Cover
| Cover - shares | 6 Months Ended | |
| Jun. 30, 2023 | Aug. 08, 2023 | |
| Cover [Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Quarterly Report | true | |
| Document Transition Report | false | |
| Document Period End Date | Jun. 30, 2023 | |
| Document Fiscal Period Focus | Q2 | |
| Document Fiscal Year Focus | 2023 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity File Number | 001-37603 | |
| Entity Registrant Name | BIORESTORATIVE THERAPIES, INC. | |
| Entity Central Index Key | 0001505497 | |
| Entity Tax Identification Number | 30-1341024 | |
| Entity Incorporation, State or Country Code | NV | |
| Entity Address, Address Line One | 40 Marcus Drive | |
| Entity Address, City or Town | Melville | |
| Entity Address, State or Province | NY | |
| Entity Address, Postal Zip Code | 11747 | |
| City Area Code | (631) | |
| Local Phone Number | 760-8100 | |
| Title of 12(b) Security | Common Stock, $0.0001 par value | |
| Trading Symbol | BRTX | |
| Security Exchange Name | NASDAQ | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Non-accelerated Filer | |
| Entity Small Business | true | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Bankruptcy Proceedings, Reporting Current | true | |
| Entity Common Stock, Shares Outstanding | 4,667,641 |
Condensed Consolidated Balance
| Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
| Current Assets: | ||
| Cash and cash equivalents | $ 1,783,646 | $ 1,676,577 |
| Investments held in marketable securities | 9,831,719 | 13,072,831 |
| Accounts receivable | 25,000 | 16,000 |
| Prepaid expenses and other current assets | 403,559 | 363,082 |
| Total Current Assets | 12,043,924 | 15,128,490 |
| Property and equipment, net | 314,070 | 261,003 |
| Right of use asset | 183,738 | 241,760 |
| Intangible assets, net | 758,565 | 803,438 |
| Total Assets | 13,300,297 | 16,434,691 |
| Current Liabilities: | ||
| Accounts payable | 276,048 | 170,902 |
| Accrued expenses and other current liabilities | 386,325 | 130,072 |
| Lease liability, current portion | 150,480 | 139,328 |
| Total Current Liabilities | 812,853 | 440,302 |
| Lease liability, net of current portion | 83,580 | 162,317 |
| Total Liabilities | 896,433 | 602,619 |
| Stockholders’ Equity | ||
| Common Stock, $0.0001 par value; Authorized, 75,000,000 shares; 3,982,608 and 3,677,775 issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 399 | 369 |
| Additional paid in capital | 173,695,154 | 168,457,418 |
| Accumulated deficit | (161,305,671) | (152,640,897) |
| Total Stockholders’ Equity | 12,403,864 | 15,832,072 |
| Total Liabilities and Stockholders’ Equity | 13,300,297 | 16,434,691 |
| Series B Convertible Preferred Stock [Member] | ||
| Stockholders’ Equity | ||
| Preferred stock, value | $ 13,982 | $ 15,182 |
Condensed Consolidated Balanc_2
| Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
| Common stock, par value | $ 0.0001 | $ 0.0001 |
| Common stock, shares authorized | 75,000,000 | 75,000,000 |
| Common stock, shares issued | 3,982,608 | 3,677,775 |
| Common stock, shares outstanding | 3,982,608 | 3,677,775 |
| Series B Convertible Preferred Stock [Member] | ||
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 1,543,158 | 1,543,158 |
| Preferred stock, shares issued | 1,398,158 | 1,518,158 |
| Preferred stock, shares outstanding | 1,398,158 | 1,518,158 |
Condensed Consolidated Statemen
| Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
| Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
| Income Statement [Abstract] | ||||
| Revenues | $ 64,500 | $ 71,100 | $ 95,800 | $ 87,100 |
| Operating expenses: | ||||
| Research and development | 967,891 | 1,075,224 | 2,479,136 | 1,850,561 |
| General and administrative | 2,213,160 | 3,624,504 | 6,512,313 | 7,918,960 |
| Total operating expenses | 3,181,051 | 4,699,728 | 8,991,449 | 9,769,521 |
| Loss from operations | (3,116,551) | (4,628,628) | (8,895,649) | (9,682,421) |
| Other (income) expense: | ||||
| Interest (income) expense | (96,187) | 46,613 | (114,403) | 75,624 |
| Gain on PPP loan forgiveness | (250,000) | |||
| Grant income | (16,654) | |||
| Other income, net | (39,812) | (116,472) | ||
| Total other (income) expense | (135,999) | 46,613 | (230,875) | (191,030) |
| Net loss | $ (2,980,552) | $ (4,675,241) | $ (8,664,774) | $ (9,491,391) |
| Net Loss Per Share - Basic | $ (0.77) | $ (1.28) | $ (2.28) | $ (2.65) |
| Net Loss Per Share - Diluted | $ (0.77) | $ (1.28) | $ (2.28) | $ (2.65) |
| Weighted Average Number of Common Shares Outstanding - Basic | 3,886,309 | 3,638,383 | 3,803,323 | 3,581,110 |
| Weighted Average Number of Common Shares Outstanding - Diluted | 3,886,309 | 3,638,383 | 3,803,323 | 3,581,110 |
Condensed Consolidated Statem_2
| Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] Series B Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
| Beginning balance at Dec. 31, 2021 | $ 353 | $ 155,727,292 | $ (134,146,128) | $ 21,596,949 | |
| Beginning balance, shares at Dec. 31, 2021 | 3,520,391 | ||||
| - restricted share units | $ 10 | 1,164,125 | 1,164,135 | ||
| restricted stock units, shares | 97,828 | ||||
| - options | 2,138,949 | 2,138,949 | |||
| - common stock | 1 | 72,818 | 72,819 | ||
| Net loss | (4,816,150) | (4,816,150) | |||
| - common stock, shares | 13,500 | ||||
| Ending balance at Mar. 31, 2022 | $ 364 | 159,103,184 | (138,962,278) | 20,156,702 | |
| Ending balance, shares at Mar. 31, 2022 | 3,631,719 | ||||
| Beginning balance at Dec. 31, 2021 | $ 353 | 155,727,292 | (134,146,128) | 21,596,949 | |
| Beginning balance, shares at Dec. 31, 2021 | 3,520,391 | ||||
| Net loss | (9,491,391) | ||||
| Ending balance at Jun. 30, 2022 | $ 365 | 162,207,334 | (143,637,519) | 18,585,612 | |
| Ending balance, shares at Jun. 30, 2022 | 3,643,709 | ||||
| Beginning balance at Mar. 31, 2022 | $ 364 | 159,103,184 | (138,962,278) | 20,156,702 | |
| Beginning balance, shares at Mar. 31, 2022 | 3,631,719 | ||||
| - restricted share units | $ 1 | 1,190,349 | 1,190,350 | ||
| restricted stock units, shares | 6,220 | ||||
| - options | 1,865,297 | 1,865,297 | |||
| - common stock | 48,504 | 48,504 | |||
| Net loss | (4,675,241) | (4,675,241) | |||
| - common stock, shares | 5,770 | ||||
| Ending balance at Jun. 30, 2022 | $ 365 | 162,207,334 | (143,637,519) | 18,585,612 | |
| Ending balance, shares at Jun. 30, 2022 | 3,643,709 | ||||
| Beginning balance at Dec. 31, 2022 | $ 15,182 | $ 369 | 168,457,418 | (152,640,897) | 15,832,072 |
| Beginning balance, shares at Dec. 31, 2022 | 1,518,158 | 3,677,775 | |||
| - restricted share units | $ 9 | 1,148,750 | 1,148,759 | ||
| restricted stock units, shares | 89,840 | ||||
| - options | 2,190,428 | 2,190,428 | |||
| - common stock | |||||
| Net loss | (5,684,222) | (5,684,222) | |||
| Ending balance at Mar. 31, 2023 | $ 15,182 | $ 378 | 171,796,596 | (158,325,119) | 13,487,037 |
| Ending balance, shares at Mar. 31, 2023 | 1,518,158 | 3,767,615 | |||
| Beginning balance at Dec. 31, 2022 | $ 15,182 | $ 369 | 168,457,418 | (152,640,897) | 15,832,072 |
| Beginning balance, shares at Dec. 31, 2022 | 1,518,158 | 3,677,775 | |||
| Net loss | (8,664,774) | ||||
| Ending balance at Jun. 30, 2023 | $ 13,982 | $ 399 | 173,695,154 | (161,305,671) | 12,403,864 |
| Ending balance, shares at Jun. 30, 2023 | 1,398,158 | 3,982,608 | |||
| Beginning balance at Mar. 31, 2023 | $ 15,182 | $ 378 | 171,796,596 | (158,325,119) | 13,487,037 |
| Beginning balance, shares at Mar. 31, 2023 | 1,518,158 | 3,767,615 | |||
| - restricted share units | 1,164,135 | 1,164,135 | |||
| restricted stock units, shares | 1,442 | ||||
| - options | 321,534 | 321,534 | |||
| - common stock | |||||
| Net loss | (2,980,552) | (2,980,552) | |||
| Issuance of common stock | $ 9 | 411,701 | $ 411,710 | ||
| Issuance of common stock, shares | 93,551 | 93,551 | |||
| Conversion of Series B preferred to common stock | $ (1,200) | $ 12 | 1,188 | ||
| Conversion of Series B preferred to common stock, Shares | (120,000) | 120,000 | |||
| Ending balance at Jun. 30, 2023 | $ 13,982 | $ 399 | $ 173,695,154 | $ (161,305,671) | $ 12,403,864 |
| Ending balance, shares at Jun. 30, 2023 | 1,398,158 | 3,982,608 |
Condensed Consolidated Statem_3
| Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
| Jun. 30, 2023 | Jun. 30, 2022 | |
| Cash flows from operating activities: | ||
| Net Loss | $ (8,664,774) | $ (9,491,391) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation and amortization | 80,877 | 57,526 |
| Unrealized gain on marketable securities | (22,392) | |
| Stock-based compensation | 4,824,865 | 6,480,055 |
| Gain on PPP loan forgiveness | (250,000) | |
| Non-cash lease expense | 58,022 | 58,022 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (9,000) | (11,000) |
| Prepaid assets and other current assets | (40,477) | 61,688 |
| Accounts payable | 105,146 | 327,406 |
| Accrued expenses and other current liabilities | 256,253 | (20,311) |
| Lease liability | (67,585) | (57,751) |
| Net cash used in operating activities | (3,479,065) | (2,845,756) |
| Cash flows from investing activities: | ||
| Sale of marketable securities | 3,263,504 | |
| Purchases of equipment | (89,071) | (247,247) |
| Net cash provided by (used in) investing activities | 3,174,433 | (247,247) |
| Cash flows from financing activities: | ||
| Net proceeds from issuance of common stock in at-the-market offering | 411,701 | |
| Net cash provided by financing activities | 411,701 | |
| Net increase (decrease) in cash and cash equivalents | 107,069 | (3,093,003) |
| Cash and cash equivalents - beginning of period | 1,676,577 | 21,026,727 |
| Cash and cash equivalents - end of period | $ 1,783,646 | $ 17,933,724 |
NATURE OF THE ORGANIZATION, LIQ
| NATURE OF THE ORGANIZATION, LIQUIDITY, AND BUSINESS | 6 Months Ended |
| Jun. 30, 2023 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| NATURE OF THE ORGANIZATION, LIQUIDITY, AND BUSINESS | NOTE 1 - NATURE OF THE ORGANIZATION, LIQUIDITY, AND BUSINESS Corporate History BioRestorative Therapies, Inc. has one wholly-owned subsidiary, Stem Pearls, LLC (“Stem Pearls”). BioRestorative Therapies, Inc. and its subsidiary are referred to collectively as “BRT” or the “Company”. On December 29, 2022, the Company reincorporated from Delaware to Nevada. The reincorporation was structured as a statutory merger of BioRestorative Therapies, Inc., a Delaware corporation, with and into its wholly-owned subsidiary, BioRestorative Therapies, Inc., a Nevada corporation. Liquidity The accompanying condensed consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates realization of assets and satisfying liabilities in the normal course of business. For the six months ended June 30, 2023, the Company had a net loss of $ 8.7 4.8 3.5 On April 14, 2023, the Company entered into a sales agreement with JonesTrading Institutional Services LLC for an at-the-market (“ATM”) offering of the Company’s Common Stock, par value $ 0.0001 3.7 411,710 93,551 On July 13, 2023, the Company sold an aggregate of 685,033 3.03 1.8 BRTX-100 ThermoStem Program Based on cash on hand as of June 30, 2023, the Company believes it has sufficient cash to fund operations for the twelve months subsequent to the filing date of this Form 10-Q. Current funds noted above will not be sufficient to enable the Company to fully complete its development activities or attain profitable operations. If the Company is unable to obtain such needed additional financing on a timely basis, the Company may have to curtail its development, marketing and promotional activities, which would have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately the Company could be forced to discontinue its operations and liquidate. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Business Operations BRT develops therapeutic products and medical therapies using cell and tissue protocols, primarily involving adult stem cells. BRT’s website is at www.biorestorative.com BRTX-100 BRTX-100 |
BASIS OF PRESENTATION AND SUMMA
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
| Jun. 30, 2023 | |
| Accounting Policies [Abstract] | |
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. The condensed consolidated financial statements of the Company included herein have been prepared, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 27, 2023 (the “Annual Report”). The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of Company’s management, who is responsible for their integrity and objectivity. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the condensed consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates which may cause the Company’s future results to be affected. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution. The Company maintains deposits in its cash account in excess of the Federal Deposit Insurance Corporation coverage of $ 250,000 The royalties related to the Company’s sublicense comprised all of the Company’s revenue during the three and six months ended June 30, 2023 and 2022. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies and Recent Accounting Standards, in the Annual Report. During the three and six months ended June 30, 2023, the Company did not make any changes to its significant accounting policies, except as described below with respect to recent accounting pronouncements. Fair Value Measurements As defined in ASC 820, Fair Value Measurements and Disclosures Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally-developed methodologies that result in management’s best estimate of fair value. SCHEDULE OF FAIR VALUE RECURRING BASIS Fair value measurements at reporting date using: Fair value Quoted prices in active markets for identical liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Marketable securities as of June 30, 2023 $ 9,831,719 $ 9,831,719 - - Marketable securities as of December 31, 2022 $ 13,072,831 $ 13,072,831 - - Fair Value of Financial Instruments The carrying value of cash, accounts receivable, and accounts payable approximate their fair values based on the short-term maturity of these instruments. Net Loss per Common Share Net loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the year. All outstanding options and warrants are considered potential Common Stock. The dilutive effect, if any, of stock options and warrants are calculated using the treasury stock method. All outstanding convertible preferred stock is considered Common Stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. Since the effect of Common Stock equivalents is anti-dilutive with respect to losses, options, warrants, and convertible preferred stock have been excluded from the Company’s computation of diluted net loss per common share for the three and six months ended June 30, 2023 and 2022. The following tables summarize the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the Company’s net loss position even though the exercise or conversion price could be less than the average market price of the common shares: SCHEDULE OF WEIGHTED AVERAGE DILUTIVE COMMON SHARES Three Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 Six Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, |
INTANGIBLE ASSETS
| INTANGIBLE ASSETS | 6 Months Ended |
| Jun. 30, 2023 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| INTANGIBLE ASSETS | NOTE 3 - INTANGIBLE ASSETS The Company is a party to a license agreement with a stem cell treatment company (the “SCTC”) (as amended) (the “SCTC Agreement”). Pursuant to the SCTC Agreement, the Company obtained, among other things, a worldwide, exclusive, royalty-bearing license from the SCTC to utilize or sublicense a certain medical device patent for the administration of specific cells and/or cell products to the disc and/or spine (and other parts of the body) and a worldwide (excluding Asia and Argentina), exclusive, royalty-bearing license to utilize or sublicense a certain method for culturing cells. Pursuant to the license agreement with the SCTC, certain performance milestones (or payouts in lieu of performance milestones) had to be satisfied in order for the Company to maintain its exclusive rights with regard to the disc/spine technology. The Company did not timely satisfy the third of these performance milestones (which needed to be satisfied by February 2022). Accordingly, such rights became non-exclusive. However, in November 2022, the Company entered into an amended agreement under which it paid $ 175,000 51,370 117,030 In February 2017, the Company received authorization from the Food and Drug Administration (the “FDA”) to proceed with a Phase 2 clinical trial. In March 2022, the United States Patent and Trademark Office issued a patent relating to the Company’s BRTX-100 clinical program. Intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS Patents and Trademarks Licenses Accumulated Amortization Total Balance as of January 1, 2023 $ 3,676 $ 1,593,530 $ (793,768 ) $ 803,438 Amortization expense - - (44,873 ) (44,873 ) Balance as of June 30, 2023 $ 3,676 $ 1,593,530 $ (838,641 ) $ 758,565 Weighted average remaining amortization period as of June 30, 2023 - 10.75 Accumulated amortization of intangible assets consists of the following: SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSES Patents and Trademarks Licenses Accumulated Amortization Balance as of January 1, 2023 $ 3,676 $ 790,092 $ 793,768 Amortization expense - 44,873 44,873 Balance as of June 30, 2023 $ 3,676 $ 834,965 $ 838,641 |
ACCRUED EXPENSES AND OTHER CURR
| ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
| Jun. 30, 2023 | |
| Payables and Accruals [Abstract] | |
| ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 4 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES June 30, 2023 December 31, 2022 Accrued payroll $ 325,000 $ 26,250 Accrued general and administrative expenses 61,325 103,822 Total accrued expenses $ 386,325 $ 130,072 |
STOCKHOLDERS_ EQUITY
| STOCKHOLDERS’ EQUITY | 6 Months Ended |
| Jun. 30, 2023 | |
| Equity [Abstract] | |
| STOCKHOLDERS’ EQUITY | NOTE 5 - STOCKHOLDERS’ EQUITY Series A Preferred Stock On November 8, 2021, in connection with the Company’s public offering, the Company’s Board of Directors adopted a resolution allowing for the designation and issuance of 1,543,158 .01 0.001 1,543,158 Series B Preferred Stock Effective September 8, 2022, the Company issued 1,543,158 9.99 4.99 Dividends Series B holders shall be entitled to receive, when and as declared by the Board of Directors, dividends on a pari passu basis with the holders of the shares of Common Stock based upon the number of shares of Common Stock into which the Series B is then convertible. Voting Rights Series B holders shall be entitled to vote on all matters presented to the stockholders of the Company for a vote at a meeting of stockholders of the Company or a written consent in lieu of a meeting of stockholders of the Company, and shall be entitled to such number of votes for each share of Series B entitled to vote at such meetings or pursuant to such consent, voting together with the holders of shares of Common Stock and other shares of preferred stock who are entitled to vote, and not as a separate class, except as required by law. The number of votes to which the Series B holders shall be entitled to vote for each share of Series B shall equal the number of shares of Common Stock into which such Series B is then convertible; provided, however, that in no event shall a Series B holder be entitled to vote more than 9.99 Conversion Optional Conversion - Each share of Series B shall be convertible, at any time and from time to time, at the option of the Series B holder, into one share of Common Stock 9.99 Automatic Conversion – From time to time, if an event occurs, including adjustment due to merger, consolidation, etc., subdivision or combination of Common Stock, adjustment due to distribution, purchase rights, and notice of adjustments, which has the effect of reducing a Series B holder’s beneficial ownership of shares of Common Stock to less than 9.5 9.99 On April 4, 2023, Auctus converted 120,000 120,000 1,398,158 Warrant and Option Valuation The Company has computed the fair value of warrants and options granted using the Black-Scholes option pricing model. The expected term used for warrants and options issued to non-employees is the contractual life and the expected term used for options issued to employees and directors is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company is utilizing an expected volatility figure based on a review of the historical volatilities, over a period of time equivalent to the expected life of the instrument being valued, of similarly positioned public companies within its industry. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. Stock Options There were no stock options granted during the three months ended June 30, 2023. The Company granted options for the purchase of 629,017 1,745,000 There were no stock options granted during the three months ended June 30, 2022. The Company granted options for the purchase of 25,000 122,117 In applying the Black-Scholes option pricing model to stock options granted during the six months ended June 30, 2023, the Company used the following assumptions: SCHEDULE OF STOCK OPTIONS GRANTED ASSUMPTIONS For the For the June 30, June 30, 2023 2022 Risk free interest rate 4.22 % 2.42 % Expected term (years) 3.50 3.50 Expected volatility 175 % 286 % Expected dividends 0.00 % 0.00 % A summary of the stock option activity during the six months ended June 30, 2023 is presented below: SCHEDULE OF STOCK OPTION ACTIVITY Number of Options Weighted Average Exercise Price Outstanding, January 1, 2023 864,639 $ 5.08 Granted 629,017 2.91 Expired - — Forfeited (26,766 ) 5.08 Outstanding, June 30, 2023 1,466,890 $ 4.17 Exercisable, June 30, 2023 1,041,062 $ 4.66 Restricted Stock Units Pursuant to the Company’s 2021 Stock Incentive Plan (the “2021 Plan”), the Company may grant restricted stock units (“RSUs”) to employees, consultants or non-employee directors (“Eligible Individuals”). The number, terms and conditions of the RSUs that are granted to Eligible Individuals are determined on an individual basis by the 2021 Plan administrator. On the distribution date, the Company shall issue to the Eligible Individual one unrestricted, fully transferable share of the Company’s Common Stock (or the fair market value of one such share in cash) for each vested and nonforfeitable RSU. A summary of the Company’s unvested RSUs as of June 30, 2023 is as follows: SCHEDULE OF UNVESTED RESTRICTED STOCK UNITS Number of Shares Outstanding, December 31, 2022 201,870 Granted - Forfeited - Vested (104,043 ) Outstanding, June 30, 2023 97,827 The following table presents stock compensation by award type: SCHEDULE OF STOCK COMPENSATION BY AWARD TYPE For the Three Months Ended June 30, 2023 2022 Options $ 321,534 $ 1,865,297 RSUs 1,164,135 1,190,349 Shares issued for services - 48,504 $ 1,485,669 $ 3,104,150 For the Six Months Ended June 30, 2023 2022 Options $ 2,511,962 $ 4,004,246 RSUs 2,312,885 2,354,474 Shares issued for services - 121,322 $ 4,824,847 $ 6,480,042 Stock based compensation is included in General and administrative expenses on the consolidated statements of operations. As of June 30, 2023, unrecognized stock based compensation expense is $ 1,201,875 1.04 |
LEASES
| LEASES | 6 Months Ended |
| Jun. 30, 2023 | |
| Leases | |
| LEASES | Note 6 - LEASES The Company is a party to a lease for 6,800 132,600 149,260 the Company exercised its option to extend the Melville Lease and entered into a lease amendment with the lessor whereby the five-year extension term commenced on January 1, 2020 with annual base rent ranging between $ 153,748 173,060 When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease payments using its estimated incremental borrowing rate at August 1, 2019. The weighted average incremental borrowing rate applied was 12 The following table presents net lease cost and other supplemental lease information: SCHEDULE OF NET LEASE COST AND OTHER SUPPLEMENTAL LEASE INFORMATION 2023 2022 Six Months Ended June 30, 2023 2022 Lease cost Operating lease cost (cost resulting from lease payments) $ 84,014 $ 81,566 Net lease cost $ 84,014 $ 81,566 Operating lease – operating cash flows (fixed payments) $ 84,014 $ 81,566 Operating lease – operating cash flows (liability reduction) $ 67,585 $ 57,751 Non-current leases – right of use assets $ 183,738 $ 299,783 Current liabilities – operating lease liabilities $ 150,480 $ 128,899 Non-current liabilities – operating lease liabilities $ 83,580 $ 234,060 Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases as of June 30, 2023: SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER NON-CANCELABLE LEASES FOR OPERATING LEASES Fiscal Year Operating Leases Remainder of 2023 $ 84,014 2024 173,060 Total future minimum lease payments 257,074 Amount representing interest (23,014 ) Present value of net future minimum lease payments $ 234,060 |
SUBSEQUENT EVENTS
| SUBSEQUENT EVENTS | 6 Months Ended |
| Jun. 30, 2023 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | Note 7 – SUBSEQUENT EVENTS On July 13, 2023, the Company sold an aggregate of 685,033 3.03 1.8 BRTX-100 ThermoStem Program Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q includes a number of forward-looking statements that reflect management’s current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements include statements regarding the intent, belief or current expectations of us and members of our management team, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2023, any of which may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in our forward-looking statements. These risks and factors include, by way of example and without limitation: ● our ability to obtain financing needed to complete our clinical trials and implement our business plan; ● our ability to successfully develop and commercialize BRTX-100, our lead product candidate for the treatment of chronic lumbar disc disease, as well as our metabolic ThermoStem Program; ● our ability to protect our proprietary rights; ● our ability to achieve and sustain profitability of the existing lines of business; ● our ability to attract and retain world-class research and development talent; ● our ability to attract and retain key science, technology and management personnel and to expand our management team; ● the accuracy of estimates regarding expenses, future revenue, capital requirements, profitability, and needs for additional financing; ● business interruptions resulting from geo-political actions, including war and terrorism or disease outbreaks (such as the recent outbreak of COVID-19); ● our ability to attract and retain customers; and ● our ability to navigate through the increasingly complex therapeutic regulatory environment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time, except as required by law. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions. As used in this Quarterly Report on Form 10-Q and unless otherwise indicated, the terms “Company,” “we,” “us” and “our” refer to BioRestorative Therapies, Inc., a Nevada corporation (“BRT”), and its wholly-owned subsidiary, Stem Pearls, LLC, a New York limited liability company (“Stem Pearls”). Unless otherwise specified, all dollar amounts are expressed in United States dollars. Intellectual Property This report includes references to our federally registered trademarks, BioRestorative Therapies and Dragonfly BRTX-100, ThermoStem, BRTX Dragonfly SM Corporate History Our offices are located in Melville, New York where we have established a laboratory facility in order to increase our capabilities for the further development of possible cellular-based treatments, products and protocols, stem cell-related intellectual property and translational research applications. As of June 30, 2023, our accumulated deficit was $161,305,671. We have historically only generated a modest amount of revenue, and our losses have principally been operating expenses incurred in research and development, marketing and promotional activities in order to commercialize our products and services, plus costs associated with meeting the requirements of being a public company. We expect to continue to incur substantial costs for these activities over at least the next year. Business Overview We develop therapeutic products and medical therapies using cell and tissue protocols, primarily involving adult (non-embryonic) stem cells. We are currently pursuing our Disc/Spine Program BRTX-100 Disc/Spine Program BRTX-100 BRTX-100 We are also developing our ThermoStem Program ThermoStem Program ThermoStem ThermoStem Program ThermoStem Program ThermoStem Program ThermoStem Program ThermoStem Program ThermoStem We have licensed a patented curved needle device that is a needle system designed to deliver cells and/or other therapeutic products or materials to the spine and discs or other potential sites. We anticipate that FDA approval or clearance will be necessary for this device prior to commercialization. We do not intend to utilize this device in connection with our Phase 2 clinical trial with regard to BRTX-100 Revenue We derived all of our revenue pursuant to a license agreement with the SCTC entered into in January 2012, as amended in November 2015 and November 2022. Pursuant to the license agreement, the SCTC granted to us an exclusive license to use certain intellectual property related to, among other things, stem cell disc procedures and we have granted to the SCTC a sublicense to use, and the right to sublicense to third parties the right to use, in certain locations in the United States and the Cayman Islands, certain of the licensed intellectual property. In consideration of the sublicenses, the SCTC has agreed to pay us royalties on a per disc procedure basis. Results of Operations Comparison of the Three Months Ended June 30, 2023 to the Three Months Ended June 30, 2022 Our financial results for the three months ended June 30, 2023 are summarized as follows in comparison to the three months ended June 30, 2022: For the Three Months Ended, June 30, 2023 June 30, 2022 (unaudited) Revenues $ 64,500 $ 71,100 Operating expenses: Research and development 967,891 1,075,224 General and administrative 2,213,160 3,624,504 Total operating expenses 3,181,051 4,699,728 Loss from operations (3,116,551 ) (4,628,628 ) Other (income) expense: Interest (income) expense (96,187 ) 46,613 Other income, net (39,812 ) - Total other (income) expense (135,599 ) 46,613 Net loss $ (2,980,552 ) $ (4,675,241 ) Revenues For the three months ended June 30, 2023 and 2022, we generated $64,500 and $71,000, respectively, of royalty revenue in connection with our sublicense agreement. Research and Development Research and development expenses include cash and non-cash compensation of (a) our Vice President of Research and Development; (b) our Scientific Advisory Board members; and (c) laboratory staff and costs related to our brown fat and disc/spine initiatives. Research and development expenses are expensed as they are incurred. For the three months ended June 30, 2023, research and development expenses decreased by $107,333, or 10.0%, compared to the three months ended June 30, 2022. The decrease was primarily the result of a difference in the timing of payments made for PRC service expenses. A milestone payment in the amount of $150,000 was paid on June 30, 2022 compared to the three months ended June 30, 2023 in which no milestone payment was due. We expect that our research and development expenses will increase in subsequent fiscal periods. General and Administrative General and administrative expenses consist primarily of salaries, bonuses, payroll taxes and stock-based compensation to employees, as well as corporate expenses such as legal and professional fees, investor relations and occupancy-related expenses. For the three months ended June 30, 2023, general and administrative expenses decreased by $1,411,344, or 38.9%, as compared to the three months ended June 30, 2022, primarily driven by a $1,618,481 decrease in stock-based compensation. Interest (income) expense For the three months ended June 30, 2023, interest income was $96,187 compared to interest expense of $46,613 for the three months ended June 30, 2022. The change was primarily due to our investments in marketable securities during the three months ended June 30, 2023, which generated interest income. During the three months ended June 30, 2022, we did not have any such investments and only incurred interest expense. Other income, net For the three months ended June 30, 2023, Other income, net primarily relates to gains from settlements of certain accrued expenses and realized and unrealized gain on investments. Comparison of the Six Months Ended June 30, 2023 to the Six Months Ended June 30, 2022 Our financial results for the six months ended June 30, 2023 are summarized as follows in comparison to the six months ended June 30, 2022: For the Six Months Ended, June 30, 2023 June 30, 2022 (unaudited) Revenues $ 95,800 $ 87,100 Operating expenses: Research and development 2,479,136 1,850,561 General and administrative 6,512,313 7,918,960 Total operating expenses 8,991,449 9,769,521 Loss from operations (8,895,649 ) (9,682,421 ) Other (income) expense: Interest (income) expense (114,403 ) 75,624 Gain on PPP loan forgiveness - (250,000 ) Grant income - (16,654 ) Other income, net (116,472 ) - Total other income (230,875 ) (191,030 ) Net loss $ (8,664,774 ) $ (9,491,391 ) Revenues For the six months ended June 30, 2023 and 2022, we generated $95,800 and $87,100, respectively, of royalty revenue in connection with our sublicense agreement. Research and Development Research and development expenses include cash and non-cash compensation of (a) our Vice President of Research and Development; (b) our Scientific Advisory Board members; and (c) laboratory staff and costs related to our brown fat and disc/spine initiatives. Research and development expenses are expensed as they are incurred. For the six months ended June 30, 2023, research and development expenses increased by $628,575, or 34.0%, compared to the six months ended June 30, 2022. The increase was primarily driven by increased salaries and wages of $836,000, increased lab site fees of $84,000, and increased consulting fees of 95,000, offset by a decrease in PRC service expenses of $532,000. We expect that our higher level of research and development expenses will continue in subsequent fiscal periods. General and Administrative General and administrative expenses consist primarily of salaries, bonuses, payroll taxes and stock-based compensation to employees, as well as corporate expenses such as legal and professional fees, investor relations and occupancy-related expenses. For the six months ended June 30, 2023, general and administrative expenses decreased by $1,406,647, compared to the six months ended June 30, 2022. The decrease was primarily driven by a $1,655,195 decrease in stock-based compensation, offset by an increase in salaries and wages of $167,000. We expect that our general and administrative expenses will increase as we expand our staff, develop our infrastructure and incur additional costs to support the growth of our business. Interest (income) expense For the six months ended June 30, 2023, interest income was $114,403 compared to interest expense of $75,624 for the six months ended June 30, 2022. The change was primarily due to our investments in marketable securities during the six months ended June 30, 2023, which generated interest income. During the six months ended June 30, 2022, we did not have any such investments and only incurred interest expense. Other income, net For the six months ended June 30, 2023, Other income, net primarily relates to gains from settlements of certain accrued expenses and realized and unrealized gain on investments. Gain on PPP loan forgiveness Under the terms of the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”), our $250,000 PPP loan was forgiven during the six months ended June 30, 2022. Grant income Grant income of $16,654 during the six months ended June 30, 2022 consists of funding received under a $256,000 National Institutes of Health Small Business Technology Transfer (STTR) Phase 1 grant, which we were awarded in September 2021. There was no grant income during the six months ended June 30, 2023. Liquidity and Capital Resources Liquidity We measure our liquidity in a number of ways, including the following: June 30, December 31, 2023 2022 Cash, Cash Equivalents, and Investments $ 11,615,365 $ 14,749,408 Working Capital $ 11,231,071 $ 14,688,188 Working capital decreased by $3,457,117 primarily due to the $3,479,065 of cash used to fund our operations. Availability of Additional Funds Based upon our accumulated deficit of $161,305,671 as of June 30, 2023, along with our forecast for continued operating losses and our need for financing to fund our current and contemplated clinical trials, we will eventually require additional equity and/or debt financing to continue our operations. However, based on cash on hand as of June 30, 2023 and the recent offerings discussed below, we believe we have sufficient cash to fund operations for the twelve months subsequent to the filing date of this Form 10-Q. Our operating needs include the planned costs to operate our business, including amounts required to fund our clinical trials, working capital and capital expenditures. Our future capital requirements and the adequacy of our available funds will depend on many factors, including our ability to successfully commercialize our products and services, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement our product and service offerings. We may be unable to raise sufficient additional capital when we need it or raise capital on favorable terms. Future financing may require us to pledge certain assets and enter into covenants that could restrict certain business activities or our ability to incur further indebtedness and may contain other terms that are not favorable to our stockholders or us. If we are unable to obtain adequate funds on reasonable terms, we may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. “At-the-Market” Offering In April 2023, we entered into a Capital on Demand Sales Agreement with JonesTrading Institutional Services LLC (the “Sales Agent”) under which we have the ability to issue and sell shares of our Common Stock, from time to time, through the Sales Agent, up to an aggregate offering price of $4,200,000 in what is commonly referred to as an “at-the-market” (“ATM”) program. During the three months ended June 30, 2023, we sold 93,551 shares of our Common Stock under the ATM program with the Sales Agent at a weighted-average gross price of approximately $5.74 per share and raised approximately $536,600 of gross proceeds. The total commissions and related legal fees were approximately $125,000, and we received net proceeds of approximately $412,000. As of June 30, 2023, we had remaining capacity to sell up to an additional $3,663,407 of Common Stock under the ATM program. Registered Direct Offering In July 2023, we sold an aggregate of 685,033 shares of our Common Stock in a registered direct offering. We received net proceeds of approximately $1,831,000 from the offering. Cash Flows During the six months ended June 30, 2023 and 2022, our sources and uses of cash were as follows: Six Months Ended June 30, 2023 2022 Net cash used in operating activities $ (3,479,065 ) $ (2,845,765 ) Net cash provided by (used in) investing activities 3,174,433 (247,247 ) Net cash provided by financing activities 411,701 - Net increase (decrease) in cash $ 107,069 $ (3,093,003 ) Operating Activities Net cash used in operating activities was $3,479,065 for the six months ended June 30, 2023, primarily due to cash used to fund the net loss of $8,664,774, which was partially offset by non-cash expenses of $4,824,865 related primarily to stock-based compensation. Cash flows were also impacted by routine fluctuations in our operating assets and liabilities. Net cash used in operating activities was $2,845,756 for the six months ended June 30, 2022, primarily due to cash used to fund the net loss of $9,491,391 and a non-cash gain of $250,000 on forgiveness of our PPP loan, which were partially offset by non-cash expenses of $6,480,055 related primarily to stock-based compensation and $300,032 of cash provided by changes in the levels of operating assets and liabilities. Investing Activities Net cash provided by investing activities increased by $3,421,680 for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, primarily due to a sale of marketable securities, which provided $3,263,504 of cash. Financing Activities Net cash provided by financing activities increased by $411,701 for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, due to the net proceeds from the ATM offerings of the Company’s Common Stock. Effects of Inflation We do not believe that inflation had a material impact on our business, revenues or operating results during the periods presented. Critical Accounting Policies and Estimates Our significant accounting policies are more fully described in the notes to our unaudited condensed consolidated financial statements included herein for the quarter ended June 30, 2023, and in the notes to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 27, 2023. Not applicable. As a smaller reporting company, we are not required to provide the information required by this Item. Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“the Exchange Act”), that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we are required to perform an evaluation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) under the Exchange Act, as of June 30, 2023. Management has completed such evaluation and has concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in reports we file or submit under the Exchange Act is appropriate to allow timely decisions regarding required disclosures. As a result of the material weakness in internal controls over financial reporting described below, we concluded that our disclosure controls and procedures as of June 30, 2023 were not effective. Material Weaknesses in Internal Control over Financial Reporting Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2023 based on the framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined that our internal control over financial reporting as of June 30, 2023 was not effective. A material weakness, as defined in the standards established by Sarbanes-Oxley, is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis. The ineffectiveness of our internal control over financial reporting was due to the following material weaknesses: ● Lack of adherence to formal policies and procedures; ● Lack of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and ● Lack of sufficient formal management testing over documented formal procedures and controls, and time to evaluate continuous effectiveness of controls to achieve complete and accurate financial reporting and disclosures, including documented controls over the preparation and review of journal entries and account reconciliations. Management’s Plan to Remediate the Material Weaknesses Management has been implementing and continues to implement measures designed to ensure that control deficiencies contributing to the material weaknesses are remediated, such that these controls are designed, implemented, and operating effectively. The remediation actions include: ● New management personnel, including our Chief Financial Officer, who is overseeing the financial reporting process and implementation of enhanced controls and governance; ● Engagement of external financial consulting firm to continue to enhance financial reporting, financial operations and internal controls; and ● Documentation of key procedures and controls using a risk-based approach. Management is committed to maintaining a strong internal controls environment and implementing measures designed to help ensure that control deficiencies contributing to the material weaknesses are remediated as soon as possible. We have documented key procedures and controls using a risk-based approach and have, therefore, made progress toward remediation. We continue to implement our remediation plan, which includes continued engagement of an external financial consulting firm to enhance financial reporting and operations as well as design and implementation of controls. We will consider the material weaknesses remediated after the applicable controls operate for a sufficient period of time, and Management has concluded, through testing, that the controls are operating effectively. Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow. Changes in Internal Control Over Financial Reporting Other than described above, there have been no changes in our internal control over financial reporting that occurred during our second quarter of 2023 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting. An investment in our Common Stock involves a number of very significant risks. You should carefully consider the risk factors included in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 27, 2023, in addition to other information contained in that report and in this quarterly report in evaluating the Company and its business before purchasing shares of our Common Stock. The Company’s business, operating results and financial condition could be adversely affected due to any of those risks. During the three months ended June 30, 2023, we did not have any unregistered sales of equity securities. Incorporated by Reference Exhibit Number Exhibit Description Form Exhibit Filing Date 3.1 Amended and Restated Articles of Incorporation 8-K 3.3 1/5/2023 3.2 Certificate of Designations of Preferred Stock (Series B) 8-K 3.4 1/5/2023 3.3 Bylaws 8-K 3.5 1/5/2023 31.1* Certification of Principal Executive Officer 31.2* Certification of Principal Financial Officer 32.1** Section 1350 Certification of Principal Executive Officer and Principal Financial Officer 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Date File (embedded within the Inline XBRL document) * Filed herewith. ** In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BIORESTORATIVE THERAPIES, INC. By: /s/ Lance Alstodt Lance Alstodt Chief Executive Officer, President, and Chairman of the Board (Principal Executive Officer) Date: August 11, 2023 By: /s/ Robert E. Kristal Robert E. Kristal Chief Financial Officer (Principal Financial Officer) Date: August 11, 2023 |
BASIS OF PRESENTATION AND SUM_2
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
| Jun. 30, 2023 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. The condensed consolidated financial statements of the Company included herein have been prepared, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 27, 2023 (the “Annual Report”). The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of Company’s management, who is responsible for their integrity and objectivity. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. |
| Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated upon consolidation. |
| Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the condensed consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates which may cause the Company’s future results to be affected. |
| Concentrations | Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution. The Company maintains deposits in its cash account in excess of the Federal Deposit Insurance Corporation coverage of $ 250,000 The royalties related to the Company’s sublicense comprised all of the Company’s revenue during the three and six months ended June 30, 2023 and 2022. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies and Recent Accounting Standards, in the Annual Report. During the three and six months ended June 30, 2023, the Company did not make any changes to its significant accounting policies, except as described below with respect to recent accounting pronouncements. |
| Fair Value Measurements | Fair Value Measurements As defined in ASC 820, Fair Value Measurements and Disclosures Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally-developed methodologies that result in management’s best estimate of fair value. SCHEDULE OF FAIR VALUE RECURRING BASIS Fair value measurements at reporting date using: Fair value Quoted prices in active markets for identical liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Marketable securities as of June 30, 2023 $ 9,831,719 $ 9,831,719 - - Marketable securities as of December 31, 2022 $ 13,072,831 $ 13,072,831 - - |
| Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash, accounts receivable, and accounts payable approximate their fair values based on the short-term maturity of these instruments. |
| Net Loss per Common Share | Net Loss per Common Share Net loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the year. All outstanding options and warrants are considered potential Common Stock. The dilutive effect, if any, of stock options and warrants are calculated using the treasury stock method. All outstanding convertible preferred stock is considered Common Stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. Since the effect of Common Stock equivalents is anti-dilutive with respect to losses, options, warrants, and convertible preferred stock have been excluded from the Company’s computation of diluted net loss per common share for the three and six months ended June 30, 2023 and 2022. The following tables summarize the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the Company’s net loss position even though the exercise or conversion price could be less than the average market price of the common shares: SCHEDULE OF WEIGHTED AVERAGE DILUTIVE COMMON SHARES Three Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 Six Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 |
| Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, |
BASIS OF PRESENTATION AND SUM_3
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
| Jun. 30, 2023 | |
| Accounting Policies [Abstract] | |
| SCHEDULE OF FAIR VALUE RECURRING BASIS | SCHEDULE OF FAIR VALUE RECURRING BASIS Fair value measurements at reporting date using: Fair value Quoted prices in active markets for identical liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Marketable securities as of June 30, 2023 $ 9,831,719 $ 9,831,719 - - Marketable securities as of December 31, 2022 $ 13,072,831 $ 13,072,831 - - |
| SCHEDULE OF WEIGHTED AVERAGE DILUTIVE COMMON SHARES | The following tables summarize the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the Company’s net loss position even though the exercise or conversion price could be less than the average market price of the common shares: SCHEDULE OF WEIGHTED AVERAGE DILUTIVE COMMON SHARES Three Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 Six Months Ended June 30, 2023 2022 Options 1,466,890 864,609 Warrants 4,791,072 4,739,733 Unvested RSUs 97,827 214,303 Convertible preferred stock 1,398,158 - Total 7,753,947 5,818,645 |
INTANGIBLE ASSETS (Tables)
| INTANGIBLE ASSETS (Tables) | 6 Months Ended |
| Jun. 30, 2023 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| SCHEDULE OF INTANGIBLE ASSETS | Intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS Patents and Trademarks Licenses Accumulated Amortization Total Balance as of January 1, 2023 $ 3,676 $ 1,593,530 $ (793,768 ) $ 803,438 Amortization expense - - (44,873 ) (44,873 ) Balance as of June 30, 2023 $ 3,676 $ 1,593,530 $ (838,641 ) $ 758,565 Weighted average remaining amortization period as of June 30, 2023 - 10.75 |
| SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSES | Accumulated amortization of intangible assets consists of the following: SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSES Patents and Trademarks Licenses Accumulated Amortization Balance as of January 1, 2023 $ 3,676 $ 790,092 $ 793,768 Amortization expense - 44,873 44,873 Balance as of June 30, 2023 $ 3,676 $ 834,965 $ 838,641 |
ACCRUED EXPENSES AND OTHER CU_2
| ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
| Jun. 30, 2023 | |
| Payables and Accruals [Abstract] | |
| SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Accrued expenses and other current liabilities consist of: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES June 30, 2023 December 31, 2022 Accrued payroll $ 325,000 $ 26,250 Accrued general and administrative expenses 61,325 103,822 Total accrued expenses $ 386,325 $ 130,072 |
STOCKHOLDERS_ EQUITY (Tables)
| STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
| Jun. 30, 2023 | |
| Equity [Abstract] | |
| SCHEDULE OF STOCK OPTIONS GRANTED ASSUMPTIONS | In applying the Black-Scholes option pricing model to stock options granted during the six months ended June 30, 2023, the Company used the following assumptions: SCHEDULE OF STOCK OPTIONS GRANTED ASSUMPTIONS For the For the June 30, June 30, 2023 2022 Risk free interest rate 4.22 % 2.42 % Expected term (years) 3.50 3.50 Expected volatility 175 % 286 % Expected dividends 0.00 % 0.00 % |
| SCHEDULE OF STOCK OPTION ACTIVITY | A summary of the stock option activity during the six months ended June 30, 2023 is presented below: SCHEDULE OF STOCK OPTION ACTIVITY Number of Options Weighted Average Exercise Price Outstanding, January 1, 2023 864,639 $ 5.08 Granted 629,017 2.91 Expired - — Forfeited (26,766 ) 5.08 Outstanding, June 30, 2023 1,466,890 $ 4.17 Exercisable, June 30, 2023 1,041,062 $ 4.66 |
| SCHEDULE OF UNVESTED RESTRICTED STOCK UNITS | A summary of the Company’s unvested RSUs as of June 30, 2023 is as follows: SCHEDULE OF UNVESTED RESTRICTED STOCK UNITS Number of Shares Outstanding, December 31, 2022 201,870 Granted - Forfeited - Vested (104,043 ) Outstanding, June 30, 2023 97,827 |
| SCHEDULE OF STOCK COMPENSATION BY AWARD TYPE | The following table presents stock compensation by award type: SCHEDULE OF STOCK COMPENSATION BY AWARD TYPE For the Three Months Ended June 30, 2023 2022 Options $ 321,534 $ 1,865,297 RSUs 1,164,135 1,190,349 Shares issued for services - 48,504 $ 1,485,669 $ 3,104,150 For the Six Months Ended June 30, 2023 2022 Options $ 2,511,962 $ 4,004,246 RSUs 2,312,885 2,354,474 Shares issued for services - 121,322 $ 4,824,847 $ 6,480,042 |
LEASES (Tables)
| LEASES (Tables) | 6 Months Ended |
| Jun. 30, 2023 | |
| Leases | |
| SCHEDULE OF NET LEASE COST AND OTHER SUPPLEMENTAL LEASE INFORMATION | The following table presents net lease cost and other supplemental lease information: SCHEDULE OF NET LEASE COST AND OTHER SUPPLEMENTAL LEASE INFORMATION 2023 2022 Six Months Ended June 30, 2023 2022 Lease cost Operating lease cost (cost resulting from lease payments) $ 84,014 $ 81,566 Net lease cost $ 84,014 $ 81,566 Operating lease – operating cash flows (fixed payments) $ 84,014 $ 81,566 Operating lease – operating cash flows (liability reduction) $ 67,585 $ 57,751 Non-current leases – right of use assets $ 183,738 $ 299,783 Current liabilities – operating lease liabilities $ 150,480 $ 128,899 Non-current liabilities – operating lease liabilities $ 83,580 $ 234,060 |
| SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER NON-CANCELABLE LEASES FOR OPERATING LEASES | Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases as of June 30, 2023: SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER NON-CANCELABLE LEASES FOR OPERATING LEASES Fiscal Year Operating Leases Remainder of 2023 $ 84,014 2024 173,060 Total future minimum lease payments 257,074 Amount representing interest (23,014 ) Present value of net future minimum lease payments $ 234,060 |
NATURE OF THE ORGANIZATION, L_2
| NATURE OF THE ORGANIZATION, LIQUIDITY, AND BUSINESS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
| Jul. 13, 2023 | Apr. 14, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
| Net loss | $ 2,980,552 | $ 5,684,222 | $ 4,675,241 | $ 4,816,150 | $ 8,664,774 | $ 9,491,391 | |||
| Share based compensation | 4,824,865 | 6,480,055 | |||||||
| Cash flows from operations | $ 3,479,065 | 2,845,756 | |||||||
| Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
| Net proceeds offering price | $ 411,701 | ||||||||
| Issuance of common stock | $ 411,710 | ||||||||
| Issuance of common stock, shares | 93,551 | ||||||||
| Subsequent Event [Member] | |||||||||
| Net proceeds offering price | $ 1,800,000 | ||||||||
| Sale of aggregate shares | 685,033 | ||||||||
| Offering price | $ 3.03 | ||||||||
| Jones Trading Institutional Services L L C [Member] | |||||||||
| Common stock, par value | $ 0.0001 | ||||||||
| Net proceeds offering price | $ 3,700,000 | ||||||||
SCHEDULE OF FAIR VALUE RECURRIN
| SCHEDULE OF FAIR VALUE RECURRING BASIS (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
| Platform Operator, Crypto-Asset [Line Items] | ||
| Marketable securities fair value disclosure | $ 9,831,719 | $ 13,072,831 |
| Fair Value, Inputs, Level 1 [Member] | ||
| Platform Operator, Crypto-Asset [Line Items] | ||
| Marketable securities fair value disclosure | 9,831,719 | 13,072,831 |
| Fair Value, Inputs, Level 2 [Member] | ||
| Platform Operator, Crypto-Asset [Line Items] | ||
| Marketable securities fair value disclosure | ||
| Fair Value, Inputs, Level 3 [Member] | ||
| Platform Operator, Crypto-Asset [Line Items] | ||
| Marketable securities fair value disclosure |
SCHEDULE OF WEIGHTED AVERAGE DI
| SCHEDULE OF WEIGHTED AVERAGE DILUTIVE COMMON SHARES (Details) - shares | 3 Months Ended | 6 Months Ended | ||
| Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Total | 7,753,947 | 5,818,645 | 7,753,947 | 5,818,645 |
| Share-Based Payment Arrangement, Option [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Total | 1,466,890 | 864,609 | 1,466,890 | 864,609 |
| Warrant [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Total | 4,791,072 | 4,739,733 | 4,791,072 | 4,739,733 |
| Restricted Stock Units (RSUs) [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Total | 97,827 | 214,303 | 97,827 | 214,303 |
| Convertible Preferred Stock [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Total | 1,398,158 | 1,398,158 | ||
BASIS OF PRESENTATION AND SUM_4
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jun. 30, 2023 USD ($) |
| Accounting Policies [Abstract] | |
| FDIC insured limit | $ 250,000 |
SCHEDULE OF INTANGIBLE ASSETS (
| SCHEDULE OF INTANGIBLE ASSETS (Details) | 6 Months Ended |
| Jun. 30, 2023 USD ($) | |
| Finite-Lived Intangible Assets [Line Items] | |
| Finite Lived Intangible Assets, Net, beginning balance | $ 803,438 |
| Finite Lived Intangible Assets, Amortization expense | (44,873) |
| Finite Lived Intangible Assets, Net, ending balance | 758,565 |
| Patents and Trademarks [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Finite Lived Intangible Assets, gross, beginning balance | 3,676 |
| Finite Lived Intangible Assets, Amortization expense | |
| Finite Lived Intangible Assets, ending balance | $ 3,676 |
| Finite Lived Intangible Assets, weighted average amortization period | |
| License [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Finite Lived Intangible Assets, gross, beginning balance | $ 1,593,530 |
| Finite Lived Intangible Assets, Amortization expense | |
| Finite Lived Intangible Assets, ending balance | $ 1,593,530 |
| Finite Lived Intangible Assets, weighted average amortization period | 10 years 9 months |
| Accumulated Amortization [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Finite Lived Intangible Assets, Accumulated amortization, beginning balance | $ (793,768) |
| Finite Lived Intangible Assets, Amortization expense | (44,873) |
| Finite Lived Intangible Assets, Accumulated amortization, ending balance | $ (838,641) |
SCHEDULE OF INTANGIBLE ASSETS A
| SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSES (Details) | 6 Months Ended |
| Jun. 30, 2023 USD ($) | |
| Finite-Lived Intangible Assets [Line Items] | |
| Amortization expense | $ 44,873 |
| Patents and Trademark [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Beginning Balance | 3,676 |
| Amortization expense | |
| Ending Balance | 3,676 |
| License [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Beginning Balance | 790,092 |
| Amortization expense | 44,873 |
| Ending Balance | 834,965 |
| Accumulated Amortization [Member] | |
| Finite-Lived Intangible Assets [Line Items] | |
| Beginning Balance | 793,768 |
| Amortization expense | 44,873 |
| Ending Balance | $ 838,641 |
INTANGIBLE ASSETS (Details Narr
| INTANGIBLE ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended |
| Nov. 30, 2022 | Jun. 30, 2023 | |
| Payment to acquire intangible assets | $ 175,000 | |
| Stock issued new issues | 93,551 | |
| Fair value of warrants | $ 411,710 | |
| Warrant [Member] | ||
| Stock issued new issues | 51,370 | |
| Fair value of warrants | $ 117,030 |
SCHEDULE OF ACCRUED EXPENSES AN
| SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
| Payables and Accruals [Abstract] | ||
| Accrued payroll | $ 325,000 | $ 26,250 |
| Accrued general and administrative expenses | 61,325 | 103,822 |
| Total accrued expenses | $ 386,325 | $ 130,072 |
SCHEDULE OF STOCK OPTIONS GRANT
| SCHEDULE OF STOCK OPTIONS GRANTED ASSUMPTIONS (Details) - Share-Based Payment Arrangement, Option [Member] | 6 Months Ended | |
| Jun. 30, 2023 | Jun. 30, 2022 | |
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
| Risk free interest rate | 4.22% | 2.42% |
| Expected term (years) | 3 years 6 months | 3 years 6 months |
| Expected volatility | 175% | 286% |
| Expected dividends | 0% | 0% |
SCHEDULE OF STOCK OPTION ACTIVI
| SCHEDULE OF STOCK OPTION ACTIVITY (Details) - $ / shares | 6 Months Ended | |
| Jun. 30, 2023 | Jun. 30, 2022 | |
| Equity [Abstract] | ||
| Number of options, beginning balance | 864,639 | |
| Weighted average exercise price, beginning balance | $ 5.08 | |
| Number of options, granted | 629,017 | 25,000 |
| Weighted average exercise price, granted | $ 2.91 | |
| Number of options, expired | ||
| Weighted average exercise price, expired | ||
| Number of Options Forfeited | (26,766) | |
| Weighted Average Exercise Price Forfeited | $ 5.08 | |
| Number of options, ending | 1,466,890 | |
| Weighted average exercise price, ending | $ 4.17 | |
| Number of options, exercisable | 1,041,062 | |
| Weighted average exercise price, exercisable | $ 4.66 | |
SCHEDULE OF UNVESTED RESTRICTED
| SCHEDULE OF UNVESTED RESTRICTED STOCK UNITS (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
| Jun. 30, 2023 shares | |
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
| Number of shares outstanding beginning | 201,870 |
| Number of shares granted | |
| Number of shares forfeited | |
| Number of shares vested | (104,043) |
| Number of shares outstanding ending | 97,827 |
SCHEDULE OF STOCK COMPENSATION
| SCHEDULE OF STOCK COMPENSATION BY AWARD TYPE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
| Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
| Stock-based compensation award | $ 1,485,669 | $ 3,104,150 | $ 4,824,847 | $ 6,480,042 |
| Share-Based Payment Arrangement, Option [Member] | ||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
| Stock-based compensation award | 321,534 | 1,865,297 | 2,511,962 | 4,004,246 |
| Restricted Stock Units (RSUs) [Member] | ||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
| Stock-based compensation award | 1,164,135 | 1,190,349 | 2,312,885 | 2,354,474 |
| Shares Issued for Services [Member] | ||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
| Stock-based compensation award | $ 48,504 | $ 121,322 | ||
STOCKHOLDERS_ EQUITY (Details N
| STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 6 Months Ended | ||||||
| Apr. 04, 2023 | Oct. 25, 2022 | Sep. 08, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Nov. 08, 2021 | |
| Class of Stock [Line Items] | |||||||
| Preferred stock, par value | $ 0.01 | $ 0.01 | |||||
| Number of options, granted | 629,017 | 25,000 | |||||
| Grant date fair value of options granted | $ 1,745,000 | $ 122,117 | |||||
| Unrecognized expense | $ 1,201,875 | ||||||
| Weighted average remaining amortization period | 1 year 14 days | ||||||
| Series A Preferred Stock [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Preferred stock, shares issued | 1,543,158 | ||||||
| Preferred stock, par value | $ 0.01 | ||||||
| Preferred stock, liquidation preference | $ 0.001 | ||||||
| Preferred stock voting rights | 4.99 | ||||||
| Series B Preferred Stock [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Preferred stock, shares issued | 1,543,158 | ||||||
| Preferred stock voting rights | 9.99 | ||||||
| Preferred stock voting percentage | 9.99% | ||||||
| Preferred stock conversion term | Each share of Series B shall be convertible, at any time and from time to time, at the option of the Series B holder, into one share of Common Stock | ||||||
| Series B Preferred Stock [Member] | Beneficial Ownership [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Preferred stock voting percentage | 9.99% | ||||||
| Ownership percentage | 9.50% | ||||||
| Series B Convertible Preferred Stock [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Preferred stock, shares issued | 1,398,158 | 1,518,158 | |||||
| Preferred stock, par value | $ 0.01 | $ 0.01 | |||||
| Preferred stock, shares outstanding | 1,398,158 | 1,518,158 | |||||
| Series B Convertible Preferred Stock [Member] | Auctus Fund LLC [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Number of shares converted | 120,000 | ||||||
| Common Stock [Member] | Auctus Fund LLC [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Number of shares issued in conversion | 120,000 | ||||||
SCHEDULE OF NET LEASE COST AND
| SCHEDULE OF NET LEASE COST AND OTHER SUPPLEMENTAL LEASE INFORMATION (Details) - USD ($) | 6 Months Ended | ||
| Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
| Leases | |||
| Operating lease cost (cost resulting from lease payments) | $ 84,014 | $ 81,566 | |
| Net lease cost | 84,014 | 81,566 | |
| Operating lease – operating cash flows (fixed payments) | 84,014 | 81,566 | |
| Operating lease – operating cash flows (liability reduction) | 67,585 | 57,751 | |
| Non-current leases - right of use assets | 183,738 | 299,783 | $ 241,760 |
| Current liabilities - operating lease liabilities | 150,480 | 128,899 | 139,328 |
| Non-current liabilities - operating lease liabilities | $ 83,580 | $ 234,060 | $ 162,317 |
SCHEDULE OF FUTURE MINIMUM PAYM
| SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER NON-CANCELABLE LEASES FOR OPERATING LEASES (Details) | Jun. 30, 2023 USD ($) |
| Leases | |
| Remainder of 2023 | $ 84,014 |
| 2024 | 173,060 |
| Total future minimum lease payments | 257,074 |
| Amount representing interest | (23,014) |
| Present value of net future minimum lease payments | $ 234,060 |
LEASES (Details Narrative)
| LEASES (Details Narrative) | 1 Months Ended | 6 Months Ended |
| Jun. 30, 2019 USD ($) | Jun. 30, 2023 USD ($) ft² | |
| Weighted average incremental borrowing rate | 12% | |
| Melville Lease [Member] | ||
| Area of land | ft² | 6,800 | |
| Lease extension description | the Company exercised its option to extend the Melville Lease and entered into a lease amendment with the lessor whereby the five-year extension term commenced on January 1, 2020 with annual base rent ranging between $153,748 and $173,060. | |
| Melville Lease [Member] | Minimum [Member] | ||
| Rent expense | $ 153,748 | $ 132,600 |
| Melville Lease [Member] | Maximum [Member] | ||
| Rent expense | $ 173,060 | $ 149,260 |
SUBSEQUENT EVENTS (Details Narr
| SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
| Jul. 13, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
| Subsequent Event [Line Items] | ||||
| Number of shares issued | 93,551 | |||
| Procceds fom offering | $ 411,701 | |||
| Common Stock [Member] | ||||
| Subsequent Event [Line Items] | ||||
| Number of shares issued | 93,551 | |||
| Subsequent Event [Member] | ||||
| Subsequent Event [Line Items] | ||||
| Procceds fom offering | $ 1,800,000 | |||
| Subsequent Event [Member] | Common Stock [Member] | ||||
| Subsequent Event [Line Items] | ||||
| Number of shares issued | 685,033 | |||
| Offering price | $ 3.03 | |||
| Procceds fom offering | $ 1,800,000 | |||