General form of registration statement for all companies including face-amount certificate companies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
SCHEDULE OF PURCHASE PRICE AND PRELIMINARY PURCHASE PRICE ALLOCATIONS

The following table summarizes the purchase price and preliminary purchase price allocations relating to the acquisition:

 

         
Cash   $ 2,500,000  
Common Stock     1,000,000  
Total purchase consideration   $ 3,500,000  
Assets        
Net working capital (including cash)   $ 912,000  
Property and equipment     326,000  
Other assets     8,000  
Customer relationships     700,000  
Trade names and trademarks     150,000  
Goodwill     1,404,000  
Total net assets   $ 3,500,000  

The following table summarizes the purchase price and preliminary purchase price allocations relating to the acquisition:

 

         
Cash   $ 2,500,000  
Common Stock     1,000,000  
Total purchase consideration   $ 3,500,000  
Assets        
Net working capital (including cash)   $ 912,000  
Property and equipment     326,000  
Other assets     8,000  
Customer relationships     700,000  
Trade names and trademarks     150,000  
Goodwill     1,404,000  
Total net assets   $ 3,500,000  
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES

The following potentially dilutive securities have been excluded from the computations of weighted average shares of Common Stock outstanding as of June 30, 2024 and 2023, as they would be anti-dilutive:

 

    2024     2023  
    As of June 30,  
    2024     2023  
Shares underlying options outstanding     337,810       806,392  
Shares underlying warrants outstanding     8,838,669       4,649,952  
 Anti-dilutive securities     9,176,479       5,456,344  

The following potentially dilutive securities have been excluded from the computations of weighted average shares of Common Stock outstanding as of December 31, 2023 and 2022, as they would be anti-dilutive:

 

    2023     2022  
    As of December 31,  
    2023     2022  
Shares underlying options outstanding     683,695       806,392  
Shares underlying warrants outstanding     4,649,952       4,649,952  
Anti-dilutive securities     5,333,647       5,456,344  
SCHEDULE OF REVENUE RECOGNITION

 

    2024     2023  
   

For the six months ended

June 30,

  
    2024     2023  
Patient service fees1   $ 4,209,955     $ —  
Histology service fees     530,053       —  
Medical director fees     33,193       —  
Department of Defense observational studies     6,923       —  
Other revenues2     23,919       20,659  
Total net revenue   $ 4,804,043     $ 20,659  

 

 

  1 Patient services fees include direct billing for CyPath® Lung diagnostic test of approximately $199,000.

 

  2 Other revenues include pre-acquisition CyPath® Lung royalty income and laboratory services.

 

    2023     2022  
    As of December 31,  
    2023     2022  
Patient service fees1   $ 2,199,558     $ —  
Histology service fees     272,660       —  
Medical director fees     19,324       —  
Department of Defense observational studies     19,442       —  
Other revenues2     21,515       4,803  
Total net revenue   $ 2,532,499     $ 4,803  

 

1 Patient services fees includes direct billing for CyPath® Lung diagnostic test.
2 Other revenues include pre-acquisition CyPath® Lung royalty income and laboratory services.
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Amortization of leasehold improvements is computed using the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset class are as follows:

 

Asset Category   Useful Life
Computer equipment   3-5 years
Computer software   3 years
Equipment   3-5 years
Furniture and fixtures   5-7 years
Vehicles   5 years
Leasehold improvements   Lesser of lease term or useful life

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Amortization of leasehold improvements is computed using the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset class are as follows:

 

Asset Category   Useful Life
Computer equipment   3-5 years
Computer software   3 years
Equipment   3-5 years
Furniture and fixtures   5-7 years
Vehicles   5 years
Leasehold improvements   Lesser of lease term or useful life
SCHEDULE OF INTANGIBLE ASSETS ADJUSTMENTS

Intangible assets, net of accumulated amortization, and goodwill are summarized as follows as of June 30, 2024:

 

Description   Date Acquired   Useful Life   Cost     Amortization     Net  
Goodwill   9/18/2023       $ 1,404,486     $ —     $ 1,404,486  
Trade names and trademarks   9/18/2023   18 years     150,000       (6,527 )     143,473  
Customer relationships   9/18/2023   14 years     700,000       (39,167 )     660,833  
Total intangible assets, net           $ 2,254,486     $ (45,694 )   $ 2,298,792  

Intangible assets, net of accumulated amortization, are summarized as follows as of December 31, 2023:

 

Description   Date Acquired   Useful Life   Cost     Amortization     Net  
Goodwill   9/18/2023       $ 1,404,486     $ —     $ 1,404,486  
Trade names and trademarks   9/18/2023   18 years     150,000       (2,361 )     147,639  
Customer relationships   9/18/2023   14 years     700,000       (14,167 )     685,833  
Total Intangible Assets           $ 2,254,486     $ (16,528 )   $ 2,237,958  
SCHEDULE OF SEGMENT INFORMATION

 

    2024     2023     2024     2023  
    Three months ended June 30,     Six months ended June 30,  
    2024     2023     2024     2023  
Net revenue:                                
Diagnostic R&D   $ 4,038     $ —     $ 6,923     $ —  
Laboratory services 1     2,393,614       19,738       4,797,120       20,659  
Total net revenue     2,397,652       19,738       4,804,043       20,659  
                                 
Operating expenses:                                
Diagnostic R&D     (453,895 )     (370,384 )     (896,494 )     (759,629 )
Laboratory services     (2,535,285 )     (1,235 )     (5,272,284 )     (1,322 )
General corporate activities     (1,496,270 )     (1,426,469 )     (2,668,293 )     (2,596,028 )
Total operating loss     (2,087,798 )     (1,778,350 )     (4,033,028 )     (3,336,320 )
                                 
Non-operating income (expense), net     (17,062 )     42,764       (29,975 )     79,763  
Net loss before income tax expense     (2,104,860 )     (1,735,586 )     (4,063,003 )     (3,256,557 )
Income tax expense     (5,419 )     (4,587 )     (9,091 )     (16,406 )
Net loss   $ (2,110,279 )   $ (1,740,173 )   $ (4,072,094 )   $ (3,272,963 )

 

1 The majority of the increase versus the prior year is from the acquisition of Precision Pathology Laboratories Services, LLC on September 18, 2023.

 

    2023     2022  
    As of December 31,  
    2023     2022  
Net revenues:                
Diagnostic R&D   $ 19,442     $ —  
Laboratory services     2,513,057       4,803  
Total net revenues     2,532,499       4,803  
                 
Operating expenses:                
Diagnostic R&D     (1,724,597 )     (1,524,170 )
Laboratory services     (3,769,783 )     (95,041 )
General corporate activities     (5,011,347 )     (2,396,650 )
Total operating loss     (7,973,228 )     (4,011,058 )
                 
Non-operating income (expense), net     57,210       (4,140,596 )
Net loss before income taxes     (7,916,018 )     (8,151,654 )
Income tax expense     (20,993 )     (2,459 )
Net Loss   $ (7,937,011 )   $ (8,154,113 )