Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-41403 | |
Entity Registrant Name | Comera Life Sciences Holdings, Inc. | |
Entity Central Index Key | 0001907685 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-4706968 | |
Entity Address, Address Line One | 12 Gill Street | |
Entity Address, Address Line Two | Suite 4650 | |
Entity Address, City or Town | Woburn | |
Entity Address, Postal Zip Code | 01801 | |
Entity Address, State or Province | MA | |
City Area Code | 617 | |
Local Phone Number | 871-2101 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 19,849,116 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | CMRA | |
Security Exchange Name | NASDAQ | |
Warrants | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants | |
Trading Symbol | CMRAW | |
Security Exchange Name | NASDAQ |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,669,354 | $ 6,510,140 |
Accounts receivable | 293,821 | |
Due from related parties | 286 | |
Prepaid expenses and other current assets | 1,325,753 | 270,648 |
Total current assets | 4,288,928 | 6,781,074 |
Restricted cash | 50,000 | 50,000 |
Property and equipment, net | 192,590 | 234,167 |
Right of use asset | 362,401 | 320,373 |
Security deposit | 43,200 | 32,200 |
Total assets | 4,937,119 | 7,417,814 |
Current liabilities: | ||
Accounts payable | 1,436,692 | 416,941 |
Accrued expenses and other current liabilities | 887,012 | 506,611 |
Insurance premium financing | 911,124 | |
Lease liability - current | 195,253 | 121,552 |
Total current liabilities | 3,430,081 | 1,045,104 |
Derivative warrant liabilities | 331,612 | |
Lease liability - noncurrent | 171,596 | 201,504 |
Total liabilities | 3,933,289 | 1,246,608 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity (deficit): | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized; 16,653,466 and 308,443 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 1,665 | 31 |
Additional paid-in capital | 28,511,656 | 2,213,547 |
Accumulated deficit | (31,941,329) | (16,899,825) |
Total stockholders' deficit | (3,428,008) | (14,686,247) |
Total liabilities, convertible preferred stock and stockholders' deficit | 4,937,119 | 7,417,814 |
Series A Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock | $ 4,431,838 | |
Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock | $ 20,857,453 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 16,653,466 | 308,443 |
Common Stock, Shares, Outstanding | 16,653,466 | 308,443 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 234,922 | $ 87,767 | $ 476,982 | $ 246,498 |
Cost of revenue | 60,963 | 48,364 | 160,030 | 122,073 |
Operating expenses: | ||||
Research and development | 394,800 | 263,620 | 1,250,570 | 1,262,329 |
General and administrative | 2,314,554 | 689,483 | 8,027,316 | 2,373,621 |
Total operating expenses | 2,709,354 | 953,103 | 9,277,886 | 3,635,950 |
Loss from operations | (2,535,395) | (913,700) | (8,960,934) | (3,511,525) |
Other income (expense), net: | ||||
Change in fair value of derivative warrant liabilities | 500,327 | 1,954,767 | ||
Reverse recapitalization issuance costs in excess of gross proceeds | (6,566,821) | |||
Common stock purchase agreement issuance costs | (1,029,077) | (1,029,077) | ||
Gain on debt extinguishment | 160,588 | |||
Change in fair value of convertible notes | (76,738) | |||
Interest expense | (12,696) | (12,773) | ||
Other expense, net | (426,666) | |||
Total other (expense) income, net | (541,446) | (6,080,570) | 83,850 | |
Net loss and comprehensive loss | (3,076,841) | (913,700) | (15,041,504) | (3,427,675) |
Less: accretion of convertible preferred stock to redemption value | (86,816) | (287,984) | ||
Net loss attributable to common stockholders or unit holders | $ (3,163,657) | $ (913,700) | $ (15,329,488) | $ (3,427,675) |
Net loss per share or unit attributable to common stockholders or unit holders-basic | $ (0.20) | $ (6.34) | $ (1.85) | $ (0.87) |
Net loss per share or unit attributable to common stockholders or unit holders-diluted | $ (0.20) | $ (6.34) | $ (1.85) | $ (0.87) |
Weighted-average number of common shares or units used in computing net loss per share or unit attributable to common stockholders or unit holders - basic | 16,024,011 | 144,163 | 8,294,938 | 3,955,649 |
Weighted-average number of common shares or units used in computing net loss per share or unit attributable to common stockholders or unit holders - diluted | 16,024,011 | 144,163 | 8,294,938 | 3,955,649 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock, Stockholders' Deficit And Members' Capital (Unaudited) - USD ($) | Total | Previously Reported | Series A Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Capital Units | Capital Units Previously Reported | Incentive Units | Incentive Units Previously Reported | Additional Paid-in Capital | Additional Paid-in Capital Previously Reported | Accumulated Deficit | Accumulated Deficit Previously Reported |
Beginning Balance at Dec. 31, 2020 | $ 151,915 | $ 10,681,040 | $ 918,922 | $ (11,448,047) | |||||||||
Beginning Balance, Shares at Dec. 31, 2020 | 9,429,006 | 1,987,474 | |||||||||||
Vesting of incentive units, Shares | 25,416 | ||||||||||||
Stock-based compensation expense | $ 13,878 | $ 13,878 | |||||||||||
Net loss | (533,405) | $ (533,405) | |||||||||||
Ending Balance at Mar. 31, 2021 | (367,612) | $ 10,681,040 | 932,800 | (11,981,452) | |||||||||
Ending Balance, Shares at Mar. 31, 2021 | 9,429,006 | 2,012,890 | |||||||||||
Beginning Balance at Dec. 31, 2020 | 151,915 | $ 10,681,040 | 918,922 | (11,448,047) | |||||||||
Beginning Balance, Shares at Dec. 31, 2020 | 9,429,006 | 1,987,474 | |||||||||||
Net loss | (3,427,675) | ||||||||||||
Ending Balance at Sep. 30, 2021 | $ 20,857,453 | ||||||||||||
Ending Balance, Shares at Sep. 30, 2021 | 13,802,758 | ||||||||||||
Ending Balance at Sep. 30, 2021 | (13,660,316) | $ 31 | 2,171,501 | (14,875,722) | |||||||||
Ending Balance, Shares at Sep. 30, 2021 | 308,443 | ||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 151,915 | $ 10,681,040 | $ 918,922 | $ (11,448,047) | |||||||||
Beginning Balance, Shares at Dec. 31, 2020 | 9,429,006 | 1,987,474 | |||||||||||
Stock-based compensation expense | 42,556 | ||||||||||||
Ending Balance at Mar. 31, 2022 | $ 20,857,453 | ||||||||||||
Ending Balance, Shares at Mar. 31, 2022 | 13,802,758 | ||||||||||||
Ending Balance at Mar. 31, 2022 | (17,093,656) | $ 105 | 2,685,459 | (19,779,220) | |||||||||
Ending Balance, Shares at Mar. 31, 2022 | 1,044,302 | ||||||||||||
Beginning Balance at Mar. 31, 2021 | (367,612) | $ 10,681,040 | 932,800 | (11,981,452) | |||||||||
Beginning Balance, Shares at Mar. 31, 2021 | 9,429,006 | 2,012,890 | |||||||||||
Issuance of convertible preferred stock, net of issuance costs | $ 8,066,740 | ||||||||||||
Issuance of convertible preferred stock, net of issuance costs, Shares | 3,487,676 | ||||||||||||
Vesting of incentive units, Shares | 7,523 | ||||||||||||
Conversion of capital units into convertible preferred stock, Temporary equity value | $ 10,681,040 | ||||||||||||
Conversion of capital units into convertible preferred stock, Temporary equity shares | 9,429,006 | ||||||||||||
Conversion of capital units into convertible preferred stock, Value | (10,681,040) | $ (10,681,040) | |||||||||||
Conversion of capital units into convertible preferred stock, Shares | (9,429,006) | ||||||||||||
Cancellation of incentive units upon corporate reorganization, Shares | 2,020,413 | ||||||||||||
Stock-based compensation expense | 1,024,444 | 1,024,444 | |||||||||||
Net loss | (1,980,570) | (1,980,570) | |||||||||||
Ending Balance at Jun. 30, 2021 | $ 18,747,780 | ||||||||||||
Ending Balance, Shares at Jun. 30, 2021 | 12,916,682 | ||||||||||||
Ending Balance at Jun. 30, 2021 | (12,004,778) | 1,957,244 | (13,962,022) | ||||||||||
Issuance of common stock upon exercise of stock options | 180,000 | $ 31 | 179,969 | ||||||||||
Common stock exercised | 308,443 | ||||||||||||
Issuance of convertible preferred stock, net of issuance costs | $ 2,109,673 | ||||||||||||
Issuance of convertible preferred stock, net of issuance costs, Shares | 886,076 | ||||||||||||
Stock-based compensation expense | 34,288 | 34,288 | |||||||||||
Net loss | (913,700) | (913,700) | |||||||||||
Ending Balance at Sep. 30, 2021 | $ 20,857,453 | ||||||||||||
Ending Balance, Shares at Sep. 30, 2021 | 13,802,758 | ||||||||||||
Ending Balance at Sep. 30, 2021 | (13,660,316) | $ 31 | 2,171,501 | (14,875,722) | |||||||||
Ending Balance, Shares at Sep. 30, 2021 | 308,443 | ||||||||||||
Retroactive application of reverse recapitalization | $ (369) | 369 | |||||||||||
Retroactive application of reverse recapitalization, Shares | (91,557) | ||||||||||||
Beginning Balance at Dec. 31, 2021 | $ 20,857,453 | ||||||||||||
Beginning Balance, Shares at Dec. 31, 2021 | 13,802,758 | ||||||||||||
Beginning Balance at Dec. 31, 2021 | (14,686,247) | $ 400 | 2,213,178 | (16,899,825) | |||||||||
Beginning Balance, Shares at Dec. 31, 2021 | 400,000 | ||||||||||||
Balance as adjusted at Dec. 31, 2021 | (14,686,247) | $ 20,857,453 | $ 31 | 2,213,547 | (16,899,825) | ||||||||
Balance as adjusted, Shares at Dec. 31, 2021 | 13,802,758 | 308,443 | |||||||||||
Issuance of common stock upon exercise of stock options | 429,430 | $ 74 | 429,356 | ||||||||||
Common stock exercised | 735,859 | ||||||||||||
Stock-based compensation expense | 42,556 | ||||||||||||
Net loss | (2,879,395) | (2,879,395) | |||||||||||
Ending Balance at Mar. 31, 2022 | $ 20,857,453 | ||||||||||||
Ending Balance, Shares at Mar. 31, 2022 | 13,802,758 | ||||||||||||
Ending Balance at Mar. 31, 2022 | (17,093,656) | $ 105 | 2,685,459 | (19,779,220) | |||||||||
Ending Balance, Shares at Mar. 31, 2022 | 1,044,302 | ||||||||||||
Beginning Balance at Dec. 31, 2021 | $ 20,857,453 | ||||||||||||
Beginning Balance, Shares at Dec. 31, 2021 | 13,802,758 | ||||||||||||
Beginning Balance at Dec. 31, 2021 | (14,686,247) | $ 400 | 2,213,178 | (16,899,825) | |||||||||
Beginning Balance, Shares at Dec. 31, 2021 | 400,000 | ||||||||||||
Balance as adjusted at Dec. 31, 2021 | $ (14,686,247) | $ 20,857,453 | $ 31 | 2,213,547 | (16,899,825) | ||||||||
Balance as adjusted, Shares at Dec. 31, 2021 | 13,802,758 | 308,443 | |||||||||||
Common stock exercised | 1,385,310 | ||||||||||||
Net loss | $ (15,041,504) | ||||||||||||
Ending Balance at Sep. 30, 2022 | $ 4,431,838 | ||||||||||||
Ending Balance, Shares at Sep. 30, 2022 | 4,305 | ||||||||||||
Ending Balance at Sep. 30, 2022 | (3,428,008) | $ 1,665 | 28,511,656 | (31,941,329) | |||||||||
Ending Balance, Shares at Sep. 30, 2022 | 16,653,466 | ||||||||||||
Beginning Balance at Mar. 31, 2022 | $ 20,857,453 | ||||||||||||
Beginning Balance, Shares at Mar. 31, 2022 | 13,802,758 | ||||||||||||
Beginning Balance at Mar. 31, 2022 | (17,093,656) | $ 105 | 2,685,459 | (19,779,220) | |||||||||
Beginning Balance, Shares at Mar. 31, 2022 | 1,044,302 | ||||||||||||
Issuance of common stock upon exercise of stock options, net of shares withheld to settle tax withholding requirements | 230,071 | $ 68 | 230,003 | ||||||||||
Issuance of common stock upon exercise of stock options, net of shares withheld to settle tax withholding requirements, Shares | 679,265 | ||||||||||||
Conversion of convertible preferred stock, Temporary equity values | $ (20,857,453) | ||||||||||||
Conversion of convertible preferred stock, Temporary equity shares | (13,802,758) | ||||||||||||
Conversion of convertible preferred stock, Value | 20,857,453 | $ 1,064 | 20,856,389 | ||||||||||
Conversion of convertible preferred stock, Shares | 10,643,403 | ||||||||||||
Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs, Value | 3,443,750 | $ 357 | 3,443,393 | ||||||||||
Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs, Shares | 3,570,215 | ||||||||||||
Issuance of convertible preferred stock, net of issuance costs | $ 4,143,854 | ||||||||||||
Issuance of convertible preferred stock, net of issuance costs, Shares | 4,305 | ||||||||||||
Accretion of convertible preferred stock to redemption value | $ 201,168 | ||||||||||||
Accretion of convertible preferred stock to redemption value | (201,168) | (201,168) | |||||||||||
Stock-based compensation expense | 56,739 | 56,739 | |||||||||||
Net loss | (9,085,268) | (9,085,268) | |||||||||||
Ending Balance at Jun. 30, 2022 | $ 4,345,022 | ||||||||||||
Ending Balance, Shares at Jun. 30, 2022 | 4,305 | ||||||||||||
Ending Balance at Jun. 30, 2022 | (1,792,079) | $ 1,594 | 27,070,815 | (28,864,488) | |||||||||
Ending Balance, Shares at Jun. 30, 2022 | 15,937,185 | ||||||||||||
Issuance of common stock upon exercise of Public Warrants, Shares | 100 | ||||||||||||
Issuance of common stock upon exercise of Public Warrants | 1,150 | 1,150 | |||||||||||
Issuance of common stock in connection with common stock purchase agreement | 748,888 | $ 42 | 748,846 | ||||||||||
Issuance of common stock in connection with common stock purchase agreement, Shares | 420,000 | ||||||||||||
Issuance of Commitment Shares, Shares | 296,181 | ||||||||||||
Issuance of Commitment Shares | 650,000 | $ 29 | 649,971 | ||||||||||
Accretion of convertible preferred stock to redemption value | $ 86,816 | ||||||||||||
Accretion of convertible preferred stock to redemption value | (86,816) | (86,816) | |||||||||||
Stock-based compensation expense | 127,690 | 127,690 | |||||||||||
Net loss | (3,076,841) | (3,076,841) | |||||||||||
Ending Balance at Sep. 30, 2022 | $ 4,431,838 | ||||||||||||
Ending Balance, Shares at Sep. 30, 2022 | 4,305 | ||||||||||||
Ending Balance at Sep. 30, 2022 | $ (3,428,008) | $ 1,665 | $ 28,511,656 | $ (31,941,329) | |||||||||
Ending Balance, Shares at Sep. 30, 2022 | 16,653,466 |
Statements of Convertible Pre_2
Statements of Convertible Preferred Stock, Stockholders' Deficit And Members' Capital (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Share issuance costs | $ 7,500,000 | ||
Series A Convertible Preferred Stock | |||
Share issuance costs | $ 161,535 | ||
Convertible Preferred Stock | |||
Share issuance costs | $ 60,327 | $ 60,327 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Cash flows from operating activities: | |||
Net loss | $ (3,076,841) | $ (15,041,504) | $ (3,427,675) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 127,690 | 226,985 | 1,072,610 |
Depreciation expense | 70,184 | 61,928 | |
Noncash lease expense | 1,765 | 2,951 | |
Gain on debt extinguishment | (160,588) | ||
Change in fair value of convertible notes | 76,738 | ||
Reverse recapitalization issuance costs in excess of gross proceeds | 6,566,821 | ||
Noncash common stock purchase agreement issuance costs | 650,000 | ||
Change in fair value of derivative warrant liabilities | (500,327) | (1,954,767) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (293,821) | 109,868 | |
Prepaid expenses and other current assets | 460,895 | (16,069) | |
Due from related parties | 286 | 1,810 | |
Accounts payable | 1,019,751 | (130,063) | |
Accrued expenses and other current liabilities | 380,401 | 22,905 | |
Security deposits | (11,000) | ||
Deferred revenue | 28,949 | ||
Net cash used in operating activities | (7,924,004) | (2,154,408) | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (28,607) | (11,464) | |
Net cash flows used in investing activities | (28,607) | (11,464) | |
Cash flows from financing activities: | |||
Proceeds from issuance of preferred stock, net of offering costs | 9,349,675 | ||
Net proceeds from Transaction and Maxim Private Placement | 3,307,162 | ||
Repayment of insurance premium financing | (604,876) | ||
Proceeds from issuance of convertible notes | 750,000 | ||
Proceeds from common stock purchase agreement | 748,888 | ||
Proceeds from exercise of public warrants | 1,150 | ||
Proceeds from exercise of stock options | 659,501 | 180,000 | |
Net cash provided by financing activities | 4,111,825 | 10,279,675 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (3,840,786) | 8,113,803 | |
Cash, cash equivalents and restricted cash at beginning of period | 6,560,140 | 180,427 | |
Cash, cash equivalents, and restricted cash at end of period | 2,719,354 | 2,719,354 | 8,294,230 |
Supplemental information: | |||
Cash and cash equivalents | 2,669,354 | 2,669,354 | 8,269,230 |
Restricted cash | 50,000 | 50,000 | 25,000 |
Total cash, cash equivalents, and restricted cash shown in statements of cash flows | $ 2,719,354 | 2,719,354 | 8,294,230 |
Supplemental disclosure of noncash investing and financing activities: | |||
Acquisition of right-of-use asset | 162,634 | 404,625 | |
Financing of insurance premiums | 1,516,000 | ||
Conversion of capital units into convertible preferred stock | 10,681,040 | ||
Conversion of convertible preferred stock into common stock | 20,857,453 | ||
Settlement of convertible notes for convertible preferred stock | $ 826,738 | ||
Issuance of common stock to settle stock issuance costs | 3,443,750 | ||
Issuance of Series A preferred stock to settle stock issuance costs | 910,000 | ||
Accretion on convertible preferred stock | 287,984 | ||
Issuance of Series A preferred stock to settle underwriting fees payable assumed in Transaction | 3,395,389 | ||
Derivative warrant liabilities assumed in Transaction | $ 2,286,379 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Formation and Organization Comera Life Sciences Holdings, Inc. (“CLS Holdings”, “Comera” or the “Company” ) was incorporated in Delaware on January 25, 2022 as a wholly-owned subsidiary of Comera Life Sciences, Inc. ( “Legacy Comera”) for the purpose of effecting the Transaction (as defined below). Legacy Comera was formed in the state of Delaware on January 2, 2014 as ReForm Biologics, LLC. On April 30, 2021, Legacy Comera completed a corporate reorganization (the “Reorganization”) and changed its name to ReForm Biologics, Inc. As part of the Reorganization, each issued and outstanding capital unit of Legacy Comera as of the date of the Reorganization was exchanged for shares of convertible preferred stock of Legacy Comera and previously outstanding incentive units of Legacy Comera were cancelled. On January 7, 2022, Legacy Comera changed its name to Comera Life Sciences, Inc. to emphasize Comera’s vision of a compassionate new era in medicine. On May 19, 2022, in connection with the closing of the Transaction, Legacy Comera became a wholly-owned subsidiary of CLS Holdings. Comera is a biotechnology company dedicated to promoting a compassionate new era in medicine. The Company applies a deep knowledge of formulation science and technology to transform essential biologic medicines from intravenous (“IV”) to subcutaneous (“SQ”) forms. This revolutionary technology provides patients and families with the freedom of self-injectable care, allowing them to realize the potential of these life changing therapies, and to unlock the vast potential of their own lives. To accomplish this, Comera is developing an internal portfolio of proprietary therapeutics that incorporate Comera’s innovative proprietary formulation platform, SQore . Comera also collaborates with pharmaceutical and biotechnology companies, applying the SQore platform to Comera’s partners’ biologic medicines to deliver enhanced formulations that facilitate self-injectable care. Transaction On May 19, 2022 (the “Closing Date”), the Company consummated the acquisition of all of the issued and outstanding shares of OTR Acquisition Corp. (“OTR”) and Legacy Comera (the “Transaction”), in accordance with the Business Combination Agreement dated January 31, 2022 (as amended on May 19, 2022, the “Business Combination Agreement”) by and among the Company, Legacy Comera, OTR, CLS Sub Merger 1 Corp., a Delaware corporation, (“Comera Merger Sub”), and CLS Sub Merger 2 Corp., a Delaware corporation (“OTR Merger Sub”). Pursuant to the terms of the Business Combination Agreement, a transaction between OTR and Legacy Comera was effected through the merger of Comera Merger Sub with and into Legacy Comera, with Legacy Comera surviving the merger as a wholly-owned subsidiary of CLS Holdings, and through a merger of OTR Merger Sub with and into OTR, with OTR surviving the merger as a wholly-owned subsidiary of CLS Holdings. OTR was formed in the state of Delaware for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities. As further described in Note 3, the Transaction was accounted for as a reverse recapitalization because Legacy Comera has been determined to be the accounting acquirer. Under the reverse recapitalization model, the Transaction treated for as Legacy Comera issuing equity for the net assets of OTR, with no goodwill or intangible assets recorded. Unless the context otherwise requires, “Comera,” “Company,” “we,” “us,” and “our” refer to Comera Life Sciences Holdings, Inc., and its subsidiaries at and after the Closing (as defined below) and give effect to the Closing. “CLS Holdings”, “Legacy Comera” and “OTR” refer to Comera Life Sciences Holdings, Inc., Comera Life Sciences, Inc. and OTR Acquisition Corp., respectively, prior to the Closing. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with Legacy Comera’s financial statements and related notes for the years ended December 31, 2021 and 2020 included in the Current Report on Form 8-K filed with the SEC on September 6, 2022. The financial information as of September 30, 2022 and 2021, and the three and nine months ended September 30, 2022 and 2021, is unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for the fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented, have been included. The balance sheet data as of December 31, 2021 was derived from Legacy Comera’s audited financial statements. The results of the Company’s operations for any interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. Emerging Growth Company and Smaller Reporting Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. The Company is also a “smaller reporting company” as defined in the Securities Exchange Act of 1934 (the “Exchange Act”). The Company may continue to be a smaller reporting company even after the Company is no longer an emerging growth company. The Company may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of the Company’s voting and non-voting Common Stock held by non-affiliates is less than $ 250.0 million measured on the last business day of the Company’s second fiscal quarter, or the Company’s annual revenue is less than $ 100.0 million during the most recently completed fiscal year and the market value of the Company’s voting and non-voting Common Stock held by non-affiliates is less than $ 700.0 million measured on the last business day of the Company’s second fiscal quarter. Risks and Uncertainties The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including but not limited to, risks associated with completing preclinical studies and clinical trials, receiving regulatory approvals for product candidates, development by competitors of new biopharmaceutical products, dependence on key personnel, protection of proprietary technology, compliance with government regulations, entering into collaborations with partners for the Company’s SQore TM platform and the ability to secure additional capital to fund operations. Significant discovery, research and development efforts, including clinical testing and regulatory approval, are required prior to commercialization of any potential product candidates. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize revenue from product sales. Through September 30, 2022, the Company has funded its operations primarily with proceeds from the issuance of equity instruments, convertible notes, and preferred stock. The Company has incurred recurring losses since its inception, including a net loss of $ 15.0 million for the nine months ended September 30, 2022. In addition, as of September 30, 2022, the Company had an accumulated deficit of $ 31.9 million . The Company expects to continue to generate operating losses for the near future. The future viability of the Company is dependent on its ability to raise additional capital to finance its operations. The Company’s inability to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies. There can be no assurance that the current operating plan will be achieved or that additional funding will be available on terms acceptable to the Company, or at all. The Company does not believe the cash and cash equivalents on hand as of September 30, 2022 of $ 2.7 million will be sufficient to fund its operations and capital expenditure requirements for the next twelve months from the date the condensed consolidated financial statements are issued. The Company will be required to raise additional capital to continue to fund operations and capital expenditures. Such funding may not be available on acceptable terms, or at all. If the Company is unable to access additional funds when needed, it may not be able to continue operations or the Company may be required to delay, scale back or eliminate some or all of its ongoing research and development efforts and other operations. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, will materially harm its business, financial condition and results of operations. These uncertainties create substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. COVID-19 In March 2020, COVID-19 was declared a global pandemic by the World Health Organization and continues to present a substantial public health and economic challenge around the world. The length of time and full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, subject to change and difficult to predict. The Company plans to continue to closely monitor the ongoing impact of the COVID-19 pandemic on the Company’s employees and other business operations. In an effort to provide a safe work environment for the Company’s employees, the Company has, among other things, limited employees in the Company’s office and lab facilities to those where on-site presence is needed for their job activities, implemented various social distancing measures in the Company’s offices and labs and are providing personal protective equipment for the Company’s employees present in the Company’s office and lab facilities, as needed. The Company is continuing to monitor the impact and effects of the COVID-19 pandemic and the Company’s response to it, and the Company expects to continue to take actions as may be required or recommended by government authorities or that are determined to be in the best interests of the Company’s employees and other business partners in light of the pandemic. Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, based on judgments considered reasonable, which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of the derivative warrant liabilities, Legacy Comera’s common stock, and stock-based compensation. Changes in estimates are recorded in the period in which they become known. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and, given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. Summary of Significant Accounting Policies The significant accounting policies of the Company are set forth in Note 2 to the consolidated financial statements included in the Current Report on Form 8-K filed with the SEC on September 6, 2022, and the accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies therein and as supplemented below. Reverse Recapitalization The Transaction was accounted for as a reverse recapitalization, with OTR being treated as the “acquired” company and Legacy Comera being treated as the “acquirer” for accounting purposes based upon the pre-merger shareholders of Legacy Comera holding the majority of the voting interests of CLS Holdings, Legacy Comera’s existing management team serving as the initial management team of CLS Holdings, Legacy Comera’s appointment of the majority of the initial board of directors of CLS Holdings, and Legacy Comera’s operations comprising the ongoing operations of the Company. The Transaction was accounted for as the equivalent of Legacy Comera issuing stock for the net assets of OTR, accompanied by a reverse recapitalization. Accordingly, all historical financial information presented in these condensed consolidated financial statements represents the accounts of CLS Holdings and Legacy Comera “as if” CLS Holdings and Legacy Comera, both entities under common control, are the predecessor. The net loss per share or unit, prior to the Transaction, has been adjusted to share amounts reflecting the exchange ratio (the “Exchange Ratio”) established in the Transaction. Convertible Preferred Stock The Company accounts for convertible preferred stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). The Series A Preferred Stock is redeemable at the option of the holder upon the occurrence of a qualified financing. As the Series A Preferred Stock is considered to be contingently redeemable, it has been classified outside of permanent equity. The Series A Preferred Stock has been accreted to its redemption value since the contingent event is considered probable of occurring. Derivative Warrant Liabilities The Company classifies as equity any warrants that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any warrants that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the company’s control), (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement) or (iii) that contain reset provisions that do not qualify for the scope exception. The Company assesses classification of its common stock warrants and other freestanding warrant instrument at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company’s freestanding warrant instruments consist of private placement warrants to purchase shares of common stock (“Private Placement Warrants”) and public warrants to purchase shares of common stock (“Public Warrants”) that were converted in connection with the Transaction. Following the Transaction, the Public Warrants are considered equity classified instruments since the shares underlying the Public Warrants are not redeemable and the Company has one single class of voting common stock, which does not preclude them from being considered indexed to the Company’s equity and allows the Public Warrants to meet the criteria for equity classification per ASC 815, Derivatives and Hedging (“ASC 815”). Warrants that are determined to require equity classification are measured at fair value upon issuance and are not subsequently remeasured unless they are required to be reclassified. The Private Placement Warrants are considered liability classified instruments because their settlement amount differs depending on the identity of the holder which precludes them from being considered indexed to the Company’s equity. Accordingly, the Company recognizes the Private Placement Warrants as liabilities at fair value and adjusts the instruments to fair value using quoted prices of instruments with similar terms. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations and comprehensive loss. Reclassification of Prior Year Presentation Certain prior year amounts within prepaid expenses and other current assets (Note 5) have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results of operations or financial position. Subsequent Events The Company considers events or transactions that occur after the balance sheet date but before the condensed consolidated financial statements are issued to provide evidence relative to certain estimates or to identify matters that require additional disclosure. The Company evaluated all events and transactions through the date these condensed consolidated financial statements were filed with the SEC. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements and disclosures. |
Transaction and Reverse Recapit
Transaction and Reverse Recapitalization | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Transaction and Reverse Recapitalization | 3. Transaction and Reverse Recapitalization On May 19, 2022 , the Company consummated the acquisition of all of the issued and outstanding shares of OTR Acquisition Corp. and Comera Life Sciences, Inc., in accordance with the Business Combination Agreement. Upon closing (i) Comera Merger Sub merged with and into Legacy Comera, with Legacy Comera surviving such merger as a direct wholly-owned subsidiary of CLS Holdings (the “Comera Merger”) and (ii) OTR Merger Sub merged with and into OTR, with OTR surviving such merger as a direct wholly-owned subsidiary of CLS Holdings (the “OTR Merger”). At the closing of the Transaction (the “Closing”), by virtue of the Comera Merger, all shares of Legacy Comera common stock, par value $ 0.001 per share (“Legacy Comera Common Stock”), issued and outstanding immediately prior to the Closing (including shares of Legacy Comera Common Stock issued upon conversion of Legacy Comera preferred stock immediately prior to the Closing) were canceled and converted into the right to receive shares of CLS Holdings common stock, par value $ 0.0001 per share (“CLS Holdings Common Stock”) and all outstanding Legacy Comera unvested stock options and Legacy Comera vested incentive stock options were converted into options to purchase shares of CLS Holdings Common Stock, all Legacy Comera vested in-the-money non-qualified stock options outstanding were net exercised for shares of Legacy Comera Common Stock and, upon the Closing as described above, those shares of Legacy Comera Common Stock were converted into the right to receive shares of CLS Holdings Common Stock. In addition, at the Closing, CLS Holdings placed 3,150,000 shares of CLS Holdings Common Stock (the “Earn-Out Shares”) into escrow. If, at any time during the period beginning on the Closing Date and expiring at the close of business on the second anniversary of the Closing Date (the “Earn-Out Period”), the volume-weighted average price of CLS Holdings Common Stock is equal to or greater than $ 12.50 for any 20 trading days within a period of 30 consecutive trading days (the “Earn-Out Trigger”), then within 10 business days following the achievement of the Earn-Out Trigger, the Earn-Out Shares will be released to the former holders of Legacy Comera Common Stock on a pro rata basis. If a change of control occurs during the Earn-Out Period that results in the holders of shares of CLS Holdings Common Stock receiving consideration equal to or in excess of $ 12.50 per share, then the Earn-Out Trigger shall be deemed to be satisfied if (i) the aggregate proceeds paid to, or in the event of an asset sale, available for distribution to, stockholders of CLS Holdings in such change of control transaction divided by (ii) (a) the number of outstanding shares of CLS Holdings Common Stock immediately prior to the consummation of such change of control transaction plus (b) Earn-Out Shares, is equal to or exceeds $ 12.50 . Upon the Closing, by virtue of the OTR Merger, all shares of common stock of OTR issued and outstanding immediately prior to the Closing were converted on a one -to-one basis into the right to receive shares of CLS Holdings Common Stock and all warrants of OTR outstanding were converted into warrants to purchase shares of CLS Holdings Common Stock. Holders of OTR Common Stock included in the units sold in the initial public offering of OTR were entitled to exercise redemption rights in connection with the Transaction. Holders of 9,769,363 shares of OTR Common Stock exercised their right to have their shares redeemed which resulted in the issuance of 3,472,654 shares of CLS Holdings Common Stock in the Transaction to the former stockholders of OTR. In connection with the Transaction, CLS Holdings, Legacy Comera, OTR and Maxim Group LLC (“Maxim”) entered into a Settlement and Release Agreement (“Settlement Agreement”) pursuant to which CLS Holdings, Comera, OTR and Maxim agreed, among other things that (1) all deferred underwriting fees owed to Maxim pursuant to the underwriting agreement between OTR and Maxim dated November 17, 2020 (the “Underwriting Agreement”) would be satisfied by the issuance by CLS Holdings to Maxim of 3,395 shares of CLS Holdings Series A Convertible Perpetual Preferred Stock, par value $ 0.0001 per share (“Series A Preferred Stock”) equal in value to $ 3.4 million; (2) Maxim would waive its right of first refusal contained in the Underwriting Agreement to act for OTR, or any successor, in future public and private offerings; (3) certain fees owed to Maxim under the advisory agreement between Legacy Comera and Maxim, dated October 13, 2020, as amended on August 16, 2021 and January 25, 2022 (the “Comera Advisory Agreement”) would be satisfied by the issuance by CLS Holdings to Maxim of 910 shares of Series A Preferred Stock equal in value to $ 910 thousand; (4) Maxim would invest $ 1.0 million in a private placement of CLS Holdings Common Stock (the “Maxim Private Placement”) at a value of $ 10.25 per share for 97,561 shares, which shares would receive certain registration rights under a separate registration rights agreement (the “Maxim Registration Rights Agreement”), (5) the shares of CLS Holdings Common Stock issued to Maxim as a success fee for the Transaction under the Comera Advisory Agreement which were previously registered, would be unrestricted and freely tradable; and (6) certain of Maxim’s rights to fees for transactions and financings consummated after the Transaction would be limited to transactions and financings with four specified counterparties previously introduced by Maxim. The following summarizes the shares of CLS Holdings Common Stock issued and outstanding immediately following the Transaction as of May 19, 2022: Shares % Legacy Comera Stockholders 12,022,595 76 % OTR Public Stockholders 677,987 4 % OTR Founders 2,611,838 16 % Maxim (1) 624,765 4 % Total (2) 15,937,185 100 % (1) Represents (i) 97,561 shares of the CLS Holdings Common Stock purchased by Maxim in a private placement, (ii) 344,375 shares of the CLS Holdings Common Stock issued to Maxim by the Legacy Comera shareholders to settle Maxim’s success fee, and (iii) 182,829 shares of the CLS Holdings Common Stock issued to Maxim in exchange for a like number of shares of OTR common stock received in connection with OTR’s initial public offering. (2) Excludes 3,150,000 Earn-Out Shares. The following table presents the net tangible assets acquired from OTR and reconciles the elements of the Transaction to the consolidated statements of cash flows: Transaction Cash $ 5,643,508 Deferred underwriting fee payable ( 3,395,389 ) Derivative warrant liabilities ( 2,286,379 ) Net tangible assets acquired from OTR ( 38,260 ) Cash proceeds received from Maxim Private Placement 1,000,000 Gross proceeds from Transaction and Maxim Private Placement 961,740 Less: total issuance costs ( 7,528,561 ) Reverse recapitalization issuance costs in excess of gross proceeds ( 6,566,821 ) Add: derivative warrant liabilities assumed 2,286,379 Add: issuance of common stock to settle success fee 3,443,750 Add: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable 4,305,389 Less: Series A preferred stock issuance costs ( 161,535 ) Net cash proceeds from Transaction and Maxim Private Placement $ 3,307,162 The following table presents the net cash proceeds from the Transaction and Maxim Private Placement and reconciles the elements of the Transaction to the consolidated statements convertible preferred stock, stockholders’ deficit and members’ capital: Transaction Net cash proceeds from Transaction and Maxim Private Placement $ 3,307,162 Add: Series A preferred stock issuance costs 161,535 Add: reverse recapitalization issuance costs in excess of gross proceeds 6,566,821 Less: derivative warrant liabilities assumed ( 2,286,379 ) Less: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable ( 4,305,389 ) Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs $ 3,443,750 The Transaction was accounted for as a reverse recapitalization because Legacy Comera was determined to be the accounting acquirer. Under the reverse recapitalization model, the Transaction was treated as Legacy Comera issuing equity for the net assets of OTR, with no goodwill or intangible assets recorded. All outstanding common stock instruments, prior to the Transaction, have been retroactively adjusted to share amounts reflecting the Company’s current capital structure, including adjustments based on the Exchange Ratio. Accordingly, certain amounts have been reclassified and retroactively adjusted to reflect the reverse recapitalization pursuant to the Transaction for all periods presented within the consolidated balance sheets and statements of convertible preferred stock, stockholders’ deficit and members’ capital. Earn-Out Shares The estimated fair value of the Earn-Out Shares at the Closing Date was approximately $ 8.63 per share, or $ 27.2 million in the aggregate. If the Earn-Out Trigger is not achieved for the two-year period following the Closing Date, the Earn-Out Shares will be cancelled and returned to treasury. The contingent obligation to issue Earn-Out Shares to Legacy Comera stockholders is considered indexed to the Company’s own stock and meets the equity classification under ASC 815. While the Earn-Out Shares are legally issued and placed into escrow, they are not considered outstanding for accounting purposes until resolution of the earn-out contingency. The estimated acquisition-date fair value of the Earn-Out Shares was determined using a Monte Carlo simulation valuation model using a distribution of potential outcomes on a weekly basis over the Earn-Out Period using the most reliable information available. Assumptions used in the valuation at the Closing Date were as follows: Assumptions Fair value of common stock $ 9.91 Selected volatility 90.00 % Risk-free interest rate 2.60 % Contractual term (years) 2.0 Transaction Costs In connection with the Transaction, the Company incurred direct and incremental costs of approximately $ 7.5 million related to the equity issuance, including $ 4.4 million of noncash expenses related to common stock and Series A Preferred Stock issued to Maxim, consisting primarily of investment banking and other professional fees. The costs related to the equity issuance were recorded to additional paid-in capital as a reduction of gross proceeds from the Transaction and Maxim Private Placement. The costs related to the equity issuance which exceeded gross proceeds received from the Transaction and Maxim Private Placement were recognized as a loss within other expense, net. The Company incurred approximately $ 1.5 million of expenses primarily related to advisory, legal, and accounting fees in conjunction with the Transaction, which were recorded in general and administrative expenses in the consolidated statements of operations and comprehensive loss. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 4. Fair Value of Financial Assets and Liabilities The following table presents the Company’s fair value hierarchy for its liabilities, which are measured at fair value on a recurring basis as of September 30, 2022: Fair Value Measurements at September 30, 2022 Using: Level 1 Level 2 Level 3 Total Liabilities: Private Placement Warrants $ — $ 331,612 $ — $ 331,612 There were no assets for which fair value was required to be disclosed as of September 30, 2022. There were no assets or liabilities for which fair value was required to be disclosed as of December 31, 2021. During the nine months ended September 30, 2022 , there were no transfers between Level 1, Level 2 and Level 3. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: September 30, December 31, Prepaid insurance $ 1,274,263 $ — Contract assets — 85,018 Insurance recovery receivable — 136,250 Other 51,490 49,380 Prepaid expenses and other current assets $ 1,325,753 $ 270,648 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net consisted of the following: September 30, December 31, Lab equipment $ 587,650 $ 587,650 Leasehold improvements 36,149 17,973 Computer equipment 32,178 21,747 Other equipment 9,411 9,411 665,388 636,781 Less accumulated depreciation ( 472,798 ) ( 402,614 ) Property and equipment, net $ 192,590 $ 234,167 Depreciation expense for the nine months ended September 30, 2022 and 2021 was $ 70 thousand and $ 62 thousand, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: September 30, December 31, Accrued bonus $ 447,488 $ 349,000 Professional fees 255,822 123,756 Accrued vacation 27,851 25,945 Other 155,851 7,910 Accrued expenses and other current liabilities $ 887,012 $ 506,611 |
Insurance Premium Financing
Insurance Premium Financing | 1 Months Ended |
May 31, 2021 | |
Insurance Premium Financing [Abstract] | |
Insurance Premium Financing | 8. Insurance Premium Financing In May 2022, the Company entered into a finance agreement with First Insurance Funding in order to fund a portion of its insurance policies. The amount financed is $ 1.5 million and incurs interest at a rate of 4.00 %. The Company is required to make monthly payments of $ 154 thousand through March 2023 . The outstanding balance as of September 30, 2022 was $ 0.9 million. |
Legacy Comera Convertible Prefe
Legacy Comera Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2022 | |
Temporary Equity [Line Items] | |
Convertible Preferred Stock | . Convertible Preferred Stock As of September 30, 2022, the Company’s amended and restated certificate of incorporation (the “Articles”) provides for a class of authorized stock known as preferred stock, consisting of 1,000,000 shares, $ 0.0001 par value per share, issuable from time to time in one or more series. In connection with the Transaction, a certificate of designation was filed to designate and authorize the issuance of up to 4,305 shares of Series A Preferred Stock. Convertible preferred stock consisted of the following as of September 30, 2022: Par Value Shares Authorized Shares Issued and Carrying Value Liquidation Common Stock Series A Preferred Stock $ 0.0001 4,305 4,305 $ 4,431,838 $ 4,431,838 342,754 In May 2022, the Company issued 4,305 shares of Series A Preferred Stock. The Series A Preferred Stock was issued in connection with the Transaction and the Settlement Agreement (Note 3) in settlement of $ 4.3 million of advisory fees owed to Maxim with an original purchase price of $ 1,000 per share (the “Series A Original Purchase Price”). The Company incurred $ 162 thousand of issuance costs in connection with the Series A Preferred Stock. As of September 30, 2022, the holders of the Series A Preferred Stock have the following rights and preferences: Voting Rights— The holders of the Series A Preferred Stock are entitled to vote, together with the holders of common stock, on all matters submitted to the stockholders for a vote and are entitled to the number of votes equal to the number of whole shares of common stock into which such holders of preferred stock could convert on the record date for determination of stockholders entitled to vote. Except for the actions requiring the approval or consent of the holders of preferred stock, the holders of preferred stock shall vote together with the holders of common stock and vote as a single class . Dividends— The holders of Series A Preferred Stock shall be entitled to receive, prior and in preference to the declaration or payment of any dividend on any other currently-outstanding capital stock, dividends when, as and if declared by the Board of Directors, payable quarterly on January 1, April 1, July 1 and October 1 of each calendar year (each date a “Series A Quarterly Dividend Payment Date”), commencing on and including July 1, 2022, which dividends shall be paid in cash at a rate of 8.0 % per annum on the Series A Original Purchase Price for the first six Series A Quarterly Dividend Payment Dates, which shall increase by 2 % per annum from and after each successive Series A Quarterly Dividend Payment Date, up to a maximum of 18 %. Such dividends shall cumulate quarterly at the Series A Dividend Rate if not declared and paid on a Series A Quarterly Dividend Payment Date. As of September 30, 2022 , no cash dividends have been declared or paid and the Company has $ 288 thousand of cumulative dividends in arrears. Liquidation Rights— In the event of any voluntary or involuntary liquidation event, dissolution, winding up of the Company or upon the occurrence of certain events considered to be deemed liquidation events, each holder of the then outstanding Series A Preferred Stock will be entitled to receive a preferential payment equal to the Series A Original Purchase Price plus the aggregate amount of dividends then accrued, prior and in preference to any distributions to the holders of the common stock. After payments have been made in full to the holders of the Series A Preferred Stock, then, to the extent available, the remaining amounts will be distributed among the holders of the common stock, pro rata based on the number of shares of common stock held by each holder. Conversion— Each share of preferred stock is convertible into common stock, at any time, at the option of the holder, and without the payment of additional consideration, determined by dividing the Series A Original Issuance Price by $ 12.56 (as may be adjusted for stock splits, dilutive issuances and the like, the “Series A Conversion Price”); provided, however, in no event shall outstanding shares of Series A Preferred Stock be converted into more than 19.99 % of the outstanding shares of common stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of common stock to effect the conversion of three hundred percent ( 300 %) of all shares of Series A Preferred Stock then outstanding. The Company evaluated its preferred stock and determined that its Series A Preferred Stock is considered an equity host. In making this determination, the Company’s analysis followed the whole instrument approach which compares an individual feature against the entire preferred stock instrument which includes that feature. The Company’s analysis was based on a consideration of the economic characteristics and risks of the preferred stock. More specifically, the Company evaluated all of the stated and implied substantive terms and features, including: (1) whether the preferred stock included redemption features, (2) how and when any redemption features could be exercised, (3) whether the holders of preferred stock were entitled to dividends, (4) the voting rights of the preferred stock and (5) the existence and nature of any conversion rights. As a result of the Company’s conclusion that the preferred stock represents an equity host, the conversion feature for the Series A Preferred Stock is considered to be clearly and closely related to the preferred stock host instrument. Accordingly, the conversion feature for Series A Preferred Stock is not considered an embedded derivative that requires bifurcation. Redemption— The preferred stock is redeemable upon the occurrence of certain deemed liquidation events, as discussed above. In addition, the Company, may at any time, redeem the whole or any part of the outstanding Series A Preferred Stock at a redemption price of $ 1,000 per share, subject to adjustment, plus all accumulated and unpaid dividends (the “Series A Redemption Price”). Further, if the Company closes on the issuance or sale of common stock or equivalents, including, without limitation, pursuant to an equity line of credit facility, a registered offering, a private investment in public equity or otherwise, resulting in net proceeds to the Company of at least $ 5,000,000 , each holder of Series A Preferred Stock shall have the right to cause the Company to apply up to 30 % of the aggregate proceeds from such issuance or sale in excess of $ 5,000,000 , to the redemption of any or all of such holder’s Series A Preferred Stock at the Series A Redemption Price. As the preferred stock is considered to be contingently redeemable, the preferred stock has been classified outside of permanent equity. Since the contingent redemption is considered probable, the Series A Preferred Stock will be accreted to its redemption value at each reporting date. The Company recorded accretion of $ 87 and $ 288 thousand during the three and nine months ended September 30, 2022, respectively, which is considered a deemed dividend. |
Legacy Comera | |
Temporary Equity [Line Items] | |
Convertible Preferred Stock | . Legacy Comera Convertible Preferred Stock Prior to the Transaction, the authorized capital stock of Legacy Comera included 14,051,702 shares of $ 0.001 par value preferred stock, of which 9,429,006 shares were designated as Series A Convertible Preferred Stock (“Legacy Comera Series A Preferred Stock”) and 4,622,696 shares were designated as Series B Convertible Preferred Stock (“Legacy Comera Series B Preferred Stock”). In April 2021, Legacy Comera issued 6,000,000 , 1,266,667 , 527,752 , 1,016,669 , 514,932 , and 102,986 shares of Series A-1, A-2, A-3, A-4, A-5, and A-6 Preferred Stock, respectively. The Legacy Comera Series A Preferred Stock was issued in settlement of previously outstanding capital units of ReForm Biologics, LLC as part of the Reorganization. Immediately prior to the Transaction, all issued and outstanding shares of Legacy Comera Series A and B Preferred Stock were converted into Legacy Comera Common Stock. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | . Convertible Preferred Stock As of September 30, 2022, the Company’s amended and restated certificate of incorporation (the “Articles”) provides for a class of authorized stock known as preferred stock, consisting of 1,000,000 shares, $ 0.0001 par value per share, issuable from time to time in one or more series. In connection with the Transaction, a certificate of designation was filed to designate and authorize the issuance of up to 4,305 shares of Series A Preferred Stock. Convertible preferred stock consisted of the following as of September 30, 2022: Par Value Shares Authorized Shares Issued and Carrying Value Liquidation Common Stock Series A Preferred Stock $ 0.0001 4,305 4,305 $ 4,431,838 $ 4,431,838 342,754 In May 2022, the Company issued 4,305 shares of Series A Preferred Stock. The Series A Preferred Stock was issued in connection with the Transaction and the Settlement Agreement (Note 3) in settlement of $ 4.3 million of advisory fees owed to Maxim with an original purchase price of $ 1,000 per share (the “Series A Original Purchase Price”). The Company incurred $ 162 thousand of issuance costs in connection with the Series A Preferred Stock. As of September 30, 2022, the holders of the Series A Preferred Stock have the following rights and preferences: Voting Rights— The holders of the Series A Preferred Stock are entitled to vote, together with the holders of common stock, on all matters submitted to the stockholders for a vote and are entitled to the number of votes equal to the number of whole shares of common stock into which such holders of preferred stock could convert on the record date for determination of stockholders entitled to vote. Except for the actions requiring the approval or consent of the holders of preferred stock, the holders of preferred stock shall vote together with the holders of common stock and vote as a single class . Dividends— The holders of Series A Preferred Stock shall be entitled to receive, prior and in preference to the declaration or payment of any dividend on any other currently-outstanding capital stock, dividends when, as and if declared by the Board of Directors, payable quarterly on January 1, April 1, July 1 and October 1 of each calendar year (each date a “Series A Quarterly Dividend Payment Date”), commencing on and including July 1, 2022, which dividends shall be paid in cash at a rate of 8.0 % per annum on the Series A Original Purchase Price for the first six Series A Quarterly Dividend Payment Dates, which shall increase by 2 % per annum from and after each successive Series A Quarterly Dividend Payment Date, up to a maximum of 18 %. Such dividends shall cumulate quarterly at the Series A Dividend Rate if not declared and paid on a Series A Quarterly Dividend Payment Date. As of September 30, 2022 , no cash dividends have been declared or paid and the Company has $ 288 thousand of cumulative dividends in arrears. Liquidation Rights— In the event of any voluntary or involuntary liquidation event, dissolution, winding up of the Company or upon the occurrence of certain events considered to be deemed liquidation events, each holder of the then outstanding Series A Preferred Stock will be entitled to receive a preferential payment equal to the Series A Original Purchase Price plus the aggregate amount of dividends then accrued, prior and in preference to any distributions to the holders of the common stock. After payments have been made in full to the holders of the Series A Preferred Stock, then, to the extent available, the remaining amounts will be distributed among the holders of the common stock, pro rata based on the number of shares of common stock held by each holder. Conversion— Each share of preferred stock is convertible into common stock, at any time, at the option of the holder, and without the payment of additional consideration, determined by dividing the Series A Original Issuance Price by $ 12.56 (as may be adjusted for stock splits, dilutive issuances and the like, the “Series A Conversion Price”); provided, however, in no event shall outstanding shares of Series A Preferred Stock be converted into more than 19.99 % of the outstanding shares of common stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of common stock to effect the conversion of three hundred percent ( 300 %) of all shares of Series A Preferred Stock then outstanding. The Company evaluated its preferred stock and determined that its Series A Preferred Stock is considered an equity host. In making this determination, the Company’s analysis followed the whole instrument approach which compares an individual feature against the entire preferred stock instrument which includes that feature. The Company’s analysis was based on a consideration of the economic characteristics and risks of the preferred stock. More specifically, the Company evaluated all of the stated and implied substantive terms and features, including: (1) whether the preferred stock included redemption features, (2) how and when any redemption features could be exercised, (3) whether the holders of preferred stock were entitled to dividends, (4) the voting rights of the preferred stock and (5) the existence and nature of any conversion rights. As a result of the Company’s conclusion that the preferred stock represents an equity host, the conversion feature for the Series A Preferred Stock is considered to be clearly and closely related to the preferred stock host instrument. Accordingly, the conversion feature for Series A Preferred Stock is not considered an embedded derivative that requires bifurcation. Redemption— The preferred stock is redeemable upon the occurrence of certain deemed liquidation events, as discussed above. In addition, the Company, may at any time, redeem the whole or any part of the outstanding Series A Preferred Stock at a redemption price of $ 1,000 per share, subject to adjustment, plus all accumulated and unpaid dividends (the “Series A Redemption Price”). Further, if the Company closes on the issuance or sale of common stock or equivalents, including, without limitation, pursuant to an equity line of credit facility, a registered offering, a private investment in public equity or otherwise, resulting in net proceeds to the Company of at least $ 5,000,000 , each holder of Series A Preferred Stock shall have the right to cause the Company to apply up to 30 % of the aggregate proceeds from such issuance or sale in excess of $ 5,000,000 , to the redemption of any or all of such holder’s Series A Preferred Stock at the Series A Redemption Price. As the preferred stock is considered to be contingently redeemable, the preferred stock has been classified outside of permanent equity. Since the contingent redemption is considered probable, the Series A Preferred Stock will be accreted to its redemption value at each reporting date. The Company recorded accretion of $ 87 and $ 288 thousand during the three and nine months ended September 30, 2022, respectively, which is considered a deemed dividend. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | 11. Common Stock As of September 30, 2022 , the authorized capital stock of the Company included 150,000,000 shares of common stock, $ 0.0001 par value. The voting, dividend and liquidation rights of the holders of the Company’s common stock are subject to and qualified by the rights, powers and preferences of the holders of the Series A Preferred Stock set forth above. In connection with the Settlement Agreement, the Company sold 97,561 shares of common stock to Maxim for aggregate proceeds of $ 1.0 million in a private placement. Each share of common stock entitles the holder to one vote , together with the holders of the preferred stock on an as converted to common stock basis, on all matters submitted to the stockholders for a vote. Common stockholders are entitled to receive dividends, as may be declared by the Board, if any, subject to the preferential dividend rights of the preferred stock. Through September 30, 2022 , no cash dividends have been declared or paid. As of September 30, 2022, the Company has reserved the following shares of common stock for future issuance: Exercise of outstanding stock options 1,982,641 Available for issuance under equity compensation plans 77,197 Exercise of outstanding common stock warrants 11,041,332 Conversion of Series A Preferred Stock 1,028,262 Reserved for issuance pursuant to the Purchase Agreement 4,283,819 Total shares of authorized common stock reserved for future issuance 18,413,251 Common Stock Purchase Agreement On August 31, 2022, the Company entered into a purchase agreement (the “Purchase Agreement”) with Arena Business Solutions Global SPC II, Ltd. (“Arena”), pursuant to which Arena has committed to purchase up to $ 15.0 million (the “Commitment Amount”) of the Company’s common stock, subject to an increase, at the Company's option, to $ 30.0 million of the Company's common stock (the “Additional Commitment Amount”). Under the terms and subject to the conditions of the Purchase Agreement, the Company has the right, but not the obligation, to sell to Arena, and Arena is obligated to purchase up to $ 15.0 million of the Company’s common stock, subject to increase at the Company's option by the Additional Commitment Amount. Such sales of common stock by the Company will be subject to certain limitations, and may occur from time to time, at the Company’s sole discretion, over the approximately 36-month period commencing on the date of the Purchase Agreement, provided that the registration statement (the “Registration Statement”) covering the resale by Arena of the shares of the Company’s common stock purchased under the Purchase Agreement remains effective, and the other conditions set forth in the Purchase Agreement are satisfied. The purchase price of the shares of the Company’s common stock will be equal to 96 % of the simple average of the daily VWAP of the Company’s common stock immediately preceding the time of sale as computed under the Purchase Agreement. The Company determined that its right to sell shares of the Company’s common stock to Arena represents a freestanding put option under ASC 815, but has a fair value of zero, and therefore no additional accounting was required. The Company issued 296,181 shares of common stock (the “Commitment Shares”) to Arena as a commitment fee in connection with entering into the Purchase Agreement. The $ 650 thousand fair value of the Commitment Shares along with $ 376 thousand of other issuance costs related to the Purchase Agreement were recognized as a loss within other expense, net. As of September 30, 2022, the Company had sold 420,000 shares of common stock under the Purchase Agreement at a weighted-average price of $ 1.78 per share, resulting in net proceeds of $ 0.7 million for the nine months ended September 30, 2022. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock-Based Compensation | 12. Stock-Based Compensation 2014 Restricted Unit Plan On March 4, 2014, Legacy Comera established the 2014 Restricted Unit Plan (the “2014 Plan”). A total of 2,500,000 incentive units were authorized as part of the 2014 Plan, under which participants would receive membership interests in Legacy Comera. The 2014 Plan was extinguished on April 30, 2021 as a result of the Reorganization. 2021 Stock Option and Grant Plan On April 30, 2021, Legacy Comera established the 2021 Stock Option and Grant Plan (the “2021 Plan”), which provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards, unrestricted stock awards and restricted stock units. In connection with the closing of the Transaction, option awards outstanding under the 2021 Plan were exchanged for options to purchase shares of CLS Holdings Common Stock (the “Exchanged Options”), with proportional adjustments to the number of shares underlying the options and the exercise price of the options approved by the compensation committee and board of directors of Legacy Comera. Other than with respect to the exercise price and the number of shares of CLS Holdings Common Stock underlying the Exchanged Options, the Exchanged Options remain subject to the terms and conditions of the Legacy Comera option awards issued pursuant to the 2021 Plan. The Exchanged Options are outstanding under and count against the number of shares reserved for issuance pursuant to the 2022 Equity and Incentive Plan (the “2022 Plan”). Following the closing of the Transaction, no additional awards may be granted under the 2021 Plan. As of September 30, 2022, there are 1,168,441 Exchanged Options outstanding which are potentially exercisable for 1,168,441 shares of CLS Holdings Common Stock at a weighted-average exercise price of $ 0.59 per share. 2022 Equity and Incentive Plan On May 10, 2022, the Company established the 2022 Plan, which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, unrestricted stock awards, restricted stock units, stock appreciation rights, cash awards and dividend equivalent rights. Incentive stock options may be granted only to the Company’s employees, including officers. Non-statutory options, restricted stock awards, unrestricted stock awards, restricted stock units, stock appreciation rights, cash awards and dividend equivalent rights may be granted to employees, directors, consultants and key persons of the Company. The total number of common shares authorized to be issued under the 2022 Plan was 2,059,838 . The share pool will automatically increase on January 1 of each year by four percent of the number of shares of Stock outstanding on the immediately preceding December 31, or such lesser number of shares as approved by the board of directors. As of September 30, 2022, there were 1,982,641 options outstanding with a weighted-average exercise price of $ 1.70 and 77,197 shares available for future grants under the 2022 Plan. Shares underlying awards that are forfeited, cancelled, reacquired by the Company prior to vesting, satisfied without the issuance of common stock, or are otherwise terminated under the 2022 Plan without having been fully exercised (including the Exchanged Options) will be available for future awards. Stock Option Valuation The assumptions that the Company used to determine the grant-date fair value of stock options granted were as follows, presented on a weighted-average basis: Nine Months Expected option life (years) 6.1 Risk-free interest rate 3.18 % Expected volatility 62.65 % Expected dividend yield — % Stock Option Activity The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2022: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 2,689,935 $ 0.59 $ 767 Granted 814,200 3.30 Exercised ( 1,385,310 ) 0.59 Cancelled or forfeited ( 136,184 ) 0.59 Outstanding as of September 30, 2022 1,982,641 $ 1.70 9.1 $ 1,192 Exercisable as of September 30, 2022 406,894 $ 0.59 8.8 $ 415 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock for those stock options that had exercise prices lower than the estimated fair value of the Company’s common stock as of September 30, 2022. The weighted-average grant date fair value of options granted during the nine months ended September 30, 2022 and 2021 was $ 1.97 and $ 0.41 , respectively. As of September 30, 2022 , total unrecognized compensation cost related to the unvested stock options was $ 1.9 million, which is expected to be recognized over a weighted-average period of 3.5 years. Stock-Based Compensation Stock-based compensation expense was allocated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 484 $ 448 $ 1,409 $ 19,530 Research and development 2,670 2,829 7,681 410,644 General and administrative 124,536 31,011 217,895 642,436 Total stock-based compensation $ 127,690 $ 34,288 $ 226,985 $ 1,072,610 |
Common Stock Warrants
Common Stock Warrants | 9 Months Ended |
Sep. 30, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Common Stock Warrants | 13. Common Stock Warrants During the nine months ended September 30, 2022 , there were 100 warrants exercised. There were no warrants issued or expired during the same period. The warrants were assumed as part of the Transaction and the following represents a summary of the warrants outstanding and exercisable at September 30, 2022: Number of Shares Underlying Warrants Description Issue Date Classification Exercise Price Expiration Date Outstanding Shares Exercisable Shares Private Placement Warrants Nov 17, 2020 Liability $ 11.50 May 19, 2027 5,817,757 5,817,757 Public Warrants Nov 17, 2020 Equity $ 11.50 May 19, 2027 5,223,575 5,223,575 11,041,332 11,041,332 Public Warrants Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants were assumed in connection with the Transaction and became exercisable on June 19, 2022. The Public Warrants are redeemable at the option of the Company, in whole and not in part, at a price of $ 0.01 per underlying share, provided that the last reported sales price of the Company's common stock has been at least $ 18.00 per share (subject to adjustment), on each of twenty ( 20 ) trading days within the thirty ( 30 ) trading-day period ending on the third trading day prior to the date on which notice of the redemption is given. Private Placement Warrants The Private Placement Warrants are identical to the Public Warrants, except that (i) the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees and (ii) the Private Placement Warrants and the common stock issuable upon exercise of the Private Placement Warrants will be entitled to registration rights. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company on the same basis as the Public Warrants. |
Concentrations of Risk
Concentrations of Risk | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 14. Concentrations of Risk The Company has certain customers whose revenue individually represented 10% or more of the Company’s total revenue or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable. For the nine months ended September 30, 2022 and 2021 , two customers accounted for 97 % and 100 % of revenue recognized, respectively. As of September 30, 2022 , two customers accounted for 100 % of accounts receivable. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company had no income tax expense due to operating losses incurred for the three and nine months ended September 30, 2022 and 2021. Management of the Company evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and determined that it is more likely than not that the Company will not recognize the benefits of the deferred tax assets. As a result, a full valuation allowance was recorded as of September 30, 2022. The Company applies ASC 740, Income Taxes , for the financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Unrecognized tax benefits represent tax positions for which reserves have been established. A full valuation allowance has been provided against the Company’s deferred tax assets, so that the effect of the unrecognized tax benefits is to reduce the gross amount of the deferred tax asset and the corresponding valuation allowance. The Company has no material uncertain tax positions as of September 30, 2022 . The Company has never been examined by the Internal Revenue Service, or any other jurisdiction, for any tax years and, as such, all years within the applicable statutes of limitations are potentially subject to audit. |
Net Loss per Share or Unit - Ba
Net Loss per Share or Unit - Basic and Diluted | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share or Unit - Basic and Diluted | 16. Net Loss per Share or Unit – Basic and Diluted For the three and nine months ended September 30, 2022 and 2021, basic net loss per share or unit was computed by dividing the net loss attributable to common stockholders or unit holders by the weighted average number of common shares or units outstanding. Prior to April 30, 2021, undistributed losses were allocated equally to each class of member units, including vested incentive units, since they shared equally in the residual net assets of Legacy Comera upon liquidation, subject to their different distribution participation rights. Subsequent to April 30, 2021, undistributed losses were allocated entirely to common stockholders since neither the convertible preferred stock nor the contingently returnable Earn-Out Shares are required to share in the losses of the Company. As the Transaction has been accounted for as a reverse recapitalization, the shares or units and net loss per share or unit, prior to the Transaction, have been retroactively adjusted to amounts reflecting the Exchange Ratio established in the Transaction. share or unit since the effect of considering unvested incentive units, options to purchase common stock, warrants to purchase common stock, Earn-Out Shares, and convertible preferred stock in the calculation would be anti-dilutive. The following potentially dilutive common stock or member unit equivalents, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net loss per share or unit because including them would have had an anti-dilutive effect: Nine Months Ended September 30, 2022 2021 Options to purchase common stock 1,982,641 2,674,384 Earn-Out Shares 3,150,000 — Convertible preferred stock (as converted to common stock) 342,754 10,643,403 Warrants to purchase common stock 11,041,332 — The following table sets forth the calculation of basic and diluted net loss per share or unit: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss available to common stockholders $ ( 3,163,657 ) $ ( 913,700 ) $ ( 15,329,488 ) $ ( 3,427,675 ) Weighted-average number of common shares or units used in 16,024,011 144,163 8,294,938 3,955,649 Net loss per share or unit attributable to common $ ( 0.20 ) $ ( 6.34 ) $ ( 1.85 ) $ ( 0.87 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Leases On March 8, 2018, the Company entered into a noncancelable operating lease agreement for office and laboratory space in Woburn, Massachusetts (the “Woburn Lease”). On March 10, 2021, the Company extended the Woburn Lease through June 30, 2024 with a monthly lease payment of $ 12 thousand. On March 4, 2022, the Company executed the first amendment to the Woburn Lease (the “Amendment”) which increased the size of the leased office and laboratory space with an aggregate monthly lease payment to $ 18 thousand, subject to annual increases beginning in November 2022 based on the consumer price index, in addition to payment of a proportional share of operating costs. The maturities and balance sheet presentation under all non-cancelable operating leases as of September 30, 2022, are as follows: Operating Leases Maturity of lease liabilities 2022 (remaining 3 months) $ 54,386 2023 217,545 2024 123,077 Total lease liabilities 395,008 Less imputed interest ( 28,159 ) Present value of operating lease liability as of September 30, 2022 $ 366,849 Reported as of September 30, 2022 Lease liabilities — current $ 195,253 Lease liabilities — noncurrent 171,596 $ 366,849 As the Company’s leases do not provide an implicit rate, the Company estimated its incremental borrowing rate based on the information available at each lease commencement date in determining the present value of the lease payments. The weighted-average discount rate used for leases as of September 30, 2022 is 8.0 %. The weighted-average lease term as of September 30, 2022 is 1.8 years. During the nine months ended September 30, 2022 and 2021 operating cash flows used for operating leases was $ 142 thousand and $ 100 thousand, respectively. During the nine months ended September 30, 2022 and 2021 , lease cost was $ 145 thousand and $ 103 thousand, respectively. Amounts included in restricted cash as of September 30, 2022 and December 31, 2021 consist of cash held to collateralize a letter of credit issued as a security deposit in connection with the Company’s lease of its corporate facility and for certain credit cards. Legal Proceedings The Company, from time to time, may be party to litigation arising in the ordinary course of business. The Company was not subject to any material legal proceedings as of September 30, 2022, and, to the best of the Company’s knowledge, no material legal proceedings are currently pending or threatened. Indemnification Agreements The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to the agreements, the Company agrees to indemnify, hold harmless, and to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third-party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. In addition, the Company has entered into indemnification agreements with members of its board of directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. In addition, the Company maintains officers and directors insurance coverage. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Through September 30, 2022 , the Company had no t experienced any losses related to these indemnification agreements and no material claims were outstanding. Other Matters In February 2022, the Company determined it was affected by a business email compromise fraud which resulted in a diversion of the Company’s capital to unknown parties. This incident led to a loss of $ 136 thousand of cash for the year ended December 31, 2021, and an additional $ 590 thousand in the nine months ended September 30, 2022 which was recorded as other expense, net in the Company’s statements of operations and comprehensive loss. The Company has insurance related to this event which fully offset the loss recorded during the year ended December 31, 2021, and partially offset the loss recorded during the nine months ended September 30, 2022, resulting in a net loss of $ 426 thousand. The Company implemented a variety of measures to further enhance its cybersecurity protections and minimize the impact of any future cyber incidents. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with Legacy Comera’s financial statements and related notes for the years ended December 31, 2021 and 2020 included in the Current Report on Form 8-K filed with the SEC on September 6, 2022. The financial information as of September 30, 2022 and 2021, and the three and nine months ended September 30, 2022 and 2021, is unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for the fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented, have been included. The balance sheet data as of December 31, 2021 was derived from Legacy Comera’s audited financial statements. The results of the Company’s operations for any interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. |
Emerging Growth Company and Smaller Reporting Company Status | Emerging Growth Company and Smaller Reporting Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. The Company is also a “smaller reporting company” as defined in the Securities Exchange Act of 1934 (the “Exchange Act”). The Company may continue to be a smaller reporting company even after the Company is no longer an emerging growth company. The Company may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of the Company’s voting and non-voting Common Stock held by non-affiliates is less than $ 250.0 million measured on the last business day of the Company’s second fiscal quarter, or the Company’s annual revenue is less than $ 100.0 million during the most recently completed fiscal year and the market value of the Company’s voting and non-voting Common Stock held by non-affiliates is less than $ 700.0 million measured on the last business day of the Company’s second fiscal quarter. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including but not limited to, risks associated with completing preclinical studies and clinical trials, receiving regulatory approvals for product candidates, development by competitors of new biopharmaceutical products, dependence on key personnel, protection of proprietary technology, compliance with government regulations, entering into collaborations with partners for the Company’s SQore TM platform and the ability to secure additional capital to fund operations. Significant discovery, research and development efforts, including clinical testing and regulatory approval, are required prior to commercialization of any potential product candidates. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize revenue from product sales. Through September 30, 2022, the Company has funded its operations primarily with proceeds from the issuance of equity instruments, convertible notes, and preferred stock. The Company has incurred recurring losses since its inception, including a net loss of $ 15.0 million for the nine months ended September 30, 2022. In addition, as of September 30, 2022, the Company had an accumulated deficit of $ 31.9 million . The Company expects to continue to generate operating losses for the near future. The future viability of the Company is dependent on its ability to raise additional capital to finance its operations. The Company’s inability to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies. There can be no assurance that the current operating plan will be achieved or that additional funding will be available on terms acceptable to the Company, or at all. The Company does not believe the cash and cash equivalents on hand as of September 30, 2022 of $ 2.7 million will be sufficient to fund its operations and capital expenditure requirements for the next twelve months from the date the condensed consolidated financial statements are issued. The Company will be required to raise additional capital to continue to fund operations and capital expenditures. Such funding may not be available on acceptable terms, or at all. If the Company is unable to access additional funds when needed, it may not be able to continue operations or the Company may be required to delay, scale back or eliminate some or all of its ongoing research and development efforts and other operations. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, will materially harm its business, financial condition and results of operations. These uncertainties create substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. |
COVID-19 | COVID-19 In March 2020, COVID-19 was declared a global pandemic by the World Health Organization and continues to present a substantial public health and economic challenge around the world. The length of time and full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, subject to change and difficult to predict. The Company plans to continue to closely monitor the ongoing impact of the COVID-19 pandemic on the Company’s employees and other business operations. In an effort to provide a safe work environment for the Company’s employees, the Company has, among other things, limited employees in the Company’s office and lab facilities to those where on-site presence is needed for their job activities, implemented various social distancing measures in the Company’s offices and labs and are providing personal protective equipment for the Company’s employees present in the Company’s office and lab facilities, as needed. The Company is continuing to monitor the impact and effects of the COVID-19 pandemic and the Company’s response to it, and the Company expects to continue to take actions as may be required or recommended by government authorities or that are determined to be in the best interests of the Company’s employees and other business partners in light of the pandemic. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, based on judgments considered reasonable, which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of the derivative warrant liabilities, Legacy Comera’s common stock, and stock-based compensation. Changes in estimates are recorded in the period in which they become known. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and, given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies of the Company are set forth in Note 2 to the consolidated financial statements included in the Current Report on Form 8-K filed with the SEC on September 6, 2022, and the accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies therein and as supplemented below. |
Reverse Recapitalization | Reverse Recapitalization The Transaction was accounted for as a reverse recapitalization, with OTR being treated as the “acquired” company and Legacy Comera being treated as the “acquirer” for accounting purposes based upon the pre-merger shareholders of Legacy Comera holding the majority of the voting interests of CLS Holdings, Legacy Comera’s existing management team serving as the initial management team of CLS Holdings, Legacy Comera’s appointment of the majority of the initial board of directors of CLS Holdings, and Legacy Comera’s operations comprising the ongoing operations of the Company. The Transaction was accounted for as the equivalent of Legacy Comera issuing stock for the net assets of OTR, accompanied by a reverse recapitalization. Accordingly, all historical financial information presented in these condensed consolidated financial statements represents the accounts of CLS Holdings and Legacy Comera “as if” CLS Holdings and Legacy Comera, both entities under common control, are the predecessor. The net loss per share or unit, prior to the Transaction, has been adjusted to share amounts reflecting the exchange ratio (the “Exchange Ratio”) established in the Transaction. |
Convertible Preferred Stock | Convertible Preferred Stock The Company accounts for convertible preferred stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). The Series A Preferred Stock is redeemable at the option of the holder upon the occurrence of a qualified financing. As the Series A Preferred Stock is considered to be contingently redeemable, it has been classified outside of permanent equity. The Series A Preferred Stock has been accreted to its redemption value since the contingent event is considered probable of occurring. |
Derivative Warrant Liabilities | Derivative Warrant Liabilities The Company classifies as equity any warrants that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any warrants that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the company’s control), (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement) or (iii) that contain reset provisions that do not qualify for the scope exception. The Company assesses classification of its common stock warrants and other freestanding warrant instrument at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company’s freestanding warrant instruments consist of private placement warrants to purchase shares of common stock (“Private Placement Warrants”) and public warrants to purchase shares of common stock (“Public Warrants”) that were converted in connection with the Transaction. Following the Transaction, the Public Warrants are considered equity classified instruments since the shares underlying the Public Warrants are not redeemable and the Company has one single class of voting common stock, which does not preclude them from being considered indexed to the Company’s equity and allows the Public Warrants to meet the criteria for equity classification per ASC 815, Derivatives and Hedging (“ASC 815”). Warrants that are determined to require equity classification are measured at fair value upon issuance and are not subsequently remeasured unless they are required to be reclassified. The Private Placement Warrants are considered liability classified instruments because their settlement amount differs depending on the identity of the holder which precludes them from being considered indexed to the Company’s equity. Accordingly, the Company recognizes the Private Placement Warrants as liabilities at fair value and adjusts the instruments to fair value using quoted prices of instruments with similar terms. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations and comprehensive loss. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts within prepaid expenses and other current assets (Note 5) have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results of operations or financial position. |
Subsequent Events | Subsequent Events The Company considers events or transactions that occur after the balance sheet date but before the condensed consolidated financial statements are issued to provide evidence relative to certain estimates or to identify matters that require additional disclosure. The Company evaluated all events and transactions through the date these condensed consolidated financial statements were filed with the SEC. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements and disclosures. |
Transaction and Reverse Recap_2
Transaction and Reverse Recapitalization (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Common Stock Issued and Outstanding | The following summarizes the shares of CLS Holdings Common Stock issued and outstanding immediately following the Transaction as of May 19, 2022: Shares % Legacy Comera Stockholders 12,022,595 76 % OTR Public Stockholders 677,987 4 % OTR Founders 2,611,838 16 % Maxim (1) 624,765 4 % Total (2) 15,937,185 100 % (1) Represents (i) 97,561 shares of the CLS Holdings Common Stock purchased by Maxim in a private placement, (ii) 344,375 shares of the CLS Holdings Common Stock issued to Maxim by the Legacy Comera shareholders to settle Maxim’s success fee, and (iii) 182,829 shares of the CLS Holdings Common Stock issued to Maxim in exchange for a like number of shares of OTR common stock received in connection with OTR’s initial public offering. (2) Excludes 3,150,000 Earn-Out Shares. |
Summary of Net Tangible Assets Acquired and Reconciles Element of Transaction to Consolidated Statement of Cash flows | The following table presents the net tangible assets acquired from OTR and reconciles the elements of the Transaction to the consolidated statements of cash flows: Transaction Cash $ 5,643,508 Deferred underwriting fee payable ( 3,395,389 ) Derivative warrant liabilities ( 2,286,379 ) Net tangible assets acquired from OTR ( 38,260 ) Cash proceeds received from Maxim Private Placement 1,000,000 Gross proceeds from Transaction and Maxim Private Placement 961,740 Less: total issuance costs ( 7,528,561 ) Reverse recapitalization issuance costs in excess of gross proceeds ( 6,566,821 ) Add: derivative warrant liabilities assumed 2,286,379 Add: issuance of common stock to settle success fee 3,443,750 Add: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable 4,305,389 Less: Series A preferred stock issuance costs ( 161,535 ) Net cash proceeds from Transaction and Maxim Private Placement $ 3,307,162 |
Summary of Net Proceeds and Reconciles Elements of Transaction to Consolidated Statements Convertible Preferred Stock, Stockholders' Deficit and Members' Capital | The following table presents the net cash proceeds from the Transaction and Maxim Private Placement and reconciles the elements of the Transaction to the consolidated statements convertible preferred stock, stockholders’ deficit and members’ capital: Transaction Net cash proceeds from Transaction and Maxim Private Placement $ 3,307,162 Add: Series A preferred stock issuance costs 161,535 Add: reverse recapitalization issuance costs in excess of gross proceeds 6,566,821 Less: derivative warrant liabilities assumed ( 2,286,379 ) Less: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable ( 4,305,389 ) Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs $ 3,443,750 |
Summary of Assumption Used in Valuation of Earn-Out Shares | Assumptions used in the valuation at the Closing Date were as follows: Assumptions Fair value of common stock $ 9.91 Selected volatility 90.00 % Risk-free interest rate 2.60 % Contractual term (years) 2.0 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Liabilities, Measured at Fair Value on a Recurring Basis | The following table presents the Company’s fair value hierarchy for its liabilities, which are measured at fair value on a recurring basis as of September 30, 2022: Fair Value Measurements at September 30, 2022 Using: Level 1 Level 2 Level 3 Total Liabilities: Private Placement Warrants $ — $ 331,612 $ — $ 331,612 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: September 30, December 31, Prepaid insurance $ 1,274,263 $ — Contract assets — 85,018 Insurance recovery receivable — 136,250 Other 51,490 49,380 Prepaid expenses and other current assets $ 1,325,753 $ 270,648 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: September 30, December 31, Lab equipment $ 587,650 $ 587,650 Leasehold improvements 36,149 17,973 Computer equipment 32,178 21,747 Other equipment 9,411 9,411 665,388 636,781 Less accumulated depreciation ( 472,798 ) ( 402,614 ) Property and equipment, net $ 192,590 $ 234,167 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: September 30, December 31, Accrued bonus $ 447,488 $ 349,000 Professional fees 255,822 123,756 Accrued vacation 27,851 25,945 Other 155,851 7,910 Accrued expenses and other current liabilities $ 887,012 $ 506,611 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock | Convertible preferred stock consisted of the following as of September 30, 2022: Par Value Shares Authorized Shares Issued and Carrying Value Liquidation Common Stock Series A Preferred Stock $ 0.0001 4,305 4,305 $ 4,431,838 $ 4,431,838 342,754 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of common stock reserved for future issuance | As of September 30, 2022, the Company has reserved the following shares of common stock for future issuance: Exercise of outstanding stock options 1,982,641 Available for issuance under equity compensation plans 77,197 Exercise of outstanding common stock warrants 11,041,332 Conversion of Series A Preferred Stock 1,028,262 Reserved for issuance pursuant to the Purchase Agreement 4,283,819 Total shares of authorized common stock reserved for future issuance 18,413,251 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Grant-date Fair Value of Stock Options Granted | The assumptions that the Company used to determine the grant-date fair value of stock options granted were as follows, presented on a weighted-average basis: Nine Months Expected option life (years) 6.1 Risk-free interest rate 3.18 % Expected volatility 62.65 % Expected dividend yield — % |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2022: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 2,689,935 $ 0.59 $ 767 Granted 814,200 3.30 Exercised ( 1,385,310 ) 0.59 Cancelled or forfeited ( 136,184 ) 0.59 Outstanding as of September 30, 2022 1,982,641 $ 1.70 9.1 $ 1,192 Exercisable as of September 30, 2022 406,894 $ 0.59 8.8 $ 415 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense was allocated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 484 $ 448 $ 1,409 $ 19,530 Research and development 2,670 2,829 7,681 410,644 General and administrative 124,536 31,011 217,895 642,436 Total stock-based compensation $ 127,690 $ 34,288 $ 226,985 $ 1,072,610 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Warrants Outstanding and Exercisable | The warrants were assumed as part of the Transaction and the following represents a summary of the warrants outstanding and exercisable at September 30, 2022: Number of Shares Underlying Warrants Description Issue Date Classification Exercise Price Expiration Date Outstanding Shares Exercisable Shares Private Placement Warrants Nov 17, 2020 Liability $ 11.50 May 19, 2027 5,817,757 5,817,757 Public Warrants Nov 17, 2020 Equity $ 11.50 May 19, 2027 5,223,575 5,223,575 11,041,332 11,041,332 |
Net Loss per Share or Unit - _2
Net Loss per Share or Unit - Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Common Stock Excluded from Computation of Diluted Net Loss Per Share | The following potentially dilutive common stock or member unit equivalents, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net loss per share or unit because including them would have had an anti-dilutive effect: Nine Months Ended September 30, 2022 2021 Options to purchase common stock 1,982,641 2,674,384 Earn-Out Shares 3,150,000 — Convertible preferred stock (as converted to common stock) 342,754 10,643,403 Warrants to purchase common stock 11,041,332 — |
Schedule of Calculation of Basic and Diluted Net Loss Per Share or Unit | The following table sets forth the calculation of basic and diluted net loss per share or unit: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss available to common stockholders $ ( 3,163,657 ) $ ( 913,700 ) $ ( 15,329,488 ) $ ( 3,427,675 ) Weighted-average number of common shares or units used in 16,024,011 144,163 8,294,938 3,955,649 Net loss per share or unit attributable to common $ ( 0.20 ) $ ( 6.34 ) $ ( 1.85 ) $ ( 0.87 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Maturities and Balance Sheet Presentation Under All Non-cancelable Operating Leases | The maturities and balance sheet presentation under all non-cancelable operating leases as of September 30, 2022, are as follows: Operating Leases Maturity of lease liabilities 2022 (remaining 3 months) $ 54,386 2023 217,545 2024 123,077 Total lease liabilities 395,008 Less imputed interest ( 28,159 ) Present value of operating lease liability as of September 30, 2022 $ 366,849 Reported as of September 30, 2022 Lease liabilities — current $ 195,253 Lease liabilities — noncurrent 171,596 $ 366,849 |
Organization - Additional Infor
Organization - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Date of Incorporation | Jan. 25, 2022 |
OTR Acquisition Corp | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Date of acquisition | May 19, 2022 |
Reverse Recapitalization Transaction | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Goodwill recorded | $ 0 |
Intangible assets recorded | $ 0 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||||||||
Net loss | $ 3,076,841 | $ 9,085,268 | $ 2,879,395 | $ 913,700 | $ 1,980,570 | $ 533,405 | $ 15,041,504 | $ 3,427,675 | |
Accumulated deficit | 31,941,329 | 31,941,329 | $ 16,899,825 | ||||||
Cash and cash equivalents on hand | $ 2,669,354 | $ 8,269,230 | 2,669,354 | $ 8,269,230 | $ 6,510,140 | ||||
Maximum | |||||||||
Product Information [Line Items] | |||||||||
Voting and non-voting common stock held by non-affiliates | 250,000,000 | ||||||||
Annual revenue for recently completed fiscal year | 100,000,000 | ||||||||
Voting and non-voting common stock held by non-affiliates along with annual revenue | $ 700,000,000 |
Transaction and Reverse Recap_3
Transaction and Reverse Recapitalization - Additional Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||
May 19, 2022 Days $ / shares shares | Nov. 17, 2020 USD ($) $ / shares shares | Oct. 13, 2020 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | |
Business Acquisition [Line Items] | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||
Number of shares placed into escrow | shares | 3,150,000 | 3,150,000 | |||
Earn-out trigger, weighted average share price | $ 12.50 | ||||
Earn-out trigger, threshold trading days | Days | 20 | ||||
Earn-out trigger, threshold consecutive trading days | Days | 30 | ||||
Number of business days for releasing earn-out shares following achievement of Earn-out trigger | 10 days | ||||
Number Of Busines Days For Releasing Earn-Out Shares Following Achievement Of Earn-Out Trigger | 10 days | ||||
Estimated fair value per share of Earn-Out Shares | $ 8.63 | ||||
Estimated fair value of Earn-Out Shares | $ | $ 27,200 | ||||
Earnout consideration description | If the Earn-Out Trigger is not achieved for the two-year period following the Closing Date, the Earn-Out Shares will be cancelled and returned to treasury. The contingent obligation to issue Earn-Out Shares to Legacy Comera stockholders is considered indexed to the Company’s own stock and meets the equity classification under ASC 815. | ||||
Common stock consideration per share | $ 12.50 | ||||
Common stock exercised | shares | 1,385,310 | ||||
Convertible preferred stock, par value | $ 0.0001 | ||||
Direct and incremental cost related to the equity issuance | $ | $ 7,500 | ||||
General and Administrative | |||||
Business Acquisition [Line Items] | |||||
Transaction costs incurred | $ | $ 1,500 | ||||
Private Placement | Maxim Group LLC. | |||||
Business Acquisition [Line Items] | |||||
Maxim private placement, amount | $ | $ 1,000 | ||||
Maxim private placement, value per share | $ 10.25 | ||||
Maxim private placement, shares | shares | 97,561 | 97,561 | |||
Series A Convertible Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Convertible preferred stock, par value | $ 0.0001 | ||||
Transaction noncash expenses related to shares issued | $ | $ 4,400 | ||||
Underwriting Agreement | Series A Convertible Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Convertible preferred stock, par value | $ 0.0001 | ||||
Share issuance pursuant to services owed, value | $ | $ 3,400 | $ 910 | |||
Share issuance pursuant to services owed | shares | 3,395 | 910 | |||
Comera Merger | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value | 0.0001 | ||||
Comera Merger | Comera Life Sciences, Inc. | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value | $ 0.001 | ||||
OTR Merger | |||||
Business Acquisition [Line Items] | |||||
Conversion basis | Upon the Closing, by virtue of the OTR Merger, all shares of common stock of OTR issued and outstanding immediately prior to the Closing were converted on a one-to-one basis into the right to receive shares of CLS Holdings Common Stock | ||||
Conversion ratio | 1 | ||||
Common stock exercised | shares | 9,769,363 | ||||
Common stock issued | shares | 3,472,654 | ||||
OTR Acquisition Corp | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | May 19, 2022 |
Transaction and Reverse Recap_4
Transaction and Reverse Recapitalization - Summary of Common Stock Issued and Outstanding (Details) - shares | Sep. 30, 2022 | Dec. 31, 2021 |
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 16,653,466 | 308,443 |
Common stock, shares outstanding | 16,653,466 | 308,443 |
CLS Holdings [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 15,937,185 | |
Common stock, shares outstanding | 15,937,185 | |
Ownership percentage | 100% | |
Legacy Comera Stockholders | CLS Holdings [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 12,022,595 | |
Common stock, shares outstanding | 12,022,595 | |
Ownership percentage | 76% | |
OTR Public Stockholders | CLS Holdings [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 677,987 | |
Common stock, shares outstanding | 677,987 | |
Ownership percentage | 4% | |
OTR Founders | CLS Holdings [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 2,611,838 | |
Common stock, shares outstanding | 2,611,838 | |
Ownership percentage | 16% | |
Maxim Group LLC. | CLS Holdings [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares issued | 624,765 | |
Common stock, shares outstanding | 624,765 | |
Ownership percentage | 4% |
Transaction and Reverse Recap_5
Transaction and Reverse Recapitalization - Summary of Common Stock Issued and Outstanding (Parenthetical) (Details) - shares | 9 Months Ended | ||
Oct. 13, 2020 | Sep. 30, 2022 | May 19, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares placed into escrow | 3,150,000 | 3,150,000 | |
Maxim Group LLC. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock issued for services | 344,375 | ||
Common stock issued upon conversion | 182,829 | ||
Maxim Group LLC. | Private Placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Maxim private placement, shares | 97,561 | 97,561 |
Transaction and Reverse Recap_6
Transaction and Reverse Recapitalization - Summary of Net Tangible Assets Acquired and Reconciles Element of Transaction to Consolidated Statement of Cash flows (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||
Reverse recapitalization issuance costs in excess of gross proceeds | $ 6,566,821 | |
Less: Series A preferred stock issuance costs | $ 9,349,675 | |
Net cash proceeds from Transaction and Maxim Private Placement | 3,307,162 | |
OTR Acquisition Corp [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 5,643,508 | |
Deferred underwriting fee payable | (3,395,389) | |
Derivative warrant liabilities | (2,286,379) | |
Net tangible assets acquired from OTR | (38,260) | |
Cash proceeds received from Maxim Private Placement | 1,000,000 | |
Gross proceeds from Transaction and Maxim Private Placement | 961,740 | |
Less: total issuance costs | (7,528,561) | |
Reverse recapitalization issuance costs in excess of gross proceeds | (6,566,821) | |
OTR Acquisition Corp [Member] | Cash Flow Adjustment [Member] | ||
Business Acquisition [Line Items] | ||
Add: derivative warrant liabilities assumed | 2,286,379 | |
Add: issuance of common stock to settle success fee | 3,443,750 | |
Add: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable | 4,305,389 | |
Less: Series A preferred stock issuance costs | (161,535) | |
Net cash proceeds from Transaction and Maxim Private Placement | $ 3,307,162 |
Transaction and Reverse Recap_7
Transaction and Reverse Recapitalization - Summary of Net Proceeds and Reconciles Elements of Transaction to Consolidated Statements Convertible Preferred Stock, Stockholders' Deficit and Members' Capital (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | |||
Net cash proceeds from Transaction and Maxim Private Placement | $ 3,307,162 | ||
Add: Series A preferred stock issuance costs | $ 9,349,675 | ||
Add: reverse recapitalization issuance costs in excess of gross proceeds | 6,566,821 | ||
Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs | $ 3,443,750 | ||
OTR Acquisition Corp | |||
Business Acquisition [Line Items] | |||
Add: reverse recapitalization issuance costs in excess of gross proceeds | (6,566,821) | ||
Less: derivative warrant liabilities assumed | (2,286,379) | ||
OTR Acquisition Corp | Acquisition-related Costs [Member] | |||
Business Acquisition [Line Items] | |||
Net cash proceeds from Transaction and Maxim Private Placement | 3,307,162 | ||
Add: Series A preferred stock issuance costs | 161,535 | ||
Add: reverse recapitalization issuance costs in excess of gross proceeds | 6,566,821 | ||
Less: derivative warrant liabilities assumed | (2,286,379) | ||
Less: issuance of Series A preferred stock to settle stock issuance costs and underwriting fees payable | (4,305,389) | ||
Issuance of common stock in connection with the Transaction and Maxim Private Placement, net of redemptions, net tangible assets, and issuance costs | $ 3,443,750 |
Transaction and Reverse Recap_8
Transaction and Reverse Recapitalization - Summary of Assumption Used in Valuation of Earn-Out Shares (Details) | Sep. 30, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Earn-Out Shares measurement input | 9.91 |
Selected Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Earn-Out Shares measurement input | 90 |
Risk-free Interest Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Earn-Out Shares measurement input | 2.60 |
Contractual Term (Years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Earn-Out Shares measurement input | 2 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Schedule of Fair Value Hierarchy for Liabilities, Measured at Fair Value on a Recurring Basis (Details) - Recurring - Private Placement Warrants | Sep. 30, 2022 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liabilities | $ 331,612 |
Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liabilities | $ 331,612 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 1,274,263 | |
Contract assets | $ 85,018 | |
Insurance recovery receivable | 136,250 | |
Other | 51,490 | 49,380 |
Prepaid expenses and other current assets | $ 1,325,753 | $ 270,648 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 665,388 | $ 636,781 |
Less accumulated depreciation | (472,798) | (402,614) |
Property and equipment, net | 192,590 | 234,167 |
Lab Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 587,650 | 587,650 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 36,149 | 17,973 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 32,178 | 21,747 |
Other Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,411 | $ 9,411 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 70,184 | $ 61,928 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued bonus | $ 447,488 | $ 349,000 |
Professional fees | 255,822 | 123,756 |
Accrued vacation | 27,851 | 25,945 |
Other | 155,851 | 7,910 |
Accrued expenses and other current liabilities | $ 887,012 | $ 506,611 |
Insurance Premium Financing (Ad
Insurance Premium Financing (Additional Information) (Details) - USD ($) | 1 Months Ended | |
May 31, 2022 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 911,124 | |
Finance Agreement | First Insurance Funding | ||
Debt Instrument [Line Items] | ||
Amount financed | $ 1,500,000 | |
Interest rate | 4% | |
Frequency of periodic payment | monthly | |
Monthly payment | $ 154,000 | |
Maturity date | Mar. 31, 2023 | |
Outstanding balance | $ 900,000 |
Legacy Comera Convertible Pre_2
Legacy Comera Convertible Preferred Stock - Additional Information (Details) - $ / shares | Sep. 30, 2022 | May 18, 2022 | Apr. 30, 2021 |
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized | 1,000,000 | ||
Convertible preferred stock, par value | $ 0.0001 | ||
Series A Convertible Preferred Stock | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized | 4,305 | ||
Convertible preferred stock, par value | $ 0.0001 | ||
Preferred stock, shares issued | 4,305 | ||
Legacy Comera | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized | 14,051,702 | ||
Convertible preferred stock, par value | $ 0.001 | ||
Legacy Comera | Series A Convertible Preferred Stock | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized | 9,429,006 | ||
Legacy Comera | Series B Convertible Preferred Stock | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized | 4,622,696 | ||
Legacy Comera | Series A-1 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 6,000,000 | ||
Legacy Comera | Series A-2 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 1,266,667 | ||
Legacy Comera | Series A-3 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 527,752 | ||
Legacy Comera | Series A-4 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 1,016,669 | ||
Legacy Comera | Series A-5 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 514,932 | ||
Legacy Comera | Series A-6 Preferred Stock | |||
Temporary Equity [Line Items] | |||
Preferred stock, shares issued | 102,986 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
May 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | |
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 | ||
Proceeds from issuance of common stock | $ 748,888 | |||
Accretion of preferred stock considered as deemed dividend | $ 87,000 | 288,000 | ||
Minimum | ||||
Temporary Equity [Line Items] | ||||
Proceeds from issuance of common stock | $ 5,000,000 | |||
Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares authorized | 4,305 | 4,305 | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 | ||
Convertible preferred stock, shares issued | 4,305 | |||
Voting rights, description | The holders of the Series A Preferred Stock are entitled to vote, together with the holders of common stock, on all matters submitted to the stockholders for a vote and are entitled to the number of votes equal to the number of whole shares of common stock into which such holders of preferred stock could convert on the record date for determination of stockholders entitled to vote. Except for the actions requiring the approval or consent of the holders of preferred stock, the holders of preferred stock shall vote together with the holders of common stock and vote as a single class | |||
Dividend payment terms, description | The holders of Series A Preferred Stock shall be entitled to receive, prior and in preference to the declaration or payment of any dividend on any other currently-outstanding capital stock, dividends when, as and if declared by the Board of Directors, payable quarterly on January 1, April 1, July 1 and October 1 of each calendar year (each date a “Series A Quarterly Dividend Payment Date”), commencing on and including July 1, 2022, which dividends shall be paid in cash at a rate of 8.0% per annum on the Series A Original Purchase Price for the first six Series A Quarterly Dividend Payment Dates, which shall increase by 2% per annum from and after each successive Series A Quarterly Dividend Payment Date, up to a maximum of 18%. | |||
Percentage of increase in dividend rate per annum | 2% | |||
Cash dividends declared or paid | $ 0 | |||
Cumulative dividends in arrears | $ 288,000 | |||
Description of conversion terms | Each share of preferred stock is convertible into common stock, at any time, at the option of the holder, and without the payment of additional consideration, determined by dividing the Series A Original Issuance Price by $12.56 (as may be adjusted for stock splits, dilutive issuances and the like, the “Series A Conversion Price”); provided, however, in no event shall outstanding shares of Series A Preferred Stock be converted into more than 19.99% of the outstanding shares of common stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of common stock to effect the conversion of three hundred percent (300%) of all shares of Series A Preferred Stock then outstanding. | |||
Preferred stock, conversion price | 12.56 | $ 12.56 | ||
Maximum percentage of outstanding shares of common stock convertible | 19.99% | |||
Maximum percentage of reserve available of authorized but unissued shares of common stock to effect the conversion | 300% | |||
Redemption price | $ 1,000 | $ 1,000 | ||
Percentage of right on aggregate proceeds | 30% | 30% | ||
Series A Preferred Stock | First Six Series A Quarterly Dividend Payment Dates | ||||
Temporary Equity [Line Items] | ||||
Dividends rate | 8% | |||
Series A Preferred Stock | Maximum | ||||
Temporary Equity [Line Items] | ||||
Dividends rate | 18% | |||
Series A Preferred Stock | Transaction and Settlement Agreement | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares issued | 4,305 | |||
Original purchase price | $ 1,000 | |||
Issuance costs for convertible preferred stock | $ 162,000 | |||
Series A Preferred Stock | Transaction and Settlement Agreement | Maxim Group LLC. | ||||
Temporary Equity [Line Items] | ||||
Advisory fees | $ 4,300,000 | |||
Series A Preferred Stock | Minimum | ||||
Temporary Equity [Line Items] | ||||
Proceeds from issuance of common stock | $ 5,000,000 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Convertible Preferred Stock (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Temporary Equity [Line Items] | ||
Par Value | $ 0.0001 | |
Shares Authorized | 1,000,000 | |
Common Stock Issuable Upon Conversion | 1,028,262 | |
Series A Preferred Stock | ||
Temporary Equity [Line Items] | ||
Par Value | $ 0.0001 | |
Shares Authorized | 4,305 | |
Shares Issued | 4,305 | |
Shares Outstanding | 4,305 | 4,305 |
Carrying Value | $ 4,431,838 | $ 4,345,022 |
Liquidation Preference | $ 4,431,838 | |
Common Stock Issuable Upon Conversion | 342,754 |
Common Stock (Additional Inform
Common Stock (Additional Information) (Details) - USD ($) | 9 Months Ended | ||
Aug. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||
Proceeds from issuance of common stock | $ 748,888 | ||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Each common stock entitles voting right | one vote | ||
Cash dividends | $ 0 | ||
Private Placement | Maxim Group LLC. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of common stock sold | 97,561 | ||
Proceeds from issuance of common stock | $ 1,000,000 | ||
Purchase Agreement | Arena Business Solutions Global SPC II, Ltd. | Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of common stock sold | 420,000 | ||
Proceeds from issuance of common stock | $ 700,000 | ||
Additional commitment amount | $ 30,000,000 | ||
Percentage of purchase price of shares equal to simple average of the daily VWAP | 96% | ||
Commitment shares | 296,181 | ||
Fair value of commitment shares | $ 650,000 | ||
Other issuance costs | 376,000 | ||
Weighted-average price | $ 1.78 | ||
Purchase Agreement | Arena Business Solutions Global SPC II, Ltd. | Common Stock | Maximum | |||
Subsidiary, Sale of Stock [Line Items] | |||
Commitment amount | 15,000,000 | ||
Obligated purchase amount | $ 15,000,000 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Exercise of outstanding stock options | 1,982,641 | 2,689,935 |
Available for issuance under equity compensation plans | 77,197 | |
Exercise of outstanding common stock warrants | 11,041,332 | |
Conversion of Series A Preferred Stock | 1,028,262 | |
Reserved for issuance pursuant to the Purchase Agreement | 4,283,819 | |
Common Stock, Capital Shares Reserved for Future Issuance, Total | 18,413,251 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Mar. 04, 2014 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares, exercisable | 406,894 | |||
Shares exercisable, weighted-average exercise price | $ 0.59 | |||
Additional awards granted | 814,200 | |||
Number of options outstanding | 1,982,641 | 2,689,935 | ||
Options outstanding, weighted-average exercise price | $ 1.70 | $ 0.59 | ||
Shares available for future grant | 77,197 | |||
Weighted-average grant date fair value of options granted | $ 1.97 | $ 0.41 | ||
Unrecognized compensation cost | $ 1.9 | |||
Unrecognized compensation cost related to non-vested awards, expected period | 3 years 6 months | |||
2014 Restricted Unit Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 2,500,000 | |||
Restricted unit plan, extinguished date | Apr. 30, 2021 | |||
2021 Stock option and Grant Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares, exercisable | 1,168,441 | |||
Shares exercisable, weighted-average exercise price | $ 0.59 | |||
Number of options outstanding | 1,168,441 | |||
2022 Equity and Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 2,059,838 | |||
Percentage of increase in shares of stock outstanding | 4% | |||
Number of options outstanding | 1,982,641 | |||
Options outstanding, weighted-average exercise price | $ 1.70 | |||
Shares available for future grant | 77,197 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Grant-date Fair Value of Stock Options Granted (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Expected option life (years) | 6 years 1 month 6 days |
Risk-free interest rate | 3.18% |
Expected volatility | 62.65% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |
Number of options, Outstanding beginning balance | shares | 2,689,935 |
Number of options, Granted | shares | 814,200 |
Number of options, Exercised | shares | (1,385,310) |
Number of options, Cancelled or forfeited | shares | (136,184) |
Number of options, Outstanding ending balance | shares | 1,982,641 |
Number of options, Exercisable | shares | 406,894 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, Outstanding beginning balance | $ / shares | $ 0.59 |
Weighted-average exercise price, Granted | $ / shares | 3.30 |
Weighted-average exercise price, Exercised | $ / shares | 0.59 |
Weighted-average exercise price, Cancelled or forfeited | $ / shares | 0.59 |
Weighted-average exercise price, Outstanding ending balance | $ / shares | 1.70 |
Weighted-average exercise price, Exercisable | $ / shares | $ 0.59 |
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Remaining Contractual Term [Abstract] | |
Weighted-average remaining contractual term (years), Outstanding | 9 years 1 month 6 days |
Weighted-average remaining contractual term (years), Exercisable | 8 years 9 months 18 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Aggregate Intrinsic Value [Abstract] | |
Aggregate intrinsic value, Outstanding beginning balance | $ | $ 767 |
Aggregate intrinsic value, Outstanding ending balance | $ | 1,192 |
Aggregate intrinsic value, Exercisable | $ | $ 415 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock-based compensation expense | ||||
Stock-based compensation expense | $ 127,690 | $ 34,288 | $ 226,985 | $ 1,072,610 |
Cost of Revenue | ||||
Stock-based compensation expense | ||||
Stock-based compensation expense | 484 | 448 | 1,409 | 19,530 |
Research and Development | ||||
Stock-based compensation expense | ||||
Stock-based compensation expense | 2,670 | 2,829 | 7,681 | 410,644 |
General and Administrative | ||||
Stock-based compensation expense | ||||
Stock-based compensation expense | $ 124,536 | $ 31,011 | $ 217,895 | $ 642,436 |
Common Stock Warrants - Additio
Common Stock Warrants - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Warrants issued | 0 |
Warrants exercised | 100 |
Warrants expired | 0 |
Public Warrants | |
Class of Warrant or Right [Line Items] | |
Redemption price per public warrant | $ / shares | $ 0.01 |
Stock price trigger for redemption of public warrants | $ / shares | $ 18 |
Threshold trading days for redemption of public warrants | 20 days |
Threshold consecutive trading days for redemption of public warrants | 30 days |
Notice period | 3 days |
Common Stock Warrants - Summary
Common Stock Warrants - Summary of Warrants Outstanding and Exercisable (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Number of Shares Underlying Warrants, Outstanding Shares | 11,041,332 |
Number of Shares Underlying Warrants, Exercisable Shares | 11,041,332 |
Private Placement Warrants | |
Class of Warrant or Right [Line Items] | |
Issue Date | Nov. 17, 2020 |
Classification | Liability |
Exercise Price | $ / shares | $ 11.50 |
Expiration Date | May 19, 2027 |
Number of Shares Underlying Warrants, Outstanding Shares | 5,817,757 |
Number of Shares Underlying Warrants, Exercisable Shares | 5,817,757 |
Public Warrants | |
Class of Warrant or Right [Line Items] | |
Issue Date | Nov. 17, 2020 |
Classification | Equity |
Exercise Price | $ / shares | $ 11.50 |
Expiration Date | May 19, 2027 |
Number of Shares Underlying Warrants, Outstanding Shares | 5,223,575 |
Number of Shares Underlying Warrants, Exercisable Shares | 5,223,575 |
Concentrations of Risk (Additio
Concentrations of Risk (Additional Information) (Details) - Customer Concentration Risk - Customer Two | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk | 100% | |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk | 97% | 100% |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss per Share or Unit - _3
Net Loss per Share or Unit - Basic and Diluted - Schedule of Potentially Dilutive Common Stock Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 3,150,000 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 1,982,641 | 2,674,384 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 342,754 | 10,643,403 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 11,041,332 |
Net Loss per Share or Unit - _4
Net Loss per Share or Unit - Basic and Diluted - Schedule of Calculation of Basic and Diluted Net Loss Per Share or Unit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to common stockholders or unit holders | $ (3,163,657) | $ (913,700) | $ (15,329,488) | $ (3,427,675) |
Weighted-average number of common shares or units used in computing net loss per share or unit attributable to common stockholders or unit holders - basic | 16,024,011 | 144,163 | 8,294,938 | 3,955,649 |
Weighted-average number of common shares or units used in computing net loss per share or unit attributable to common stockholders or unit holders - diluted | 16,024,011 | 144,163 | 8,294,938 | 3,955,649 |
Net loss per share or unit attributable to common stockholders or unit holders-basic | $ (0.20) | $ (6.34) | $ (1.85) | $ (0.87) |
Net loss per share or unit attributable to common stockholders or unit holders-diluted | $ (0.20) | $ (6.34) | $ (1.85) | $ (0.87) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 04, 2022 | Mar. 10, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||||||
Operating lease, weighted average discount rate | 8% | 8% | ||||
Operating lease, weighted average lease term | 1 year 9 months 18 days | 1 year 9 months 18 days | ||||
Operating cash flows used for operating leases | $ 142,000 | $ 100,000 | ||||
Lease cost | $ 145,000 | $ 103,000 | ||||
Losses on indemnification agreement | $ 0 | |||||
Insurance recovery receivable | $ 136,250 | |||||
Woburn, Massachusetts | ||||||
Loss Contingencies [Line Items] | ||||||
Lessee, operating lease, option to extend | On March 10, 2021, the Company extended the Woburn Lease through June 30, 2024 with a monthly lease payment of $12 thousand. | |||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||
Lease expiration date | Jun. 30, 2024 | |||||
Payments for rent | $ 18,000 | $ 12,000 | ||||
Business Email Compromise Fraud | ||||||
Loss Contingencies [Line Items] | ||||||
Business email compromise fraud losses, period of occurrence | In February 2022, the Company determined it was affected by a business email compromise fraud which resulted in a diversion of the Company’s capital to unknown parties. | |||||
Loss on business email compromise fraud | $ 590,000 | $ 136,000 | ||||
Business email compromise fraud, net loss | $ 426,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Maturities and Balance Sheet Presentation Under All Non-cancelable Operating Leases (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Maturity of lease liabilities | ||
2022 (remaining 3 months) | $ 54,386 | |
2023 | 217,545 | |
2024 | 123,077 | |
Total lease liabilities | 395,008 | |
Less imputed interest | (28,159) | |
Present value of operating lease liability as of September 30, 2022 | 366,849 | |
Lease liabilities - current | 195,253 | $ 121,552 |
Lease liabilities - noncurrent | 171,596 | $ 201,504 |
Operating lease liability | $ 366,849 |