Ideal Power (IPWR) 10-Q 12 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 09, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-36216
Entity Registrant Name	Ideal Power Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1999058
Entity Address, Address Line One	5508 Highway 290 West, Suite 120
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78735
City Area Code	(512)
Local Phone Number	264-1542
Title of 12(g) Security	Common Stock, par value $0.001 per share
Trading Symbol	IPWR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,892,046
Entity Central Index Key	0001507957
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 24,487,547	$ 3,157,256
Accounts receivable, net	262,527	170,287
Prepayments and other current assets	100,360	118,883
Total current assets	24,850,434	3,446,426
Property and equipment, net	62,720	37,125
Intangible assets, net	2,038,911	1,568,903
Right of use asset	321,248	79,719
Other assets	11,189
Total assets	27,284,502	5,132,173
Current liabilities:
Accounts payable	57,355	101,984
Accrued expenses	625,693	475,487
Current portion of lease liability	57,484	82,055
Total current liabilities	740,532	659,526
Long-term debt		91,407
Long-term lease liability	282,847
Other long-term liabilities	959,408	552,031
Total liabilities	1,982,787	1,302,964
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,873,367 shares issued and 5,872,046 shares outstanding at September 30, 2021 and 3,265,740 shares issued and 3,264,419 shares outstanding at December 31, 2020	5,873	3,266
Additional paid-in capital	103,794,384	78,974,964
Treasury stock, at cost, 1,321 shares at September 30, 2021 and December 31, 2020	(13,210)	(13,210)
Accumulated deficit	(78,485,332)	(75,135,811)
Total stockholders' equity	25,301,715	3,829,209
Total liabilities and stockholders' equity	$ 27,284,502	$ 5,132,173

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Balance Sheets
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares, issued	5,873,367	3,265,740
Common stock, shares, outstanding	5,872,046	3,264,419
Treasury stock, shares	1,321	1,321

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statements of Operations
Grant revenue	$ 121,028	$ 147,787	$ 447,794	$ 154,302
Cost of grant revenue	121,028	147,787	447,794	154,302
Gross profit			0	0
Operating expenses:
Research and development	604,476	494,548	1,426,049	1,161,537
General and administrative	500,942	657,967	1,705,146	1,753,615
Sales and marketing	128,248	20,000	302,859	20,000
Total operating expenses	1,233,666	1,172,515	3,434,054	2,935,152
Loss from operations	(1,233,666)	(1,172,515)	(3,434,054)	(2,935,152)
Other income (expenses):
Interest expense, net	(5,012)	(1,358)	(6,874)	(2,480)
Warrant inducement expense		(3,720,866)	0	(3,720,866)
Gain on forgiveness of long-term debt			91,407	0
Total other income (expenses)	(5,012)	(3,722,224)	84,533	(3,723,346)
Net loss	$ (1,238,678)	$ (4,894,739)	$ (3,349,521)	$ (6,658,498)
Net loss per share - basic (in dollars per share)	$ (0.20)	$ (1.28)	$ (0.57)	$ (2.04)
Net loss per share - diluted (in dollars per share)	$ (0.20)	$ (1.28)	$ (0.57)	$ (2.04)
Weighted average number of shares outstanding - basic (in shares)	6,125,874	3,821,717	5,868,122	3,264,860
Weighted average number of shares outstanding - diluted (in shares)	6,125,874	3,821,717	5,868,122	3,264,860

Statements of Cash Flows

Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (3,349,521)	$ (6,658,498)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	113,607	86,368
Write-off of capitalized patents	528	18,235
Stock-based compensation	247,512	434,782
Stock issued for services	68,680	50,000
Warrant inducement expense	0	3,720,866
Gain on forgiveness of long-term debt	(91,407)	0
Decrease (increase) in operating assets:
Accounts receivable	(92,240)	(28,623)
Prepaid expenses and other assets	105,687	127,632
Increase (decrease) in operating liabilities:
Accounts payable	(44,629)	(116,246)
Accrued expenses	49,040	61,845
Net cash used in operating activities	(2,992,743)	(2,303,639)
Cash flows from investing activities:
Purchase of property and equipment	(43,685)	(12,407)
Acquisition of intangible assets	(139,116)	(35,836)
Net cash used in investing activities	(182,801)	(48,243)
Cash flows from financing activities:
Net proceeds from issuance of common stock	21,204,609	0
Exercise of options and warrants	3,301,226	2,972,018
Proceeds from loans	0	91,407
Net cash provided by financing activities	24,505,835	3,063,425
Net increase in cash and cash equivalents	21,330,291	711,543
Cash and cash equivalents at beginning of period	3,157,256	3,057,682
Cash and cash equivalents at end of period	$ 24,487,547	$ 3,769,225

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common Stock.	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Total
Beginning balance at Dec. 31, 2019	$ 2,101	$ 71,242,256	$ (13,210)	$ (67,341,914)	$ 3,889,233
Beginning balance (in shares) at Dec. 31, 2019	2,101,272		1,321
Stock-based compensation		116,497			116,497
Net loss				(930,501)	(930,501)
Ending balance at Mar. 31, 2020	$ 2,101	71,358,753	$ (13,210)	(68,272,415)	3,075,229
Ending balance (in shares) at Mar. 31, 2020	2,101,272		1,321
Beginning balance at Dec. 31, 2019	$ 2,101	71,242,256	$ (13,210)	(67,341,914)	3,889,233
Beginning balance (in shares) at Dec. 31, 2019	2,101,272		1,321
Net loss					(6,658,498)
Ending balance at Sep. 30, 2020	$ 2,977	78,419,046	$ (13,210)	(74,000,412)	4,408,401
Ending balance (in shares) at Sep. 30, 2020	2,976,709		1,321
Beginning balance at Mar. 31, 2020	$ 2,101	71,358,753	$ (13,210)	(68,272,415)	3,075,229
Beginning balance (in shares) at Mar. 31, 2020	2,101,272		1,321
Exercise of warrants	$ 226	175,590			175,816
Exercise of warrants (in shares)	225,718
Stock issued for services	$ 26	49,974			50,000
Stock issued for services (in shares)	26,316
Stock-based compensation		109,671			109,671
Net loss				(833,258)	(833,258)
Ending balance at Jun. 30, 2020	$ 2,353	71,693,988	$ (13,210)	(69,105,673)	2,577,458
Ending balance (in shares) at Jun. 30, 2020	2,353,306		1,321
Exercise of warrants	$ 251	248,365			248,616
Exercise of warrants (in shares)	250,566
Early warrant exercise transaction	$ 373	2,547,213			2,547,586
Early warrant exercise transaction (in shares)	372,837
Warrant inducement expense		3,720,866			3,720,866
Stock-based compensation		208,614			208,614
Net loss				(4,894,739)	(4,894,739)
Ending balance at Sep. 30, 2020	$ 2,977	78,419,046	$ (13,210)	(74,000,412)	4,408,401
Ending balance (in shares) at Sep. 30, 2020	2,976,709		1,321
Beginning balance at Dec. 31, 2020	$ 3,266	78,974,964	$ (13,210)	(75,135,811)	3,829,209
Beginning balance (in shares) at Dec. 31, 2020	3,265,740		1,321
Issuance of shares of common stock in public offering	$ 1,353	21,203,256			21,204,609
Issuance of shares of common stock in public offering (in shares)	1,352,975
Exercise of warrants	$ 1,250	3,299,976			3,301,226
Exercise of warrants (in shares)	1,250,652
Stock issued for services	$ 4	68,676			68,680
Stock issued for services (in shares)	4,000
Stock-based compensation		61,933			61,933
Net loss				(924,150)	(924,150)
Ending balance at Mar. 31, 2021	$ 5,873	103,608,805	$ (13,210)	(76,059,961)	27,541,507
Ending balance (in shares) at Mar. 31, 2021	5,873,367		1,321
Beginning balance at Dec. 31, 2020	$ 3,266	78,974,964	$ (13,210)	(75,135,811)	3,829,209
Beginning balance (in shares) at Dec. 31, 2020	3,265,740		1,321
Net loss					(3,349,521)
Ending balance at Sep. 30, 2021	$ 5,873	103,794,384	$ (13,210)	(78,485,332)	25,301,715
Ending balance (in shares) at Sep. 30, 2021	5,873,367		1,321
Beginning balance at Mar. 31, 2021	$ 5,873	103,608,805	$ (13,210)	(76,059,961)	27,541,507
Beginning balance (in shares) at Mar. 31, 2021	5,873,367		1,321
Stock-based compensation		91,711			91,711
Net loss				(1,186,693)	(1,186,693)
Ending balance at Jun. 30, 2021	$ 5,873	103,700,516	$ (13,210)	(77,246,654)	26,446,525
Ending balance (in shares) at Jun. 30, 2021	5,873,367		1,321
Stock-based compensation		93,868			93,868
Net loss				(1,238,678)	(1,238,678)
Ending balance at Sep. 30, 2021	$ 5,873	$ 103,794,384	$ (13,210)	$ (78,485,332)	$ 25,301,715
Ending balance (in shares) at Sep. 30, 2021	5,873,367		1,321

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2021
Organization and Description of Business
Organization and Description of Business	Note 1 – Organization and Description of Business Ideal Power Inc. (the “Company”) was incorporated in Texas on May 17, 2007 under the name Ideal Power Converters, Inc. The Company changed its name to Ideal Power Inc. on July 8, 2013 and re-incorporated in Delaware on July 15, 2013. With headquarters in Austin, Texas, the Company is solely focused on the further development and commercialization of its Bidirectional bipolar junction TRANsistor (B-TRAN™) solid state switch technology. Since its inception, the Company has financed its research and development efforts and operations primarily through the sale of common stock and warrants. The Company’s continued operations are dependent upon, among other things, its ability to obtain adequate sources of funding through future revenues, follow-on stock offerings, issuances of warrants, debt financing, co-development agreements, government grants, sale or licensing of developed intellectual property or other alternatives.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2020 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 26, 2021. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Reclassifications Certain items in prior financial statements have been reclassified to conform to current year presentation. These changes did not impact total revenue, loss from operations or net loss. Net Loss Per Share In accordance with ASC 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three and nine months ended September 30, 2021, the Company included pre-funded warrants to purchase 253,828 shares of common stock, and, for the three and nine months ended September 30, 2020, the Company included pre-funded warrants to purchase 568,093 shares of common stock and 803,300 excess warrant shares held in abeyance, in its computation of net loss per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001 and the warrant shares held in abeyance were a result of the Early Warrant Exercise Transaction (as defined below) in August 2020. See Note 9. In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At September 30, 2021, potentially dilutive shares outstanding amounted to 1,242,357 shares and exclude prefunded warrants to purchase shares of common stock. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2021
Intangible Assets
Intangible Assets	Note 3 – Intangible Assets Intangible assets, net consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 2020 ​ ​ (unaudited) ​ ​ ​ Patents ​ $ 1,080,289 ​ $ 941,701 Other intangible assets ​ 1,391,479 ​ 964,542 ​ ​ 2,471,768 ​ 1,906,243 Accumulated amortization ​ (432,857) ​ (337,340) ​ ​ $ 2,038,911 ​ $ 1,568,903 ​ Amortization expense amounted to $36,642 and $95,517 for the three and nine months ended September 30, 2021, respectively, and $23,110 and $68,456 for the three and nine months ended September 30, 2020, respectively. Amortization expense for the succeeding five years and thereafter is $36,812 ( 2021 ), $147,249 ( 2022 - 2025 ) and $1,160,015 (thereafter). At September 30, 2021 and December 31, 2020, the Company had capitalized $253,088 and $270,000, respectively, for costs related to patents that have not been awarded.

Loans

Loans	9 Months Ended
	Sep. 30, 2021
Loans
Loans	Note 4 – Loans In May 2020, the Company entered into a Loan Agreement and Promissory Note (collectively the “PPP Loan”) with BBVA USA pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (“SBA”). The Company received total proceeds of $91,407 from the unsecured PPP Loan. The PPP Loan was scheduled to mature in May 2022 and had an interest rate of 1.00% per annum and was subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act.In accordance with the requirements of the CARES Act and the PPP, the Company used the proceeds from the PPP Loan primarily for payroll costs. The Company applied for forgiveness of the PPP Loan during the first quarter of 2021.In May 2021, the SBA approved forgiveness of the Company’s PPP Loan in the principal amount of $91,407, including accrued interest. The $91,407 gain on forgiveness of the PPP Loan is shown in other income (expenses) in the financial statements for the nine months ended September 30, 2021 and represents a non-cash financing activity.

Lease

Lease	9 Months Ended
	Sep. 30, 2021
Lease
Lease	Note 5 – Lease The Company leased 14,782 square feet of office and laboratory space located in Austin, Texas. CE+T Energy Solutions, Inc. (“CE+T Energy”) subleased approximately seventy-five (75%) percent of this space from the Company. This lease and sublease expired concurrently on May 31, 2021. During the nine months ended September 30, 2021, CE+T Energy made payments of $88,822 to the Company related to the subleased premises. The payments included CE+T Energy’s share of rent as well as its proportionate share of operating costs for the building under the master lease. The Company recognized these payments as a reduction in general and administrative expenses. In March 2021, the Company entered into a lease agreement for 4,070 square feet of office and laboratory space located in Austin, Texas. The commencement of the lease occurred on June 1, 2021 and the initial term of the lease is 63 months . The actual base rent in the first year of the lease is $56,471 and is net of $18,824 in abated rent over the first three months of the lease term. The annual base rent in the second year of the lease is $77,330 and increases by $2,035 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building under this triple net lease. The lease contains a 5 -year fair market renewal option. It does not contain a termination option. The Company recognized a right of use asset of $339,882 and a corresponding lease liability for this lease upon lease commencement. ​ For purposes of calculating the right of use asset and lease liability included in the Company’s financial statements, the Company estimated its incremental borrowing rate at 6% per annum. ​ Future minimum payments under the lease are as follows: ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2021 (remaining) ​ $ 18,824 2022 ​ 76,482 2023 ​ 78,517 2024 ​ 80,552 2025 ​ 82,587 2026 ​ 56,132 Total lease payments ​ $ 393,094 Less: imputed interest ​ (52,763) Total lease liability ​ $ 340,331 ​ At September 30, 2021, the remaining lease term was 59 months. ​ For the three months ended September 30, 2021 and 2020, operating cash flows for lease payments totaled $0 and $49,889, respectively, and for the nine months ended September 30, 2021 and 2020, operating cash outflows for lease payments totaled $89,423 and $146,588, respectively. For the three months ended September 30, 2021 and 2020, operating lease cost, recognized on a straight-line basis, totaled $19,017 and $48,488, respectively, and for the nine months ended September 30, 2021 and 2020, operating lease cost, recognized on a straight-line basis, totaled $106,169 and $145,463, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	Note 6 – Commitments and Contingencies License Agreement In 2015, the Company entered into licensing agreements which expire in February 2033. Per the agreements, the Company has an exclusive royalty-free license associated with semiconductor power switches which enhances its intellectual property portfolio. The agreements include both fixed payments, all of which were paid prior to 2017, and ongoing variable payments. The variable payments are a function of the number of associated patent filings pending and patents issued under the agreements. The Company will pay $10,000 for each patent filing pending and $20,000 for each patent issued annually with one-half the annual payment due within 20 days of December 21 st st In March 2021, two patents associated with these agreements were issued and the Company recorded, as a non-cash activity, an intangible asset and a corresponding other long-term liability of $426,937, representing the estimated present value of future payments under the licensing agreements for these two issued patents. As of March 2021, all five patents associated with the agreements were issued. At September 30, 2021 and December 31, 2020, the other long-term liability for the estimated present value of future payments under the licensing agreements was $959,408 and $552,031, respectively. The Company is accruing interest for future payments related to the issued patents associated with these agreements. Legal Proceedings The Company may be subject to litigation from time to time in the ordinary course of business. The Company is not currently party to any legal proceedings. Indemnification Obligations The employment agreements of Company executives include an indemnification provision whereby the Company shall indemnify and defend, at the Company's expense, its executives so long as an executive's actions were taken in good faith and in furtherance of Company's business and within the scope of executive's duties and authority. COVID-19 Pandemic As of the date of these financial statements, the COVID-19 pandemic continues to spread throughout the United States and the rest of the world. The ultimate extent of the impact of COVID-19 on the financial performance of the Company will depend on future developments, including, among other things, the duration and spread of COVID-19, including variants, the timing, scope and efficacy of vaccination efforts, additional governmental restrictions in response to the COVID-19 pandemic and the overall economy, all of which are highly uncertain and cannot be predicted. If the COVID-19 pandemic contributes to significant volatility in the global financial markets in the future, the Company’s ability to raise additional capital, if necessary, on acceptable terms or at all, may be impacted, though such risk has not materialized to date. If the financial markets and/or the overall economy are negatively impacted for an extended period, the Company's operating results may be materially and adversely affected.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2021
Common Stock
Common Stock	Note 7 — Common Stock February 2021 Public Offering In February 2021, the Company issued and sold 1,352,975 shares of its common stock, including 176,475 additional shares of common stock pursuant to the exercise of the underwriter’s option to purchase additional shares in full, in an underwritten public offering at a price of $17.00 per share (the “February 2021 Offering”). The net proceeds to the Company from the February 2021 Offering were $21.2 million. The Company intends to use the net proceeds from the February 2021 Offering to fund commercialization and development of its B-TRAN™ technology and general corporate and working capital purposes. Stock Issuance In February 2021, the Company issued 4,000 unregistered shares of common stock, valued at $68,680 at the time of issuance, to a third-party vendor as compensation for services performed.

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Sep. 30, 2021
Equity Incentive Plan
Equity Incentive Plan	Note 8 — Equity Incentive Plan In May 2013, the Company adopted the 2013 Equity Incentive Plan (the “Plan”) and reserved shares of common stock for issuance under the Plan, which was amended effective June 16, 2021. As a result of the amendment, the number of shares authorized for issuance under the Plan increased by 500,000 shares and the Plan will now terminate on June 16, 2031, unless sooner terminated or extended by the Board. The Plan is administered by the Compensation Committee of the Company’s Board of Directors.At September 30, 2021, 567,140 shares of common stock were available for issuance under the Plan. A summary of the Company’s stock option activity and related information is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ Average ​ Remaining ​ ​ Stock ​ Exercise ​ Life ​ Options Price (in years) Outstanding at December 31, 2020 391,650 ​ $ 5.70 8.1 Granted 81,821 ​ $ 11.61 ​ Exercised (17,534) ​ $ 3.79 ​ Outstanding at September 30, 2021 455,937 ​ $ 6.83 7.6 Exercisable at September 30, 2021 371,901 ​ $ 6.14 7.3 ​ During the nine months ended September 30, 2021, the Company granted 31,821 stock options to Board members and 50,000 stock options to employees under the Plan. The estimated fair value of these stock options, calculated using the Black-Scholes option valuation model, was $691,728, $228,837 of which was recognized during the nine months ended September 30, 2021. At September 30, 2021, there was $491,588 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.1 years.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2021
Warrants
Warrants	Note 9 — Warrants The Company had 1,040,248 warrants outstanding at September 30, 2021 with a weighted average exercise price of $3.92 per share, down from 2,273,369 warrants outstanding at December 31, 2020 due to the exercise of 1,233,121 warrants in the three months ended March 31, 2021. No warrants were exercised subsequent to March 31, 2021 and through September 30, 2021. At September 30, 2021, all warrants are exercisable, although the warrants held by certain of the Company’s warrant holders may be exercised only to the extent that the total number of shares of common stock then beneficially owned by such warrant holder does not exceed 4.99% (or, at the investor’s election, 9.99%) of the outstanding shares of the Company’s common stock. Early Warrant Exercise Transaction In July 2020, the Company entered into letter agreements with certain of the Company’s Series A warrant holders (the “Series A Warrant Holders”), who were previously issued warrants (the “Original Warrants”) to purchase shares of common stock of the Company. The Series A Warrant Holders agreed to the early exercise of Series A warrants pursuant to the letter agreements (the “Early Warrant Exercise Transaction”). The transaction closed in August 2020. The Company raised net proceeds of $2.5 million in the Early Warrant Exercise Transaction. Pursuant to the letter agreements and in consideration of the Series A Warrant Holders exercising Series A warrants to purchase an aggregate of 1,176,137 shares of common stock, the Company issued to the Series A Warrant Holders new Series C warrants to purchase up to an aggregate of 705,688 shares of common stock with an exercise price of $8.90 per share and an expiration date of August 4, 2025. The estimated fair value of the Series C warrants, calculated using the Black-Scholes model, was $3.7 million on the date of issuance and was recognized as a non-cash warrant inducement expense within other income (expenses) in the statement of operations. The assumptions used in the Black Scholes model included a risk-free interest rate of 0.22%, a zero expected dividend yield, an expected life of 5 years and an expected volatility of 90%. To the extent that a Series A Warrant Holder’s exercise of Original Warrants would result in such holder exceeding beneficial ownership of 9.99% of the outstanding common stock of the Company, such excess warrant shares will be held in abeyance for the benefit of such Series A Warrant Holder until such time as its right thereto would not result in the holder exceeding this limitation. The term of the abeyance shall extend no later than May 12, 2025.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2020 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 26, 2021. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods.
Reclassifications	Reclassifications Certain items in prior financial statements have been reclassified to conform to current year presentation. These changes did not impact total revenue, loss from operations or net loss.
Net Loss Per Share	Net Loss Per Share In accordance with ASC 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three and nine months ended September 30, 2021, the Company included pre-funded warrants to purchase 253,828 shares of common stock, and, for the three and nine months ended September 30, 2020, the Company included pre-funded warrants to purchase 568,093 shares of common stock and 803,300 excess warrant shares held in abeyance, in its computation of net loss per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001 and the warrant shares held in abeyance were a result of the Early Warrant Exercise Transaction (as defined below) in August 2020. See Note 9. In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At September 30, 2021, potentially dilutive shares outstanding amounted to 1,242,357 shares and exclude prefunded warrants to purchase shares of common stock.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements.

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Intangible Assets
Schedule of intangible assets, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 2020 ​ ​ (unaudited) ​ ​ ​ Patents ​ $ 1,080,289 ​ $ 941,701 Other intangible assets ​ 1,391,479 ​ 964,542 ​ ​ 2,471,768 ​ 1,906,243 Accumulated amortization ​ (432,857) ​ (337,340) ​ ​ $ 2,038,911 ​ $ 1,568,903

Lease (Tables)

Lease (Tables)	9 Months Ended
	Sep. 30, 2021
Lease
Schedule of future minimum rental payments for operating leases	Future minimum payments under the lease are as follows: ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2021 (remaining) ​ $ 18,824 2022 ​ 76,482 2023 ​ 78,517 2024 ​ 80,552 2025 ​ 82,587 2026 ​ 56,132 Total lease payments ​ $ 393,094 Less: imputed interest ​ (52,763) Total lease liability ​ $ 340,331

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2021
Equity Incentive Plan
Summary of company's stock options activity and related information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ Average ​ Remaining ​ ​ Stock ​ Exercise ​ Life ​ Options Price (in years) Outstanding at December 31, 2020 391,650 ​ $ 5.70 8.1 Granted 81,821 ​ $ 11.61 ​ Exercised (17,534) ​ $ 3.79 ​ Outstanding at September 30, 2021 455,937 ​ $ 6.83 7.6 Exercisable at September 30, 2021 371,901 ​ $ 6.14 7.3

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Nov. 30, 2019
Warrants, exercise price	$ 3.92		$ 3.92
Potentially dilutive shares outstanding (in shares)	1,242,357		1,242,357
Pre Funded Warrants
Warrants issued to purchase shares of common stock	253,828	568,093	253,828	568,093
Warrants, exercise price					$ 0.001
Excess warrant shares held in abeyance		803,300		803,300

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Intangible Assets
Gross intangible assets	$ 2,471,768	$ 1,906,243
Accumulated amortization	(432,857)	(337,340)
Intangible assets, net	2,038,911	1,568,903
Patents
Intangible Assets
Gross intangible assets	1,080,289	941,701
Other intangible assets
Intangible Assets
Gross intangible assets	$ 1,391,479	$ 964,542

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Intangible Assets
Amortization expense			$ 36,642	$ 23,110	$ 95,517	$ 68,456
Amortization expense for 2021	$ 36,812		36,812		36,812
Amortization expense for 2022	147,249		147,249		147,249
Amortization expense for 2023	147,249		147,249		147,249
Amortization expense for 2024	147,249		147,249		147,249
Amortization expense for 2025	147,249		147,249		147,249
Amortization expense for thereafter	1,160,015		$ 1,160,015		$ 1,160,015
Capitalized costs for costs related to patents that have not been awarded	$ 253,088	$ 270,000

Loans (Details)

Loans (Details) - USD ($)	1 Months Ended		9 Months Ended
	May 31, 2021	May 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Gain on forgiveness of long-term debt	$ 91,407		$ 91,407	$ 0
PPP Loan
Debt Instrument [Line Items]
Proceeds from loan		$ 91,407
Interest rate (as a percent)		1.00%
U.S. Small Business Administration Economic Injury Disaster Loan
Debt Instrument [Line Items]
Gain on forgiveness of long-term debt	$ 91,407

Lease - Additional Information

Lease - Additional Information (Details)	May 31, 2021ft²	Sep. 30, 2021USD ($)	Aug. 31, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Mar. 31, 2021USD ($)ft²	Dec. 31, 2020USD ($)
Right of use asset		$ 321,248			$ 321,248			$ 79,719
Total lease liability		340,331			340,331
Operating lease payments		0		$ 49,889	89,423	$ 146,588
operating lease cost		$ 19,017		$ 48,488	$ 106,169	$ 145,463
Remaining lease term		59 months			59 months
Annual base rent in first year		$ 18,824			$ 18,824
Percentage of Texas facility subleased	75.00%
Increase in base rent each succeeding year					88,822
Annual base rent in the second year of the lease		$ 78,517			$ 78,517
Office and laboratory space
Right of use asset							$ 339,882
Total lease liability							$ 339,882
incremental borrowing							6.00%
Operating lease, weighted average remaining lease term							63 months
Square feet of office and laboratory space leased (in sq ft) | ft²	14,782						4,070
Increase in base rent each succeeding year							$ 2,035
Actual base rent in first year of the lease							56,471
Actual base rent, Net			$ 18,824
Annual base rent in the second year of the lease							$ 77,330
Operating lease renewal term							5 years

Lease - Future minimum payments

Lease - Future minimum payments (Details)	Sep. 30, 2021USD ($)
Master Lease
2021 (remaining)	$ 18,824
2022	76,482
2023	78,517
2024	80,552
2025	82,587
2026	56,132
Total lease payments	393,094
Less: imputed interest	(52,763)
Total lease liability	$ 340,331

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2015	Mar. 31, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Payment for each patent issued	$ 139,116	$ 35,836
Licensing agreements
Other Commitments [Line Items]
Payable for each patent filing pending			$ 10,000
Payment for each patent issued			$ 20,000
Payment for each patent issue days			20 days
Contractual Obligation				$ 426,937
Long-term liability for estimated present value of future payments under licensing agreement	$ 959,408				$ 552,031
Licensing agreements | Maximum
Other Commitments [Line Items]
Contractual Obligation					$ 100,000
June 21st | Licensing agreements
Other Commitments [Line Items]
Payment for each patent issue days			20 days

Common Stock - February 2021 Pu

Common Stock - February 2021 Public Offering (Details) - USD ($)	Feb. 28, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020
Net proceeds from offering			$ 21,204,609	$ 0
Common Stock.
Number of shares issued and sold		1,352,975
Common Stock. | February 2021 Public Offering
Number of shares issued and sold	1,352,975
Offering price	$ 17
Net proceeds from offering	$ 21,200,000
Common Stock. | Underwriters option
Number of shares issued and sold	176,475

Common Stock - Stock Issuance (

Common Stock - Stock Issuance (Details) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 28, 2021	Mar. 31, 2021	Jun. 30, 2020
Common Stock
Stock issued for services	$ 68,680	$ 68,680	$ 50,000
Stock issued for services (in shares)	4,000

Equity Incentive Plan - Additio

Equity Incentive Plan - Additional Information (Details) - 2013 Equity Incentive Plan - USD ($)	Jun. 16, 2021	Sep. 30, 2021
Equity Incentive Plan
Shares of common stock available for issuance under the Plan (in shares)		567,140
Unrecognized compensation cost related to non-vested share-based compensation arrangements		$ 491,588
Weighted average period for recognition		1 year 1 month 6 days
Estimated fair value of options granted		$ 691,728
Stock options granted		81,821
Estimated Fair Value of Stock Options Recognized		$ 228,837
Number of shares authorized for issuance	500,000
Employees
Equity Incentive Plan
Stock options granted		50,000
Board members
Equity Incentive Plan
Stock options granted		31,821

Equity Incentive Plan - Summary

Equity Incentive Plan - Summary of Stock Option Activity and Related Information (Details) - 2013 Equity Incentive Plan - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Stock Options
Outstanding at December 31, 2020	391,650
Granted	81,821
Exercised (in shares)	(17,534)
Outstanding at September 30, 2021	455,937	391,650
Exercisable at September 30, 2021	371,901
Weighted Average Exercise Price
Outstanding at December 31, 2020 (in dollars per share)	$ 5.70
Granted	11.61
Exercised (in dollars per share)	3.79
Outstanding at September 30, 2021	6.83	$ 5.70
Exercisable at September 30, 2021	$ 6.14
Weighted Average Remaining Life (in years)
Outstanding at December 31	7 years 7 months 6 days	8 years 1 month 6 days
Exercisable at September 30, 2021	7 years 3 months 18 days

Warrants - Additional Informati

Warrants - Additional Information (Details) - $ / shares	3 Months Ended	6 Months Ended	9 Months Ended
	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Warrants
Class of Warrant or Right, Outstanding		1,040,248	1,040,248	2,273,369
Warrants, exercise price		$ 3.92	$ 3.92
Convertible Preferred Stock Maximum Beneficial Ownership Percentage			4.99%
Number of warrants exercised	1,233,121	0

Warrants - Early Warrant Exerci

Warrants - Early Warrant Exercise Transaction (Details)	1 Months Ended	9 Months Ended
	Jul. 31, 2020USD ($)shares	Sep. 30, 2021USD ($)$ / sharesshares
Class of Warrant or Right [Line Items]
Net proceeds	$ 2,500,000
Warrants, exercise price | $ / shares		$ 3.92
Fair value of warrants		$ 3,700,000
Risk-free interest rate
Class of Warrant or Right [Line Items]
Warrants, measurement input		0.22
Expected dividend yield
Class of Warrant or Right [Line Items]
Warrants, measurement input		0
Expected life
Class of Warrant or Right [Line Items]
Warrants, measurement input		5
Expected volatility
Class of Warrant or Right [Line Items]
Warrants, measurement input		90
Series A warrant
Class of Warrant or Right [Line Items]
Number of common stock shares to be purchased by warrant holders | shares		1,176,137
Warrants, maximum beneficial ownership percentage		9.99%
Series C warrant
Class of Warrant or Right [Line Items]
Number of common stock shares to be purchased by warrant holders | shares	705,688
Warrants, exercise price | $ / shares		$ 8.90