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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended 12 Months Ended
Sep. 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 finalized 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 September 30, 2024 and 2023, as they would be anti-dilutive:

 

    2024     2023  
    As of September 30,  
    2024     2023  
Shares underlying options outstanding     337,810       683,695  
Shares underlying warrants outstanding     9,573,898       4,649,952  
Shares underlying unvested restricted stock    

415,282

      

133,414

  
Anti-dilutive securities     10,326,990       5,467,061  

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 nine months ended
September 30,		  
    2024     2023  
Patient service fees1   $ 6,259,806     $ 248,654  
Histology service fees     811,914       31,854  
Medical director fees     50,136       2,393  
Department of Defense observational studies     8,654       14,250  
Other revenues2     23,919       21,992  
Total net revenue   $ 7,154,429     $ 319,143  

 

 

  1 Patient services fees include direct billing for CyPath® Lung diagnostic test of approximately $332,000 and $24,000 for the nine months ended September 30, 2024 and 2023.
     
  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 September 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       (8,611 )     141,389  
Customer relationships   9/18/2023   14 years     700,000       (51,667 )     648,333  
Total intangible assets, net           $ 2,254,486     $ (60,278 )   $ 2,194,208  

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 September 30,     Nine months ended September 30,  
    2024     2023     2024     2023  
Net revenue:                                
Diagnostic R&D   $ 1,731     $ 14,250     $ 8,654     $ 14,250  
Laboratory services 1     2,348,655       284,234       7,145,775       304,893  
Total net revenue     2,350,386       298,484       7,154,429       319,143  
                                 
Operating expenses:                                
Diagnostic R&D     (368,202 )     (436,799 )     (1,264,696 )     (1,196,428 )
Laboratory services     (2,150,825 )     (307,172 )     (7,423,109 )     (308,493 )
General corporate activities     (1,805,223 )     (1,849,017 )     (4,473,516 )     (4,445,045 )
Total operating loss     (1,973,864 )     (2,294,504 )     (6,006,892 )     (5,630,823 )
                                 
Non-operating income (expense), net     (24,417 )     5,914       (54,392 )     85,676  
Net loss before income tax expense     (1,998,281 )     (2,288,590 )     (6,061,284 )     (5,545,147 )
Income tax expense     (2,559 )     (2,294 )     (11,650 )     (18,700 )
Net loss   $ (2,000,840 )   $ (2,290,884 )   $ (6,072,934 )   $ (5,563,847 )

 

1 The majority of the increase versus the prior year is from the acquisition of the clinical pathology laboratory 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 )