Molekule (MKULQ) 10-Q14 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 09, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	001-41096
Entity Registrant Name	Molekule Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3213164
Entity Address State Or Province	FL
Entity Address, Address Line One	10455 Riverside Dr
Entity Address, City or Town	Palm Beach Gardens
Entity Address, Postal Zip Code	33410
City Area Code	833
Local Phone Number	652-5326
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	MKUL
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	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,654,459
Entity Central Index Key	0001872356
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 5,269,376	$ 22,062,657
Restricted Cash	629,742
Accounts receivable	2,210,700	36,188
Prepaid expenses and other current assets	1,801,533	665,395
Inventories	29,432,880	2,020,713
Total current assets	39,344,231	24,784,953
Property and equipment, net	8,626,031	2,119,134
Intangible assets, net	45,301,689
Goodwill	21,031,064	626,647
Operating lease right-of-use assets	10,952,143	1,606,485
Other assets	184,854	21,667
Total assets	125,440,012	29,158,886
Current liabilities:
Accounts payable	6,568,044	3,220,082
Accrued expenses and other current liabilities	5,868,740	1,228,402
Current operating lease liability	2,746,961	113,769
Notes payable, current portion	2,112,710
Total current liabilities	17,296,455	4,562,253
Long-term liabilities:
Warrant liability, at fair value	23,634,000	3,372,000
Notes payable, net of current portion	34,054,482
Long-term operating lease liability	8,245,493	1,521,431
Deferred tax liability	1,504,526
Total liabilities	84,734,956	9,455,684
Stockholders' equity:
Common stock, $0.01 par value per share; 110,000,000 shares authorized; 34,002,750 and 15,496,932 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	340,465	154,969
Additional paid-in capital	83,184,034	27,465,024
Accumulated deficit		(7,916,791)
Total stockholders' equity	40,705,056
Total liabilities and stockholders' equity	$ 125,440,012	$ 29,158,886

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	34,046,500	15,496,932
Common stock, shares outstanding	34,046,500	15,408,828

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Product revenues	$ 13,242,959	$ 70,918	$ 21,592,380	$ 77,652
Cost of sales	8,763,888	36,126	13,438,147	39,890
Gross profit	4,479,071	34,792	8,154,233	37,761
Operating expenses:
Selling, general and administrative	15,005,356	4,105,066	28,666,969	6,247,290
Research and development	1,174,846	579,061	1,422,625	1,110,544
Total operating expenses	16,180,202	4,684,127	30,089,594	7,357,834
Loss from operations	(11,701,131)	(4,649,335)	(21,935,361)	(7,320,073)
Change in fair value of warrant liability	(12,050,500)	(650,000)	(10,324,500)	(650,000)
Interest expense	(1,443,009)		(2,691,686)
Other expense	132,242		(44,257)
Total other income	(1,310,767)		(2,735,943)
Loss before income tax benefit	(25,062,398)	(5,299,335)	(34,995,804)	(7,970,073)
Income tax benefit	$ 93,156	(127,058)	$ 93,156	(219,832)
Net Loss		$ (5,172,277)		$ (7,750,241)
Net Income (Loss) Per Common Share
Basic	$ (0.76)	$ (0.37)	$ (1.12)	$ (0.56)
Diluted	$ (0.76)	$ (0.37)	$ (1.12)	$ (0.56)
Weighted-average common shares outstanding:
Basic	33,017,565	13,894,119	31,185,329	13,885,923
Diluted		13,894,119		13,885,923

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Accumulated Deficit	Additional Paid-in Capital	Total
Beginning balance at Dec. 31, 2021	$ 138,776	$ (1,747,860)		$ 21,710,415
Beginning balance (Shares) at Dec. 31, 2021	13,877,636		23,319,499
Issuance of common stock	$ 15,000			909,770
Issuance of common stock (Shares)	1,531,192		894,770
Stock-based compensation			$ 1,379,378	1,379,378
Net loss		(7,750,241)		(7,750,241)
Ending balance at Jun. 30, 2022	$ 153,776	(9,498,101)	$ 25,593,647	16,249,322
Ending balance (Shares) at Jun. 30, 2022	15,408,828		25,593,647
Beginning balance at Mar. 31, 2022	$ 138,776	(4,325,824)	$ 23,990,337	19,803,289
Beginning balance (Shares) at Mar. 31, 2022	13,877,636
Issuance of common stock	$ 15,000		894,770	909,770
Issuance of common stock (Shares)	1,531,192
Stock-based compensation			708,540	708,540
Net loss		(5,172,277)		(5,172,277)
Ending balance at Jun. 30, 2022	$ 153,776	(9,498,101)	$ 25,593,647	16,249,322
Ending balance (Shares) at Jun. 30, 2022	15,408,828		25,593,647
Beginning balance at Dec. 31, 2022	$ 154,969	(7,916,792)
Beginning balance (Shares) at Dec. 31, 2022	15,496,932		27,465,024
Issuance of common stock and warrants	$ 34,000			34,000
Issuance of common stock and warrants (Shares)	3,400,000
Acquisition of Molekule	$ 149,308	0	$ 52,316,767	0
Acquisition of Molekule (Shares)	14,930,818
Stock-based compensation		0	3,404,431	3,404,431
Transactions related to employee share-based compensation plan	$ 2,188		(2,188)
Transactions related to employee share-based compensation plan (Shares)	218,750
Net loss		(34,902,650)
Ending balance at Jun. 30, 2023	$ 340,465	(42,819,443)	$ 83,184,034	40,705,056
Ending balance (Shares) at Jun. 30, 2023	34,046,500		83,184,034
Beginning balance at Mar. 31, 2023	$ 304,277	(17,850,199)	$ 81,284,515	63,738,593
Beginning balance (Shares) at Mar. 31, 2023	30,427,750
Issuance of common stock and warrants	$ 34,000			34,000
Issuance of common stock and warrants (Shares)	3,400,000
Stock-based compensation			1,901,707	1,901,707
Transactions related to employee share-based compensation plan	$ 2,188		(2,188)
Transactions related to employee share-based compensation plan (Shares)	218,750
Net loss		(24,969,244)
Ending balance at Jun. 30, 2023	$ 340,465	$ (42,819,443)	$ 83,184,034	$ 40,705,056
Ending balance (Shares) at Jun. 30, 2023	34,046,500		83,184,034

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ (7,750,241)
Adjustments to reconcile net loss to net cash flows used in operating activities
Offering costs associated with warrant liability		1,326,212
Change in fair value of warrant liability	$ 10,324,500	650,000
Deferred tax benefit	(93,156)	(219,832)
Depreciation and amortization	1,082,488	72,047
Equity-based compensation	3,404,431	1,379,378
Provision for doubtful accounts	2,107
Amortization of debt discounts	188,088
Changes in operating assets and liabilities:
Accounts receivable	(1,798,424)	149,009
Inventories	3,669,072	(358,755)
Other current and non-current assets	664,757	596,390
Accounts payable	(8,746,224)	(239,431)
Accrued expenses and other liabilities	(1,136,152)	82,517
Operating lease liabilities	11,390
Net cash flows used in operating activities	(27,329,771)	(4,312,706)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(1,196,104)	(154,065)
Cash acquired in acquisition of Molekule Inc.	2,988,096
Net cash flows used in investing activities	1,791,992	(154,065)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock and warrants	9,971,500	15,000,000
Payment of debt issuance costs		(999,449)
Repayment of notes payable	(597,260)
Net cash flows provided by financing activities	9,374,240	14,000,551
Net (decrease)/increase in cash	(16,163,539)	9,533,780
Cash, beginning of period	22,062,657	19,629,649
Cash, end of period	5,899,118	29,163,429
Supplemental Disclosure of cash flow information:
Cash paid for interest	2,267,306
Supplemental schedule of non-cash activities:
Net assets acquired from Molekule Inc.	$ 52,466,073
Offering costs in private placement		$ 422,000

Description of Business

Description of Business	6 Months Ended
Description of Business	Jun. 30, 2023
Description of Business
Description of Business	1. Description of Business Description of Business Molekule Group, Inc. (f/k/a AeroClean Technologies, Inc.) (the “Company”) was initially formed as CleanCo Bioscience Group LLC (“CBG”) in the State of Florida on September 2, 2011. Subsequent to its formation, CBG established a team of scientists, engineers and medical experts to provide solutions for the challenges posed by harmful airborne pathogens and resultant hospital acquired infections. On September 15, 2020, CBG converted into AeroClean Technologies, LLC as a Delaware limited liability company. On November 23, 2021, AeroClean Technologies, LLC incorporated in the state of Delaware as AeroClean Technologies, Inc. The Company is an interior space air purification technology company focused on the sale and distribution of its high-performance interior air sterilization and disinfection products for the eradication of coronavirus and other harmful airborne pathogens. The Company was established to develop technology-driven, medical-grade air purification solutions for hospitals and other healthcare settings. The company is headquartered in Palm Beach Gardens, Florida. On January 12, 2023, in connection with the acquisition of Molekule, Inc. (“Legacy Molekule”), the Company changed its name from AeroClean Technologies, Inc. to Molekule Group, Inc. (see Note 3). With the acquisition of Legacy Molekule, the Company is engaged in the manufacturing and selling of air purifiers and filters primarily in the United States, but also in Canada directly to consumers, through retail and distribution, and to commercial and enterprise customers. During 2020, Legacy Molekule began selling directly to distributors in Japan and South Korea. During 2021, Legacy Molekule also began selling directly to consumers in Europe. In 2022, sales continued to be primarily within the United States. Legacy Molekule incorporated in the state of Delaware in February 2015 as Transformair, Inc. and changed its name to Molekule, Inc. through an amendment to its articles of incorporation in June 2016. The accompanying condensed consolidated financial statements include the results of Legacy Molekule and its wholly owned subsidiary in the current period from the date of acquisition (January 12, 2023) and as of the most recent balance sheet date (June 30, 2023) and the results of GSI Germsweepusa Inc. (doing business as GSI Technology) (“GSI Technology”), which was acquired in 2022. Liquidity and Going Concern The provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements — Going Concern The Company incurred a net loss of $34,902,648 during the six months ended June 30, 2023 and its net cash used in operating activities was $27,329,771 for the six months ended June 30, 2023. In addition, the Company’s accumulated deficit was $42,819,441 at June 30, 2023. The Company’s recurring losses from operations, recurring cash used in operating activities, accumulated deficit, expected working capital needs to fund its combined operations and new debt obligations as a result of the acquisition of Molekule, Inc. in January 2023 (see Note 3), raise substantial doubt about its ability to continue as a going concern. The Company’s ability to fund its operations is dependent upon management’s plans, which include raising capital, managing costs and generating sufficient revenues to offset costs. There can be no assurances that the Company will be able to secure any such additional financing on acceptable terms and conditions, or at all. Accordingly, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within one year after the date the financial statements were issued. Under its debt agreements (the Senior Term Loan and the Mezzanine Term Loan) with its lender, Silicon Valley Bank, now a division of First Citizens Bank (“SVB”), the Company is required to generate revenue of at least $50 million for the twelve months ended March 31, 2024. Non-compliance with this requirement may result in the debt maturity dates becoming accelerated.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U. S. Securities and Exchange Commission (the “SEC”) and include the Company’s wholly owned subsidiaries, GSI Technology, for the current period and Legacy Molekule since January 12, 2023. All significant intercompany accounts and transactions have been eliminated in consolidation. Accordingly, U.S. condensed consolidated Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and related disclosure of contingent assets and liabilities. Significant estimates in these unaudited condensed consolidated financial statements include those related to the fair value of equity-based compensation, revenue recognition, the incremental borrowing rate for leases, the fair value of warrant liability, valuation in connection with business combination and the deferred tax valuation allowance. On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the inherent uncertainty involved in making estimates, actual results could differ materially from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with maturities at the date of investment of not more than three months. The Company held no cash equivalents as of June 30, 2023 and 2022. Restricted Cash The Company had a restricted cash balance of $629,742 as of June 30, 2023 and nil as of December 31, 2022. The restricted cash balance constitutes collateral pursuant to the terms of an office lease. The restricted cash balance is held in a separate bank account. Revenue Recognition The Company recognizes revenues related to sales of products upon the customer obtaining control of promised goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. To determine revenue recognition for arrangements within the scope of ASC Topic 606, Revenue from Contracts with Customers, allocates the transaction price to filters based upon their standalone sales price. The transaction price allocated to the device is estimated based on the residual method, as the devices do not have an established standalone sales price and are never sold without filters. All performance obligations are satisfied within one year; therefore, costs to obtain contracts are expensed as incurred. There is no financing component because the Company expects, at contract inception, the period between when the Company transfers product to the customer and when the customer pays for the product will be less than one year. Sales terms allow for the right of return, and the Company has recorded a related reserve based on historical, as well as post year-end, activity. Customers may, for any reason, return the product within 30 days for a full refund, excluding shipping charges. The Company establishes a liability for expected returns representing the amount of consideration the entity does not expect to be entitled to because it will be refunded to customers. The refund liability is remeasured at each reporting date to reflect changes in the estimate, with a corresponding adjustment to revenues. The Company satisfies the performance obligations and records revenues when transfer of control has passed to the customer based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Sales taxes collected from customers are not recorded within revenues and are remitted to the taxing authorities periodically. Shipping and handling are recorded in revenues and cost of revenues on the Statements of Operations and are charged to customers at varying rates. The Company recognized revenue of $13,242,959 and $70,918 in the three months ended June 30, 2023 and 2022, respectively, and $21,592,380 and $77,652 for the six months ended June 30, 2023 and 2022, respectively. Warranty Cost The Company provides a three-year warranty on its Pūrgo device and a two year warranty for the Legacy Molekule devices, in each case, from the date of sale to its customers. The Company’s policy is to record a provision for estimated future costs related to warranty expense when they are probable and reasonably estimable, which is when revenue is recognized. There was a warranty accrual of $385,748 as of June 30, 2023 and nil as of December 31, 2022. Income Taxes Income taxes are accounted for under ACS 740 utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carry forwards are expected to be recovered, settled or utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. If such an event occurs, a valuation allowance is recorded. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as income tax expense. At June 30, 2023 and December 31, 2022, the company did not record any uncertain tax positions. Research & Development Expenses Research and development expenses are expensed as incurred and consist principally of contract labor and third-party engineering, product development and testing costs related to the development of medical grade air purification devices and related components as well as concepts for future product development. Stock-Based Compensation The Company accounts for share-based payments to employees and non-employees in accordance with the provisions of FASB ASC 718, Compensation — Stock Compensation (“ASC 718”). Under ASC 718, the Company measures the share-based compensation cost on the date of grant, based on the fair value of the award, and expense is recognized over the requisite service period. Accounts Receivable Trade accounts receivable are stated net of an allowance for doubtful accounts. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness, as determined by review of their current credit information. The Company estimates the allowance for doubtful accounts based on review and analysis of specific customer balances that may not be collectible and how recently payments have been received. The Company also evaluates the need for a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. Accounts are considered for write-off when they become past due and when it is determined that the probability of collection is remote. For more information on the adoption of Topic 326 Current Expected Credit Losses Inventories The Company values inventories at the lower of cost or net realizable value using the first-in, first-out or weighted average cost Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value in accordance with U.S. GAAP. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy that prioritizes the inputs used in the valuation methodologies, is as follows: Level 1 Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or that can be corroborated by observable market data. Level 3 Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. At June 30, 2023 and December 31, 2022, the carrying amounts of the Company’s financial instruments, including cash and restricted cash, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximated their respective fair value due to the short-term nature of these instruments. Financial Instruments – Derivatives Debt Issuance Costs Goodwill and Intangible Assets The Company has recorded intangible assets, and goodwill, in connection with business combinations. Estimated useful lives of amortizable intangible assets are determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows. In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests these assets for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations. Business Acquisition Accounting The Company applies the acquisition method of accounting for acquisitions that meet the criteria of a business combination. The Company allocates the purchase price of its business acquisitions based on the fair value of identifiable tangible and intangible assets. The difference between the total purchase consideration and the sum of the fair values of acquired tangible and identifiable intangible assets less the fair value of the liabilities assumed is recorded as goodwill. Transaction costs are expensed as incurred in general and administrative expenses. Recent Accounting Pronouncements The Company has reviewed recent accounting pronouncements and, with the exception of the below, concluded they are either not applicable to the business or no material effect is expected on the financial statements as a result of future adoption. In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses, which was subsequently amended by ASU No. 2018-19 and ASU No. 2019-10, and which requires the measurement of expected credit losses for financial instruments carried at amortized cost held at the reporting date based on historical experience, current conditions and reasonable forecasts. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. 2016 13 2016 13 , 2023, not

Business Combination

Business Combination	6 Months Ended
Business Combination	Jun. 30, 2023
Business Combination
Business Combination	3. Business Combination On January 12, 2023 At the effective date of the Molekule Merger, the outstanding shares of Legacy Molekule common stock, par value $0.0001, that were issued and outstanding immediately prior to the effective time of the Molekule Merger (the “Legacy Molekule Common Stock”) (including shares of Legacy Molekule Common Stock resulting from the conversion of Legacy Molekule’s eligible preferred stock, but excluding dissenting shares and shares held in treasury), were converted automatically into, and the holders of such shares of Legacy Molekule Common Stock were entitled to receive, by virtue of the Molekule Merger and upon the terms and subject to the conditions set forth in the merger agreement, 14,907,210 fully paid and nonassessable shares of the Company’s common stock, which resulted in the Legacy Molekule stockholders in the aggregate, after taking into account the 23,608 shares of Company Common Stock underlying In-the-Money Company Warrants (as defined in the merger agreement) and the grants of 500,380 RSUs by the Company to certain continuing Legacy Molekule employees that were deemed vested and outstanding as of immediately following the effective time of the Molekule Merger, holding 49.5% of the Outstanding Shares (as defined in the merger agreement). Immediately following the closing of the Molekule Merger, there were 30,427,750 shares of Company Common Stock outstanding, which does not include Company Common Stock that may be issued upon the vesting of RSUs. Based on the Company’s preliminary purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $66 million, of which $46 million was allocated to identifiable intangible assets consisting of customer relationships (approximately $3 million), Molekule’s trade name (approximately $27 million), and developed technology (approximately $16 million) and $20 million was allocated to goodwill. The Molekule Merger was accounted for under FASB ASC 805, Business Combinations (“ASC 805”). The results of operations for Legacy Molekule are included in the accompanying condensed consolidated statements of operations from the date of acquisition. The valuation of certain assets, principally intangible assets including goodwill and identified intangible assets related to the acquisition, inventory and property, plant and equipment, is not yet complete, and as such, the Company has not yet finalized its allocation of the purchase price for the acquisition. The following table summarizes the provisional amounts allocated to the estimated fair values of assets acquired and fair values of liabilities assumed in the Legacy Molekule acquisition in accordance with ASC 805: Legacy Molekule Cash and cash equivalents $ 2,988,100 Accounts receivable 378,195 Inventories 31,081,238 Prepaid and other current assets 1,138,784 Property, Plant and Equipment 6,402,425 Goodwill 20,404,413 Intangible assets, net 45,890,000 Right of Use Assets 10,479,883 Other long-term assets 220,779 Accounts payable (12,094,186) Accrued expenses (3,001,862) Accrued sales tax (516,530) Notes payable (36,576,443) Operating lease liabilities (10,480,088) Deferred tax liabilities (1,597,682) Other current and non-current liabilities (2,250,953) Total consideration $ 52,466,073 On a pro forma basis to give effect to the Molekule merger as if it occurred on January 1, 2022, revenues, net loss and loss per basic share for the six months ended June 30, 2023 and 2022 would have been as follows: June 30, 2023 June 30, 2022 Pro forma Pro forma Revenues $ 22,762,753 25,226,575 Net loss (36,498,858) (11,566,624) Loss per diluted share (1.17) (0.83)

Financial Instruments Fair Valu

Financial Instruments Fair Value Measurements	6 Months Ended
Financial Instruments Fair Value Measurements	Jun. 30, 2023
Financial Instruments Fair Value Measurements
Financial Instruments Fair Value Measurements	4. Financial Instruments Fair Value Measurements 2022 Private Placement Warrants The 2022 Warrant issued in connection with the 2022 Private Placement (as such terms are defined in Note 13) was accounted for as a liability and accordingly the warrant liability is re-measured at each balance sheet date until its exercise or expiration, and any change in fair value is recognized in the Company’s condensed consolidated statement of operations. 2023 Private Placement Warrants On May 3, 2023, the Company entered into the Securities Purchase Agreement (“SPA”) with a selling stockholder (the “Selling Stockholder”), pursuant to which the Company agreed to sell (i) 3,400,000 shares of common stock, (ii) 3,125,000 shares of common stock that are issuable upon the exercise of the Series A Warrant, (iii) 6,250,000 shares of common stock that are issuable upon the exercise of the Series B Warrant and (iv) 2,850,000 shares of common stock that are issuable upon the exercise of the Pre-Funded Warrant collectively the “2023 Warrants”), for an aggregate purchase price of approximately $9,971,500 (the “2023 Private Placement”) as such terms defined in Note 13. The SPA contains customary representations, warranties and agreements by the Company. The Company also agreed to reduce the exercise price of the 2022 Warrant owned by the Selling Stockholder from $11.00 to $2.00 per share of common stock. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the 2022 Warrant, which is considered a Level 3 fair value measurement. The Black-Scholes option-pricing model considers several variables and assumptions in estimating the fair value of financial instruments, including the per-share fair value of the underlying common stock, exercise price, expected term, risk-free interest rate, expected stock price volatility over the expected term, and expected annual dividend yield. Certain inputs utilized in the Company’s Black-Scholes pricing model may fluctuate in future periods based upon factors that are outside of the Company’s control. A significant change in one or more of these inputs used in the calculation of the fair value may cause a significant change to the fair value of the warrant liability, which could also result in material non-cash gain or loss being reported in the accompanying unaudited condensed consolidated statements of operations. The following table provides the significant inputs to the Black-Scholes pricing model for the fair value of the 2022 Warrant: At May 3, 2023 At May 5, 2023 At June 30, 2023 Stock price $ 1.57 $ 1.57 $ 2.34 Expiration term (in years) 4.39 4.39 4.24 Volatility 98.0 % 98.0 % 96.0 % Risk-free rate 3.50 % 3.50 % 4.3 % Dividend yield 0.0 % 0.0 % 0.0 % Fair Value per Warrant $ 0.61 $ 1.07 $ 1.71 The following table provides the significant inputs to the Black-Scholes pricing model for the fair value of the Series A Warrant: At May 5, 2023 At June 30, 2023 Stock price $ 1.57 $ 2.34 Expiration term (in years) 0.67 0.51 Volatility 85.0 % 99.0 % Risk-free rate 5.00 % 5.5 % Dividend yield 0.0 % 0.0 Fair Value per Warrant $ 0.43 $ 1.01 The following table provides the significant inputs to the Black-Scholes pricing model for the fair value of the Series B Warrant: At May 5, 2023 At June 30, 2023 Stock price $ 1.57 $ 2.34 Expiration term (in years) 5.00 4.85 Volatility 98.0 % 96.0 % Risk-free rate 3.40 % 4.2 % Dividend yield 0.0 % 0.0 % Fair Value per Warrant $ 1.14 $ 1.80 The following table provides the significant inputs to the Black-Scholes pricing model for the fair value of the Pre-Funded Warrant: At May 5, 2023 At June 30, 2023 Stock price $ 1.57 $ 2.34 Expiration term (in years) 5.00 4.85 Volatility 98.0 % 96.0 % Risk-free rate 3.40 % 4.2 % Dividend yield 0.0 % 0.0 % Fair Value per Warrant $ 1.56 $ 2.33 The private placement offering costs of $673,290 were allocated to the Warrants entirely and were immediately expensed and recorded as selling, general and administrative expense in the statement of operations for the quarter ended June 30, 2023. The 2023 Warrants issued in connection with the 2023 Private Placement are being accounted for as a liability and accordingly the warrant liability is re-measured at each balance sheet date until its exercise or expiration, and any change in fair value is recognized in the Company’s condensed consolidated statement of operations. A reconciliation of the 2022 Warrant liability and the 2023 Warrants liability for the three months ended June 30, 2023, as follows: 2022 Warrant 2023 Warrants Balance at March 31, 2023 $ 1,646,000 $ — Change in fair value on date of modification 691,000 — Initial fair value on date of issuance — 12,956,000 Change in fair value 223,000 8,118,000 Balance at June 30, 2023 $ 2,560,000 $ 21,074,000 A reconciliation of the 2022 Warrant liability and the 2023 Warrants liability for the six months ended June 30, 2023 as follows: 2022 Warrant 2023 Warrants Balance at December 31, 2023 $ 3,372,000 $ — Change in fair value on date of modification 691,000 — Initial fair value on date of issuance — 12,956,000 Change in fair value (1,503,000) 8,118,000 Balance at of June 30, 2023 $ 2,560,000 $ 21,074,000 The fair value of the 2023 Warrants and the 2022 Warrant aggregated was $23,634,000 at June 30, 2023 and the fair value of the 2022 Warrant was $3,372,000 at December 31, 2022, respectively. The Company recognized a loss in connection with the change in the fair value of warrant liabilities of $12,050,500 and $10,324,500 in the statements of operations for the three months and six months ended June 30, 2023, respectively. The fair value of the 2023 Warrants at the date of issuance was greater than the gross proceeds, resulting in $3,018,500 being recognized as an expense and par value of $34,000 being recognized for the 3,400,000 of shares of common stock issued.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
Prepaid Expenses and Other Current Assets	Jun. 30, 2023
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets of $1,801,533 and $665,395 at June 30, 2023 and December 31, 2022, respectively, consisted primarily of prepaid insurance premiums and amounts paid to suppliers and vendors for inventories and retainers for engineering, product development, testing and other services to be performed.

Inventories

Inventories	6 Months Ended
Inventories	Jun. 30, 2023
Inventories
Inventories	6. Inventories Inventories consisted of the following: June 30, December 31, 2023 2022 Raw materials $ 4,002,445 $ 712,752 Finished goods 15,096,071 1,307,961 Work in process 10,334,364 — Total inventories $ 29,432,880 $ 2,020,713

Property and Equipment

Property and Equipment	6 Months Ended
Property and Equipment	Jun. 30, 2023
Property and Equipment
Property and Equipment	7 . Property and Equipment Property and equipment consisted of the following: Useful Life June 30, December 31, (Years) 2023 2022 Leasehold improvements Lesser of useful life or lease term $ 2,748,934 $ 847,217 Machinery and tooling 5 - 7 3,780,221 1,270,652 Furniture and equipment 3 - 10 928,208 241,835 Software 2-3 1,390,514 — Construction in progress 651,857 — 9,499,734 2,359,704 Less: accumulated depreciation 873,703 240,570 $ 8,626,031 $ 2,119,134 Property and equipment are stated at cost and depreciated generally under the straight-line method over their estimated useful lives (or the lesser of the term of the lease for leasehold improvements, as appropriate), except for tooling. Tooling is depreciated utilizing either the units-of-production method or a straight-line method over a life of 5-7 years depending on the type of tooling. As a result of the fair value adjustments made during the three months ended June 30, 2023 the Company made an adjustment to decrease depreciation expense for the six months ended June 30, 2023 resulting in a total of ($274,603) being recognized in the three months ended June 30, 2023 Depreciation expenses was $36,219 for the three months ended June 30, 2023 and 2022, respectively, and $633,133 and $72,047 for the six months ended June 30, 2003 and 2022, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
Goodwill and Intangible Assets	Jun. 30, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets Goodwill Goodwill was $21,031,064 as of June 30, 2023 compared to $626,647 as of December 31, 2022. Intangible Assets Identifiable intangible assets were $45,890,000 and amortization expense associated with identifiable intangible assets was $131,994 and $522,238 for the three and six months and ended June 30, 2023, respectively, and nil for 2022. The Company currently expects to recognize amortization expense related to intangible assets of approximately $1,260,666 in each of the next five fiscal years. The future amortization amounts are estimates. The following sets forth the intangible assets by major asset class as of June 30, 2023, all of which were acquired through business purchase transactions: Useful Life Original Accumulated Net Book (Years) Cost Amortization Value Trademark Indefinite 26,980,000 — 26,980,000 Internally-developed software 15 15,660,000 487,200 15,172,800 Customer Relationships 15 3,250,000 101,111 3,148,889 45,890,000 588,311 45,301,689

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
Accrued Expenses and Other Current Liabilities	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: June 30, December 31, 2023 2022 Accrued wages and bonus $ 175,892 $ 514,169 Research and development 402,100 47,547 Professional and consulting fees 494,307 16,876 Warranty reserve 385,748 — Accrued legal fees 2,153,956 439,901 Other accrued liabilities 2,256,736 209,909 Total accrued expenses and other current liabilities $ 5,868,740 $ 1,228,402

Notes Payable and Revolving Lin

Notes Payable and Revolving Line of Credit	6 Months Ended
Notes Payable and Revolving Line of Credit	Jun. 30, 2023
Notes Payable and Revolving Line of Credit
Notes Payable and Revolving Line of Credit	10. Notes Payable Senior Term Loan thirty-six fifty-nine March 1, 2028 Mezzanine Term Loan March 1, 2028 Facility Term Loan In June 2020, Legacy Molekule entered into a Facility Term Debt Agreement (the “Facility Term Loan”) with Trinity Capital, Inc. (“Trinity”) in order to obtain financing related to funding the build out of the Company’s filter manufacturing plant. The Company became a co-borrower under this agreement upon the closing of the Molekule Merger. Legacy Molekule drew down $2.9 million in June 2020, $0.6 million in September 2020, $0.9 million in December 2020 and $0.5 million in August 2021. Principal and interest are paid monthly with the principal being repaid in equal monthly installments from the month after the amount was drawn until April 1, 2026, with the last two months’ payments having been made at the inception of each loan. At the end of the term, Trinity also requires the Company to pay down an additional 10% of the total term draw down amount, which results in an additional payment of $0.4 million in total for all the draws. This additional payment is being accreted to the total outstanding amount over the term of the Facility Term Loan and resulted in an incremental $0.3 million of long-term debt to Trinity as of June 30, 2023. As of June 30, 2023, the outstanding principal balance under the Facility Term Loan was $2.4 million. The Facility Term Loan contains customary representations and warranties, affirmative and negative covenants and events of default. Notes payable consisted of the following: June 30, December 31, 2023 2022 Senior term loan $ 4,860,367 $ — Facility term loan 2,202,167 — Mezzanine term loan 30,300,000 — 37,362,534 — Less: Unamortized debt issuance fees 1,195,342 — Less: current portion 2,112,710 — Total long-term notes payable $ 34,054,483 $ —

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies.
Commitments and Contingencies	11. Commitments and Contingencies Lease Commitments – On February 1, 2021, the Company entered into a lease with Gardens Bio Science Partners, LLC, an entity controlled by the Company’s co-founder and Chairman of the Company’s Board of Directors (the “Board”). The leased premises consist of 20,000 square feet of office and warehouse space. The lease expires in February 2031. The annual base rent of $260,000 is subject to escalation of 2.5% on an annual basis. Rent expense under this lease was $118,549 and $244,602 for the three and six months ended June 30, 2023, respectively. As of June 30, 2023, the future minimum lease payments under this arrangement approximated $2,295,325 . In February 2019, Legacy Molekule entered into a lease agreement for office space in San Francisco, California. The leased premises consist of 38,000 square feet of office space. The lease expires in August 2026. The lease calls for monthly base rental payments of $209,231 commencing in the first month and fixed annual base rental increases of 3%. Rent expense is accounted for on a straight-line basis. Rent expense under this lease was $691,753 and $1,286,468 for the three and six months ended June 30, 2023, respectively. The lease expires in August 2026. Since June 2023, the lessor has been drawing under an existing letter of credit, which was put in place as security for payment of the monthly base rental payments. Amounts available under such letter of credit will be fully utilized by September, 2023 after which the Company will be required to pay its monthly base rental payments to the lessor. The Company is currently in discussions with the lessor to renegotiate the terms of the lease. There is no assurance that any such renegotiation will be successful. The Company leases office, warehouse and lab space under noncancelable leases with various expiration dates through 2026. Rent expense under these leases was $161,529 and $295,799 for the three and six months ended June 30, 2023, respectively. As of June 30, 2023, the future minimum lease payments under this arrangement approximated $10,817,986. Legal Proceedings From time to time, the Company is subject to legal proceedings in the normal course of operating its business. The outcome of litigation, regardless of the merits, is inherently uncertain. In August 2022, the Company received notice of a complaint filed in the U.S. District Court for the Southern District of New York (the “Court”) by Sterilumen, Inc. (“Sterilumen”), a wholly-owned subsidiary of Applied UV, Inc., in connection with the marketing and sale of the Company’s patented air purification products. In the complaint, the plaintiff alleged trademark infringement, violation of fair competition practices and damages to Sterilumen. On March 13, 2023, the Court dismissed Sterilumen’s claims with prejudice and ruled that the Company’s counterclaims remained extant. The Company subsequently agreed with Sterilumen that Sterilumen will not challenge the Court’s dismissal and will not bring any future claim against the Company alleging infringement from the use of SteriDuct or AeroClean and that the Company will file a notice to dismiss its counterclaims without prejudice. The Company did not establish a contingency reserve related to this matter. In November 2020, Legacy Molekule was named as the defendant in a class-action complaint in which the plaintiffs alleged that Legacy Molekule misrepresented the capabilities of its products. Legacy Molekule denied all allegations made by the plaintiffs. Without admitting any liability and solely for the purpose of eliminating the uncertainties and expenses of further protracted litigation, Legacy Molekule entered into a class-wide settlement of this matter, where the class was defined to include purchasers who bought Molekule devices from third-party retailers (e.g. Amazon, Best Buy). The settlement required dismissal of all remaining class-action claims against Legacy Molekule. The Court approved this settlement and entered judgment in the matter on January 25, 2022. The settlement is currently being administered with the cash settlement payment of $1,300,000 made in March 2022. The Company accrued a loss liability related to the matter of $1,400,000 as of June 30, 2023 and nil as of December 31, 2022. The Company enters into agreements with its customers, business partners and other parties in the ordinary course of business that include provisions for the indemnification, holding harmless and defense of indemnified parties of varying scope and terms with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of third-party IP infringement claims. In these circumstances, payment by the Company may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. In addition, the Company has indemnification agreements with its directors and executive officers. As of June 30, 2023, the Company had no other accrued liabilities related to other legal matters. Indemnities, Commitments and Guarantees fifty fifty Guaranteed Payment – one year five years Registration Rights Agreement – In connection with the Company’s initial public offering (the “Public Offering”) the Company entered into a registration rights agreement with the Chairman of its Board and each of its other stockholders that held 10% or more of its outstanding common stock immediately upon completion of the Public Offering. On January 12, 2023, this registration rights agreement was amended and restated in connection with the Molekule Merger by and among the Company and certain stockholders of AeroClean Technologies, Inc. and Legacy Molekule (the “Registration Rights Agreement”). The Registration Rights Agreement provides the stockholders party thereto with certain “demand” and customary “piggyback” registration rights. The Registration Rights Agreement provides that the Company will pay certain expenses relating to such registrations and indemnify the registration rights holders against certain liabilities that may arise under the Securities Act of 1933, as amended.

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2023
Related Party Transactions
Related Party Transactions	12. Related Party Transactions On February 26, 2023, the Company entered into an Agreement and Plan of Merger with Aura Smart Air Ltd. (“Aura”), an Israeli company listed on the Tel Aviv Stock Exchange (see Note 16 for more information). In connection with the transaction, the Company also entered into a Technology Collaboration Agreement and a Co-Distribution Agreement. Under the Technology Collaboration Agreement the Company paid $250,000 to Aura for a perpetual license to Aura’s Background Intellectual Property and other Intellectual Property owned or controlled by Aura for use in, amongst other items, selling Molekule products and services. Additionally, the Company paid $68,182 under the Technology Collaboration Agreement, the monthly payment amount due to Aura, for services as part of the Company’s collaboration with Aura on the statement of work specified in the agreement. The objectives of the statement of work include onboarding Company devices onto the Aura platform, sending and receiving data to the platform and implementing various internet of things and other Aura technologies into the Company’s devices and software.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2023
Stockholders' Equity
Stockholders' Equity	13. Stockholders’ Equity Long-term Incentive Plan In conjunction with its IPO, on November 23, 2021, the Company adopted the Employee Stock Purchase Plan, the 2021 Incentive Award Plan (the “Long-Term Incentive Plan” or the “LTIP”) and the Non-Employee Directors Stock and Deferred Compensation Plan (collectively, the “Plans”) and has reserved 2,802,273 shares, collectively, for issuance or sale under the Plans. The Board approved an amendment to the LTIP to increase the shares authorized to be issued by 1,500,000, and the evergreen set forth in the LTIP resulted in an increase of 277,552 shares. The Company’s Compensation Committee has the authority under the LTIP to grant stock options; stock appreciation rights, restricted stock, restricted stock units, performance stock, performance units, and other forms of equity-based or equity-related awards. Compensation cost is generally recorded on a straight-line basis over the vesting term of the shares based on the grant date value using the closing trading price. Stock-based compensation expenses were $1,502,724 and $708,540 for the three months ended June 30, 2023 and 2022, respectively, and $3,404,431 and $1,379,378 for the six months ended June 30, 2023 and 2022, respectively. During the three months ended June 30, 2023, the Company granted 500,000 restricted stock units to members of management and none to members of the Board under the LTIP. During the six months ended June 30, 2023, the Company granted 1,232,090 restricted stock units to members of management and 742,000 restricted stock units to members of the Board under the LTIP. The total number of restricted stock units issued at June 30, 2023 was 3,425,537. Unrecognized compensation expense related to restricted stock awards made by the Company was $10,957,851 at June 30, 2023. As of June 30, 2023, the Company had 2,530,859 shares available for issuance under the 2021 Plan. Number of RSUs Weighted Average Grant-Date Fair Value Balance at December 31, 2022 1,451,448 $ 5.67 Awarded Legacy AeroClean 1,974,090 $ 2.78 Awarded Molekule Merger 2,964,241 $ 3.40 Forfeited/Vested (901,764) $ 3.40 Balance at June 30, 2023 5,488,015 $ 3.73 Private Placements On June 29, 2022, the Company completed a private placement in connection with a securities purchase agreement dated June 26, 2022 (the “2022 Private Placement”). In the 2022 Private Placement, the Company received gross cash proceeds of $15,000,000 in connection with the issuance of (i) 1,500,000 shares of common stock and (ii) a warrant to purchase up to 1,500,000 shares of common stock, as amended (the “2022 Warrant”). The Warrant had an exercise price of $11.00 per share, which amount was adjusted to $2.00 per share in connection with the 2023 Private Placement (as defined, and further described below) and is exercisable until July 21, 2027. Net proceeds amounted to $13,578,551 after issuance costs of $1,421,449. As the 2022 Warrant was liability classified, the gross proceeds and issuance costs were allocated to the 2022 Warrant liability based on its fair value with the residual being allocated to the common stock, resulting in the allocation of gross proceeds of $13,995,000 and $1,005,000 to the 2022 Warrant liability and common stock, respectively, and issuance costs of $1,326,212 and $95,237 were charged to expense and additional paid in capital, respectively. In conjunction with the 2022 Private Placement, the Company entered into a registration rights agreement whereby the Company was required to register for resale and maintain the effectiveness of the registration statement that registers the resale of shares of common stock held by the selling stockholder and the shares of common stock issuable upon exercise of the 2022 Warrant. Pursuant to the registration rights agreement, the Company is liable for certain liquidated damages upon failure to comply with such registration rights. On January 27, 2023, the Company’s registration statement on Form S-3 relating to the resale of 3,000,000 shares of common stock by the selling stockholder listed in the prospectus (including 1,500,000 shares of common stock issued in the 2022 Private Placement and 1,500,000 shares of common stock issuable upon the exercise of the outstanding 2022 Warrant acquired in the 2022 Private Placement) was declared effective by the SEC. The Company will not receive any proceeds in connection with the sale of common stock by the selling stockholder but will receive the exercise price of the 2022 Warrant to the extent the 2022 Warrant is exercised by the selling stockholder. On May 3, 2023, the Company entered into a Securities Purchase Agreement with the Selling Stockholder, pursuant to which the Company agreed to sell (i) 3,400,000 Shares, (ii) 3,125,000 shares of common stock that are issuable upon the exercise of the Series A Warrant, (iii) 6,250,000 shares of common stock that are issuable upon the exercise of the Series B Warrant and (iv) 2,850,000 shares of common stock that are issuable upon the exercise of the Pre-Funded Warrant, for an aggregate purchase price of approximately $9,971,500 (the “ 2023 Private Placement”). The Securities Purchase Agreement contains customary representations, warranties and agreements by the Company. The closing of the 2023 Private Placement occurred on May 5, 2023. The Company also agreed to reduce the exercise price of the 2022 Warrant owned by the Selling Stockholder to $2.00 per share of common stock. The Series A Warrant has an exercise price of $1.60 per share of common stock, the Series B Warrant has an exercise price of $1.84 per share of common stock, and the Pre-Funded Warrant has an exercise price of $0.01 per share of common stock. The Series A Warrant, the Series B Warrant and the Pre-Funded Warrant are all exercisable as of June 30, 2023. The Series A Warrant will terminate on February 23, 2024. The Series B Warrant and the Pre-Funded Warrant will terminate on June 23, 2028. As of June 30, 2023, the Selling Stockholder beneficially owns approximately 9.9% of the outstanding shares of common stock of the Company. Each of the Series A Warrant, the Series B Warrant and the Pre-Funded Warrant, contain an ownership limitation providing that the Selling Stockholder may not exercise the Series A Warrant, the Series B Warrant or the Pre-Funded Warrant with respect to any shares of common stock that would result in the Selling Stockholder beneficially owning more than 4.99% of the outstanding shares of common stock. The Selling Stockholder may increase or decrease this limitation upon notice to us, but in no event will any such limitation exceed 9.99%. In connection with the 2023 Private Placement, the Company entered into a Registration Rights Agreement with the Selling Stockholder. Pursuant to the Registration Rights Agreement, the Company was required to file and maintain a resale registration statement with the SEC in order to register the shares sold to the Selling Stockholder and the shares underlying the Warrants. The Company will be obligated to pay certain liquidated damages to the Selling Stockholder if it fails to maintain the effectiveness of the registration statement pursuant to the terms of the Registration Rights Agreement. In accordance with the requirements of the Registration Rights Agreement, the Company filed a resale registration statement on Form S-3 covering the shares acquired by the Selling Shareholder and the shares issuable upon the conversion of the Series A Warrant, the Series B Warrant and the Pre-Funded Warrant. The Form S-3 was declared effective by the SEC on June 26, 2023.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
Net Income (Loss) Per Common Share	Jun. 30, 2023
Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share	14. Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed using the weighted average common shares outstanding during the period. Diluted net income (loss) per common share reflects the potential dilution from the assumed conversion of all dilutive securities such as unvested restricted stock units, the purchase option issued to the underwriters in the Public Offering (the “Underwriter Option”) and the 2022 Warrant using the treasury stock method. When the effects of the outstanding unvested restricted stock units, the Underwriter Option and the 2022 Warrant are anti-dilutive, they are not included in the calculation of diluted net loss per common share. The following table sets forth the computation of basic and diluted net loss per common share for the three months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss $ (24,969,242) $ (5,172,277) $ (34,902,648) $ (7,750,241) Basic and diluted weighted average common shares 33,017,565 13,894,119 31,185,329 13,885,923 Basic and diluted net loss per common share $ (0.76) $ (0.37) $ (1.12) $ (0.56) The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Six Months Ended June 30, 2023 2022 Outstanding Warrants 13,725,000 1,500,000 Restricted stock units 5,488,015 626,268 Total 19,213,015 2,126,268

Aura Smart Air Merger Agreement

Aura Smart Air Merger Agreement	6 Months Ended
Aura Smart Air Merger Agreement	Jun. 30, 2023
Aura Smart Air Merger Agreement
Aura Smart Air Merger Agreement	16. Aura Smart Air Merger Agreement

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U. S. Securities and Exchange Commission (the “SEC”) and include the Company’s wholly owned subsidiaries, GSI Technology, for the current period and Legacy Molekule since January 12, 2023. All significant intercompany accounts and transactions have been eliminated in consolidation. Accordingly, U.S. condensed consolidated
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and related disclosure of contingent assets and liabilities. Significant estimates in these unaudited condensed consolidated financial statements include those related to the fair value of equity-based compensation, revenue recognition, the incremental borrowing rate for leases, the fair value of warrant liability, valuation in connection with business combination and the deferred tax valuation allowance. On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the inherent uncertainty involved in making estimates, actual results could differ materially from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with maturities at the date of investment of not more than three months. The Company held no cash equivalents as of June 30, 2023 and 2022.
Restricted Cash	Restricted Cash The Company had a restricted cash balance of $629,742 as of June 30, 2023 and nil as of December 31, 2022. The restricted cash balance constitutes collateral pursuant to the terms of an office lease. The restricted cash balance is held in a separate bank account.
Revenue Recognition	Revenue Recognition The Company recognizes revenues related to sales of products upon the customer obtaining control of promised goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. To determine revenue recognition for arrangements within the scope of ASC Topic 606, Revenue from Contracts with Customers, allocates the transaction price to filters based upon their standalone sales price. The transaction price allocated to the device is estimated based on the residual method, as the devices do not have an established standalone sales price and are never sold without filters. All performance obligations are satisfied within one year; therefore, costs to obtain contracts are expensed as incurred. There is no financing component because the Company expects, at contract inception, the period between when the Company transfers product to the customer and when the customer pays for the product will be less than one year. Sales terms allow for the right of return, and the Company has recorded a related reserve based on historical, as well as post year-end, activity. Customers may, for any reason, return the product within 30 days for a full refund, excluding shipping charges. The Company establishes a liability for expected returns representing the amount of consideration the entity does not expect to be entitled to because it will be refunded to customers. The refund liability is remeasured at each reporting date to reflect changes in the estimate, with a corresponding adjustment to revenues. The Company satisfies the performance obligations and records revenues when transfer of control has passed to the customer based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Sales taxes collected from customers are not recorded within revenues and are remitted to the taxing authorities periodically. Shipping and handling are recorded in revenues and cost of revenues on the Statements of Operations and are charged to customers at varying rates. The Company recognized revenue of $13,242,959 and $70,918 in the three months ended June 30, 2023 and 2022, respectively, and $21,592,380 and $77,652 for the six months ended June 30, 2023 and 2022, respectively.
Warranty Costs	Warranty Cost The Company provides a three-year warranty on its Pūrgo device and a two year warranty for the Legacy Molekule devices, in each case, from the date of sale to its customers. The Company’s policy is to record a provision for estimated future costs related to warranty expense when they are probable and reasonably estimable, which is when revenue is recognized. There was a warranty accrual of $385,748 as of June 30, 2023 and nil as of December 31, 2022.
Income Taxes	Income Taxes Income taxes are accounted for under ACS 740 utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carry forwards are expected to be recovered, settled or utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. If such an event occurs, a valuation allowance is recorded. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as income tax expense. At June 30, 2023 and December 31, 2022, the company did not record any uncertain tax positions.
Research & Development Expenses	Research & Development Expenses Research and development expenses are expensed as incurred and consist principally of contract labor and third-party engineering, product development and testing costs related to the development of medical grade air purification devices and related components as well as concepts for future product development.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for share-based payments to employees and non-employees in accordance with the provisions of FASB ASC 718, Compensation — Stock Compensation (“ASC 718”). Under ASC 718, the Company measures the share-based compensation cost on the date of grant, based on the fair value of the award, and expense is recognized over the requisite service period.
Accounts Receivable	Accounts Receivable Trade accounts receivable are stated net of an allowance for doubtful accounts. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness, as determined by review of their current credit information. The Company estimates the allowance for doubtful accounts based on review and analysis of specific customer balances that may not be collectible and how recently payments have been received. The Company also evaluates the need for a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. Accounts are considered for write-off when they become past due and when it is determined that the probability of collection is remote. For more information on the adoption of Topic 326 Current Expected Credit Losses
Inventories	Inventories The Company values inventories at the lower of cost or net realizable value using the first-in, first-out or weighted average cost
Fair Value of Financial Instruments	Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value in accordance with U.S. GAAP. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy that prioritizes the inputs used in the valuation methodologies, is as follows: Level 1 Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or that can be corroborated by observable market data. Level 3 Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. At June 30, 2023 and December 31, 2022, the carrying amounts of the Company’s financial instruments, including cash and restricted cash, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximated their respective fair value due to the short-term nature of these instruments.
Financial Instruments - Derivatives	Financial Instruments – Derivatives
Debt Issuance Costs	Debt Issuance Costs
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company has recorded intangible assets, and goodwill, in connection with business combinations. Estimated useful lives of amortizable intangible assets are determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows. In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests these assets for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations.
Business Acquisition Accounting	Business Acquisition Accounting The Company applies the acquisition method of accounting for acquisitions that meet the criteria of a business combination. The Company allocates the purchase price of its business acquisitions based on the fair value of identifiable tangible and intangible assets. The difference between the total purchase consideration and the sum of the fair values of acquired tangible and identifiable intangible assets less the fair value of the liabilities assumed is recorded as goodwill. Transaction costs are expensed as incurred in general and administrative expenses.
Recent Accounting Pronouncements	The Company has reviewed recent accounting pronouncements and, with the exception of the below, concluded they are either not applicable to the business or no material effect is expected on the financial statements as a result of future adoption. In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses, which was subsequently amended by ASU No. 2018-19 and ASU No. 2019-10, and which requires the measurement of expected credit losses for financial instruments carried at amortized cost held at the reporting date based on historical experience, current conditions and reasonable forecasts. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. 2016 13 2016 13 , 2023, not

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
Business Combination (Tables)	Jun. 30, 2023
Business Combination
Schedule of Fair Values of Assets Acquired and Liabilities Assumed in the Legacy Molekule Acquisition	The following table summarizes the provisional amounts allocated to the estimated fair values of assets acquired and fair values of liabilities assumed in the Legacy Molekule acquisition in accordance with ASC 805: Legacy Molekule Cash and cash equivalents $ 2,988,100 Accounts receivable 378,195 Inventories 31,081,238 Prepaid and other current assets 1,138,784 Property, Plant and Equipment 6,402,425 Goodwill 20,404,413 Intangible assets, net 45,890,000 Right of Use Assets 10,479,883 Other long-term assets 220,779 Accounts payable (12,094,186) Accrued expenses (3,001,862) Accrued sales tax (516,530) Notes payable (36,576,443) Operating lease liabilities (10,480,088) Deferred tax liabilities (1,597,682) Other current and non-current liabilities (2,250,953) Total consideration $ 52,466,073
Schedule of Pro Forma Information in Acquisition of Molekule Inc.	On a pro forma basis to give effect to the Molekule merger as if it occurred on January 1, 2022, revenues, net loss and loss per basic share for the six months ended June 30, 2023 and 2022 would have been as follows: June 30, 2023 June 30, 2022 Pro forma Pro forma Revenues $ 22,762,753 25,226,575 Net loss (36,498,858) (11,566,624) Loss per diluted share (1.17) (0.83)

Financial Instruments Fair Va_2

Financial Instruments Fair Value Measurements (Tables)	6 Months Ended
Financial Instruments Fair Value Measurements (Tables)	Jun. 30, 2023
Financial Instruments Fair Value Measurements
Schedule of fair value of warrants estimated using Black-Scholes pricing model, assumptions	The following table provides the significant inputs to the Black-Scholes pricing model for the fair value of the 2022 Warrant: At May 3, 2023 At May 5, 2023 At June 30, 2023 Stock price $ 1.57 $ 1.57 $ 2.34 Expiration term (in years) 4.39 4.39 4.24 Volatility 98.0 % 98.0 % 96.0 % Risk-free rate 3.50 % 3.50 % 4.3 % Dividend yield 0.0 % 0.0 % 0.0 % Fair Value per Warrant $ 0.61 $ 1.07 $ 1.71

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Jun. 30, 2023
Inventories
Schedule of Inventories	Inventories consisted of the following: June 30, December 31, 2023 2022 Raw materials $ 4,002,445 $ 712,752 Finished goods 15,096,071 1,307,961 Work in process 10,334,364 — Total inventories $ 29,432,880 $ 2,020,713

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
Property and Equipment (Tables)	Jun. 30, 2023
Property and Equipment
Schedule of Property and Equipment	Property and equipment consisted of the following: Useful Life June 30, December 31, (Years) 2023 2022 Leasehold improvements Lesser of useful life or lease term $ 2,748,934 $ 847,217 Machinery and tooling 5 - 7 3,780,221 1,270,652 Furniture and equipment 3 - 10 928,208 241,835 Software 2-3 1,390,514 — Construction in progress 651,857 — 9,499,734 2,359,704 Less: accumulated depreciation 873,703 240,570 $ 8,626,031 $ 2,119,134

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
Goodwill and Intangible Assets (Tables)	Jun. 30, 2023
Goodwill and Intangible Assets
Schedule of Intangible Assets by Major Asset Class Acquired Via Business Acquisition	The following sets forth the intangible assets by major asset class as of June 30, 2023, all of which were acquired through business purchase transactions: Useful Life Original Accumulated Net Book (Years) Cost Amortization Value Trademark Indefinite 26,980,000 — 26,980,000 Internally-developed software 15 15,660,000 487,200 15,172,800 Customer Relationships 15 3,250,000 101,111 3,148,889 45,890,000 588,311 45,301,689

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
Accrued Expenses and Other Current Liabilities (Tables)	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: June 30, December 31, 2023 2022 Accrued wages and bonus $ 175,892 $ 514,169 Research and development 402,100 47,547 Professional and consulting fees 494,307 16,876 Warranty reserve 385,748 — Accrued legal fees 2,153,956 439,901 Other accrued liabilities 2,256,736 209,909 Total accrued expenses and other current liabilities $ 5,868,740 $ 1,228,402

Notes Payable and Revolving L_2

Notes Payable and Revolving Line of Credit (Tables)	6 Months Ended
Notes Payable and Revolving Line of Credit (Tables)	Jun. 30, 2023
Notes Payable and Revolving Line of Credit
Schedule of Notes Payable and Revolving Line of Credit	Notes payable consisted of the following: June 30, December 31, 2023 2022 Senior term loan $ 4,860,367 $ — Facility term loan 2,202,167 — Mezzanine term loan 30,300,000 — 37,362,534 — Less: Unamortized debt issuance fees 1,195,342 — Less: current portion 2,112,710 — Total long-term notes payable $ 34,054,483 $ —

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2023
Stockholders' Equity
Schedule of Restricted Stock Unit Activity	Unrecognized compensation expense related to restricted stock awards made by the Company was $10,957,851 at June 30, 2023. As of June 30, 2023, the Company had 2,530,859 shares available for issuance under the 2021 Plan. Number of RSUs Weighted Average Grant-Date Fair Value Balance at December 31, 2022 1,451,448 $ 5.67 Awarded Legacy AeroClean 1,974,090 $ 2.78 Awarded Molekule Merger 2,964,241 $ 3.40 Forfeited/Vested (901,764) $ 3.40 Balance at June 30, 2023 5,488,015 $ 3.73

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
Net Income (Loss) Per Common Share (Tables)	Jun. 30, 2023
Net Income (Loss) Per Common Share
Schedule of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per common share for the three months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss $ (24,969,242) $ (5,172,277) $ (34,902,648) $ (7,750,241) Basic and diluted weighted average common shares 33,017,565 13,894,119 31,185,329 13,885,923 Basic and diluted net loss per common share $ (0.76) $ (0.37) $ (1.12) $ (0.56)
Schedule of Anti-Dilutive Shares Excluded From EPS	The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Six Months Ended June 30, 2023 2022 Outstanding Warrants 13,725,000 1,500,000 Restricted stock units 5,488,015 626,268 Total 19,213,015 2,126,268

Description of Business (Detail

Description of Business (Details) - USD ($)	3 Months Ended	6 Months Ended
Description of Business (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net income (loss)	$ (5,172,277)		$ (7,750,241)
Accumulated deficit				$ (7,916,791)
Net cash used in operating activities		$ (27,329,771)	$ (4,312,706)
Revenue covenant 12 months ended March 2024
Disaggregation of Revenue [Line Items]
Annual revenue target		$ 50,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Cash	$ 629,742		$ 629,742
Product revenues	$ 13,242,959	$ 70,918	$ 21,592,380	$ 77,652
Product warranty accrual		$ 385,748		$ 385,748
Purgo air purification devices
Product warranty term	30 days		30 days

Business Combination (Details)

Business Combination (Details) - USD ($)	Jan. 12, 2023	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 21,031,064	$ 626,647
Common stock, par value		$ 0.01	$ 0.01
Common stock, shares outstanding		34,046,500	15,408,828
Acquisition of Molekule \| AeroClean Technologies, Inc.
Business Acquisition [Line Items]
Net assets acquired	$ 66,000,000
Identifiable intangible assets acquired	46,000,000
Goodwill	$ 20,000,000
Effective date of acquisition	Jan. 12, 2023
Acquisition of Molekule \| AeroClean Technologies, Inc. \| Trademark
Business Acquisition [Line Items]
Identifiable intangible assets acquired	$ 27,000,000
Acquisition of Molekule \| AeroClean Technologies, Inc. \| Software
Business Acquisition [Line Items]
Identifiable intangible assets acquired	16,000,000
Acquisition of Molekule \| AeroClean Technologies, Inc. \| Customer Relationships
Business Acquisition [Line Items]
Identifiable intangible assets acquired	$ 3,000,000
Acquisition of Molekule \| AeroClean Technologies, Inc. \| Common Stock
Business Acquisition [Line Items]
Common stock, par value	$ 0.0001
Equity ownership in outstanding shares	49.50%
Common stock, shares outstanding	30,427,750
Acquisition of Molekule \| AeroClean Technologies, Inc. \| Non-Assessable Common Stock
Business Acquisition [Line Items]
Shares issued at effective time of acquisition	14,907,210
Restricted stock units, granted	500,380

Business Combination - Fair Val

Business Combination - Fair Value of Acquired Assets and Liabilities (Details) - Acquisition of Molekule	Jan. 12, 2023 USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 2,988,100
Accounts receivable	378,195
Inventories	31,081,238
Prepaid and other current assets	1,138,784
Property, Plant and Equipment	6,402,425
Goodwill	20,404,413
Intangible assets, net	45,890,000
Right of Use Asset	10,479,883
Other long-term assets	220,779
Accounts payable	(12,094,186)
Accrued expenses	(3,001,862)
Accrued sales tax	(516,530)
Notes payable	(36,576,443)
Operating lease liabilities	(10,480,088)
Deferred tax liabilities	(1,597,682)
Other current and non-current liabilities	(2,250,953)
Total consideration	$ 52,466,073

Business Combination - Pro-form

Business Combination - Pro-forma Share of Revenues (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Revenues	$ 13,242,959	$ 70,918	$ 21,592,380	$ 77,652
Net loss		$ (5,172,277)		$ (7,750,241)
Loss per diluted share	$ (0.76)	$ (0.37)	$ (1.12)	$ (0.56)
Acquisition of Molekule
Business Acquisition [Line Items]
Revenues			$ 22,762,753	$ 25,226,575
Net loss			$ (36,498,858)	$ (11,566,624)
Loss per diluted share			$ (1.17)	$ (0.83)

Financial Instruments Fair Va_3

Financial Instruments Fair Value Measurements (Details) - USD ($)			3 Months Ended	6 Months Ended
	May 03, 2023	Jun. 29, 2022	Jun. 30, 2023	Jun. 30, 2023	May 05, 2023	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability, at fair value			$ 23,634,000	$ 23,634,000		$ 3,372,000
Gain on FV change in warrant liability			(12,050,500)	$ (10,324,500)
Private placement offering costs			$ 673,290
Common stock, par value			$ 0.01	$ 0.01		$ 0.01
Common stock, shares outstanding			34,046,500	34,046,500		15,408,828
2022 Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gross proceeds from private placement		$ 15,000,000
2023 Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Adjusted exercise price of warrants		$ 2
Securities Purchase Agreement Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	3,400,000
Gross proceeds from private placement	$ 9,971,500
Securities Purchase Agreement, Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	3,125,000
Securities Purchase Agreement, Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	6,250,000
Securities Purchase Agreement, Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	2,850,000
2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability, at fair value						$ 3,372,000
2022 Warrants \| Securities Purchase Agreement Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price of warrants	$ 11
Exercise price of warrants after reductions					$ 2
Series A Warrants \| Securities Purchase Agreement Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	3,125,000
Series B Warrants \| Securities Purchase Agreement Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	6,250,000
Pre-Funded Warrants \| Securities Purchase Agreement Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of common stock shares issued	2,850,000
2023 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability, at fair value			$ 23,634,000	$ 23,634,000
Number of warrants issued			3,400,000	3,400,000
Expense, warrants fair value in excess of gross proceeds				$ 3,018,500
Value of warrants at par value				$ 34,000
Stock price \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price of warrants	$ 1.57		$ 2.34	$ 2.34	1.57
Stock price \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price of warrants			2.34	2.34	1.57
Stock price \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price of warrants			2.34	2.34	1.57
Stock price \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price of warrants			$ 2.34	$ 2.34	$ 1.57

Financial Instruments Fair Va_4

Financial Instruments Fair Value Measurements - Black-Scholes Measurement Inputs (Details)			6 Months Ended
	May 05, 2023 $ / shares	May 03, 2023 $ / shares	Jun. 30, 2023 $ / shares
Stock price \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	$ 1.57	$ 1.57	$ 2.34
Stock price \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	1.57		2.34
Stock price \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	1.57		2.34
Stock price \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	$ 1.57		$ 2.34
Expiration term (in years) \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (expiration term)	4 years 4 months 20 days	4 years 4 months 20 days	4 years 2 months 26 days
Expiration term (in years) \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (expiration term)	8 months 1 day		6 months 3 days
Expiration term (in years) \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (expiration term)	5 years		4 years 10 months 6 days
Expiration term (in years) \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (expiration term)	5 years		4 years 10 months 6 days
Volatility \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	98	98	96
Volatility \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	85		99
Volatility \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	98		96
Volatility \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	98		96
Risk-free Rate \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	3.50	3.50	4.3
Risk-free Rate \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	5		5.5
Risk-free Rate \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	3.40		4.2
Risk-free Rate \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	3.40		4.2
Dividend yield \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	0	0	0
Dividend yield \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	0		0
Dividend yield \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	0		0
Dividend yield \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (percentage)	0		0
Fair Value per Warrant \| 2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	$ 1.07	$ 0.61	$ 1.71
Fair Value per Warrant \| Series A Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	0.43		1.01
Fair Value per Warrant \| Series B Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	1.14		1.80
Fair Value per Warrant \| Pre-Funded Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value warrants measurement input (price per share)	$ 1.56		$ 2.33

Financial Instruments Fair Va_5

Financial Instruments Fair Value Measurements - Reconciliation of Warrant Liability (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
2022 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants at fair value, opening balance	$ 1,646,000	$ 3,372,000
Warrants, change in fair value	691,000	691,000
Warrants, change in fair value	223,000	(1,503,000)
Warrants at fair value, closing balance	2,560,000	2,560,000
2023 Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, initial fair value on date of issuance	12,956,000	12,956,000
Warrants, change in fair value	8,118,000	8,118,000
Warrants at fair value, closing balance	$ 21,074,000	$ 21,074,000

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets	$ 1,801,533	$ 665,395

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventories
Raw materials	$ 4,002,445	$ 712,752
Finished goods	15,096,071	1,307,961
Work in progress	10,334,364
Total inventories	$ 29,432,880	$ 2,020,713

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	6 Months Ended		15 Months Ended
Property and Equipment (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Property and Equipment, Net
Property and equipment, gross	$ 9,499,734		$ 9,499,734	$ 2,359,704
Less accumulated depreciation	873,703		873,703	240,570
Construction in progress	651,857		651,857
Property and equipment, net	8,626,031		8,626,031	2,119,134
Depreciation	633,133	$ 72,047	36,219
Adjustment in depreciation expense	(274,603)
Leasehold improvements
Property and Equipment, Net
Property and equipment, gross	2,748,934		2,748,934	847,217
Machinery and tooling
Property and Equipment, Net
Property and equipment, gross	$ 3,780,221		$ 3,780,221	1,270,652
Machinery and tooling \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years		5 years
Machinery and tooling \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	7 years		7 years
Furniture and equipment
Property and Equipment, Net
Property and equipment, gross	$ 928,208		$ 928,208	$ 241,835
Furniture and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years		3 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	10 years		10 years
Software
Property and Equipment, Net
Property and equipment, gross	$ 1,390,514		$ 1,390,514
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	2 years		2 years	2 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years		3 years	3 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended	6 Months Ended
Goodwill and Intangible Assets (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Indefinite-Lived Intangible Assets [Line Items]
Goodwill	$ 21,031,064	$ 21,031,064	$ 626,647
Identifiable intangible assets	45,890,000	45,890,000
Intangible assets, amortization expense			$ 0
Amortization expense, intangible assets	131,994	522,238
Intangible assets, expected future amortization expense	1,260,666	1,260,666
Intangible assets, original cost	45,890,000	45,890,000
Intangible assets, accumulated amortization	588,311	588,311
Intangible assets, net book value	45,301,689	45,301,689
Trademark
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets, original cost	26,980,000	26,980,000
Intangible assets, net book value	$ 26,980,000	$ 26,980,000
Software
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets useful life	15 years	15 years
Intangible assets, original cost	$ 15,660,000	$ 15,660,000
Intangible assets, accumulated amortization	487,200	487,200
Intangible assets, net book value	$ 15,172,800	$ 15,172,800
Customer Relationships
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets useful life	15 years	15 years
Intangible assets, original cost	$ 3,250,000	$ 3,250,000
Intangible assets, accumulated amortization	101,111	101,111
Intangible assets, net book value	$ 3,148,889	$ 3,148,889

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accrued Expenses and Other Current Liabilities
Accrued wages and bonus	$ 175,892	$ 514,169
Research and development	402,100	47,547
Professional and consulting fees	494,307	16,876
Warranty reserve	385,748
Accrued Legal Fees	2,153,956	439,901
Other accrued liabilities	2,256,736	209,909
Total accrued expenses and other current liabilities	$ 5,868,740	$ 1,228,402

Notes Payable and Revolving L_3

Notes Payable and Revolving Line of Credit (Details) - USD ($)	1 Months Ended				3 Months Ended	6 Months Ended
	Aug. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2023	Jun. 30, 2023	Mar. 31, 2021	Jun. 30, 2016
Loan and Security Agreement \| Senior Term Loan
Line of Credit Facility [Line Items]
Outstanding principal balance						$ 4,300,000
Silicon Valley Bank \| Loan and Security Agreement \| Senior Term Loan
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity								$ 7,600,000
Debt Issuance Costs, Gross, Current						$ 380,000
Debt Instrument, Interest Rate, Stated Percentage						9.25%
Duration of remaining monthly payments					36 months	59 months
Debt Instrument, Maturity Date						Mar. 01, 2028
Restructuring fee						$ 200,000
Silicon Valley Bank \| Loan and Security Agreement \| Senior Term Loan \| Annual Interest Rate (Greater of Prime +1% or 4.25%) \| Base Rate
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate						4.25%
Silicon Valley Bank \| Loan and Security Agreement \| Senior Term Loan \| Annual Interest Rate (Greater of Prime +1% or 4.25%) \| Prime Rate
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate						1%
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan
Line of Credit Facility [Line Items]
Outstanding principal balance						$ 30,000,000
Debt Instrument, Interest Rate, Stated Percentage						14.25%
Duration of remaining monthly payments						36 months
Debt Instrument, Maturity Date						Mar. 01, 2028
Restructuring fee						$ 300,000
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan \| Annual Interest Rate (Greater of Prime +6% or 9.25%) \| Base Rate
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate						9.25%
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan \| Annual Interest Rate (Greater of Prime +6% or 9.25%) \| Prime Rate
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate						6%
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan \| Financial Covenants
Line of Credit Facility [Line Items]
Cash balance to maintain						$ 2,000,000
Annual revenue target						50,000,000
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan Tranche A
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 15,000,000
Silicon Valley Bank \| Loan and Security Agreement \| Mezzanine Term Loan Tranche B
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 15,000,000
Trinity \| Facility Term Debt Agreement \| Facility Term Loan
Line of Credit Facility [Line Items]
Additional payment due on loan draw downs						400,000
Reclassification of term loan payment to long-term debt						300,000
Outstanding principal balance						$ 2,400,000
Fee percentage on total amount drawn, end of loan term						10%
Trinity \| Facility Term Debt Agreement \| Facility Term Loan \| June 2020
Line of Credit Facility [Line Items]
Draws on term loan				$ 2,900,000
Trinity \| Facility Term Debt Agreement \| Facility Term Loan \| September 2020
Line of Credit Facility [Line Items]
Draws on term loan			$ 600,000
Trinity \| Facility Term Debt Agreement \| Facility Term Loan \| December 2020
Line of Credit Facility [Line Items]
Draws on term loan		$ 900,000
Trinity \| Facility Term Debt Agreement \| Facility Term Loan \| August 2021
Line of Credit Facility [Line Items]
Draws on term loan	$ 500,000

Notes Payable and Revolving L_4

Notes Payable and Revolving Line of Credit - Outstanding Loan Amounts (Details)	Jun. 30, 2023 USD ($)
Line of Credit Facility [Line Items]
Senior notes	$ 37,362,534
Unamortized debt issuance fees	1,195,342
Less: current portion	2,112,710
Total long-term notes payable	34,054,483
Senior Term Loan
Line of Credit Facility [Line Items]
Senior notes	4,860,367
Facility Term Loan
Line of Credit Facility [Line Items]
Senior notes	2,202,167
Mezzanine Term Loan
Line of Credit Facility [Line Items]
Senior notes	$ 30,300,000

Commitments and Contingencies (

Commitments and Contingencies (Details)				1 Months Ended		3 Months Ended	6 Months Ended
Commitments and Contingencies (Details)	Oct. 03, 2022 shares	Aug. 10, 2022 USD ($)	May 01, 2021 shares	Nov. 30, 2020	Feb. 28, 2019 USD ($) ft²	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jan. 12, 2023	Dec. 31, 2022 USD ($)	Jan. 25, 2022 USD ($)	Feb. 28, 2021 ft²
Other Commitments [Line Items]
Operating lease right-of-use assets						$ 10,952,143	$ 10,952,143		$ 1,606,485
Gardens Bio Science Partners, LLC
Other Commitments [Line Items]
Operating lease payments							260,000
Lease Commitments \| Office Building
Other Commitments [Line Items]
Area of leased premises \| ft²					38,000
Operating lease payments					$ 209,231	691,753	1,286,468
Operating lease escalation rate					3%
Lease Commitments \| Warehouse Space
Other Commitments [Line Items]
Operating lease payments						161,529	295,799
Total Lease Payments						10,817,986	10,817,986
Lease Commitments \| Gardens Bio Science Partners, LLC
Other Commitments [Line Items]
Area of leased premises \| ft²											20,000
Operating lease payments						$ 118,549	$ 244,602
Operating lease escalation rate						2.50%	2.50%
Total Lease Payments						$ 2,295,325	$ 2,295,325
Legal Proceedings
Other Commitments [Line Items]
Litigation expense, settlement costs										$ 1,300,000
Estimated litigation liability						$ 1,400,000	$ 1,400,000
Indemnities, Commitments and Guarantees \| Executives
Other Commitments [Line Items]
Executive management severance period in the event of termination				6 months
Restricted stock units granted to executives in amended employment agreement \| shares	732,090
Indemnities, Commitments and Guarantees \| Independent contractors
Other Commitments [Line Items]
Cash compensation, percentage			50%
Equity compensation, percentage			50%
Indemnities, Commitments and Guarantees \| Initial public offering \| Executives
Other Commitments [Line Items]
Restricted stock units granted to executives in IPO \| shares			443,269
Sales Agency Agreement
Other Commitments [Line Items]
Sales Agency Agreement term		1 year
Sales Agency Agreement \| Minimum
Other Commitments [Line Items]
Guaranteed minimum monthly payments		$ 502,500
Sales Agency Agreement \| Maximum
Other Commitments [Line Items]
Sales Agency Agreement renewal term		5 years
Guaranteed minimum monthly payments		$ 667,500
Registration Rights Agreement \| Minimum
Other Commitments [Line Items]
Common stock ownership threshold for parties subject to the Registration Rights Agreement								10%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)		3 Months Ended		6 Months Ended
Related Party Transactions (Details) - USD ($)	Feb. 26, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transactions
Product revenues		$ 13,242,959	$ 70,918	$ 21,592,380	$ 77,652
Accounts receivable		2,210,700		2,210,700		$ 36,188
Notes payable, current portion		$ 2,112,710		2,112,710
Aura Smart Air \| Technology Collaboration Agreement
Related Party Transactions
Payments for perpetual licensing agreement	$ 250,000
Monthly payments to Aura Smart Air				$ 68,182

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock and Preference Shares (Details) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Stockholders' Equity
Common stock, shares authorized	110,000,000	110,000,000
Common stock, par value	$ 0.01	$ 0.01

Stockholders' Equity - Long-ter

Stockholders' Equity - Long-term Incentive Plan (Details) - USD ($)		3 Months Ended		6 Months Ended
	Nov. 23, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-based compensation		$ 1,502,724	$ 708,540	$ 3,404,431	$ 1,379,378
Unrecognized compensation cost		$ 10,957,851		$ 10,957,851
LTIP
Common stock shares reserved for future issuance	2,802,273
Number of share units authorized	1,500,000
Additional shares authorized for issuance	277,552			2,530,859
Restricted stock units, granted				3,425,537
LTIP \| Members of management
Restricted stock units, granted		500,000		1,232,090
LTIP \| Members of the Board
Restricted stock units, granted		0		742,000

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted stock unit activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted stock unit activity
RSU's, beginning balance	1,451,448
RSUs vested	799,965
RSU's forfeited	(901,764)
RSU's, ending balance	5,488,015
Weighted-average grant date FV per share, beginning balance \| $ / shares	$ 5.67
Weighted-average grant date FV per share, forfeited \| $ / shares	3.40
Weighted-average grant date FV per share, ending balance \| $ / shares	$ 3.73
Awarded Legacy AeroClean
Restricted stock unit activity
RSU's granted	1,974,090
Weighted-average grant date FV per share, granted \| $ / shares	$ 2.78
Awarded Molekule Merger
Restricted stock unit activity
RSU's granted	2,964,241
Weighted-average grant date FV per share, granted \| $ / shares	$ 3.40

Stockholders' Equity - Private

Stockholders' Equity - Private Placement (Details) - USD ($)			6 Months Ended
	May 03, 2023	Jun. 29, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 27, 2023
Amount charged to expense				$ 1,326,212
2023 Warrants
Number of warrants issued			3,400,000
2022 Private Placement
Gross proceeds from private placement		$ 15,000,000
Net proceeds		13,578,551
Issuance costs		$ 1,421,449
Resale of common stock held by selling stocksholder					1,500,000
2022 Private Placement \| Outstanding Warrants
Exercise price of warrants		$ 11
2022 Private Placement \| Common Stock
Number of common stock shares issued		1,500,000
Number of warrants issued		1,500,000
2023 Private Placement
Adjusted exercise price of warrants		$ 2
2022 Warrants
Gross proceeds allocated to warrant liability		$ 13,995,000
Gross proceeds allocated to common stock		1,005,000
Amount charged to expense		1,326,212
Amount charged to additional paid-in capital		$ 95,237
Resale of common stock held by selling stocksholder					1,500,000
Registration Statement Form S-3
Resale of common stock held by selling stocksholder					3,000,000
Securities Purchase Agreement Private Placement
Gross proceeds from private placement	$ 9,971,500
Number of common stock shares issued	3,400,000
Selling stockholder, percentage ownership in outstanding common shares			9.90%
Securities Purchase Agreement Private Placement \| 2022 Warrants
Exercise price of warrants	$ 11
Securities Purchase Agreement Private Placement \| Series A Warrants
Number of common stock shares issued	3,125,000
Securities Purchase Agreement Private Placement \| Series B Warrants
Number of common stock shares issued	6,250,000
Securities Purchase Agreement Private Placement \| Pre-Funded Warrants
Number of common stock shares issued	2,850,000
Securities Purchase Agreement Private Placement \| Outstanding Warrants
Adjusted exercise price of warrants	$ 2
Aggregate purchase price warrant offering	$ 9,971,500
Securities Purchase Agreement Private Placement \| Outstanding Warrants \| Minimum
Selling stockholder, percentage ownership threshold to exercise warrants			4.99%
Securities Purchase Agreement Private Placement \| Outstanding Warrants \| Maximum
Selling stockholder, percentage ownership threshold to exercise warrants			9.99%
Securities Purchase Agreement, Series A Warrants
Number of common stock shares issued	3,125,000
Exercise price	$ 1.60
Securities Purchase Agreement, Series B Warrants
Number of common stock shares issued	6,250,000
Exercise price	$ 1.84
Securities Purchase Agreement, Pre-Funded Warrants
Number of common stock shares issued	2,850,000
Exercise price	$ 0.01

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Net Income (Loss) Per Common Share (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Income (Loss) Per Common Share
Net income (loss)		$ (5,172,277)		$ (7,750,241)
Basic weighted average common shares	33,017,565	13,894,119	31,185,329	13,885,923
Diluted weighted average common shares		13,894,119		13,885,923
Basic net loss per common share	$ (0.76)	$ (0.37)	$ (1.12)	$ (0.56)
Loss per diluted share	$ (0.76)	$ (0.37)	$ (1.12)	$ (0.56)

Net Income (Loss) Per Common _4

Net Income (Loss) Per Common Share - Anti-dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Anti-dilutive shares	19,213,015	2,126,268
Outstanding Warrants
Class of Stock [Line Items]
Anti-dilutive shares	13,725,000	1,500,000
Restricted stock units, including market based RSUs
Class of Stock [Line Items]
Anti-dilutive shares	5,488,015	626,268

Income Taxes (Details)

Income Taxes (Details) - USD ($)	6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Income Taxes.
Total Current Tax Expense	$ 93,156	$ 219,832
Deferred Tax Liabilities, Gross		$ 1,598,000