| 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’s Chief Executive Officer and President (“CEO”) is our chief operating decision maker (“CODM”)
and evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated
basis. Because our CODM evaluates financial performance on a consolidated basis, the Company has determined that it operates as a single
reportable segment composed of the consolidated financial results of Bone Biologics Corporation. Our
CODM uses consolidated net income (loss) as the sole measure of segment profit or loss. Significant segment expenses include research
and development, salaries, insurance, and stock-based compensation. Operating expenses include all remaining costs necessary to operate
our business, which primarily include external professional services and other administrative expenses (see Note 9). 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 accounting 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 the realizability of the Company’s deferred tax assets.
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, 2024: Schedule of Fair Value Liabilities Measured on Recurring Basic
Description Total Level 1 Level 2 Level 3
As of December 31, 2024
Description Total Level 1 Level 2 Level 3
Liabilities:
Warrant liability $ 4,670 — — $ 4,670
Total liabilities at fair value $ 4,670 — — $ 4,670 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, 2024 as follows: Schedule of Warrant Liability Measured Fair Value on a Recurring Basic Using Unobservable
2024
Warrant liability
Balance as of beginning of period – December 31, 2023 $ 55,751
Change in fair value (51,081 )
Balance as of end of period – December 31, 2024 $ 4,670 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, 2024, 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 $ 641,665 711,194 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. Patents
and Licenses Effective
April 9, 2019, the Company entered into an Amended and Restated Exclusive License Agreement as so amended, the “Amended
License Agreement”) with the UCLA Technology Development Group on behalf of UC
Regents (“UCLA TDG”). See Note 10 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 Accounting Standards Codification (“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, 2024 and 2023. Foreign
Currency Translation The
consolidated financial statements are presented in the United States dollar, which is the functional and reporting currency of the Company. The
Company periodically incurs a cost or expense in a foreign jurisdiction denominated in a local currency. The Company purchases the required
foreign currency to pay such cost or expense on an as-needed basis. Such cost or expense is converted into United States dollars for
financial statement purposes based on the foreign currency conversion rate in effect on the transaction date. The Company purchases the
requisite foreign currency to pay such cost or expense on an as-needed basis. For the years ended December 31, 2024 and 2023, any
gain or loss resulting from the purchase of the foreign currency has been de minimis. During
the years ended December 31, 2024 and 2023, the Company incurred various costs and expenses denominated in the Australian dollar (AUD),
which were converted into United States dollars at the average rate of 0.6598
and 0.6645
AUD per United States dollar, respectively. As
of December 31, 2024 and 2023, the Company did not hold any currencies other than the United States dollar in its bank accounts, and
was not a party to any foreign currency forward or exchange contracts. Warrants The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities
from Equity (“ASC 480”), and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the
warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether
the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the
Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance
outside of the Company’s control, among other conditions for equity classification. For issued or modified warrants that meet all
of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the
time of issuance. For issued or modified warrants that do not meet all of the criteria for equity classification, the warrants are required
to be liability classified and recorded at their initial fair value on the date of issuance and remeasured at fair value at each balance
sheet date thereafter. Changes in the estimated fair value of the warrants that are liability classified are recognized as a non-cash
gain or loss in the statement of operations at each balance sheet date. Net
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,
2024 and 2023, 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, 2024 and 2023: Schedule of Anti Dilutive Securities Excluded from Computation of Earnings Per Share
December 31, 2024 December 31,
Warrants 1,854,096 197,844
Stock options 194,484 34,310
Anti dilutive securities 2,048,580 232,154 New
Accounting Standards In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosure.” The amendments expand a public entity’s segment disclosures by requiring
disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, requiring other new
disclosures, and requiring enhanced interim disclosures. ASU 2023-07 requires public entities with a single reportable segment to
provide all the disclosures required by this standard and all existing segment disclosures in Topic 280 on an interim and annual
basis. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December
15, 2024, applied retrospectively with early adoption permitted. As of December 31, 2024, the Company has adopted ASU 2023-07.
Adoption of the standard has not impacted our financial statements but has resulted in additional disclosures (See Note 9 –
Segment Information). In December 2023, the FASB issued ASU 2023-09, Income
Taxes (Topic 740)-Improvements to Income Tax Disclosures. The ASU requires additional quantitative and qualitative income tax disclosures
to allow readers of the consolidated financial statements to assess how the Company’s operations, related tax risks and tax planning
affect its tax rate and prospects for future cash flows. For public business entities, the ASU is effective for annual periods beginning
after December 15, 2024. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial
statements. In November 2024, the FASB issued ASU No. 2024-03
“Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation
of Income Statement Expenses.” This ASU requires public business entities to disclose, for interim and annual reporting periods,
additional information about certain income statement expense categories. The requirements are effective for fiscal years beginning after
December 15, 2026, and for interim periods beginning after December 15, 2027. Entities are permitted to apply either the prospective or
retrospective transition methods. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated
financial statements. The
Company’s management has evaluated all other 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. |
