders	$ (3,010,326)	$ (2,612,565)	$ (5,736,707)	$ (6,634,638)
Weighted average number of common shares-basic	2,983,283	1,346,808	2,724,903	1,243,475
Weighted average number of common shares-diluted	2,983,283	1,346,808	2,724,903	1,243,475
Basic net loss per share	$ (1.01)	$ (1.94)	$ (2.11)	$ (5.34)
Diluted net loss per share	$ (1.01)	$ (1.94)	$ (2.11)	$ (5.34)
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average number of common shares-basic	134,091	129,713	134,373	129,151
Weighted average number of common shares-diluted	134,091	129,713	134,373	129,151
Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average number of common shares-basic	2,849,192	1,217,095	2,590,530	1,114,324
Weighted average number of common shares-diluted	2,849,192	1,217,095	2,590,530	1,114,324

Net Loss per Share of Common Stock (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	1,876,059	254,314	1,876,059	254,314

Schedule of Weighted Average Remaining Lease Terms and Discount Rate for Operating and Financing Leases (Details)	Jun. 30, 2024
Property, Plant and Equipment [Line Items]
Weighted average discount rate for our facility and equipment leases	8.00%
Facility Lease [Member]
Property, Plant and Equipment [Line Items]
Remaining lease term (years)	1 year 3 months 18 days
Equipment [Member]
Property, Plant and Equipment [Line Items]
Remaining lease term (years)	1 year 7 months 6 days

Schedule of Annual Lease Liabilities for all Operating Leases (Details)	Jun. 30, 2024 USD ($)
Leases
2024	$ 45,797
2025	70,040
Total lease payments	115,837
Less: Interest	(6,511)
Present value of lease liabilities	109,326
Less: current maturities	(87,495)
Non-current lease liability	$ 21,831

Schedule of Annual Lease Liabilities for all Financing Leases (Details)	Jun. 30, 2024 USD ($)
Leases
2024	$ 3,232
2025	6,820
2026	488
Total lease payments	10,540
Less: Interest	(1,037)
Present value of lease liabilities	9,503
Less: current maturities	(5,686)
Non-current lease liability	$ 3,817

Leases (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Leases (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases
Operating and financing lease borrowing rate	8.00%		8.00%
Lease cost	$ 23,000	$ 24,000	$ 45,000	$ 49,000

Related Party Transactions (Details Narrative) - CorLyst, LLC [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Rent and other costs reimbursements received	$ 27,000	$ 34,000	$ 50,000	$ 64,000
Due from related parties	$ 0	$ 0	$ 0	$ 0

Commitments and Contingencies (Details Narrative) $ in Millions	Jun. 30, 2024 USD ($)
CROs [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase obligation	$ 14.3

Subsequent Event (Details Narrative) - USD ($)		6 Months Ended
Subsequent Event (Details Narrative) - USD ($)	Jul. 16, 2024	Jun. 30, 2024
Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Number of shares, granted		39,202
Subsequent Event [Member]
Subsequent Event [Line Items]
Annual base salary	$ 400,000
Potential base salary increase	50,000
Potential base salary increase financing minimum	$ 15,000,000
Executive bonus percentage	35.00%
Subsequent Event [Member] \| Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Number of shares, granted	28,000
Subsequent Event [Member] \| Service Based RSU [Member]
Subsequent Event [Line Items]
Number of shares, granted	14,000
Subsequent Event [Member] \| First Performance Based RSUs [Member]
Subsequent Event [Line Items]
Number of shares, granted	7,000
Market capitalization	$ 30,000,000
Subsequent Event [Member] \| Second Performance Based RSUs [Member]
Subsequent Event [Line Items]
Number of shares, granted	7,000
Performance vesting criteria	$ 15,000,000