| Summary of Significant Accounting Policies | Note
3. Summary of Significant Accounting Policies Use of Estimates The preparation of
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results
could differ from those estimates. Basis of Presentation The unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial
information and Article 10 of Regulation S-X. Accordingly, the unaudited condensed financial statements do not include all of the
information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s
audited financial statements and notes thereto included in our Annual Report. Marketable Debt Securities Marketable debt securities
consist of debt investments with original maturities greater than three months. The Company classifies its marketable debt securities
as available-for-sale. Accordingly, these investments are recorded at fair value, which is based on quoted market prices. When
the fair value is below the amortized cost the amount of the expected credit loss is estimated. The credit-related impairment amount
is recognized in net income; the remaining impairment amount and unrealized gains are reported as a component of accumulated other
comprehensive income in stockholders’ equity. Credit losses are recognized through the use of an allowance for credit losses
account and subsequent improvements in expected credit losses are recognized as a reversal of the allowance account. If the Company
has the intent to sell the security or if it is more likely than not that the Company will be required to sell the security prior
to recovery of its amortized cost basis, the allowance for credit loss is written off and the excess of the amortized cost basis
of the asset over its fair value is recorded in net income. Cash and Cash Equivalents Cash and cash equivalents
are comprised of deposits at major financial banking institutions and highly liquid investments with an original maturity of three
months or less at the date of purchase. Cash equivalents are primarily invested in money market funds. The carrying amount of our
cash equivalents approximates fair value due to the short maturity of the investments. The Company regularly monitors the financial
condition of the institutions in which it has depository accounts and believes the risk of loss is minimal. Grants Receivable Grants receivable result from drawdown requests to various federal agencies for reimbursement of costs
incurred during the operation of the Company’s research and development programs. Accounts Receivable We report accounts
receivable at net realizable value. When required we estimate losses on uncollectible accounts receivable based upon historical
data. Such allowance for doubtful accounts is estimated based upon management’s assessment of individual accounts. The Company
concluded that an allowance for doubtful accounts is not considered necessary at March 31, 2023 and December 31, 2022, as there
was no outstanding accounts receivable. Prepaid Expenses Our prepaid expenses consist primarily of prepaid insurance and prepaid expenses. Our insurance products
have a 12-month term and annually renew each June, with the exception of Directors’ and Officers’ Insurance which renews
in December. Premiums are paid in advance either, annually, semi-annually, and/or quarterly. The collective value of any prepaid
portions of policy terms is recorded at cost. Contracts involving pre-payment are capitalized and amortized in accordance with
performance. Long-lived Assets (equipment) Fixed assets are recorded
at cost and depreciated over their estimated useful lives. Laboratory and office equipment not covered by federal grant financing is depreciated on the straight-line
basis over the estimated useful lives (three to ten years). Leasehold improvements are amortized over the shorter of
the lease term or estimated useful life. Long-lived assets are evaluated for impairment when events or changes in circumstances
indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted
cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time. Measurement of impairment
may be based upon appraisal, market value of similar assets or discounted cash flows. Equipment expenditures that are covered by federal grant financing are depreciated using the activity
method (or variable charge approach) employing an intended purpose that expires during or by the conclusion of the funded project.
Such equipment acquisition expenditures are therefore effectively expensed if the timing of the intended purpose is within the
same reporting period as delivery. At March 31, 2023 and
December 31, 2022, the Company’s long-lived assets of $ 125,859 Accounts Payable Accounts payable are short term liabilities with product/service vendors, including any credit card liability. Accrued Expenses Accrued expenses are
recorded when incurred but have not been paid by period end. See Note 6 related to the balance at March 31, 2023 and December 31,
2022. Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic
606”), to account for revenue. The deliverables under our arrangements are evaluated under Topic 606 which requires an entity
to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery occurs, the
fee was fixed or determinable, and collectability is reasonably assured. The Company’s
contract revenue consists primarily of amounts earned under contracts with third-party customers and reimbursed expenses under
such contracts. The Company analyzes its agreements to determine whether the elements can be separated and accounted for individually
or as a single unit of accounting. Allocation of revenue to individual elements that qualify for separate accounting is based on
the separate selling prices determined for each component, and total contract consideration is then allocated pro rata across the
components of the arrangement. In general, the Company
applies the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the
performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations
and (v) recognize revenue when a performance obligation is satisfied. Recognition of revenue
is driven by satisfaction of the performance obligations using one of two methods: revenue is either recognized over time or at
a point in time. Revenue is generally recognized as the performance obligations are satisfied, which generally occurs when control
of the goods or services have been transferred to the customer or once the customer is able to use those goods and/or services
as well as obtaining substantially all of its benefits. The Company primarily generates contract revenue under fixed-fee contracts or
time and materials contracts:
● Under a fixed-fee contract, the Company charges a fixed agreed upon amount for a deliverable. Fixed-fee contracts have fixed deliverables upon completion of the project. Typically, the Company recognizes revenue for fixed-fee contracts after projects are completed, delivery is made and title transfers to the customer, and collection is reasonably assured.
● Under a time and materials contract, the Company charges customers an hourly rate plus reimbursement for other project specific costs. The Company recognizes revenue for time and material contracts based on the number of hours devoted to the project multiplied by the customer’s billing rate plus other project specific costs. Payment terms vary, but are generally due within 60-days. Grant Revenues The Company receives
revenue through government grants, primarily with the National Institutes of Health (“NIH”). The Company has concluded
its government grants are not within the scope of Topic 606, as government entities do not meet the definition of a “customer”
as defined by Topic 606, as there is not considered to be a transfer of control of goods or services to the government entity funding
the grant. Grant revenue, which is not within the scope of Topic 606, consists of funding under cost reimbursement programs primarily
from federal and non-profit foundation sources for qualified research and development activities performed by us, and as such,
are not based on estimates that are susceptible to change. Such amounts are invoiced and recorded as revenue as grant-funded activities
are performed, with any advance funding recorded as deferred revenue until the activities are performed. The Company believes the
recognition of revenue as costs are incurred and amounts become earned/realizable is analogous to the concept of transfer of control
of a service over time under ASC 606. Lease Obligations The Company determines
if an agreement is a lease at inception. The Company evaluates the lease terms to determine whether the lease will be accounted
for as an operating or finance lease. Operating leases are included in operating lease right-of-use (“ROU”) assets,
operating lease liabilities, current portion, and operating lease liabilities, net of current portion in our consolidated balance
sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent
our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement
date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we
use our incremental borrowing rate based on the information available at commencement date in determining the present value of
lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease
payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably
certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease
term. A lease that transfers
substantially all of the benefits and risks incidental to ownership of property are accounted for as finance leases. At the inception
of a finance lease, an asset and finance lease obligation is recorded at an amount equal to the lesser of the present value of
the minimum lease payments and the property’s fair market value. Finance lease obligations are classified as either current
or long-term based on the due dates of future minimum lease payments, net of interest. At March 31, 2023 and December 31, 2022,
there were no finance leases. Research and Development The Company accounts for research and development costs in accordance with ASC 730-10, Research and
Development (“ASC 730-10”). Patent Costs and Rights Costs of applying for,
prosecuting and maintaining patents and patent rights are expensed as incurred due to uncertainty of future economic benefit. Clinical Trial Costs Clinical trial costs
are charged to us and recognized as the tasks are completed by the contractor(s) or, alternatively, may be invoiced in accordance
with agreed-upon payment schedules and recognized based on estimates of work completed to date. Stock Option Compensation Expense The Company recognizes the fair value of stock option award expenses on a straight-line basis over a service
period of three years, consistent with vesting periods, using the Black-Scholes options pricing model to estimate fair value of
option awards. Such expenses are categorized as research and development or general and administrative depending on the role of
each option recipient. The Company recognizes the income tax benefits and deficiencies as income tax expense or benefit in the
statement of operations and the tax effects of exercised or vested awards are treated as discrete items in the reporting period
in which they occur. The Company also recognizes excess tax benefits regardless of whether the benefit reduces taxes payable in
the current period. Excess tax benefits are classified along with other income tax cash flows as an operating activity in the statement
of cash flows. Regarding forfeitures, the Company accounts for them when they occur. See Note 9 for more information on our stock
options. Warrants The Company accounts for Common Stock warrants as either liabilities or as equity instruments depending
on the specific terms of the warrant agreements. Generally, warrants are classified as liabilities, as opposed to equity, if the
agreement includes the potential for a cash settlement or an adjustment to the exercise price, and warrant liabilities are recorded
at their fair values at each balance sheet date. See Note 12 related to issued warrants. Income Taxes The Company accounts
for income taxes in accordance with the asset and liability method of accounting for income taxes prescribed by FASB ASC Topic
740, “Accounting for Income Taxes” The Company follows FASB ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” (“Topic
740-10”), which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement
of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be
more likely than not to be sustained upon examination by taxing authorities. At March 31, 2023 and December 31, 2022, the Company
had no material uncertain tax positions to be accounted for in the financial statements. The Company recognizes interest and penalties,
if any, related to unrecognized tax benefits in interest expense. See Note 14 related to income taxes. Concentration of Credit Risk The Company’s
grant revenues and grant receivables were with the NIH. The NIH is an agency of the United States Department of Health & Human
Services, and the Company believes amounts are fully collectible from this agency. Contract revenues were $ 118,048 33,149 Earnings Per Share Basic net loss per common share is computed by dividing the net loss for the period by the weighted-average
number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive
Common Stock equivalents, consisting of Common Stock options and warrants. Diluted net loss per common share for the three months
ended March 31, 2023 and 2022 is the same as basic net loss per common share as the common share equivalents were anti-dilutive
due to the net loss. Due to the Stock Split, the shares outstanding at March 31, 2022 have been retroactively adjusted, reducing them from 9,666,562 3,866,625 0.08 0.19 At March 31, 2023 and 2022, the Common Stock equivalent shares
were, as follows: Schedule of common stock equivalent shares
March 31,
2023 2022
Shares of Common Stock issuable under equity incentive plans outstanding 2,054,000 2,054,000
Shares of Common Stock issuable upon conversion of warrants 143,994 143,994
Shares of Common Stock issuable upon conversion of Series A Preferred Stock — 636,979
Common Stock equivalent shares excluded from diluted net loss per share 2,197,994 2,834,973 |
