| Summary of Significant Accounting Policies | 2.
Summary of Significant Accounting Policies Principles
of Consolidation The
accompanying consolidated financial statements of the Company have been prepared in accordance with United States generally accepted
accounting principles (“GAAP”) and include the financial statements of Bone Biologics Corporation and its wholly-owned subsidiary,
Bone Biologics Inc. Intercompany balances and transactions have been eliminated in consolidation. Segment
Information The
Company operates and reports in one segment, which focuses on bone regeneration in spinal fusion using the recombinant human protein
known as NELL-1. The Company’s operating segment is reported in a manner consistent with the internal reporting provided to the
Chief Operating Decision Maker, which is the Company’s Chief Executive Officer and President. Use
of Estimates The
preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make certain estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the consolidated financial statements and reported amounts of expenses during the reporting period. Significant
estimates include the assumptions used in the accrual for potential liabilities, the valuation of the warrant liability, the valuation
of debt and equity instruments, the valuation of stock options and warrants issued for services, and deferred tax valuation allowances.
Actual results could differ from those estimates. Inflation Macroeconomic
factors such as inflation, rising interest rates, governmental responses there to and possible recession caused thereby also add significant
uncertainty to the Company’s operations and possible effects to the amount and type of financing available to the Company in the future. Cash Cash
primarily consists of bank demand deposits maintained by a major financial institution. The Company’s policy is to maintain its
cash balances with financial institutions with high credit ratings and in accounts insured by the Federal Deposit Insurance Corporation
(the “FDIC”) and/or by the Securities Investor Protection Corporation (the “SIPC”). The Company may periodically
have cash balances in financial institutions in excess of the FDIC and SIPC insurance limits of $ 250,000 500,000 Fair
Value of Financial Instruments Accounting
standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing
that fair value. The Company defines fair value as the exchange price that would be received for an asset or paid to transfer a liability
(an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the
use of unobservable inputs. The fair value hierarchy is based on three levels of inputs that may be used to measure fair value, of which
the first two are considered observable and the last is considered unobservable: Level
1: Quoted prices in active markets for identical assets or liabilities. Level
2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities. Level
3 assumptions: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets or liabilities including liabilities resulting from embedded derivatives associated with certain warrants to purchase common stock. The
fair value of financial instruments measured on a recurring basis was as follows as of December 31, 2023: Schedule
of Fair Value Liabilities Measured on Recurring Basic
Description Total Level 1 Level 2 Level 3
As of
Description Total Level 1 Level 2 Level 3
Liabilities:
Warrant liability $ 55,751 — — $ 55,751
Total liabilities at fair value $ 55,751 — — $ 55,751 The
following table provides a roll-forward of the warrant liability measured at fair value on a recurring basis using unobservable level
3 inputs for the years ended December 31, 2023 as follows: Schedule of
Warrant Liability Measured Fair Value on a Recurring Basic Using Unobservable
2023
Warrant liability
Balance as of beginning of period – December 31, 2022 $ 1,659,468
Extinguishment of warrant liability upon exercise of warrants (711,024 )
Change in fair value (892,693 )
Balance as of end of period – December 31, 2023 $ 55,751 The
Company believes the carrying amount of certain financial instruments, including cash and accounts payable approximate their values based
on their short-term nature and are excluded from the fair value tables above. Prepaid
Insurance Prepaid
insurance represents the premiums paid for directors and officers insurance coverage and for general liability insurance coverage in
excess of the amortization of the total policy premium charged to operations at each balance sheet date. Such amount is determined by
amortizing the total policy premium charged on a straight-line basis over the respective policy period. As the policy premiums incurred
are generally amortizable over the ensuing twelve-month period, they are recorded as a current asset in the Company’s consolidated
balance sheet at each reporting date and appropriately amortized to the Company’s consolidated statement of operations for each
reporting period. Prepaid
Expenses At
December 31, 2023, prepaid expenses consisted of prepaid insurance and prepaid services. Prepaid expenses are amounts paid to secure the
use of assets or the receipt of services at a future date or continuously over one or more future periods. When the prepaid expenses
are eventually consumed, they are charged to expense. The Company had $ 711,194 956,925 Research
and Development Costs Research
and development costs include, but are not limited to, payroll and other personnel expenses, consultants, expenses incurred under agreements
with contract research and manufacturing organizations and animal clinical investigative sites and the cost to manufacture clinical trial
materials. Research and development costs are generally charged to operations ratably over the life of the underlying contracts, unless
the achievement of milestones, the completion of contracted work, the termination of an agreement, or other information indicates that
a different expensing schedule is more appropriate. However, payments for research and development costs that are contractually defined
as non-refundable are charged to operations as incurred. Payments
made pursuant to contracts are initially recorded as advances on research and development contract services in the Company’s consolidated
balance sheet and are then charged to research and development costs in the Company’s consolidated statement of operations as those
contract services are performed. Expenses incurred under contracts in excess of amounts advanced are recorded as research and development
contract liabilities in the Company’s consolidated balance sheet, with a corresponding charge to research and development costs
in the Company’s consolidated statement of operations. The Company reviews the status of its various clinical trial and research
and development contracts on a quarterly basis. Research
and development costs, including costs associated with clinical trials involving the Company’s lead product candidate, are summarized
below based on the respective geographical regions where such costs are incurred. Summary
of Geographical Regions
2023 2022
Years Ended December 31,
2023 2022
United States $ 6,693,377 $ 1,579,298
Australia 214,447 -
Total $ 6,907,824 $ 1,579,298 Patents
and Licenses Effective
April 9, 2019, the Company entered into an Amended and Restated Exclusive License Agreement dated as of March 21, 2019 and amended
through three sets of amendments (as so amended the “Amended License Agreement”) with the UCLA TDG. The Amended License
Agreement amends and restates the Amended and Restated Exclusive License Agreement, dated as of June 19, 2017 (the “2017
Agreement”). The 2017 Agreement amended and restated the Exclusive License Agreement, effective March 15, 2006, between the
Company and UCLA TDG, as amended by ten amendments. See Note 7 for commitments related to the Exclusive License Agreement. Patent
expenses include costs to acquire the license of NELL-1, which was de minimis, and costs to file patent applications related to
NELL-1. The
Company expenses the costs incurred to file patent applications, all costs related to abandoned patent applications and maintenance costs,
and these costs are included in general and administrative expenses. Costs associated with licenses acquired to be able to use products
from third parties prior to receipt of regulatory approval to market the related products are also expensed. The Company’s licensed
technologies may have alternative future uses in that they are enabling (or platform) technologies that can be the basis for multiple
products that would each target a specific indication. Costs of acquisition of licenses are expensed. Stock
Based Compensation ASC
718, Compensation – Stock Compensation Income
Taxes The
Company uses an asset and liability approach for accounting and reporting for income taxes that allows recognition and measurement of
deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach,
deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets
if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility
is uncertain. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense.
No such amounts were accrued as of December 31, 2023 and 2022. Loss
per Common Share Basic
loss per share is computed by dividing the loss available to common shareholders by the weighted-average number of common shares outstanding
during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include
the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional
common shares were dilutive. Diluted loss per common share reflects the potential dilution that could occur if options and warrants were
to be exercised or converted or otherwise resulted in the issuance of common stock that then shared in the earnings of the entity. Since
the effects of outstanding options, warrants, and the conversion of convertible debt are anti-dilutive for the years ended December 31,
2023 and 2022, shares of common stock underlying these instruments have been excluded from the computation of loss per common share. The
following sets forth the number of shares of common stock underlying outstanding options and warrants as of December 31, 2023 and 2022: Schedule of Anti
Dilutive Securities Excluded from Computation of Earnings Per Share
2023 2022
December 31,
2023 2022
Warrants 197,844 57,692
Stock options 34,310 1,910
Anti
dilutive securities 232,154 59,602 Reclassifications Certain
prior year balances have been reclassified to conform with the current year presentation. In
presenting the Company’s consolidated balance sheet at December 31, 2022, the Company presented $ 579,910 364,536 956,925 579,910 364,536 10,000 In
presenting the Company’s consolidated balance sheet at December 31, 2022, the Company presented $ 783,675 888,461 783,675 104,786 New
Accounting Standards The
Company’s management has evaluated all the recently issued, but not yet effective, accounting standards and guidance that have
been issued or proposed by the FASB or other standards-setting bodies through the filing date of these financial statements and does
not believe the future adoption of any such pronouncements will have a material effect on the Company’s financial position and
results of operations. |
