Palisade Bio (PALI) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 07, 2024
Cover [Abstract]
Entity Central Index Key	0001357459
Entity Registrant Name	PALISADE BIO, INC.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Securities Act File Number	001-33672
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2007292
Entity Address, Address Line One	7750 El Camino Real, Suite 2A
Entity Address, City or Town	Carlsbad
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92009
City Area Code	858
Local Phone Number	704-4900
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	PALI
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		1,329,516

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 8,040,000	$ 12,432,000
Prepaid expenses and other current assets	830,000	896,000
Total current assets	8,870,000	13,328,000
Restricted cash	26,000	26,000
Property and equipment, net	3,000	10,000
Operating lease right-of-use asset	113,000	198,000
Other noncurrent assets	324,000	490,000
Total assets	9,336,000	14,052,000
Current liabilities:
Accounts payable	366,000	698,000
Accrued liabilities	1,509,000	831,000
Accrued compensation and benefits	449,000	778,000
Current portion of operating lease liability	122,000	121,000
Insurance financing debt	235,000	158,000
Total current liabilities	2,681,000	2,586,000
Warrant liability	2,000	2,000
Contingent consideration obligation	45,000	61,000
Operating lease liability, net of current portion	0	90,000
Total liabilities	2,728,000	2,739,000
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, $0.01 par value; 280,000,000 shares authorized; 1,198,516 and 618,056 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	11,000	6,000
Additional paid-in capital	139,195,000	132,811,000
Accumulated deficit	(132,600,000)	(121,506,000)
Total stockholders' equity	6,608,000	11,313,000
Total liabilities and stockholders' equity	9,336,000	14,052,000
Series A Preferred Stock [Member]
Stockholders' equity:
Series A Convertible Preferred Stock, $0.01 par value, 7,000,000 shares authorized; 200,000 issued and outstanding at September 30, 2024 and December 31, 2023	$ 2,000	$ 2,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	280,000,000	280,000,000
Common stock, shares issued (in shares)	1,198,516	618,056
Common stock, shares outstanding (in shares)	1,198,516	618,056
Series A Preferred Stock [Member]
Preferred stock, shares authorized (in shares)	7,000,000	7,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	200,000	200,000
Preferred stock, shares outstanding (in shares)	200,000	200,000
Common stock, shares issued (in shares)	200,000
Common stock, shares outstanding (in shares)	200,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023		Sep. 30, 2024	Sep. 30, 2023
Operating expenses:
License revenue		$ 0	$ 0		$ 0	$ 250
Research and development		2,137	2,104		6,979	5,522
General and administrative		1,456	1,674		4,498	4,644
Total operating expenses		3,593	3,778		11,477	10,166
Loss from operations		(3,593)	(3,778)		(11,477)	(9,916)
Other (expense) income:
Interest expense		(6)	(8)		(9)	(11)
Other income, net		112	190		392	598
Total other income, net		106	182		383	587
Net loss		(3,487)	(3,596)		(11,094)	(9,329)
Net loss available to common stockholders - basic		$ (3,487)	$ (3,612)		$ (11,094)	$ (9,345)
(Loss) income per common share:
Basic net loss per common share		$ (2.32)	$ (7.38)	[1]	$ (9.5)	$ (23.24)
Diluted net loss per common share		$ (2.32)	$ (7.38)	[1]	$ (9.5)	$ (23.24)
Weighted average shares used in computing (loss) income per common share:
Basic weighted average shares used in computing net loss per common share	[1]	1,500,409	489,624		1,168,277	402,074
Diluted weighted average shares used in computing net loss per common share	[1]	1,500,409	489,624		1,168,277	402,074
[1] (*) Basic and diluted loss per common share and basic and diluted weighted average share used in computing basic and diluted loss per common share for the three and nine months ended September 30, 2023 has been adjusted to reflect the 1-for-15 reverse stock split effected on April 5, 2024.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands		Total	Warrant Inducement Agreements [Member]	January 2023 Offering [Member]	May 2024 Offering [Member]	April 2023 Offering [Member]	September 2023 Offering	Preferred Stock [Member]	Common Stock [Member]		Common Stock [Member] Warrant Inducement Agreements [Member]		Common Stock [Member] January 2023 Offering [Member]		Common Stock [Member] May 2024 Offering [Member]		Common Stock [Member] April 2023 Offering [Member]		Common Stock [Member] September 2023 Offering		Additional Paid-in Capital [Member]		Additional Paid-in Capital [Member] Warrant Inducement Agreements [Member]	[1]	Additional Paid-in Capital [Member] January 2023 Offering [Member]	[1]	Additional Paid-in Capital [Member] May 2024 Offering [Member]	[1]	Additional Paid-in Capital [Member] April 2023 Offering [Member]	[1]	Additional Paid-in Capital [Member] September 2023 Offering		Accumulated Deficit [Member]
Balance (in shares) at Dec. 31, 2022								200,000	196,287	[1]
Balance at Dec. 31, 2022		$ 12,479						$ 2	$ 2	[1]											$ 121,665	[1]											$ (109,190)
Net Income (Loss)		(9,329)																															(9,329)
Stock-based compensation expense and related charges		439																			439	[1]
Issuance of common stock for vesting of restricted stock units, net of employee withholding tax liability (in shares)	[1]								(2,310)
Issuance of common stock upon warrant exercises (in shares)	[1]								146,932
Issuance of common stock upon warrant exercises		1,350							$ 1	[1]											1,349	[1]
Issuance of common stock warrants related to promissory note (in shares)	[1]												31,789				80,770		155,959
Issuance of common stock warrants related to promissory note				$ 2,166		$ 5,301	$ 1,676						$ 0	[1]			$ 1	[1]	$ 2	[1]					$ 2,166				$ 5,300		$ 1,674	[1]
Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions		(16)																			16	[1]											(16)	[1]
Balance (in shares) at Sep. 30, 2023								200,000	614,047	[2]
Balance at Sep. 30, 2023		14,082						$ 2	$ 6	[2]											132,609	[2]											(118,535)
Balance (in shares) at Jun. 30, 2023								200,000	456,622	[2]
Balance at Jun. 30, 2023		15,800						$ 2	$ 4	[2]											130,717	[2]											(114,923)
Net Income (Loss)		(3,596)																															(3,596)
Stock-based compensation expense and related charges		202																			202	[2]
Issuance of common stock for vesting of restricted stock units, net of employee withholding tax liability (in shares)	[2]								1,466
Issuance of common stock warrants related to promissory note (in shares)	[2]																		155,959
Issuance of common stock warrants related to promissory note							$ 1,676												$ 2	[2]											$ 1,674	[2]
Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions		(16)																			16	[2]											(16)
Balance (in shares) at Sep. 30, 2023								200,000	614,047	[2]
Balance at Sep. 30, 2023		14,082						$ 2	$ 6	[2]											132,609	[2]											(118,535)
Balance (in shares) at Dec. 31, 2023								200,000	618,056	[1]
Balance at Dec. 31, 2023		11,313						$ 2	$ 6	[1]											132,811	[1]											(121,506)
Net Income (Loss)		(11,094)																															(11,094)
Stock-based compensation expense and related charges		575																			575	[1]
Issuance of common stock to vendor (in shares)	[1]								29,632
Issuance of common stock to vendors		124																			124	[1]
Issuance of common stock for vesting of restricted stock units, net of employee withholding tax liability		(25)																			(25)	[1]
Issuance of common stock for vesting of restricted stock units, net of employee withholding tax liability (in shares)	[1]								17,270
Issuance of common stock upon warrant exercises (in shares)	[1]								218,142
Issuance of common stock upon warrant exercises	[1]								$ 2												(2)
Issuance of common stock under employee stock purchase plan (shares)	[1]								2,256
Issuance of common stock under Employee Stock Purchase Plan		11																			11	[1]
Issuance of common stock warrants related to promissory note (in shares)	[1]										228,162				85,100
Issuance of common stock warrants related to promissory note			$ 2,160		$ 3,544						$ 2	[1]			$ 1	[1]							$ 2,158				$ 3,543
Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions		0
Reverse stock split fractional share settlement	[1]								(102)
Balance (in shares) at Sep. 30, 2024								200,000	1,198,516	[2]
Balance at Sep. 30, 2024		6,608						$ 2	$ 11	[2]											139,195	[2]											(132,600)
Balance (in shares) at Jun. 30, 2024								200,000	966,345	[2]
Balance at Jun. 30, 2024		9,949						$ 2	$ 9	[2]											139,051	[2]											(129,113)
Net Income (Loss)		(3,487)																															(3,487)
Stock-based compensation expense and related charges		95																			95	[2]
Issuance of common stock to vendor (in shares)	[2]								14,029
Issuance of common stock to vendors		51																			51	[2]
Issuance of common stock upon warrant exercises (in shares)	[2]								218,142
Issuance of common stock upon warrant exercises		0							$ 2	[2]											(2)	[2]
Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions		0
Balance (in shares) at Sep. 30, 2024								200,000	1,198,516	[2]
Balance at Sep. 30, 2024		$ 6,608						$ 2	$ 11	[2]											$ 139,195	[2]											$ (132,600)
[1] (*) Adjusted to reflect the 1-for-15 reverse stock split effected on April 5, 2024. (*) Adjusted to reflect the 1-for-15 reverse stock split effected on April 5, 2024.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Proceeds from issuance of debt		$ 456	$ 567
Common Stock [Member] | Warrant Inducement Agreements [Member]
Proceeds from issuance of debt		2,412
Common Stock [Member] | January 2023 Offering [Member]
Proceeds from issuance of debt			507
Common Stock [Member] | April 2023 Offering [Member]
Proceeds from issuance of debt			854
Common Stock [Member] | September 2023 Offering
Proceeds from issuance of debt	$ 345		$ 345
Common Stock [Member] | May 2024 Offering [Member]
Proceeds from issuance of debt		$ 705

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Net Income (Loss)	$ (11,094)	$ (9,329)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	3	4
Non-cash operating lease expense	85	76
Recurring fair value measurements of liabilities	(159)	153
Issuance of common stock to vendors	124	0
Loss on disposal of property and equipment	4	0
Stock-based compensation and related charges	575	439
Other	0	(108)
Changes in operating assets and liabilities
Prepaid and other current assets and other noncurrent assets	542	596
Accounts payable and accrued liabilities	526	(184)
Accrued compensation and benefits	(329)	43
Operating lease liabilities	(89)	(77)
Net cash used in operating activities	(9,812)	(8,387)
Cash flows from investing activities
Purchases of property and equipment	0	(4)
Net cash used in investing activities	0	(4)
Cash flows from financing activities
Payments on insurance financing debt	(270)	(290)
Proceeds from issuance of common stock and warrants	4,000	9,419
Proceeds from the exercise of warrants	2,503	2,758
Payment of warrant inducement issuance costs	(343)	0
Payment of equity issuance costs	(456)	(567)
Proceeds from issuance of common stock under Employee Stock Purchase Plan	11	0
Shares withheld for payment of employee withholding tax liability	(25)	0
Net cash provided by financing activities	5,420	11,320
Net (decrease) increase in cash, cash equivalents and restricted cash	(4,392)	2,929
Cash, cash equivalents and restricted cash, beginning of year	12,458	12,409
Cash, cash equivalents and restricted cash, end of period	8,066	15,338
Reconciliation of cash, cash equivalents and restricted cash to the balance sheets
Cash and cash equivalents	8,040	15,312
Restricted cash	26	26
Total cash, cash equivalents and restricted cash	8,066	15,338
Supplemental disclosures of cash flow information:
Interest paid	8	10
Supplemental disclosures of non-cash investing and financing activities
Warrant inducement and equity issuance costs included in accounts payable and accrued liabilities	0	50
Non cash impact of exercise price reset on outstanding warrants related to down round provisions	0	16
Fair value of warrants issued to solicitation agent	94	0
Fair value of warrants issued to placement agent	249	384
Deferred equity issuance costs recognized as a reduction in additional paid-in capital from financing activities	37	0
Insurance financing debt included in prepaid and other current assets and other noncurrent assets	347	461
Incremental fair value of modified warrants (Note 5)	$ 1,975	$ 0

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,487)	$ (3,596)	$ (11,094)	$ (9,329)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Note 1 - Organization, Business

Note 1 - Organization, Business and Financial Condition	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Organization, Business and Financial Condition	1. Organization, Business and Financial Condition As used in this Quarterly Report on Form 10-Q, unless the context indicates or otherwise requires, “Palisade,” “Palisade Bio,” the "Company,” “we,” “us,” and “our” or similar designations in this report refer to Palisade Bio, Inc., a Delaware Corporation, and its subsidiaries. Any reference to “common shares” or “common stock,” refers to the Company's $ 0.01 par value common stock. Any reference to “Series A Preferred Stock” refers to the Company's Series A 4.5 % Convertible Preferred Stock. Any reference to “Leading Biosciences, Inc.” or “LBS” refers to the Company’s operations prior to the completion of its merger with Seneca Biopharma, Inc. ("Seneca") on April 27, 2021 (the "Merger"). Any reference herein that refers to pre-clinical studies also refers to nonclinical studies. Description of Business The Company is a clinical-stage biopharmaceutical company focused on developing and advancing novel therapeutics for patients living with autoimmune, inflammatory, and fibrotic diseases. The Company's lead product candidate, PALI-2108, is being developed as a treatment for patients living with inflammatory bowel disease, or IBD, including ulcerative colitis and Crohn's disease. Liquidity and Going Concern The Company has a limited operating history, and the sales and income potential of the Company’s business and market are unproven. The Company has experienced losses and negative cash flows from operations since its inception. As of September 30, 2024, the Company had an accumulated deficit of $ 132.6 million and cash and cash equivalents of approximately $ 8.0 million. The Company expects to continue to incur losses in the foreseeable future. The successful transition to achieving profitability is dependent upon achieving a level of revenues adequate to support the Company’s costs. There can be no assurances that such profitability will ever be achieved. Based on the Company’s current working capital, anticipated operating expenses, and anticipated net operating losses, there is substantial doubt about the Company's ability to continue as a going concern for a period of one year following the date that these condensed consolidated financial statements are issued. The condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments for the recovery and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Historically, the Company has funded its operations primarily through equity financings. The Company plans to continue to fund its operations through its cash and cash equivalents on hand, as well as through future equity offerings, debt financings, other third-party funding, and potential licensing or collaboration arrangements. Refer to Note 5, Stockholders' Equity, for discussion of the recent financings undertaken by the Company. There can be no assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to the Company. Even if the Company is successful in raising additional capital, it may also be required to modify, delay or abandon some of its plans, which could have a material adverse effect on the Company’s business, operating results and financial condition and the Company’s ability to achieve its intended business objectives. Any of these occurrences could materially harm the Company’s business, results of operations and future prospects .

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Consolidation In management’s opinion, the accompanying interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the Company's financial position, results of operations and cash flows. The interim results of operations are not necessarily indicative of the results that may occur for the full year. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these condensed consolidated financial statements are read in conjunction with the consolidated financial statements and notes included in the Company’s financial statements filed in the Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 26, 2024, and any Quarterly Reports on Form 10-Q filed thereafter. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, LBS and Suzhou Neuralstem Biopharmaceutical Co., Ltd. All the entities are consolidated in the Company's condensed consolidated financial statements and all intercompany activity and transactions, if any, have been eliminated . Reverse Stock Split On April 5, 2024, the Company effected a 1-for-15 reverse stock split of its issued and outstanding common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, each of the Company’s stockholders received one share of common stock for every 15 shares such stockholder held immediately prior to the effective time of the Reverse Stock Split. The Reverse Stock Split affected all the Company’s issued and outstanding shares of common stock equally. The par value and authorized shares of the Company's common stock were not adjusted as a result of the Reverse Stock Split. The Reverse Stock Split also affected the Company’s outstanding stock-based awards, common stock warrants, and other exercisable or convertible securities and resulted in the shares underlying such instruments being reduced and the exercise price or conversion price being increased proportionately. Unless otherwise noted, all common stock shares, common stock per share data and shares of common stock underlying convertible preferred stock, stock-based awards and common stock warrants included in these condensed consolidated financial statements, including the exercise price or conversion price of such equity instruments, as applicable, have been retrospectively adjusted to reflect the Reverse Stock Split for all periods presented. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments, and assumptions that impact the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the balance sheet, and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s condensed consolidated financial statements relate to accrued research and development expenses and its contingent consideration obligation. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions. Significant Accounting Policies The Company’s significant accounting policies used in the preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2024 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 26, 2024 . Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. During the fourth quarter of 2023, the Company reclassified the fair value of the contingent consideration milestone payment obligation associated with the Giiant License Agreement (as defined below), including transaction related costs, in the amount of $ 362,000 from In-process research and development expenses to Research and development expenses at the consolidated statement of operations, which impacted amounts previously reported for the three and nine months ended September 30, 2023. Comprehensive Loss Comprehensive income (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented. Recently Issued or Adopted Accounting Pronouncements No new accounting pronouncements issued or adopted during the three and nine months ended September 30, 2024 that had or are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

Note 3 - Balance Sheet Details

Note 3 - Balance Sheet Details	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Balance Sheet Details	3. Balance Sheet Details Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2024 2023 Prepaid insurance $ 473 $ 428 Other receivables 96 148 Prepaid subscriptions and fees 148 138 Prepaid software licenses 19 64 Deposits 12 — Deferred equity issuance costs 76 112 Prepaid other 6 6 $ 830 $ 896 Deferred equity issuance costs consist of the legal, accounting and other direct and incremental costs incurred by the Company related to its equity offerings, if not yet finalized as of the balance sheet date, or shelf registration statement. These costs will be netted against additional paid-in capital as a cost of the future equity issuances to which they relate. During the nine months ended September 30, 2024 , the Company netted previously deferred equity issuance costs of approximately $ 37,000 against the additional paid-in capital recognized in conjunction with the warrant inducement transaction that closed on February 1, 2024 (see Note 5, Stockholders' Equity). Other noncurrent assets consisted of the following (in thousands): September 30, December 31, 2024 2023 Prepaid insurance, less current portion $ 324 $ 478 Other noncurrent assets — 12 $ 324 $ 490 Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2024 2023 Accrued accounts payable $ 118 $ 146 Accrued clinical trial expenses 174 20 Accrued CMC expenses 264 5 Accrued director stipends 59 106 Accrued severance and benefits (Note 9) — 131 Accrued joint development expenses (Note 7) 669 98 Current portion of contingent consideration obligation (Note 4) — 143 Accrued other 225 182 $ 1,509 $ 831

Note 4 - Fair Value Measurement

Note 4 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Fair Value Measurements	4. Fair Value Measurements The Company’s financial instruments consist principally of cash and cash equivalents, restricted cash, other current receivables, accounts payable, accrued liabilities, insurance financing debt, liability-classified warrants and a contingent consideration obligation. The carrying amounts of financial instruments such restricted cash, other current receivables, accounts payable, and accrued liabilities approximate their related fair values due to the short-term nature of these instruments. The carrying value of the Company’s insurance financing debt as of September 30, 2024 and December 31, 2023 approximates its fair value due to the market rate of interest, which is based on level 2 inputs. The Company’s liability-classified common stock warrants and its contingent consideration obligation are carried at fair value based on level 3 inputs. None of the Company’s non-financial assets or liabilities are recorded at fair value on a nonrecurring basis. Cash and Cash Equivalents The Company invests its excess cash in money market funds that are classified as level 1 in the fair value hierarchy, due to their short-term maturity, and measured the fair value based on quoted prices in active markets for identical assets. The fair value of the Company's cash and cash equivalents invested in money market funds was $ 7.7 million and $ 12.3 million as of September 30, 2024 and December 31, 2023, respectively. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions and in money market accounts, and at times balances may exceed federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held nor has the Company experienced any losses in these accounts. Contingent Consideration Obligation On September 1, 2023, the Company and Giiant Pharma, Inc. ("Giiant") entered into a research collaboration and license agreement (“Giiant License Agreement”). Pursuant to the Giiant License Agreement, the Company incurred a contingent consideration obligation related to future milestone payments. The Company has an obligation to make contingent consideration payments to Giiant, in either cash or shares of the Company’s common stock solely at the Company’s election, upon the achievement of development milestones (as set forth in the Giiant License Agreement). Because the contingent consideration may be settled in shares of the Company's common stock, the Company has determined it should be accounted for under Accounting Standards Codification ("ASC") 480, and accordingly has recognized it as a liability measured at its estimated fair value. On August 2, 2024, the Company and Giiant entered into an amendment to the Giiant License Agreement, which among other things, reduced the milestone payments due to Giiant upon the achievement certain development milestones (see Note 7, Collaborations and License Agreements, for further details). At the end of each reporting period, the Company re-measures the contingent consideration obligation to its estimated fair value and any resulting change is recognized in research and development expenses in the condensed consolidated statements of operations. The fair value of the contingent consideration obligation is determined using a probability-based model that estimates the likelihood of success in achieving each of the defined milestones that is then discounted to present value using the Company's incremental borrowing rate. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in fair value measurement accounting. The significant assumptions used in the calculation of the fair value as of September 30, 2024 included a discount rate of 12.1 % and management's updated projections of the likelihood of success in achieving each of the defined milestones based on empirical, published industry data. The following table summarizes the activity of the Company's Level 3 contingent consideration obligation, which is fair valued on a recurring basis (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Contingent Consideration Obligation 2024 2023 2024 2023 Fair value at beginning of period $ 209 $ — $ 204 $ — Initial fair value at the original issuance date — 212 — 212 Change in fair value during the period ( 164 ) — ( 159 ) — Fair value at end of period $ 45 $ 212 $ 45 $ 212 As of December 31, 2023 , approximately $ 143,000 of the contingent consideration obligation was recognized in accrued liabilities in the condensed consolidated balance sheets as it was expected to be settled within one-year of the balance sheet date. None of the contingent consideration obligation is expected to be settled within one-year of the balance sheet date as of September 30, 2024. A contingent consideration obligation of approximately $ 45,000 and $ 61,000 , respectively, was recognized as a noncurrent liability in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 , respectively. The change in the fair value of the contingent consideration obligation of approximately $ 164,000 and $ 159,000 for the three and nine months ended September 30, 2024, respectively, was primarily due to the reduction in the milestone payments due to Giiant upon the achievement certain development milestones pursuant to the amendment to the Giiant License Agreement, partially offset by a decrease in the discount rate used. The resulting gains on the revaluation of the liability was recognized in research and development expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2024 . There was no change in the fair value of the contingent consideration obligation for the three and nine months ended September 30, 2023. Liability-Classified Warrants The Company has issued warrants that are accounted for as liabilities based upon the guidance of with ASC 480 and ASC 815. Estimating fair values of liability-classified financial instruments requires the development of estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. Changes in fair value of the liability-classified warrants, if any, are recognized as a component of other income, net in the condensed consolidated statement of operations. As of September 30, 2024, the fair value of the Company's liability-classified warrants outstanding was determined to be insignificant using a Black-Scholes option pricing model valuation model due to the low market price of the Company's stock at the date of valuation relative to the exercise price of the underlying warrants outstanding. The following table summarizes the activity of the Company’s Level 3 liability-classified warrants during the three and nine months ended September 30, 2024 and 2023 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Warrant Liabilities 2024 2023 2024 2023 Fair value at beginning of period $ 2 $ 2 $ 2 $ 61 Change in fair value during the period — — — ( 59 ) Fair value at end of period $ 2 $ 2 $ 2 $ 2

Note 5 - Stockholders' Equity

Note 5 - Stockholders' Equity	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Stockholders' Equity	5. Stockholders’ Equity Classes of Stock Common Stock As of September 30, 2024 , the Company was authorized to issue 280,000,000 shares of $ 0.01 par value common stock. Each share of common stock entitles the holder thereof to one vote on each matter submitted to a vote at a meeting of stockholders. On April 5 , 2024, the Company effected the Reverse Stock Split. Accordingly, each of the Company’s stockholders received one share of the Company's common stock for every 15 shares of the Company's common stock that such stockholder held immediately prior to the effective time of the Reverse Stock Split. The Reverse Stock Split affected all of the Company’s issued and outstanding shares of the Company's common stock equally. The Reverse Stock Split also affected the Company’s outstanding stock-based awards, warrants and other exercisable or convertible securities and resulted in the shares underlying such instruments being reduced and the exercise price or conversion price being increased proportionately by the Reverse Stock Split ratio. No fractional shares were issued as a result of the Reverse Stock Split with any fractional shares that would have otherwise resulted from the Reverse Stock Split paid in cash, at an amount equal to the resulting fractional interest in one share of the Company's common stock that the stockholder would otherwise be entitled, multiplied by the closing trading price of the Company's common stock on April 5, 2024. The amount of cash paid for fractional shares was immaterial to the Company's financial statements . As a result of the Reverse Stock Split, on April 5, 2024, the number of issued and outstanding shares of the Company's common stock was adjusted from 12,771,015 shares to 851,302 shares. Preferred Stock As of September 30, 2024 , the Company was authorized to issue 7,000,000 shares of $ 0.01 par value preferred stock of which 1,000,000 shares have been designated as Series A 4.5% Convertible Preferred Stock ("Series A Convertible Preferred Stock") and 200,000 of which are issued and outstanding. As of September 30, 2024 , all of the Company's 200,000 shares of Series A Convertible Preferred Stock outstanding are convertible into an aggregate of 8 shares of the Company's common stock. Recent Equity Offerings May 2024 Offering On May 1, 2024, the Company entered into a securities purchase agreement with an institutional investor, pursuant to which the Company sold in a private placement, (i) 85,100 shares of common stock at a purchase price per share of $ 6.5015 , (ii) 530,142 prefunded warrants to purchase shares common stock at a purchase price of $ 6.5014 per prefunded warrant, with such prefunded warrants being immediately exercisable, having an exercise price of $ 0.0001 per share, and a perpetual term, and (iii) common stock warrants to purchase 922,863 shares of the common stock at an exercise price of $ 6.314 per share and a term of seven years from the date of issuance (the "May 2024 Warrants") (collectively, the “May 2024 Offering”). The Company issued warrants to the placement agent in the May 2024 Offering to purchase an aggregate 36,914 shares of common stock (the “May 2024 Placement Agent Warrants”). The May 2024 Placement Agent Warrants have substantially the same terms as the May 2024 Warrants, except that the exercise price of each of the May 2024 Placement Agent Warrants is $ 10.727 per share and the term is five years from issuance. The fair value of the May 2024 Placement Agent Warrants was recognized by the Company as an equity issuance cost which reduced the additional paid-in capital recognized from the May 2024 Offering. The May 2024 Offering closed on May 6, 2024 for net cash proceeds to the Company of approximately $ 3.5 million, consisting of gross cash proceeds of $ 4.0 million less cash equity issuance costs of approximately $ 0.5 million, which excludes the grant date fair value of the May 2024 Placement Agent Warrants of approximately $ 0.2 million. Other Recent Equity Offerings On September 11, 2023, the Company completed a registered direct offering of common stock pursuant to an effective shelf registration statement on Form S-3 (the "September 2023 Offering"). Gross cash proceeds from the September 2023 Offering were $ 2.0 million and net cash proceeds were $ 1.7 million after deducting cash equity issuance costs of approximately $ 0.3 million. On April 3, 2023, the Company completed a registered direct offering and concurrent private placement of common stock and warrants to purchase common stock (the "April 2023 Offering"). Gross cash proceeds from the April 2023 Offering were $ 6.0 million and net cash proceeds were $ 5.3 million after deducting cash equity issuance costs of approximately $ 0.7 million. On January 4, 2023, the Company completed a registered direct offering and concurrent private placement of common stock and warrants to purchase common stock (the "January 2023 Offering"). Gross cash proceeds from the January 2023 Offering were $ 2.5 million and net cash proceeds were approximately $ 2.2 million after deducting cash equity issuance costs of approximately $ 0.3 million. Common Stock Warrants and Warrant Exercises February 2024 Warrant Inducement On January 30, 2024, the Company entered into warrant inducement agreements (the “Warrant Inducement Agreements”) with certain accredited and institutional holders (collectively, the “Warrant Holders”) of certain of the Company’s remaining outstanding common stock warrants issued on May 10, 2022 (the "May 2022 Warrants"), January 4, 2023 (the “January 2023 Warrants”), and April 5, 2023 (the “April 2023 Warrants”) , as well as certain outstanding Series 2 warrants issued on August 16, 2022 (the "Series 2 Warrants") (collectively, the “Existing Warrant(s)”). Pursuant to the Warrant Inducement Agreements, the exercise price of each of the Existing Warrants exercised was reduced to $ 10.97 per share. Each of the Warrant Holders that exercised its Existing Warrants pursuant to the Warrant Inducement Agreements, received one replacement warrant to purchase one share of the Company's common stock (the “Replacement Warrants”) for each Existing Warrant exercised (in its entirety, the "February 2024 Warrant Inducement"). The Replacement Warrants are exercisable immediately, have an exercise price per share of $ 10.97 , and expire five years from the date of issuance, which was February 1, 2024. The Warrant Holders collectively exercised an aggregate of 228,162 Existing Warrants consisting of: (i) 4,865 May 2022 Warrants, (ii) 4,267 Series 2 Warrants, (iii) 67,511 January 2023 Warrants, and (iv) 151,519 April 2023 Warrants. As a result of the exercises of the Existing Warrants, the Company issued an aggregate of 228,162 shares of its common stock and 228,162 Replacement Warrants. The February 2024 Warrant Inducement closed on February 1, 2024 with the Company receiving net cash proceeds of approximately $ 2.2 million consisting of gross cash proceeds of $ 2.5 million, less cash equity issuance costs of approximately $ 0.3 million . The February 2024 Warrant Inducement, which resulted in the lowering of the exercise price of the Existing Warrants and the issuance of the Replacement Warrants, is considered a modification of the Existing Warrants under the guidance of ASC 815-40. The modification is consistent with the Equity Issuance classification under that guidance as the reason for the modification was to induce the holders of the Existing Warrants to cash exercise their Existing Warrants, resulting in the imminent exercise of the Existing Warrants, which raised equity capital and generated gross cash proceeds for the Company of approximately $ 2.5 million. As pursuant to the guidance of ASC 480 and ASC 815 the Existing Warrants and Replacement Warrants were classified as equity instruments before and after the modification, and as the modification is directly attributable to an equity offering, the Company recognized the effect of the modification of approximately $ 2.0 million as an equity issuance cost netted against the additional paid-in capital recognized from the associated warrant exercises. The amount of the equity issuance cost recognized for the warrant modification was determined using the Black-Scholes option pricing model as the incremental fair value of the modified Existing Warrants and additional Replacement Warrants issued as compared to the fair value of the original Existing Warrants immediately prior to their modification. The solicitation agent fees associated with the February 2024 Warrant Inducement consisted of: (i) a cash fee equal to 7.75 % of the gross proceeds received by the Company, (ii) a common stock purchase warrant to purchase such number of shares of common stock equal to 6 % of the aggregate number shares issued pursuant to the exercise of the Existing Warrants, with an exercise price of $ 10.97 per share, and a term of five years from issuance (the "Solicitation Agent Warrants"), and (iii) $ 35,000 of out-of-pocket expenses. The fair value of the Solicitation Agent Warrants was recognized by the Company as an equity issuance cost, which reduced the additional paid-in capital recognized from the issuance of common stock in connection with the exercise of the Existing Warrants. Total equity issuance costs recognized in the February 2024 Warrant Inducement of $ 2.4 million include cash equity issuance costs of $ 0.3 million, non-cash warrant modification costs of approximately $ 2.0 million, and non-cash issuance costs associated with the Solicitation Agent Warrants of $ 0.1 million. Common Stock Warrants Outstanding and Warrant Activity The Company accounts for the majority of its warrants as equity-classified in accordance with ASC 480 and ASC 815. The Company’s outstanding common stock warrants that are classified as equity warrants are included as a component of stockholders' equity based on their relative fair value on their date of issuance. Common stock warrants accounted for as liabilities in accordance with the authoritative accounting guidance are included in noncurrent liabilities. The Company had exercisable common stock warrants outstanding of 1,557,470 and 272,211 at September 30, 2024 and December 31, 2023, respectively. The Company's exercisable common stock warrants outstanding at September 30, 2024 includes: i) 312,000 pre-funded warrants with an exercise price of $ 0.0001 per share that were issued with the May 2024 Offering, ii) 922,863 common stock warrants with an exercise price of $ 6.314 per share that were issued with the May 2024 Offering, iii) 228,158 common stock warrants with an exercise price of $ 10.97 , iv) 9,414 common stock warrants with an exercise price of $ 6.314 , and v) 85,035 common stock warrants with a weighted average exercise price of $ 297.45 . Of the outstanding common stock warrants, only the outstanding 9,414 Series 2 Warrants are subject to price reset provisions in the event future sales of the Company's securities are sold at a price per share less than the exercise price of such warrants . The following table summarizes warrant acti vity during the nine months ended September 30, 2024: Number of Weighted Weighted Warrants outstanding, December 31, 2023 272,211 $ 144.78 4.12 Granted 1,731,767 5.13 6.50 (1) Exercised ( 446,304 ) 5.61 — Forfeited, expired or cancelled ( 204 ) 17,438.12 — Warrants outstanding, September 30, 2024 1,557,470 21.58 5.98 (1) (1) The pre-funded common stock warrants granted and outstanding during and as of the nine months ended September 30, 2024 have a perpetual term and are therefore excluded from the calculation of the weighted average remaining contractual life.

Note 6 - Equity Incentive Plans

Note 6 - Equity Incentive Plans	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Equity Incentive Plans	6. Equity Incentive Plans Equity Incentive Plans The Company’s stock-based compensation expense generally includes service-based restricted stock units “RSUs”), stock options, and market-based performance RSUs (“PSUs”). During the nine months ended September 30, 2024 , the Company granted 12,300 stock options at a weighted-average grant date fair value of $ 3.80 per stock option. There were no RSUs other equity-based awards granted under any of the Company's equity incentive plans during the nine months ended September 30, 2024. During the nine months ended September 30, 2023 , the Company granted 33,997 stock options at a weighted average grant date fair value of $ 13.89 per stock option, 20,746 RSUs at a weighted-average grant date fair value of $ 25.17 per RSU, and 4,576 PSUs at a weighted average grant date fair value of $ 16.90 per PSU. Employee Stock Purchase Plan The Company offers its employees an opportunity to participate in its shareholder approved Palisade Bio, Inc. 2021 Employee Stock Purchase Plan (the "ESPP"). All employees are eligible to participate in the ESPP while employed by the Company. The ESPP permits eligible employees to purchase common stock through payroll deductions, which may not exceed $ 25,000 or 666 shares of the Company's shares of common stock each offering period, as defined in the ESPP, at a price equal to 85 % of the fair value of the Company's common stock at the beginning or end of the offering period, whichever is lower. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. Compensation expense associated with the ESPP in the three and nine months ended September 30, 2024 was approximately $ 3,000 and $ 12,000 , respectively. Compensation expense associated with the ESPP in both the three and nine months ended September 30, 2023 was approximately $ 10,000 . Share-Based Compensation Expense The allocation of stock-based compensation for all stock option, RSU and PSU awards is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Research and development expense $ 30 $ 70 $ 239 $ 186 General and administrative expense 62 122 324 243 Total $ 92 $ 192 $ 563 $ 429 To reduce the ongoing administrative burden and expense associated with the quarterly vesting of the Company's time-based RSUs, on May 28, 2024, the Company's Board of Directors approved the immediate accelerated vesting of all unvested time-based RSUs issued to employees that were outstanding as of that date. The accelerated vesting was accounted for as a Type I modification under ASC 718 and accordingly, in the second quarter of 2024 the Company recognized share-based compensation expense associated with the time-based RSUs subject to immediate vesting of approximately $ 129,000 in general and administrative expenses and approximately $ 125,000 in research and development expenses . As of September 30, 2024 , the unrecognized compensation cost related to outstanding stock options was approximately $ 0.3 million, which is expected to be recognized over a weighted-average period of approximately 1.59 years and the unrecognized compensation cost related to outstanding time-based and performance-based RSUs was approximately $ 14,000 , which is expected to be recognized over a weighted average period of approximately 0.68 years.

Note 7 - Collaborations and Lic

Note 7 - Collaborations and License Agreements	9 Months Ended
	Sep. 30, 2024
Disclosure Text Block [Abstract]
Collaborations and License Agreements	7. Collaborations and License Agreements Research Collaboration and License Agreement with Giiant On September 1, 2023, the Company entered into the Giiant License Agreement whereby the Company received an exclusive, worldwide license (with the right to sublicense in multiple tiers) to develop, manufacture, and commercialize substantially all of the assets of Giiant, including: (i) the PALI-2108 compound, and (ii) the PALI-1908 compound and the associated intellectual property around each of the foregoing (the “Giiant Licensed Assets”). The Giiant License Agreement has a perpetual term. Pursuant to the Giiant License Agreement, the Company and Giiant established a joint development committee (“JDC”), consisting of one Giiant appointee and two Company appointees. The JDC is responsible for: (i) overseeing the day-to-day development of the Giiant Licensed Assets through Proof of Concept (as defined below), and (ii) the creation and implementation of the development plan and development budget for the Giiant Licensed Assets (the “Giiant Development Plan”) and any amendments or updates thereto. Prior to receiving regulatory approval to commence a Phase 1 clinical trial (as such term is defined in the Giiant License Agreement) (the “Proof of Concept”), each of the Company and Giiant was responsible for all costs and expenses incurred by such party for the joint development of the Giiant Licensed Assets, except as set forth in the Giiant Development Plan. Prior to reaching the Proof of Concept, the Company reimbursed or advanced Giiant up to an amount in the low seven-digit range for costs and expenses incurred by them. Upon reaching the Proof of Concept, which occurred in October of 2024 the Company became solely responsible for all costs and expenses incurred for the development, manufacturing, regulatory and commercialization of the Giiant Licensed Assets. For the three and nine months ended September 30, 2024 , the Company has recognized expenses related to the joint development plan with Giiant in the amount of approximately $ 0.9 million and $ 4.3 million, respectively, which are included in research and development expenses in the condensed consolidated statements of operations. For both the three and nine months ended September 30, 2023, the expenses recognized by the Company related to the joint development plan were insignificant. As of September 30, 2024 and December 31, 2023, the Company accrued joint development expenses of approximately $ 0.7 million and $ 0.1 million, respectively, in Accrued liabilities in the condensed consolidated balance sheets. Pursuant to the Giiant License Agreement, as amended (see below) the Company will (i) make certain payments between the low six-digit range and low seven-digit range upon the achievement of the development milestones (as set forth in the Giiant License Agreement), in either cash or shares of the Company’s common stock, at the Company’s election (“Giiant Milestone Payments”), and (ii) pay ongoing royalty payments of a mid-single-digit percentage of the adjusted gross proceeds, as defined in the Giiant License Agreement, upon the sales or sublicenses of any products developed from the Giiant Licensed Assets to third parties (“Giiant Royalty Payments”) (collectively, the Giiant Milestone Payments and the Giiant Royalty Payments are referred to as the “Giiant License Payments”). The Giiant License Payments are subject to a maximum payment cap in the very low eight-digit range, which will be increased or decreased on a dollar-for-dollar basis based on a formula related to the aggregate of development costs incurred by the parties (“Payment Cap”). The Company has determined that the contingent consideration associated with the royalty payments should be recognized as a liability when they are probable and estimable, in accordance with ASC 450, Contingencies . The Company has made no Giiant License Payments since the commencement of the Giiant License Agreement. On August 2, 2024, the Company and Giiant entered into an amendment to the Giiant License Agreement (the "Giiant License Agreement Amendment"). Pursuant to the Giiant License Agreement Amendment, the Company agreed to increase the amount it would reimburse or advance to Giiant prior to Proof of Concept under the Giiant Development Plan by an amount in the mid six-digit range. After taking into account such increase, the amount that Company will reimburse or advance Giiant for costs and expenses incurred by them will remain in the low seven-digit range. As consideration for the increase, Giiant agreed to (i) a reduction in the Giiant Milestone Payments that would be due to them upon the achievement certain development milestones, and (ii) a decrease to the Payment Cap applied to future Giiant License Payments, as set forth in the original Giiant License Agreement. The amount of the reduction in the Giiant Milestone Payment as a result of the Giiant License Agreement Amendment is in the high six-digit range and the decrease in the Payment Cap is in the mid-six digit range. There were no other changes to the terms of the original Giiant License Agreement as a result of the Giiant License Agreement Amendment that would have a material impact on the Company's results of operations, financial position or future cash flows. The Company may unilaterally terminate the Giiant License Agreement for: (i) convenience, or (ii) a material breach by Giiant, that is not cured within the applicable notice period. Giiant may unilaterally terminate the Giiant License Agreement only for a material breach by Company that is not cured within ninety days of written notice provided however that upon the Payment Cap being achieved, that right will terminate and the Giiant License Agreement will become perpetual. Co-Development and Distribution Agreement with Newsoara LBS entered into a co-development and distribution agreement with Newsoara, a joint venture established with Biolead Medical Technology Limited, as amended, (the “Newsoara Co-Development Agreement”). Pursuant to the Newsoara Co-Development Agreement (and subsequent assignment agreement), LBS granted or licensed Newsoara an exclusive right under certain patents to develop, use, sell, offer to sell, import, and otherwise commercialize licensed products (the “Newsoara Licensed Products”) for any and all indications in the People’s Republic of China, including the regions of Hong Kong and Macao, but excluding Taiwan (the “Territory”). The Newsoara Licensed Products only include the drug asset referred to as LB1148. The right includes the right to grant sublicenses to third parties, subject to LBS’ written consent, provided that both parties agreed that Newsoara would be permitted to use a certain partner for development purposes. The Newsoara Co-Development Agreement obligates Newsoara to initially use LBS as the exclusive supplier for all Newsoara’s requirements for Newsoara Licensed Products in the Territory. During the term of the Newsoara Co-Development Agreement, Newsoara may request to manufacture the Newsoara Licensed Products in the Territory, subject to satisfying certain conditions to LBS' reasonable satisfaction. LBS is obligated to approve Newsoara manufacturing rights without undue refusal or delay. Where the Company performs any research and development or manufacturing activities under the Newsoara Co-Development Agreement, the Company records the expense reimbursement from Newsoara as a reduction to research and development expense. In consideration of the rights granted to Newsoara under the Newsoara Co-Development Agreement, Newsoara paid LBS a one-time upfront fee of $ 1.0 million. In addition, Newsoara is obligated to make (i) payments of up to $ 6.75 million in the aggregate upon achievement of certain regulatory and commercial milestones, (ii) payments in the low six-digit range per licensed product upon achievement of a regulatory milestone, and (iii) tiered royalty payments ranging from the mid-single-digit to low-double-digit percentage range on annual net sales of Licensed Products, subject to adjustment to the royalty percentage in certain events, including a change of control, the expiration of certain patents rights, and royalties paid by Newsoara third parties. To date, Newsoara has met all of its payment obligations under the Newsoara Co-Development Agreement. During the nine months ended September 30, 2023 , the Company recognized license revenue of $ 0.3 million earned upon Newsoara's achievement of a development milestone under the Newsoara Co-Development Agreement during the first quarter of 2023. During the three and nine months ended September 30, 2024 and the three months ended September 30, 2023, the Company recognized no license revenue from Newsoara under the Newsoara Co-Development Agreement. The Newsoara Co-Development Agreement will expire upon the expiration date of the last valid claim of any licensed patent covering the Newsoara Licensed Products in the Territory. In addition, the Newsoara Co-Development Agreement can be terminated (i) by either party for the other party’s material breach that remains uncured for a specified time period after written notice or for events related to the other party’s insolvency, (ii) by LBS if Newsoara challenges or attempts to interfere with any licensed patent rights and, (iii) by Newsoara for any reason upon specified prior written notice. License Agreements with the Regents of the University of California The Company has entered into three license agreements, as amended, with the Regents of the University of California (“Regents”) for exclusive commercial rights to certain patents, technology and know-how. Concurrent with the Company's decision to terminate the development of LB1148, on October 20, 2023 the Company terminated two of its license agreements with Regents. As of September 30, 2024, the only license agreement remaining with Regents is that entered into with LBS in August 2015, as amended in December 2019 and September 2022 (the “2015 UC License”). The 2015 UC License was retained for the sole purpose of maintaining the Newsoara Co-Development Agreement under which the Company may receive future milestone or royalty payments through the term of the license. Accordingly, pursuant to the 2015 UC License, the Company is obligated to pay a percentage of non-royalty licensing revenue it receives from Newsoara under the Newsoara Co-Development Agreement to Regents ranging from 30 percent to 35 percent of one-third of the upfront payment and milestone payments received from Newsoara. During the three and nine months ended September 30, 2023 , there were zero and approximately $ 25,000 in sublicense fees recognized, respectively, and approximately $ 21,000 in license maintenance fees due to Regents recognized. During the three and nine months ended September 30, 2024 , the Company recognized no sublicense f ees and license maintenance fees of approximately $ 16,000 due to Regents. Both the sublicense fees and the license maintenance fees are recognized in research and development expenses in the condensed consolidated statements of operations. The 2015 UC License will expire upon the expiration date of the longest-lived patent right licensed under the 2015 UC License. The Regents may terminate the 2015 UC License if: (i) a material breach by us is not cured within 60 days, (ii) the Company files a claim asserting the Regents licensed patent rights are invalid or unenforceable, or (iii) the Company files for bankruptcy. The Company also has the right to terminate the 2015 UC License at any time upon at least 90 days’ written notice. Contingent Value Right Immediately prior to the closing of the Merger, Seneca issued each share of its common stock held by Seneca stockholders of record, one contingent value right (“CVR”). The CVR entitled the holder (the “CVR Holder”) to receive, pro rata with the other CVR Holders, 80 % of the net proceeds, if any and subject to certain minimum distribution limitations (“CVR Payment Amount”), received from the sale or licensing of the intellectual property owned, licensed or controlled by Seneca immediately prior to the closing of the Merger (the “Legacy Technology”); provided however that the CVR Holders are only entitled to receive such CVR Payment Amount if the sale or licensing of such Legacy Technology occurred on or before October 27, 2022 (“Legacy Monetization”). Pursuant to the terms of the CVR agreement (“CVR Agreement”), CVR Holders are only entitled to receive CVR Payment Amounts received within 48-months following the closing of the Merger. The CVR Agreement also provides that no distributions will be made to the CVR Holders in the event such distribution is less than $ 0.3 million. NSI-189 – Exclusive License and Subsequent Exercise of Purchase Option Prior to the Merger, Seneca exclusively licensed certain patents and technologies, including a sublicense covering a synthetic intermediate, of the Company's NSI-189 assets (“189 License”), along with a purchase option through December 16, 2023 (“Purchase Option”). On October 22, 2021, Alto Neuroscience ("Alto") agreed to terms of an early exercise of the Purchase Option under the 189 License and entered into an asset transfer agreement ("ATA"). Alto is a U.S. based public, clinical-stage biopharmaceutical company with a mission to redefine psychiatry by leveraging neurobiology to develop personalized and highly effective treatment options. Pursuant to the terms of the CVR Agreement, no distribution was required to be made to the CVR Holders as the CVR Payment Amount after deducting costs and expenses required to maintain the 189 License was less than $ 0.3 million. In accordance with the terms of the CVR Agreement, the net proceeds from the sale of the NSI-189 assets, less any applicable transaction costs and expenses, were deposited into the CVR escrow to be used to pay costs and expenses associated with the monetization of the Company's other Legacy Technologies. In addition, Alto will be required to pay the Company up to an aggregate of $ 4.5 million upon the achievement of certain development and regulatory approval milestones for NSI-189 (or a product containing or otherwise derived from NSI-189), which is now known as ALTO-100. If Alto sells or grants to a third party a license to the patents and other rights specific to ALTO-100 prior to the achievement of a specified clinical development milestone, Alto will be required to pay to the Company a low-double digit percentage of any consideration received by Alto from such license or sale, provided that the maximum aggregate consideration Alto will be required to pay to the Company under the ATA, including the upfront payment and all potential milestones and transaction-related payments, will not exceed $ 5.0 million. On October 22, 2024, Alto announced that its Phase 2b study of ALTO-100 in patients with major depressive disorder (MDD) did not meet its primary endpoint. Notwithstanding, ALTO-100 is being evaluated as an adjunctive treatment in a Phase 2b study in bipolar depression. Upon the enrollment of a patient in a Phase 3 clinical trial of ALTO-100, if it occurs, a milestone payment of $ 1.5 million will be due from Alto under the ATA. If this occurs within 48 -months of the closing of the Merger, the CVR Holders will be entitled to a CVR Payment Amount, with the remaining 20 % of the net proceeds deposited into the CVR escrow. If the milestone is met after 48 -months of the closing of the Merger, all the net proceeds will be paid to the Company. There can be no assurance that CVR holders will receive CVR Payment Amounts from the sale of the NSI-189 assets. NSI-532.IGF-1 On October 27, 2022, the Company entered an agreement to license NSI-532.IGF-1 to the Regents of the University of Michigan ("University of Michigan") for maintaining NSI-532.IGF-1 cell lines, continued development, maintaining patent protection, and seeking licensees. The Company received no upfront fees for the license. NSI-532.IGF-1 is a pre-clinical cell therapy being investigated as a potential therapy for prevention and treatment of Alzheimer’s disease. The University of Michigan shall bear 100 % of the costs for patent filing, prosecution, maintenance, and enforcement of the patent rights. The Company will receive 50 % of net revenues received by the University of Michigan from the licensing of patent rights through the last-to-expire patent in patent rights, unless otherwise earlier terminated, less all reasonable and actual out-of-pocket costs incurred in the litigation of patent rights. There can be no assurance that NSI-532.IGF-1 will ever be successfully monetized or that CVR holders will receive CVR Payment Amounts from the sale of the NSI-532.IGF-1 assets.

Note 9 - Net Loss Per Share

Note 9 - Net Loss Per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Net Loss Per Share	9. Net Loss Per Share Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period, plus any potentially dilutive common shares, consisting of stock-based awards and equivalents, and common stock warrants. For purposes of this calculation, stock-based awards and equivalents and common stock warrants are considered to be potential common shares and are only included in the calculation of diluted net loss per common share when their effect is dilutive. The Company's Series A Convertible Preferred Stock and certain of the Company's outstanding common stock warrants contain non-forfeitable rights to dividends with the common stockholders, and therefore are considered to be participating securities. The Series A Convertible Preferred Stock and the common stock warrants do not have a contractual obligation to fund the losses of the Company; therefore, the application of the two-class method is not required when the Company is in a net loss position but is required if the Company is in a net income position. When in a net income position, diluted net earnings per common share is computed using the more dilutive of the two-class method or the if-converted and treasury stock methods. On May 6, 2024, the Company issued 530,142 prefunded warrants with such prefunded warrants being immediately exercisable, having an exercise price of $ 0.0001 per share, and a perpetual term (See Note 5, Stockholders' Equity for further details). The prefunded warrants were determined to be equity-classified in accordance with ASC 480 and ASC 815. As of September 30, 2024 , 312,000 of these prefunded warrants remained unexercised. Pursuant to the guidance of ASC 260-10, the Company concluded that because the equity-classified prefunded warrants were immediately exercisable for little or no cash consideration due to the non-substantive stated exercise price, all the necessary conditions for issuance of the underlying common shares had been met when the prefunded warrants were issued. Therefore, the underlying common shares have been included in the denominator for both the calculation of basic and dilutive net loss per common share for the three and nine months ended September 30, 2024. As the Company was in a net loss position for all periods presented, basic and diluted net loss per common share for the three and nine months ended September 30, 2024 and September 30, 2023 were calculated under the if-converted and treasury stock methods. For both the three and nine months ended September 30, 2024 and September 30, 2023, basic and diluted net loss per common share were the same as all common stock equivalents other than the prefunded warrants discussed above were anti-dilutive for both periods. The following table presents the calculation of basic and diluted net loss per common share (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic and diluted net loss per common share: Net loss $ ( 3,487 ) $ ( 3,596 ) $ ( 11,094 ) $ ( 9,329 ) Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions — ( 16 ) — ( 16 ) Net loss available to common stockholders - basic and diluted $ ( 3,487 ) $ ( 3,612 ) $ ( 11,094 ) $ ( 9,345 ) Weighted average shares used in calculating basic and diluted net loss per common share 1,500,409 489,624 1,168,277 402,074 Basic and diluted net loss per common share $ ( 2.32 ) $ ( 7.38 ) $ ( 9.50 ) $ ( 23.24 ) The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because their effects would be anti-dilutive: September 30, 2024 2023 Stock options 51,733 36,132 Restricted stock units 3,728 22,864 Warrants for common stock 1,245,470 272,216 Series A Convertible Preferred Stock 8 8 Total 1,300,939 331,220

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Corporate Office Lease The Company is party to non-cancelable facility operating lease (the "Corporate Office Lease") of office space for its corporate headquarters in Carlsbad, California. The initial contractual term is for 39-months commencing on June 1, 2022 and expiring on August 31, 2025. The Company has the option to renew the Corporate Office Lease for an additional 36-month period at the prevailing market rent upon completion of the initial lease term. The Company has determined it is not likely that it will exercise this renewal option. The Corporate Office Lease is also subject to additional variable charges for common area maintenance, insurance, taxes and other operating costs. This additional variable rent expense is not estimable at lease inception. Therefore, it is excluded from the Company’s straight-line expense calculation at lease inception and is expensed as incurred. As of September 30, 2024 , the Company recognized an operating right-of-use asset related to the Corporate Office Lease in the amount of $ 113,000 and an operating lease liability related to the Corporate Office Lease of $ 122,000 , all of which is classified as current. As of September 30, 2024 , the total remaining future minimum lease payments associated with the Corporate Office Lease of approximately $ 128,000 , including imputed interest of $ 6,000 calculated using a discount rate of 10.75 % , will be paid over the remaining lease term of approximately 0.9 years. Maturities of the Company's operating lease liabilities as of September 30, 2024 are as follows: Year ending December 31, 2024 (remaining) $ 34 2025 94 Total operating lease payments 128 Less: imputed interest ( 6 ) Total operating lease obligations $ 122 The Company recognized operating lease expense associated with its Corporate Office Lease of approximately $ 32,000 in both the three months ended September 30, 2024, and September 30, 2023 and approximately $ 97,000 in both the nine months ended September 30, 2024 and September 30, 2023. Insurance Financing Arrangements Consistent with past practice, in June 2024, the Company entered into an agreement to finance insurance policies that renewed in May 2024. The financing arrangement entered into in June 2024 has a stated annual interest rate of 8.42 % and is payable over a 9-month period with the first payment payable on June 30, 2024. The insurance financing arrangement is secured by the associated insurance policies. As of September 30, 2024 and December 31, 2023 , the aggregate remaining balance under the Company's insurance financing arrangements in place at each time was approximately $ 0.2 million. Restructuring Costs In order to better utilize the Company’s resources on the implementation of its refocused business plans and corporate strategy, the Company committed to a cost-reduction plan on September 9, 2022 (the "2022 Cost-Reduction Plan") and a reduction-in-workforce on October 27, 2023 (the "2023 RIF"). The 2022 Cost-Reduction Plan consisted primarily of a 20 % reduction in the Company's employee workforce to better align the Company’s resources with its business plan. The 2023 RIF consisted of a 25 % reduction in the Company's employee workforce, specifically research and development employees that were no longer deemed critical for the Company’s development of PALI-2108. The Company recognized no restructuring expenses related to either the 2022 Cost-Reduction Plan or the 2023 RIF for the three and nine months ended September 30, 2024 and September 30, 2023. Total expenses related to the 2022 Cost-Reduction Plan and the 2023 RIF through September 30, 2024 were approximately $ 0.4 million and $ 0.2 million, respectively. The Company does not expect to incur any other significant costs associated with either the 2022 Cost-Reduction Plan or the 2023 RIF. The following table summarizes the change in the Company's accrued restructuring liabilities under both the 2022 Cost-Reduction Plan and the 2023 RIF, which consisted solely of employee compensation and benefits and is classified within a ccrued liabilities in the condensed consolidated balance sheets as of each period shown (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance as of the beginning of period $ — $ — $ 131 $ 180 Net accrual adjustments — — ( 3 ) — Cash paid — — ( 128 ) ( 180 ) Balance as of the end of period $ — $ — $ — $ — Legal Proceedings From time to time, the Company may be involved in various lawsuits, legal proceedings, or claims that arise in the ordinary course of business. Management believes there are no claims or actions pending against the Company through September 30, 2024 , which will have, individually or in aggregate, a material adverse effect on its business, liquidity, financial position, or results of operations. Litigation, however, is subject to inherent uncertainties, and an adverse result in such matters may arise from time to time that may harm the Company’s business .

Note 2 - Basis of Presentatio_2

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation In management’s opinion, the accompanying interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the Company's financial position, results of operations and cash flows. The interim results of operations are not necessarily indicative of the results that may occur for the full year. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these condensed consolidated financial statements are read in conjunction with the consolidated financial statements and notes included in the Company’s financial statements filed in the Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 26, 2024, and any Quarterly Reports on Form 10-Q filed thereafter. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, LBS and Suzhou Neuralstem Biopharmaceutical Co., Ltd. All the entities are consolidated in the Company's condensed consolidated financial statements and all intercompany activity and transactions, if any, have been eliminated .
Reverse Stock Split	Reverse Stock Split On April 5, 2024, the Company effected a 1-for-15 reverse stock split of its issued and outstanding common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, each of the Company’s stockholders received one share of common stock for every 15 shares such stockholder held immediately prior to the effective time of the Reverse Stock Split. The Reverse Stock Split affected all the Company’s issued and outstanding shares of common stock equally. The par value and authorized shares of the Company's common stock were not adjusted as a result of the Reverse Stock Split. The Reverse Stock Split also affected the Company’s outstanding stock-based awards, common stock warrants, and other exercisable or convertible securities and resulted in the shares underlying such instruments being reduced and the exercise price or conversion price being increased proportionately. Unless otherwise noted, all common stock shares, common stock per share data and shares of common stock underlying convertible preferred stock, stock-based awards and common stock warrants included in these condensed consolidated financial statements, including the exercise price or conversion price of such equity instruments, as applicable, have been retrospectively adjusted to reflect the Reverse Stock Split for all periods presented.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments, and assumptions that impact the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the balance sheet, and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s condensed consolidated financial statements relate to accrued research and development expenses and its contingent consideration obligation. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.
Significant Accounting Policies	Significant Accounting Policies The Company’s significant accounting policies used in the preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2024 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 26, 2024 .
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. During the fourth quarter of 2023, the Company reclassified the fair value of the contingent consideration milestone payment obligation associated with the Giiant License Agreement (as defined below), including transaction related costs, in the amount of $ 362,000 from In-process research and development expenses to Research and development expenses at the consolidated statement of operations, which impacted amounts previously reported for the three and nine months ended September 30, 2023.
Comprehensive Loss	Comprehensive Loss Comprehensive income (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented.
Recently Issued or Adopted Accounting Pronouncements	Recently Issued or Adopted Accounting Pronouncements No new accounting pronouncements issued or adopted during the three and nine months ended September 30, 2024 that had or are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

Note 3 - Balance Sheet Details

Note 3 - Balance Sheet Details (Tables)	9 Months Ended
	Sep. 30, 2024
Table Text Block [Abstract]
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2024 2023 Prepaid insurance $ 473 $ 428 Other receivables 96 148 Prepaid subscriptions and fees 148 138 Prepaid software licenses 19 64 Deposits 12 — Deferred equity issuance costs 76 112 Prepaid other 6 6 $ 830 $ 896
Schedule of Other Noncurrent Assets	Other noncurrent assets consisted of the following (in thousands): September 30, December 31, 2024 2023 Prepaid insurance, less current portion $ 324 $ 478 Other noncurrent assets — 12 $ 324 $ 490
Schedule Of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2024 2023 Accrued accounts payable $ 118 $ 146 Accrued clinical trial expenses 174 20 Accrued CMC expenses 264 5 Accrued director stipends 59 106 Accrued severance and benefits (Note 9) — 131 Accrued joint development expenses (Note 7) 669 98 Current portion of contingent consideration obligation (Note 4) — 143 Accrued other 225 182 $ 1,509 $ 831

Note 4 - Fair Value Measureme_2

Note 4 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Warrant Liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Schedule of Fair Value of Options Granted	The following table summarizes the activity of the Company’s Level 3 liability-classified warrants during the three and nine months ended September 30, 2024 and 2023 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Warrant Liabilities 2024 2023 2024 2023 Fair value at beginning of period $ 2 $ 2 $ 2 $ 61 Change in fair value during the period — — — ( 59 ) Fair value at end of period $ 2 $ 2 $ 2 $ 2
Contingent Consideration Obligations [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Schedule of Fair Value of Options Granted	The following table summarizes the activity of the Company's Level 3 contingent consideration obligation, which is fair valued on a recurring basis (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Contingent Consideration Obligation 2024 2023 2024 2023 Fair value at beginning of period $ 209 $ — $ 204 $ — Initial fair value at the original issuance date — 212 — 212 Change in fair value during the period ( 164 ) — ( 159 ) — Fair value at end of period $ 45 $ 212 $ 45 $ 212

Note 5 - Stockholders' Equity (

Note 5 - Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2024
Table Text Block [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights	The following table summarizes warrant acti vity during the nine months ended September 30, 2024: Number of Weighted Weighted Warrants outstanding, December 31, 2023 272,211 $ 144.78 4.12 Granted 1,731,767 5.13 6.50 (1) Exercised ( 446,304 ) 5.61 — Forfeited, expired or cancelled ( 204 ) 17,438.12 — Warrants outstanding, September 30, 2024 1,557,470 21.58 5.98 (1) (1) The pre-funded common stock warrants granted and outstanding during and as of the nine months ended September 30, 2024 have a perpetual term and are therefore excluded from the calculation of the weighted average remaining contractual life.

Note 6 - Equity Incentive Pla_2

Note 6 - Equity Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2024
Table Text Block [Abstract]
Schedule of Stock-based Compensation for all Stock Awards	The allocation of stock-based compensation for all stock option, RSU and PSU awards is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Research and development expense $ 30 $ 70 $ 239 $ 186 General and administrative expense 62 122 324 243 Total $ 92 $ 192 $ 563 $ 429

Note 9 - Net Loss Per Share (Ta

Note 9 - Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Common Share	The following table presents the calculation of basic and diluted net loss per common share (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Basic and diluted net loss per common share: Net loss $ ( 3,487 ) $ ( 3,596 ) $ ( 11,094 ) $ ( 9,329 ) Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions — ( 16 ) — ( 16 ) Net loss available to common stockholders - basic and diluted $ ( 3,487 ) $ ( 3,612 ) $ ( 11,094 ) $ ( 9,345 ) Weighted average shares used in calculating basic and diluted net loss per common share 1,500,409 489,624 1,168,277 402,074 Basic and diluted net loss per common share $ ( 2.32 ) $ ( 7.38 ) $ ( 9.50 ) $ ( 23.24 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because their effects would be anti-dilutive: September 30, 2024 2023 Stock options 51,733 36,132 Restricted stock units 3,728 22,864 Warrants for common stock 1,245,470 272,216 Series A Convertible Preferred Stock 8 8 Total 1,300,939 331,220

Note 9 - Commitments and Cont_2

Note 9 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities of the Company's operating lease liabilities	Maturities of the Company's operating lease liabilities as of September 30, 2024 are as follows: Year ending December 31, 2024 (remaining) $ 34 2025 94 Total operating lease payments 128 Less: imputed interest ( 6 ) Total operating lease obligations $ 122
Schedule of Accrued liabilities in the consolidated balance sheet	ccrued liabilities in the condensed consolidated balance sheets as of each period shown (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Balance as of the beginning of period $ — $ — $ 131 $ 180 Net accrual adjustments — — ( 3 ) — Cash paid — — ( 128 ) ( 180 ) Balance as of the end of period $ — $ — $ — $ —

Note 1 - Organization, Busine_2

Note 1 - Organization, Business and Financial Condition (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Disclosure Text Block [Abstract]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Dividend Rate, Percentage	4.50%
Retained earnings (Accumulated deficit), ending balance	$ 132,600
Cash and cash equivalents	$ 8,040	$ 12,432	$ 15,312

Note 2 - Basis of Presentatio_3

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Apr. 05, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2024
Summary Of Significant Accounting Policies [Line Items]
Reverse stock split	1-for-15
Reverse stock split fractional share settlement	15
Research and development expense		$ 16,000,000	$ 362,000	$ 16,000,000

Note 3 - Balance Sheet Detail_2

Note 3 - Balance Sheet Details - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expense and Other Assets [Abstract]
Prepaid insurance	$ 473	$ 428
Other receivables	96	148
Prepaid subscriptions and fees	148	138
Prepaid software licenses	19	64
Deposits	12	0
Deferred equity issuance costs	76	112
Prepaid other	6	6
Prepaid expenses and other current assets	$ 830	$ 896

Note 3 - Balance sheet Detail_3

Note 3 - Balance sheet Details (Details Textual)	9 Months Ended
	Sep. 30, 2024 USD ($)
Disclosure Text Block [Abstract]
Deferred equity issuance costs	$ 37,000

Note 3 - Balance Sheet Detail_4

Note 3 - Balance Sheet Details - Summary of Other Noncurrent Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Disclosure Text Block [Abstract]
Prepaid insurance, less current portion	$ 324	$ 478
Other noncurrent assets	0	12
Other noncurrent assets, Total	$ 324	$ 490

Note 3 - Balance Sheet Detail_5

Note 3 - Balance Sheet Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Notes To Financial Statements [Abstract]
Accrued accounts payable	$ 118	$ 146
Accrued clinical trial expenses	174	20
Accrued CMC expenses	264	5
Accrued director stipends	59	106
Accrued severance and benefits	0	131
Accrued joint development expenses	669	98
Current portion of contingent consideration obligation	0	143
Accrued other	225	182
Accrued liabilities, current, Total	$ 1,509	$ 831

Note 4 - Fair Value Measureme_3

Note 4 - Fair Value Measurements (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Changes in fair value of contingent consideration	$ 164,000	$ 0	$ 159,000	$ 0
Contingent consideration obligation	45,000		45,000		$ 61,000
Money Market Funds [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of the Company's cash and cash equivalents	7,700,000		7,700,000		12,300,000
Accrued Liabilities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration obligation	$ 0		$ 0		$ 143,000
Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.121		0.121

Note 4 - Fair Value Measureme_4

Note 4 - Fair Value Measurements - Activity for Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Contingent Consideration Obligations [Member]
Balance, Beginning	$ 209	$ 0	$ 204	$ 0
Initial fair value at the original issuance date	0	212	0	212
Change in fair value during the period	(164)	0	(159)	0
Balance, Ending	45	212	45	212
Warrant [Member]
Balance, Beginning	2	2	2	61
Change in fair value during the period	0	0	0	(59)
Balance, Ending	$ 2	$ 2	$ 2	$ 2

Note 5 - Stockholders' Equity_2

Note 5 - Stockholders' Equity (Details Textual) - USD ($)									9 Months Ended
	May 06, 2024	May 01, 2024	Apr. 05, 2024	Feb. 01, 2024	Jan. 30, 2024	Sep. 11, 2023	Apr. 03, 2023	Jan. 04, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Common Stock, Shares Authorized (in shares)									280,000,000		280,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)									$ 0.01		$ 0.01
Reverse stock split fractional share settlement			15
Warrants and Rights Outstanding									$ 1,557,470		$ 272,211
Proceeds from issuance of common stock and warrants									4,000,000	$ 9,419,000
Payment of equity issuance costs									$ 456,000	$ 567,000
Common stock, shares outstanding (in shares)									1,198,516		618,056
Common stock, shares issued (in shares)									1,198,516		618,056
Pre Funded Warrants [Member]
Warrants to purchase shares of common stock	530,142								312,000
Warrants exercise price of common stock Warrants	$ 0.0001
Replacement Warrants [Member]
Warrants exercise price of common stock Warrants				$ 10.97
Date of issuance of warrant				5 years
Series 2 Warrants [Member]
Common stock warrants									9,414
Five Lakh Thirty Thousand One Hundred and Forty Two [Member]
Warrants exercise price of common stock Warrants									$ 0.0001
Common stock warrants									312,000
Nine Lakh Twenty Two Thousand Eight Hundred and Sixty Three Common Stock [Member]
Warrants exercise price of common stock Warrants									$ 6.314
Common stock warrants									922,863
Two Lakh Twenty Eight Thousand One Hundred and Fifty Eight Common Stock [Member]
Warrants exercise price of common stock Warrants									$ 10.97
Common stock warrants									228,158
Nine Thousand Four Hundred And Fourteen Common Stock [Member]
Warrants exercise price of common stock Warrants									$ 6.314
Common stock warrants									9,414
Eighty Five Thousand Two Hundred and Fifteen Common Stock [Member]
Common stock warrants									85,035
Weighted-average exercise price									$ 297.45
Private Placement [Member]
Warrants to purchase shares of common stock		922,863
Warrants exercise price of common stock Warrants		$ 6.314
Date of issuance of warrant		7 years
Private Placement [Member] | Pre Funded Warrants [Member]
Warrants to purchase shares of common stock		530,142
Warrants exercise price of common stock Warrants		$ 0.0001
Common stock warrants		6.5014
May 2024 Placement Agent Warrants [Member]
Warrants to purchase shares of common stock		36,914
Warrants exercise price of common stock Warrants		$ 10.727
Date of issuance of warrant		5 years
May Two Thousand Twenty Four Offering [Member]
Sale of stock during period		85,100
Proceeds from issuance of common stock and warrants	$ 4,000,000
Payment of equity issuance costs	500,000
Net Proceeds	3,500,000
Grant date fair value	$ 200,000
May Two Thousand Twenty Four Offering [Member] | Unregistered Shares [Member]
Shares Sold, Price Per Share		$ 6.5015
February 2024 Warrant Inducement [Member]
Warrants to purchase shares of common stock					228,162
Net proceeds from exercise of warrants				$ 2,200,000
Gross proceeds from the exercise of warrants				2,500,000
Warrants exercise price of common stock Warrants					$ 10.97
Total equity issuance costs					$ 2,400,000
Non-cash warrant modification costs					2,000,000
Payment of equity issuance costs				2,000,000	$ 300,000
Cash transaction-related expenses And placement agent fees				$ 300,000
Common stock warrants					228,162
February 2024 Warrant Inducement [Member] | Replacement Warrants [Member]
Warrants to purchase shares of common stock					228,162
February 2024 Warrant Inducement [Member] | May 2022 Warrants [Member]
Common stock warrants					4,865
February 2024 Warrant Inducement [Member] | Series 2 Warrants [Member]
Common stock warrants					4,267
February 2024 Warrant Inducement [Member] | January 2023 Warrants [Member]
Common stock warrants					67,511
February 2024 Warrant Inducement [Member] | April 2023 Warrants [Member]
Common stock warrants					151,519
Placement Agent Warrants [Member]
Warrants exercise price of common stock Warrants					$ 10.97
Out-of-pocket expenses					$ 35,000
Non-cash warrant issuance costs					$ 100,000
Percentage of gross proceeds					7.75%
Percentage of share issued					6%
Date of issuance of warrant					5 years
Common Stock [Member]
Issuance of stock during period, Shares			15
Common Stock [Member] | Maximum [Member]
Reverse stock split fractional share settlement			12,771,015
Common Stock [Member] | Minimum [Member]
Reverse stock split fractional share settlement			851,302
Series A 4.5% Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)									1,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)									$ 0.01
Convertible Preferred Stock, Issuable Upon Conversion of All Shares (in shares)									8
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)									7,000,000		7,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)									$ 0.01		$ 0.01
Preferred stock, shares outstanding (in shares)									200,000		200,000
Common stock, shares outstanding (in shares)									200,000
Common stock, shares issued (in shares)									200,000
September 2023 Offering [Member]
Proceeds from issuance of common stock and warrants						$ 2,000,000
Payment of equity issuance costs						300,000
Net Proceeds						$ 1,700,000
April 2023 Offering [Member]
Proceeds from issuance of common stock and warrants							$ 6,000,000
Payment of equity issuance costs							700,000
Net Proceeds							$ 5,300,000
January 2023 Offering [Member]
Proceeds from issuance of common stock and warrants								$ 2,500,000
Payment of equity issuance costs								300,000
Net Proceeds								$ 2,200,000

Note 5 - Stockholders' Equity -

Note 5 - Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares		9 Months Ended		12 Months Ended
		Sep. 30, 2024		Dec. 31, 2023
Warrants outstanding, balance (in shares)		272,211
Granted (in shares)	[1]	1,731,767
Exercised (in shares)		(446,304)
Forfeited, expired or cancelled (in shares)		(204)
Warrants outstanding, balance (in shares)		1,557,470	[1]	272,211
Warrants outstanding, weighted average exercise price (in dollars per share)		$ 21.58	[1]	$ 144.78
Granted, weighted average exercise price (in dollars per share)	[1]	5.13
Exercised, weighted average exercise price		5.61
Forfeited, expired, or cancelled, weighted average exercise price		$ 17,438.12
Warrants outstanding, weighted average remaining contratual life (years)		5 years 11 months 23 days	[1]	4 years 1 month 13 days
Granted, weighted average remaining contractual life	[1]	6 years 6 months
[1] (1) The pre-funded common stock warrants granted and outstanding during and as of the nine months ended September 30, 2024 have a perpetual term and are therefore excluded from the calculation of the weighted average remaining contractual life.

Note 6 - Equity Incentive Pla_3

Note 6 - Equity Incentive Plans (Details Textual) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based compensation expense	$ 92,000		$ 192,000	$ 563,000	$ 429,000
Unrecognized compensation cost related to outstanding options	300,000			$ 300,000
Unrecognized compensation cost weighted-average period of recognition				1 year 7 months 2 days
Non-vested, Weighted Average Contractual Life (Years)				8 months 4 days
Maximum shares issued under ESPP				$ 11,000
General and Administrative Expense [Member]
Share-based compensation expense	62,000		122,000	324,000	243,000
Research and Development Expense [Member]
Share-based compensation expense	30,000		70,000	239,000	$ 186,000
Restricted Stock Units [Member]
Unrecognized compensation cost related to outstanding RSUs	14,000			$ 14,000
Number of Restricted Stock Units, Granted					20,746
Weighted-average grant date fair value of RSU					$ 25.17
Performance Based Stock Units [Member]
Number of Restricted Stock Units, Granted					4,576
Weighted-average grant date fair value of RSU					$ 16.9
Stock Option [Member]
Number of Options Granted (in shares)				12,300	33,997
Weighted-average grant date fair value of options					$ 13.89
Time-based RSU [Member] | General and Administrative Expense [Member]
Share-based compensation expense		$ 129,000
Time-based RSU [Member] | Research and Development Expense [Member]
Share-based compensation expense		$ 125,000
The 2021 ESPP [Member]
Percentage of purchase price of common stock				85%
The 2021 ESPP [Member] | Maximum [Member]
Maximum shares issued under ESPP				$ 25,000,000
Shares issued under the ESPP.				666
The ESPP [Member]
Share based compensation expense	$ 3,000		$ 10,000	$ 12,000	$ 10,000
Equity Incentive Plan [Member]
Common stock capital shares reserved for future issuance (in shares)	0			0
Equity Incentive Plan [Member] | Stock Option [Member]
Weighted-average grant date fair value of options				$ 3.8

Note 6 - Equity Incentive Pla_4

Note 6 - Equity Incentive Plans - Schedule of Stock-based Compensation for all Stock Awards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based compensation expense	$ 92	$ 192	$ 563	$ 429
Research and Development Expense [Member]
Share-based compensation expense	30	70	239	186
General and Administrative Expense [Member]
Share-based compensation expense	$ 62	$ 122	$ 324	$ 243

Note 7 - Collaborations and L_2

Note 7 - Collaborations and License Agreements (Details Textual))		3 Months Ended			9 Months Ended		36 Months Ended
	Oct. 27, 2022 USD ($)	Sep. 30, 2024 USD ($) Agreement shares	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Agreement shares	Sep. 30, 2023 USD ($)	Dec. 16, 2023 USD ($)	Oct. 20, 2023 Agreement
Collaborations and License Agreements Upfront Fee	$ 0				$ 1,000,000
Royalty Expense					6,750,000		$ 4,500,000
Maximum Aggregate Consideration							5,000,000
License revenue					300,000
Accrued joint development expenses		$ 669,000	$ 98,000		669,000
Milestone Payments							$ 1,500,000
Closing period of merger agreement							48 months
Proceeds Deposited into the CVR Escrow							20%
Research and development expense		$ 16,000,000	$ 362,000		$ 16,000,000
Contingent value right issued | shares		1			1
Contingent value right, pro rata, net proceeds from sale or licensing					80%
Research and Development Expense [Member]
Joint development expenses		$ 900,000			$ 4,300,000
Minimum [Member]
CVR Agreement, distribution minimum amount					$ 300,000		$ 300,000
License Agreements with the Regents of the University of California [Member]
Number of License Agreements | Agreement		3			3
Number of terminated license agreements | Agreement								2
Sublicense Fees				$ 0		$ 25,000,000
Period of Expiration of License Agreement Description					The 2015 UC License will expire upon the expiration date of the longest-lived patent right licensed under the 2015 UC License. The Regents may terminate the 2015 UC License if: (i) a material breach by us is not cured within 60 days, (ii) the Company files a claim asserting the Regents licensed patent rights are invalid or unenforceable, or (iii) the Company files for bankruptcy. The Company also has the right to terminate the 2015 UC License at any time upon at least 90 days’ written notice.
License Agreements with the Regents of the University of California [Member] | Research and Development Expense [Member]
Accrued Royalties, Current		$ 0		$ 21,000,000	$ 0	$ 21,000,000
License Agreements with the Regents of the University of California [Member] | Maximum [Member]
Royalty Rate, Portion of Sublicense Income to Be Paid, Percentage of One-third of Upfront Payment and Milestone Payment Received		35%			35%
License Agreements with the Regents of the University of California [Member] | Minimum [Member]
Royalty Rate, Portion of Sublicense Income to Be Paid, Percentage of One-third of Upfront Payment and Milestone Payment Received		30%			30%
NSI-532.IGF-1 [Member]
Percentage Cost in Patent Right	100%
Percentage of net revenue	50%

Note 9 - Net Loss Per Share - S

Note 9 - Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023		Sep. 30, 2024	Sep. 30, 2023
Basic and diluted net loss per common share:
Net Income (Loss)		$ (3,487)	$ (3,596)		$ (11,094)	$ (9,329)
Adjustment to record the impact of exercise price reset on outstanding warrants related to down round provisions		0	(16)		0	(16)
Net loss available to common stockholders - basic		$ (3,487)	$ (3,612)		$ (11,094)	$ (9,345)
Weighted average shares used in calculating basic loss per common share	[1]	1,500,409	489,624		1,168,277	402,074
Basic net loss per common share		$ (2.32)	$ (7.38)	[1]	$ (9.5)	$ (23.24)
Diluted net loss per common share
Net loss attributable to common shares - diluted		$ (3,487)	$ (3,612)		$ (11,094)	$ (9,345)
Weighted average shares used in calculating diluted loss per common share	[1]	1,500,409	489,624		1,168,277	402,074
Diluted net loss per common share		$ (2.32)	$ (7.38)	[1]	$ (9.5)	$ (23.24)
[1] (*) Basic and diluted loss per common share and basic and diluted weighted average share used in computing basic and diluted loss per common share for the three and nine months ended September 30, 2023 has been adjusted to reflect the 1-for-15 reverse stock split effected on April 5, 2024.

Note 9 - Net Loss Per Share -_2

Note 9 - Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Anti-dilutive securities (in shares)	1,300,939	331,220
Employee Stock Option
Anti-dilutive securities (in shares)	51,733	36,132
Restricted Stock Units [Member]
Anti-dilutive securities (in shares)	3,728	22,864
Warrant [Member]
Anti-dilutive securities (in shares)	1,245,470	272,216
Series A Convertible Preferred Stock [Member]
Anti-dilutive securities (in shares)	8	8

Note 9 - Net Loss Per Share (De

Note 9 - Net Loss Per Share (Details Textual) - Pre Funded Warrants [Member] - USD ($)	Sep. 30, 2024	May 06, 2024
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Warrants to purchase shares of common stock	312,000	530,142
Warrants exercise price of common stock Warrants		$ 0.0001
Cash consideration	$ 0

Note 9 - Commitments and Cont_3

Note 9 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Sep. 09, 2022	May 12, 2022
Loss Contingencies [Line Items]
Operating Lease, Right-of-Use Asset	$ 113,000		$ 113,000		$ 198,000
Operating Lease, Liability, Current	122,000		122,000		121,000
Imputed interest	6,000		6,000
Cost Reduction Plan [Member]
Loss Contingencies [Line Items]
Reduction In Work Force						20%
Restructuring Costs	$ 0	$ 0	0	$ 0
Total expenses			$ 400,000
2023 RIF [Member]
Loss Contingencies [Line Items]
Reduction In Work Force	25%		25%
Restructuring Costs	$ 0	0	$ 0	0
Total expenses			$ 200,000
Insurance Financing Arrangement [Member]
Loss Contingencies [Line Items]
Line of Credit Facility, Interest Rate During Period			8.42%
Line of Credit Facility, Expiration Period			9 months
Remaining balance under insurance financing arrangements	200,000		$ 200,000		$ 200,000
Corporate Office [Member]
Loss Contingencies [Line Items]
Lessee, operating lease, term of contract (Month)							39 months
Lessee, operating lease, renewal term (Month)							36 months
Operating Lease, Right-of-Use Asset	113,000		113,000
Operating Lease, Liability, Current	$ 122,000		$ 122,000
Lessee, Operating Lease, Discount Rate	10.75%		10.75%
Lessee, Operating Lease, Remaining Lease Term	10 months 24 days		10 months 24 days
Operating Lease, Expense	$ 32,000	$ 32,000	$ 97,000	$ 97,000
Imputed interest	6,000		6,000
Total remaining future minimum lease payments	$ 128,000		$ 128,000

Note 9 - Commitments and Cont_4

Note 9 - Commitments and Contingencies - Schedule of Maturities of the Company's operating lease liabilities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024 (remaining)	$ 34
2025	94
Total operating lease payments	128
Less: imputed interest	(6)
Total operating lease obligations	$ 122

Note 9 - Commitments and Cont_5

Note 9 - Commitments and Contingencies - Accrued liabilities in the consolidated balance sheet (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Balance as of the beginning of period	$ 0	$ 0	$ 131	$ 180
Net accrual adjustments	0	0	(3)	0
Cash paid	0	0	(128)	(180)
Balance as of the end of period	$ 0	$ 0	$ 0	$ 0