0001437749-24-025875 | 10-Q | XBRL Viewer

Error Correction [Text Block]

Note 12. Restatement of Previously Issued (Unaudited) Interim Financial Statements

While undergoing a review of its unaudited condensed consolidated interim financial statements, the Company determined it had incorrectly expensed costs directly associated with the Merger during various periods in 2023. Fees such as accounting and legal related to the Merger should have been capitalized and net against proceeds of the Merger. This impacted previously reported amounts for deferred offering costs and general and administrative expense, among other line items in the unaudited condensed consolidated interim financial statements as of and for the three and six months ended June 30, 2023.

The following tables set forth the effects of the error corrections on affected items within the Company’s previously reported unaudited interim condensed consolidated balance sheet as of the periods indicated had the adjustments been made in the corresponding quarter:

	June 30, 2023
	As reported			Adjusted		As restated
Deferred offering costs	$	-		$	1,059,768	$	1,059,768
Accumulated deficit	$	(55,288,521	)	$	1,059,768	$	(54,228,753	)
Total assets	$	2,304,448		$	1,059,768	$	3,364,216
Total liabilities	$	14,188,409		$	—	$	14,188,409
Total convertible preferred stock	$	24,287,211		$	—	$	24,287,211
Total stockholders’ equity (deficit)	$	(36,171,172	)	$	1,059,768	$	(35,111,404	)

The following tables set forth the effects of the error corrections on affected items within the Company’s previously reported unaudited interim condensed consolidated statements of operations and comprehensive loss for the periods indicated had the adjustments been made in the corresponding quarters:

	Six Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	3,053,234		$	(1,059,768	)	$	1,993,466
Total operating expenses	$	6,844,896		$	(1,059,768	)	$	5,785,128
Loss from operations	$	(3,717,084	)	$	1,059,768		$	(2,657,316	)
Net loss	$	(3,019,605	)	$	1,059,768		$	(1,959,837	)
Net loss per share of common stock, basic and diluted	$	(5.83	)	$	2.05		$	(3.78	)

	Three Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	1,414,303		$	(421,750	)	$	992,553
Total operating expenses	$	3,372,691		$	(421,750	)	$	2,950,941
Loss from operations	$	(1,652,747	)	$	421,750		$	(1,230,997	)
Net loss	$	(1,847,251	)	$	421,750		$	(1,425,501	)
Net loss per share of common stock, basic and diluted	$	(3.57	)	$	0.82		$	(2.75	)

Note 11 - Stock-based Compensation Stock - Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share based compensation expense	$ 578,581	$ 62,252	$ 796,796	$ 133,492
Research and Development Expense [Member]
Share based compensation expense	40,337	31,022	104,134	71,148
General and Administrative Expense [Member]
Share based compensation expense	$ 538,244	$ 31,230	$ 692,662	$ 62,344

Note 2 - Liquidity and Capital Resources	6 Months Ended
Jun. 30, 2024
Notes to Financial Statements
Liquidity Disclosure [Text Block]	2. Liquidity and Capital Resources The Company has generated negative cash flows from operations and, as of June 30, 2024, had an accumulated deficit of $59.3 million. Based on its current operating plan, the Company believes its existing cash and cash equivalents and marketable securities on hand as of June 30, 2024, along with the remaining funds to be received from the NIA Grant, will enable the Company to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance of these unaudited condensed consolidated interim financial statements. The Company has based this estimate on assumptions that may prove to be wrong, and it could utilize its available capital resources sooner than it currently expects. The Company will continue to require additional financing to advance its current product candidates through clinical development, to develop, acquire or in-license other potential product candidates and to fund operations for the foreseeable future. The Company intends to continue to seek funds through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed, on favorable terms, or at all. If the Company does raise additional capital through public or private equity offerings, the ownership interest of its existing stockholders will be diluted, and the terms of such securities may include liquidation or other preferences that adversely affect the Company's stockholders’ rights. If the Company raises additional capital through a debt financing, it may be subject to covenants limiting or restricting the Company's ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Any failure to raise capital as and when needed could have a negative impact on the Company's financial condition and on its ability to pursue its business plans and strategies. If the Company is unable to raise sufficient capital when needed, it may need to delay, reduce or terminate planned activities to reduce costs, including development or commercialization activities for neflamapimod. The Company might also be required to seek funds through arrangements with third parties that require it to relinquish certain of its rights to neflamapimod or otherwise agree to terms unfavorable to the Company. Operations of the Company are subject to certain additional risks and uncertainties as well, and any one or more of these factors could materially affect the Company’s financial condition, future operations and liquidity needs. Many of these risks and uncertainties are outside of the Company’s control, including internal and external factors that may affect the success or failure of the Company’s research and development efforts, the length of time and cost of developing and commercializing the Company’s current or future product candidates, whether and when any such product candidates become approved drugs, and how significant a drug’s market share will be, if approved, among others.

Note 2 - Liquidity and Capital Resources

6 Months Ended

Jun. 30, 2024

Liquidity Disclosure [Text Block]

2. Liquidity and Capital Resources

The Company has generated negative cash flows from operations and, as of June 30, 2024, had an accumulated deficit of $59.3 million. Based on its current operating plan, the Company believes its existing cash and cash equivalents and marketable securities on hand as of June 30, 2024, along with the remaining funds to be received from the NIA Grant, will enable the Company to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance of these unaudited condensed consolidated interim financial statements. The Company has based this estimate on assumptions that may prove to be wrong, and it could utilize its available capital resources sooner than it currently expects. The Company will continue to require additional financing to advance its current product candidates through clinical development, to develop, acquire or in-license other potential product candidates and to fund operations for the foreseeable future. The Company intends to continue to seek funds through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed, on favorable terms, or at all. If the Company does raise additional capital through public or private equity offerings, the ownership interest of its existing stockholders will be diluted, and the terms of such securities may include liquidation or other preferences that adversely affect the Company's stockholders’ rights. If the Company raises additional capital through a debt financing, it may be subject to covenants limiting or restricting the Company's ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Any failure to raise capital as and when needed could have a negative impact on the Company's financial condition and on its ability to pursue its business plans and strategies. If the Company is unable to raise sufficient capital when needed, it may need to delay, reduce or terminate planned activities to reduce costs, including development or commercialization activities for neflamapimod. The Company might also be required to seek funds through arrangements with third parties that require it to relinquish certain of its rights to neflamapimod or otherwise agree to terms unfavorable to the Company.

Operations of the Company are subject to certain additional risks and uncertainties as well, and any one or more of these factors could materially affect the Company’s financial condition, future operations and liquidity needs. Many of these risks and uncertainties are outside of the Company’s control, including internal and external factors that may affect the success or failure of the Company’s research and development efforts, the length of time and cost of developing and commercializing the Company’s current or future product candidates, whether and when any such product candidates become approved drugs, and how significant a drug’s market share will be, if approved, among others.

Note 3 - Summary of Significant Accounting Policies - Outstanding Dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive securities (in shares)	3,167,172	3,489,347
Convertible Preferred Stock [Member]
Antidilutive securities (in shares)	0	3,331,201
Warrant [Member]
Antidilutive securities (in shares)	2,633,868	43,621
Share-Based Payment Arrangement, Option [Member]
Antidilutive securities (in shares)	533,304	114,525

Note 12 - Restatement of Previously Issued (Unaudited) Interim Financial Statements - Schedule of Error Corrections (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Deferred offering costs		$ 1,059,768		$ 1,059,768
General and administrative	$ 2,511,679	992,553	$ 4,639,609	1,993,466
Accumulated deficit	(59,272,029)	(54,228,753)	(59,272,029)	(54,228,753)		$ (54,440,789)
Total operating expenses	6,284,070	2,950,941	11,226,258	5,785,128
Total assets	53,190,649	3,364,216	53,190,649	3,364,216		9,972,521
Loss from operations	(2,995,099)	(1,230,997)	(5,590,037)	(2,657,316)
Total liabilities	3,213,736	14,188,409	3,213,736	14,188,409		2,595,747
Net loss	$ (2,316,905)	$ (1,425,501)	$ (4,831,240)	$ (1,959,837)
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.27)	$ (2.75)	$ (0.65)	$ (3.78)
Total stockholders’ deficit	$ 49,976,913	$ (35,111,404)	$ 49,976,913	$ (35,111,404)	$ 5,336,378	$ 7,376,774	$ (33,748,155)
Preferred Stock [Member]
Total convertible preferred stock		24,287,211		24,287,211
Previously Reported [Member]
Deferred offering costs		0		0
General and administrative		1,414,303		3,053,234
Accumulated deficit		(55,288,521)		(55,288,521)
Total operating expenses		3,372,691		6,844,896
Total assets		2,304,448		2,304,448
Loss from operations		(1,652,747)		(3,717,084)
Total liabilities		14,188,409		14,188,409
Net loss		$ (1,847,251)		$ (3,019,605)
Net loss per share of common stock, basic and diluted (in dollars per share)		$ (3.57)		$ (5.83)
Total stockholders’ deficit		$ (36,171,172)		$ (36,171,172)
Previously Reported [Member] \| Preferred Stock [Member]
Total convertible preferred stock		24,287,211		24,287,211
Revision of Prior Period, Error Correction, Adjustment [Member]
Deferred offering costs		1,059,768		1,059,768
General and administrative		(421,750)		(1,059,768)
Accumulated deficit		1,059,768		1,059,768
Total operating expenses		(421,750)		(1,059,768)
Total assets		1,059,768		1,059,768
Loss from operations		421,750		1,059,768
Total liabilities		0		0
Net loss		$ 421,750		$ 1,059,768
Net loss per share of common stock, basic and diluted (in dollars per share)		$ 0.82		$ 2.05
Total stockholders’ deficit		$ 1,059,768		$ 1,059,768
Revision of Prior Period, Error Correction, Adjustment [Member] \| Preferred Stock [Member]
Total convertible preferred stock		$ 0		$ 0

Note 6 - Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	June 30, 2024		December 31, 2023
Clinical expenses	$	1,906,093	$	711,362
Insurance		95,956		436,859
Professional services		54,125		37,917
Dues and memberships		54,740		—
Other		125,522		70,363
Total	$	2,236,436	$	1,256,501

Note 7 - Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Other Current Liabilities [Table Text Block]

	June 30, 2024		December 31, 2023
Employee compensation costs	$	482,162	$	1,026,054
Clinical development costs		209,043		389,045
Professional fees		257,902		309,062
State franchise and excise tax		20,456		120,456
Other		116,818		88,659
Total	$	1,086,381	$	1,933,276

Note 5 - Significant Agreements and Contracts (Details Textual) $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 29, 2024 USN ($)	Aug. 31, 2014 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Jan. 31, 2023 USD ($)	Jan. 01, 2023 USN ($)
Research and Development Expense			$ 3,772,391	$ 1,958,388	$ 6,586,649	$ 3,791,662
Revenues			3,288,971	1,719,944	5,636,221	3,127,812
Vertex Option and License Agreement [Member]
Research and Development Expense		$ 100,000
Contractual Obligation			117,000,000		117,000,000
Payments for License Agreement		$ 100,000
National Institute of Aging Grant [Member]
Government Assistance, Asset									$ 21,000,000	$ 21.0
Government Assistance, Income, Increase (Decrease)	$ 7.3				6,700,000
Revenues			3,300,000	$ 1,700,000	5,600,000	$ 3,100,000
Proceeds From Grants					14,200,000
Grant Funding Remaining			$ 6,800,000		$ 6,800,000
Grant Amount, Received, Parentage	90.00%		10.00%
National Institute of Aging Grant [Member] \| Forecast [Member]
Government Assistance, Income, Increase (Decrease)							$ 6,200,000	$ 8,100,000

Note 10 - Stockholders' Equity and Common Stock Warrants (Details Textual) - USD ($)			6 Months Ended
	Apr. 01, 2024	Feb. 26, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2022
Stock Issued During Period, Shares, New Issues		495,959
Proceeds from Issuance or Sale of Equity			$ 46,411,946	$ 0
Class of Warrant or Right, Exercised		499,995
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		36
Series A Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,532,285
Prefunded Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	449,023
Private Placement [Member]
Stock Issued During Period, Shares, New Issues	2,083,262
Proceeds from Issuance or Sale of Equity	$ 50,000,000
Payments of Stock Issuance Costs	$ 3,600,000
Sales Agreement [Member]
Share Sales Agreement, Maximum Amount					$ 20,000,000

Note 1 - The Company and Description of Business

6 Months Ended

Jun. 30, 2024

Nature of Operations [Text Block]

1. The Company and Description of Business

The Company is a corporation organized under the laws of the state of Delaware and headquartered in Boston, Massachusetts. The Company is a clinical-stage biotechnology company developing treatments for age-related neurologic disorders. The Company is currently focused on developing of its lead drug candidate, neflamapimod, an investigational, orally administered, small molecule brain penetrant that inhibits p38α. Neflamapimod has the potential to treat synaptic dysfunction, the reversible aspect of the underlying neurodegenerative processes that cause disease in DLB and certain other major neurological disorders, and is currently being evaluated in the Company's ongoing RewinD-LB Trial, a Phase 2b study in patients with Early-Stage DLB, funded by a $21.0 million grant from the NIA.

Note 2 - Liquidity and Capital Resources (Details Textual) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Accumulated deficit	$ (59,272,029)	$ (54,440,789)	$ (54,228,753)

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Note 11 - Stock-based Compensation Stock - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Balance, number of shares (in shares)	349,374
Balance, weighted average exercise price (in dollars per share)	$ 51.15
Granted, number of shares (in shares)	207,284	0
Granted, weighted average exercise price (in dollars per share)	$ 11.23
Expired, shares (in shares)	(23,354)
Expired, weighted average exercise price per share (in dollars per share)	$ 114.18
Outstanding, shares (in shares)	533,304
Outstanding, weighted average exercise price per share (in dollars per share)	$ 32.87
Outstanding, weighted average remaining contractual term (Year)	8 years 4 months 24 days
Outstanding, aggregate intrinsic value	$ 0
Exercisable, shares (in shares)	228,508
Exercisable, weighted average exercise price per share (in dollars per share)	$ 64.13
Exercisable, weighted average remaining contractual term (Year)	6 years 8 months 12 days
Exercisable, aggregate intrinsic value	$ 0

Note 7 - Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Employee compensation costs	$ 482,162	$ 1,026,054
Clinical development costs	209,043	389,045
Professional fees	257,902	309,062
State franchise and excise tax	20,456	120,456
Other	116,818	88,659
Total	$ 1,086,381	$ 1,933,276

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2024	Aug. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-37942
Entity Registrant Name	CervoMed Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	30-0645032
Entity Address, Address Line One	20 Park Plaza, Suite 424
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02116
City Area Code	617
Local Phone Number	744-4400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CRVO
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		8,253,741
Entity Central Index Key	0001053691
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Grant revenue	$ 3,288,971	$ 1,719,944	$ 5,636,221	$ 3,127,812
Operating expenses:
Research and development	3,772,391	1,958,388	6,586,649	3,791,662
General and administrative	2,511,679	992,553	4,639,609	1,993,466
Total operating expenses	6,284,070	2,950,941	11,226,258	5,785,128
Loss from operations	(2,995,099)	(1,230,997)	(5,590,037)	(2,657,316)
Other income (expense):
Other income (expense)	(247)	(212,211)	(277)	644,368
Interest income	678,441	17,707	759,074	53,111
Total other income, net	678,194	(194,504)	758,797	697,479
Net loss	$ (2,316,905)	$ (1,425,501)	$ (4,831,240)	$ (1,959,837)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.27)	$ (2.75)	$ (0.65)	$ (3.78)
Weighted average shares outstanding, basic and diluted (in shares)	8,702,764	518,140	7,436,633	518,140
Comprehensive loss:
Net unrealized loss on marketable securities	$ (19,702)	$ 0	$ (19,702)	$ 0
Total comprehensive loss	$ (2,336,607)	$ (1,425,501)	$ (4,850,942)	$ (1,959,837)

Note 4 - Fair Value of Financial instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Text Block]

4. Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash, cash equivalents, marketable securities, accounts payable, previously outstanding convertible notes and accrued liabilities. The Company’s cash, cash equivalents, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. The Company determined the fair value of its previously outstanding convertible notes as described in Note 8.

The following table presents the Company’s assets that are measured at fair value on a recurring basis:

	June 30, 2024
	(Level 1)		(Level 2)		(Level 3)

Assets
Cash equivalents:
Money market accounts	$	4,376,257	$	—	$	—
Commercial paper		2,499,630		—		—
Marketable securities:
Commercial paper		—		25,808,377	$	—
U.S. treasury bonds		—		9,287,385		—
U.S. government agency bonds		—		5,793,000		—
Total assets measured at fair value	$	6,875,887	$	40,888,762	$	—

	December 31, 2023
Assets
Cash equivalents (money market accounts)	$	7,792,846	$	—	$	—
Total assets measured at fair value	$	7,792,846	$	—	$	—

The fair values of the Company’s Level 2 marketable securities are estimated primarily based on benchmark yields, reported trades, market-based quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications, which represent a market approach. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. This valuation technique may change from period to period, based on the relevance and availability of market data.

The following is a summary of the Company's marketable securities which provides a reconciliation of amortized cost basis to fair value including cumulative unrealized gains and losses as of June 30, 2024:

	Amortized Cost		Unrealized gains		Unrealized losses			Fair Value
Commercial paper	$	25,828,920	$	—	$	(20,543	)	$	25,808,377
U.S. treasury bonds		9,286,150		2,489		(1,254	)		9,287,385
U.S. government agency bonds		5,793,394		817		(1,211	)		5,793,000
Total	$	40,908,464	$	3,306	$	(23,008	)	$	40,888,762

The following table presents a roll-forward of the fair value of the Convertible Notes (Note 8) for which fair value is determined by Level 3 inputs:

	Six Months Ended June 30,
	2023
Balance as of January 1, 2023	$	12,414,000
Fair value adjustment		(858,000	)
Balance as of March 31, 2023		11,556,000
Fair value adjustment		212,000
Balance as of June 30, 2023	$	11,768,000

These Convertible Notes are no longer outstanding as of June 30, 2024.

Valuation techniques used to measure fair value maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The Convertible Notes are classified within Level 3 of the fair value hierarchy because the fair value measurement is based, in part, on significant inputs not observed in the market.

There were no transfers among Level 1, Level 2 or Level 3 categories in the three and six months ended June 30, 2024 or June 30, 2023.

The fair value of the 2020 Notes and the 2021 Notes, and collectively the Convertible Notes (Note 8) as of June 30, 2023 were estimated as the combination of a zero-coupon bond and a call option. The combined values for each of the 2020 Notes and the 2021 Notes as of June 30, 2023 and December 31, 2022 were then weighted by the probability of completing a financing or reverse merger. This approach resulted in the classification of the 2020 Notes and the 2021 Notes as of June 30, 2023 as Level 3 of the fair value hierarchy. The assumptions utilized to value the 2020 Notes and the 2021 Notes as of June 30, 2023 were an estimated term of 0.13 years, volatility of 69.0% and a market yield of 54.0% and 5.4% for completing a financing or reverse merger, respectively. The measurement of fair value incorporates expected future cash flows associated with interest payments; as such, there was no separate accrual for interest accrued but not yet paid.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 6A
-Subparagraph (e)
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Note 4 - Fair Value of Financial instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	June 30, 2024
	(Level 1)		(Level 2)		(Level 3)

Assets
Cash equivalents:
Money market accounts	$	4,376,257	$	—	$	—
Commercial paper		2,499,630		—		—
Marketable securities:
Commercial paper		—		25,808,377	$	—
U.S. treasury bonds		—		9,287,385		—
U.S. government agency bonds		—		5,793,000		—
Total assets measured at fair value	$	6,875,887	$	40,888,762	$	—

	December 31, 2023
Assets
Cash equivalents (money market accounts)	$	7,792,846	$	—	$	—
Total assets measured at fair value	$	7,792,846	$	—	$	—

Marketable Securities [Table Text Block]

	Amortized Cost		Unrealized gains		Unrealized losses			Fair Value
Commercial paper	$	25,828,920	$	—	$	(20,543	)	$	25,808,377
U.S. treasury bonds		9,286,150		2,489		(1,254	)		9,287,385
U.S. government agency bonds		5,793,394		817		(1,211	)		5,793,000
Total	$	40,908,464	$	3,306	$	(23,008	)	$	40,888,762

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Six Months Ended June 30,
	2023
Balance as of January 1, 2023	$	12,414,000
Fair value adjustment		(858,000	)
Balance as of March 31, 2023		11,556,000
Fair value adjustment		212,000
Balance as of June 30, 2023	$	11,768,000

Note 1 - The Company and Description of Business (Details Textual) $ in Millions, $ in Millions	Jan. 31, 2023 USD ($)	Jan. 01, 2023 USN ($)
National Institute of Aging Grant [Member]
Government Assistance, Asset	$ 21	$ 21

Note 11 - Stock-based Compensation Stock (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	207,284	0
Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	39,721
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 1,700,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 10 months 24 days
Stock Option Vesting Terms As Improbable to probable [Member]
Share-Based Payment Arrangement, Plan Modification, Incremental Cost	$ 300,000
Stock Option Vesting Terms As Probable to probable [Member]
Share-Based Payment Arrangement, Accelerated Cost	$ 12,000
Equity Incentive Plan 2015 [Member]
Percentage of Total Shares Eligible for Plan Reserve, On an Annual Basis	4.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant	23,631
The 2018 Employee, Director and Consultant Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant	0
The 2018 Employee, Director and Consultant Equity Incentive Plan [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period	10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period	4 years
The 2018 Employee, Director and Consultant Equity Incentive Plan [Member] \| Share-Based Payment Arrangement, Option [Member] \| Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period	1 year
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage	25.00%

Note 4 - Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Commercial paper	$ 40,888,762
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Commercial paper	25,808,377
US Treasury Securities [Member]
Commercial paper	5,793,000
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Recurring [Member]
Total assets measured at fair value	6,875,887	$ 7,792,846
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Recurring [Member] \| Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Cash equivalents (money market accounts)	2,499,630
Commercial paper	0
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Recurring [Member] \| US Treasury Securities [Member]
Commercial paper	0
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Recurring [Member] \| US Government Debt Securities [Member]
Commercial paper	0
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents (money market accounts)	4,376,257	7,792,846
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Recurring [Member]
Total assets measured at fair value	40,888,762	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Recurring [Member] \| Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Cash equivalents (money market accounts)	0
Commercial paper	25,808,377
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Recurring [Member] \| US Treasury Securities [Member]
Commercial paper	9,287,385
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Recurring [Member] \| US Government Debt Securities [Member]
Commercial paper	5,793,000
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents (money market accounts)	0	0
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member]
Total assets measured at fair value	0	0
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member] \| Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Cash equivalents (money market accounts)	0
Commercial paper	0
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member] \| US Treasury Securities [Member]
Commercial paper	0
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member] \| US Government Debt Securities [Member]
Commercial paper	0
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents (money market accounts)	$ 0	$ 0

Note 6 - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Prepaid clinical expenses	$ 1,906,093	$ 711,362
Insurance	95,956	436,859
Professional services	54,125	37,917
Dues and memberships	54,740	0
Other	125,522	70,363
Total	$ 2,236,436	$ 1,256,501

Note 7 - Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2024

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

7. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

	June 30, 2024		December 31, 2023
Employee compensation costs	$	482,162	$	1,026,054
Clinical development costs		209,043		389,045
Professional fees		257,902		309,062
State franchise and excise tax		20,456		120,456
Other		116,818		88,659
Total	$	1,086,381	$	1,933,276

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net loss	$ (4,831,240)	$ (1,959,837)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount on marketable securities, net	(338,208)	0
Stock-based compensation expense	796,796	133,492
Changes in fair value of convertible debt	(0)	646,000
Changes in operating assets and liabilities:
Prepaid expenses, deposits and other assets	(1,028,399)	(1,590,537)
Deferred offering costs	0	(1,059,768)
Accounts payable	63,383	483,556
Accrued expenses and other liabilities	(604,556)	26,077
Grant receivable	915,404	0
Deferred grant revenue	1,401,501	1,169,222
Net cash used in operating activities	(3,625,319)	(3,443,795)
Cash flows from investing activities:
Purchase of marketable securities	(40,570,256)	0
Net cash used in investing activities	(40,570,256)	0
Cash flows from financing activities:
Proceeds from the sale of common stock, prefunded warrants and common stock warrants, net of offering costs	46,411,946	0
Net cash provided by financing activities	46,411,946	0
Net decrease in cash and cash equivalents	2,216,371	(3,443,795)
Cash and cash equivalents at beginning of period	7,792,846	4,093,579
Cash and cash equivalents at end of period	10,009,217	649,784
Supplemental disclosure of non-cash investing and financing activities:
Unrealized loss on marketable securities	19,702	0
Stock options granted in lieu of cash bonus	255,724	0
Deferred offering costs in accounts payable	13,385	0
Cashless exercise of prefunded warrants	$ 496	$ 0

Note 4 - Fair Value of Financial Instruments - Marketable Securities (Details)	Jun. 30, 2024 USD ($)
Commercial paper	$ 40,908,464
Commercial paper	3,306
Commercial paper	23,008
Commercial paper	40,888,762
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Commercial paper	25,828,920
Commercial paper	0
Commercial paper	20,543
Commercial paper	25,808,377
US Treasury Bond Securities [Member]
Commercial paper	9,286,150
Commercial paper	2,489
Commercial paper	1,254
Commercial paper	9,287,385
US Treasury Securities [Member]
Commercial paper	5,793,394
Commercial paper	817
Commercial paper	1,211
Commercial paper	$ 5,793,000

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481830/320-10-45-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(6))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479130/326-30-45-1

+ Details

Note 10 - Stockholders' Equity and Common Stock Warrants (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Outstanding		Range of exercise price per share			Expiration dates
Historical Diffusion common stock warrants		57,965	$26.27	-	$375.14	November 2024 through February 2026
Historical EIP common stock warrants		43,618		$19.81		April 2028
Series A common stock warrants		2,532,285		$39.24		The earlier of (i) April 1, 2027 and (ii) the date that is 180 days after the date the Exercise Conditions (as defined in the Series A Warrants) have been met
Pre-funded warrants issued in April 2024 Private Placement		449,023		$0.001		None
		3,082,891

Note 3 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	June 30,
	2024		2023
Convertible preferred stock		—		3,331,201
Common stock warrants		2,633,868		43,621
Stock options		533,304		114,525
		3,167,172		3,489,347

Note 13 - Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Text Block]

13. Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report and determined that there have been no events that have occurred that would require adjustments to our disclosures in the condensed consolidated interim financial statements.

Note 5 - Significant Agreements and Contracts

6 Months Ended

Jun. 30, 2024

Collaborative Arrangement Disclosure [Text Block]

5. Significant Agreements and Contracts

Vertex Option and License Agreement

In August 2012, the Company entered the Vertex Agreement, as amended, to acquire an exclusive license to develop and commercialize a drug candidate, “VX-745,” from Vertex. In August 2014, the Company exercised its option to acquire the license and paid an option fee of $100,000, which was expensed as incurred as a component of research and development expense.

The Vertex Agreement granted the Company the exclusive worldwide use of VX-745 in the field of diagnosis, treatment and prevention of Alzheimer’s disease and related central nervous system disorders in humans.

As part of the Vertex Agreement, the Company is obligated to make certain payments totaling up to approximately $117.0 million upon achievement of certain regulatory and sales milestones, and royalties on net sales of products on indications covered by the Vertex Agreement. The first expected milestone events concern filing of an NDA with the FDA for marketing approval of neflamapimod (i.e., VX-745) in the U.S., or a similar filing for a non-U.S. major market, as specified in the Vertex Agreement, and such royalties will be on a sliding scale of percentages of net sales in the low- to mid-teens, depending on the amount of net sales in the applicable years. The Company is also obligated to make a milestone payment to Vertex upon net sales reaching a certain specified amount in any 12-month period. The Vertex Agreement states that royalties will be reduced by 50% during any portion of the royalty term when there is no valid claim of an issued patent within specified patent rights covering the licensed product. The Company also has the right to deduct, on a country by country basis, from royalties otherwise payable to Vertex under the terms of the Vertex Agreement, 50% of all royalties, upfront fees, milestones and other payments paid by the Company or any of the Company’s affiliates or sublicensees to third parties under licenses that are necessary for the development, manufacture, sale or use of a licensed product, provided that in no event will the royalty payable to Vertex be reduced to less than 50% of the rates specified in the Vertex Agreement, subject to certain adjustments specified therein. The Company has made a total of $100,000 in payments to Vertex related to the Vertex Agreement. No payments were made during the three and six months ended June 30, 2024 and 2023.

National Institute of Aging Grant

In January 2023, the Company was awarded a $21.0 million grant from the NIA to support its RewinD-LB Trial, a Phase 2b study of neflamapimod in patients with Early-Stage DLB. The grant monies are expected to be received over a period of three years including $6.7 million in 2023, $8.1 million in 2024 and $6.2 million in 2025.

The total revenue recognized from the NIA Grant was $5.6 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively. The total revenue recognized from the NIA Grant was $3.3 million and $1.7 million for the three months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, aggregate total cash funding of $14.2 million has been received from the NIA Grant, resulting in approximately $6.8 million in funding remaining.

The Company received access to the current year 2 (i.e., the year ending December 31, 2024) funding in the amount of $7.3 million in February 2024. This amount was 90% of the full year 2 amount provided for in the NIA Grant due to then-current NIA policy as a result of the U.S. government being funded at such time on the basis of a continuing resolution. Consolidated appropriations acts were signed into law in March 2024, and the Company received access to the remaining 10% of the year 2 amount in June 2024.

Note 11 - Stock-based Compensation Stock (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Research and development	$	40,337	$	31,022	$	104,134	$	71,148
General and administrative		538,244		31,230		692,662		62,344
Total stock-based compensation expense	$	578,581	$	62,252	$	796,796	$	133,492

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Options			Weighted average exercise price per share		Weighted average remaining contractual life (in years)		Aggregate intrinsic value
Balance at January 1, 2024		349,374		$	51.15
Granted		207,284			11.23
Cancelled/Expired		(23,354	)		114.18
Outstanding at June 30, 2024		533,304		$	32.87		8.4		—
Exercisable at June 30, 2024		228,508		$	64.13		6.7		—

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Six Months Ended June 30,
	2024
Expected term (in years)	5.25	-	5.76
Risk-free interest rate	4.06	-	4.46%
Expected volatility	76.87	-	80.03%
Dividend yield		—

Note 12 - Restatement of Previously Issued (Unaudited) Interim Financial Statements (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	June 30, 2023
	As reported			Adjusted		As restated
Deferred offering costs	$	-		$	1,059,768	$	1,059,768
Accumulated deficit	$	(55,288,521	)	$	1,059,768	$	(54,228,753	)
Total assets	$	2,304,448		$	1,059,768	$	3,364,216
Total liabilities	$	14,188,409		$	—	$	14,188,409
Total convertible preferred stock	$	24,287,211		$	—	$	24,287,211
Total stockholders’ equity (deficit)	$	(36,171,172	)	$	1,059,768	$	(35,111,404	)

	Six Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	3,053,234		$	(1,059,768	)	$	1,993,466
Total operating expenses	$	6,844,896		$	(1,059,768	)	$	5,785,128
Loss from operations	$	(3,717,084	)	$	1,059,768		$	(2,657,316	)
Net loss	$	(3,019,605	)	$	1,059,768		$	(1,959,837	)
Net loss per share of common stock, basic and diluted	$	(5.83	)	$	2.05		$	(3.78	)

	Three Months Ended June 30, 2023
	As reported			Adjusted			As restated
General and administrative expense	$	1,414,303		$	(421,750	)	$	992,553
Total operating expenses	$	3,372,691		$	(421,750	)	$	2,950,941
Loss from operations	$	(1,652,747	)	$	421,750		$	(1,230,997	)
Net loss	$	(1,847,251	)	$	421,750		$	(1,425,501	)
Net loss per share of common stock, basic and diluted	$	(3.57	)	$	0.82		$	(2.75	)

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized (in shares)	1,000,000,000	1,000,000,000
Common Stock, Shares, Outstanding (in shares)	8,253,741	5,674,520
Common Stock, Shares, Issued (in shares)	8,253,741	5,674,520

Note 9 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating Lease, Expense	$ 8,400	$ 7,484	$ 17,892	$ 15,150
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent			90.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			4.00%

Note 11 - Share-based Compensation Stock - Assumptions (Details)	6 Months Ended
	Jun. 30, 2024
Dividend yield	0.00%
Share-Based Payment Arrangement, Option [Member]
Dividend yield	0.00%
Share-Based Payment Arrangement, Option [Member] \| Minimum [Member]
Expected term (in years) (Year)	5 years 3 months
Risk-free interest rate	4.06%
Expected volatility	76.87%
Share-Based Payment Arrangement, Option [Member] \| Maximum [Member]
Expected term (in years) (Year)	5 years 9 months 3 days
Risk-free interest rate	4.46%
Expected volatility	80.03%

Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, Pure in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Impairment of Marketable Securities	$ 0	$ 0	$ 0	$ 0
Debt Securities, Available-for-Sale, Allowance for Credit Loss	$ 0		$ 0		$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%
Prefunded Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.001		$ 0.001

Note 4 - Fair Value of Financial Instruments - Roll-forward of Convertible Notes (Details) - USD ($)	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Balance as of January 1, 2023	$ 11,556,000	$ 12,414,000
Fair value adjustment	212,000	(858,000)
Balance as of March 31, 2023	$ 11,768,000	$ 11,556,000

Note 3 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Significant Accounting Policies [Text Block]

3. Summary of Significant Accounting Policies

Basis of presentation

The unaudited condensed consolidated interim financial statements have been prepared in conformity with US GAAP as defined by the FASB.

Unaudited condensed consolidated interim financial statements

The accompanying unaudited condensed consolidated interim financial statements have been prepared by the Company in accordance with US GAAP for interim information and pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in audited consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2023, filed as part of the Company's Annual Report.

These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and, in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the financial information for the interim periods. However, the results of operations for any interim period are not necessarily indicative of the results to be expected for the full fiscal year.

Consolidation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of unaudited condensed consolidated interim financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, grant revenue, expenses, and related disclosures. On an ongoing basis, the Company’s management evaluates its estimates, including estimates related to money market accounts, clinical trial accruals, stock-based compensation expense, grant revenue, convertible notes, and expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ significantly from those estimates or assumptions.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and marketable securities. The Company maintains deposits in a financial institution in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk as the Company’s deposits are held at a financial institution that management believes to be of high credit quality, and the Company has not experienced any losses on these deposits. Management also believes that the Company is not exposed to significant credit risk as it relates to marketable securities because the Company invests in U.S. government securities and commercial paper.

Cash and Cash Equivalents

The Company considers all highly-liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents. Cash equivalents, which consist of amounts invested in money market funds and commercial paper, are stated at fair value. There are de minimis unrealized losses on the money market funds and commercial paper for the period ended June 30, 2024.

Marketable Securities

The Company classifies its marketable securities as available-for-sale, which include commercial paper and U.S. government debt securities with original maturities of greater than 90 days from date of purchase. These securities are carried at fair value, with unrealized gains and losses reported on the condensed consolidated statement of operations and comprehensive loss and accumulated other comprehensive loss within stockholders’ equity until realized. Purchase discounts are accreted using the effective interest method over the term of the related security and such accretion is included in interest income on the accompanying condensed consolidated statements of operations and comprehensive loss.

The Company evaluates its investments in marketable securities for impairment at each reporting period when the fair value is below amortized cost. If the Company intends to sell the security, or it is more likely than not the Company will be required to sell the security before recovery of amortized cost, the entire impairment is included in earnings. The Company did not record any impairment on marketable securities during the three and six months ended June 30, 2024 and 2023. There was no allowance for credit losses as of June 30, 2024 and December 31, 2023.

Fair Value of Financial Instruments

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Leases

In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which establishes an ROU model. That requires a lessee to recognize an ROU asset and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and expense recognition in the statement of operations and comprehensive loss as well as the reduction of the ROU asset. The new standard provides a number of optional practical expedients in transition. The Company has elected to apply (i) the practical expedient, which allows us to not separate lease and non-lease components, for new leases and (ii) the short-term lease exemption for all leases with an original term of less than 12 months, for purposes of applying the recognition and measurements requirements in the new standard.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company’s control over the use of the identified asset(s), if applicable. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of future lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company will utilize the incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The Company has elected to combine lease and non-lease components as a single component. Operating leases will be recognized on the unaudited interim condensed consolidated balance sheet as ROU assets, lease liabilities, current and lease liabilities, non-current. Fixed rent payments are included in the calculation of the lease balances, while variable costs paid for certain operating and pass-through costs are excluded. Lease expense is recognized over the expected term on a straight-line basis.

Research and Development

Research and development costs are expensed as incurred and consist primarily of new product development. Research and development costs include salaries and benefits, consultants’ fees, process development costs and stock-based compensation, as well as fees paid to third parties that conduct certain research and development activities on the Company’s behalf.

A substantial portion of the Company’s ongoing research and development activities are conducted by third-party service providers. The Company records accrued expenses for estimated preclinical study and clinical trial expenses. Estimates are based on the services performed pursuant to contracts with research institutions, contract research organizations in connection with clinical studies, investigative sites in connection with clinical studies, vendors in connection with preclinical development activities, and CMOs in connection with the production of materials for clinical trials. Further, the Company accrues expenses related to clinical trials based on the level of subject enrollment and activity according to the related agreement. The Company monitors subject enrollment levels and related activity to the extent reasonably possible and makes judgments and estimates in determining the accrued balance in each reporting period. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the unaudited condensed consolidated financial statements as prepaid or accrued research and development.

If the Company underestimates or overestimates the level of services performed or the costs of these services, actual expenses could differ from estimates. To date, the Company has not experienced significant changes in its estimates of preclinical studies and clinical trial accruals.

Patent Costs

All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses in the unaudited interim condensed consolidated statement of operations and comprehensive loss.

Stock-based Compensation

Stock-based compensation for employee and non-employee awards is measured on the grant date based on the fair value of the award and recognized on a straight-line basis over the requisite service period. The fair value of stock options to purchase common stock are measured using the Black-Scholes option pricing model. The Company accounts for forfeitures as they occur.

The fair value of stock options is determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and estimation by management.

Expected Term—The expected term represents the period that stock-based awards are expected to be outstanding. The Company uses the “simplified method” to estimate the expected term of stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the contractual term of ten years and the weighted-average vesting term of the Company stock options, taking into consideration multiple vesting tranches. The Company utilizes this method due to lack of historical data and the plain-vanilla nature of the Company’s stock-based awards.—The expected term represents the period that stock-based awards are expected to be outstanding. The Company uses the “simplified method” to estimate the expected term of stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the contractual term of ten years and the weighted-average vesting term of the Company stock options, taking into consideration multiple vesting tranches. The Company utilizes this method due to lack of historical data and the plain-vanilla nature of the Company’s stock-based awards.

Expected Volatility—The Company has limited information on the volatility of its common stock as the shares were not actively traded on any public markets until recently. The expected volatility is derived from the historical stock volatility of comparable peer public companies within its industry. These companies are considered to be comparable to the Company’s business over a period equivalent to the expected term of the stock-based awards.

Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term.—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term.

Expected Dividend Rate—The expected dividend is zero as the Company has not paid, nor does it anticipate paying, any dividends on its stock options in the foreseeable future.

Revenue Recognition

The Company generates revenue from government contracts that reimburse the Company for certain allowable costs for funded projects.

The Company recognizes funding received from the NIA Grant as grant revenue, rather than as a reduction of research and development expenses, because the Company is the principal in conducting the research and development activities and these contracts are central to its ongoing operations. Revenue is recognized as the qualifying expenses related to the contracts are incurred. Revenue recognized upon incurring qualifying expenses in advance of receipt of funding is recorded in the Company’s unaudited interim condensed consolidated balance sheets as accounts receivable. Amounts received in advance of services rendered are recorded as deferred grant revenue on the Company's unaudited interim condensed consolidated balance sheet. The related costs incurred by the Company are included in research and development expense in the Company’s unaudited interim condensed consolidated statements of operations and comprehensive loss.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated interim financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to recover or settle. The effect of a change in tax rates on deferred tax assets and liabilities is recognized on the statement of operations and comprehensive loss for the period that includes the enactment date.

The deferred tax assets are recognized to the extent the Company believes that these assets are more likely than not to be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the net deferred tax assets have been fully offset by a valuation allowance.

The Company records uncertain tax positions using a two-step process. First, the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position. Second, for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits on the interest expense line and other expense line, respectively, in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive loss. Accrued interest and penalties are included on the related liability lines in the unaudited interim condensed consolidated balance sheet.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period (and potential shares of common stock that are exercisable for little or no consideration). The Pre-Funded Warrants to purchase common stock issued in connection with the 2024 Private Placement are included in the calculation of basic and diluted net loss per share as the exercise price of $0.001 per share is non-substantive and is virtually assured. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities such as common stock warrants and stock options which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that, when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive.

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive:

	June 30,
	2024		2023
Convertible preferred stock		—		3,331,201
Common stock warrants		2,633,868		43,621
Stock options		533,304		114,525
		3,167,172		3,489,347

Segments

The Company has one operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations on a condensed consolidated basis for purposes of allocating resources.

Recently Issued But Not Yet Adopted Accounting Pronouncements

In January 2021, the FASB issued ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”), which was effective immediately and permits entities to elect certain optional expedients and exceptions when accounting for derivatives and certain hedging relationships affected by changes in interest rates and the transition. Additionally, ASU 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” defers the sunset date of ASC 848 from December 31, 2022 to December 31, 2024. The new guidance is effective for fiscal years beginning after December 31, 2024. The Company does not currently believe that this transition from LIBOR will have a material impact on its consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07 "Segment Reporting - Improvements to Reportable Segment Disclosures" (“ASU 2023-07”), which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The guidance is effective for all public companies for fiscal years beginning after December 15, 2023, and interim periods within fiscal periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): “Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 is intended to improve income tax disclosure requirements by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements as well. The guidance in ASU 2023-09 will be effective for annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact that the adoption of ASU 2023-09 will have on its consolidated financial statements and disclosures.

Insider Trading Arrangements

6 Months Ended

Jun. 30, 2024

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

ITEM 5.

OTHER INFORMATION

During the three months ended June 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act), adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

The unaudited condensed consolidated interim financial statements have been prepared in conformity with US GAAP as defined by the FASB.

Unaudited condensed consolidated interim financial statements

Consolidation, Policy [Policy Text Block]

Consolidation

Use of Estimates, Policy [Policy Text Block]

Use of estimates

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Marketable Securities, Policy [Policy Text Block]

Marketable Securities

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Lessee, Leases [Policy Text Block]

Leases

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Legal Costs, Policy [Policy Text Block]

Patent Costs

Share-Based Payment Arrangement [Policy Text Block]

Stock-based Compensation

Expected Dividend Rate—The expected dividend is zero as the Company has not paid, nor does it anticipate paying, any dividends on its stock options in the foreseeable future.

Revenue [Policy Text Block]

Revenue Recognition

The Company generates revenue from government contracts that reimburse the Company for certain allowable costs for funded projects.

Income Taxes

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive:

	June 30,
	2024		2023
Convertible preferred stock		—		3,331,201
Common stock warrants		2,633,868		43,621
Stock options		533,304		114,525
		3,167,172		3,489,347

Segment Reporting, Policy [Policy Text Block]

Segments

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued But Not Yet Adopted Accounting Pronouncements

Note 10 - Stockholders' Equity and Common Stock Warrants

6 Months Ended

Jun. 30, 2024

Equity [Text Block]

10. Stockholders' Equity and Common Stock Warrants

April 2024 Private Placement

On April 1, 2024, pursuant to and in accordance with the terms of a securities purchase agreement with certain purchasers named therein, we completed the private placement of an aggregate of 2,083,262 common shares, 2,532,285 Series A Warrants and 449,023 Pre-Funded Warrants. The aggregate upfront gross proceeds from the 2024 Private Placement were approximately $50.0 million, before deducting approximately $3.6 million of offering fees and expenses.

The Pre-Funded Warrants and Series A Warrants were classified as a component of stockholders’ equity within additional paid-in capital. The Pre-Funded Warrants and Series A Warrants are equity classified because they (i) are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, (ii) are immediately exercisable, (iii) do not embody an obligation for the Company to repurchase its shares, (iv) permit the holders to receive a fixed number of shares of common stock upon exercise, (v) are indexed to the Company’s common stock and (vi) meet the equity classification criteria.

Warrants

As of June 30, 2024, the Company had the following warrants outstanding to acquire shares of its common stock:

	Outstanding		Range of exercise price per share			Expiration dates
Historical Diffusion common stock warrants		57,965	$26.27	-	$375.14	November 2024 through February 2026
Historical EIP common stock warrants		43,618		$19.81		April 2028
Series A common stock warrants		2,532,285		$39.24		The earlier of (i) April 1, 2027 and (ii) the date that is 180 days after the date the Exercise Conditions (as defined in the Series A Warrants) have been met
Pre-funded warrants issued in April 2024 Private Placement		449,023		$0.001		None
		3,082,891

February 2024 Pre-Funded Warrant Exercise

On February 26, 2024, following the effectiveness of an amendment eliminating certain beneficial ownership limitations set forth therein, 499,995 previously outstanding pre-funded warrants to purchase common stock issued in connection with the closing of the Merger were exercised in full by the holder thereof pursuant to the cashless exercise provision of the pre-funded warrants. Upon exercise, 36 shares were withheld in lieu of a cash payment of the exercise price and the holder was issued 495,959 shares of common stock.

"At-The-Market" Sales Agreement

The Company is party to the 2022 Sales Agreement with BTIG. The 2022 Sales Agreement is an "at-the-market" sales agreement pursuant to which the Company may, from time to time and through BTIG as the Company’s agent, sell up to an aggregate of $20.0 million in shares of common stock by any permissible method deemed an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act. As of the date of this Quarterly Report, however, the Company has not sold any shares pursuant to the 2022 Sales Agreement.

The entire disclosure for equity.

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+ Details

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2022	3,331,201	518,140
Stock-based compensation expense	$ 0	$ 0	$ 133,492		$ 0	$ 133,492
Net unrealized loss on marketable securities						0
Net loss	$ 0	$ 0	0		(1,959,837)	(1,959,837)
Unrealized loss on marketable securities						0
Balance (in shares) at Jun. 30, 2023	3,331,201	518,140
Balance at Jun. 30, 2023	$ 24,287,211	$ 518	19,116,831		(54,228,753)	(35,111,404)
Balance at January 1, 2023 at Dec. 31, 2022	24,287,211	518	18,983,339		(52,268,916)	(33,285,059)
Balance at June 30, 2023 at Jun. 30, 2023	$ 24,287,211	$ 518	19,116,831		(54,228,753)	(35,111,404)
Balance (in shares) at Mar. 31, 2023	3,331,201	518,140
Balance at Mar. 31, 2023	$ 24,287,211	$ 518	19,054,579		(52,803,252)	(33,748,155)
Stock-based compensation expense	0	0	62,252		0	62,252
Net unrealized loss on marketable securities						0
Net loss	$ 0	$ 0	0		(1,425,501)	(1,425,501)
Unrealized loss on marketable securities						0
Balance (in shares) at Jun. 30, 2023	3,331,201	518,140
Balance at Jun. 30, 2023	$ 24,287,211	$ 518	19,116,831		(54,228,753)	(35,111,404)
Balance at June 30, 2023 at Jun. 30, 2023	$ 24,287,211	$ 518	19,116,831		(54,228,753)	$ (35,111,404)
Balance (in shares) at Dec. 31, 2023	0	5,674,520				7,376,774
Balance at Dec. 31, 2023	$ 0	$ 5,674	61,811,889	$ 0	(54,440,789)	$ 7,376,774
Issuance of common stock, prefunded warrants and common stock warrants, net of offering costs (in shares)		2,083,262
Issuance of common stock, prefunded warrants and common stock warrants, net of offering costs		$ 2,083	46,396,478	0	0	46,398,561
Stock-based compensation expense	0	0	796,796	0	0	796,796
Net unrealized loss on marketable securities		0		(19,702)	0	(19,702)
Net loss	0	0	0	0	(4,831,240)	(4,831,240)
Stock options granted in lieu of compensation	0	0	255,724	0	0	255,724
Cashless exercise of prefunded warrants	$ 0	$ 496	(496)	0	0	0
Cashless exercise of prefunded warrants (in shares)		495,959
Unrealized loss on marketable securities		$ 0		(19,702)	0	(19,702)
Balance (in shares) at Jun. 30, 2024	0	8,253,741
Balance at Jun. 30, 2024	$ 0	$ 8,253	109,260,391	(19,702)	(59,272,029)	49,976,913
Balance (in shares) at Mar. 31, 2024	0	6,170,479
Balance at Mar. 31, 2024	$ 0	$ 6,170	62,285,332	0	(56,955,124)	5,336,378
Issuance of common stock, prefunded warrants and common stock warrants, net of offering costs (in shares)	0	2,083,262
Issuance of common stock, prefunded warrants and common stock warrants, net of offering costs	$ 0	$ 2,083	46,396,478	0	0	46,398,561
Stock-based compensation expense	0	0	578,581	0	0	578,581
Net unrealized loss on marketable securities	0	0	0	(19,702)	0	(19,702)
Net loss	0	0	0	0	(2,316,905)	(2,316,905)
Unrealized loss on marketable securities	$ 0	$ 0	0	(19,702)	0	(19,702)
Balance (in shares) at Jun. 30, 2024	0	8,253,741
Balance at Jun. 30, 2024	$ 0	$ 8,253	$ 109,260,391	$ (19,702)	$ (59,272,029)	$ 49,976,913

Note 10 - Stockholders' Equity and Common Stock Warrants - Warrants Outstanding to Acquire Shares of Its Common Stock (Details)	Jun. 30, 2024 $ / shares shares
Warrants outstanding (in shares) \| shares	3,082,891
Historical Diffusion Common Stock Warrants [Member]
Warrants outstanding (in shares) \| shares	57,965
Historical Diffusion Common Stock Warrants [Member] \| Minimum [Member]
Historical Diffusion common stock warrants (in dollars per share) \| $ / shares	$ 26.27
Historical Diffusion Common Stock Warrants [Member] \| Maximum [Member]
Historical Diffusion common stock warrants (in dollars per share) \| $ / shares	$ 375.14
Historical EIP Common Stock Warrants [Member]
Warrants outstanding (in shares) \| shares	43,618
Historical Diffusion common stock warrants (in dollars per share) \| $ / shares	$ 19.81
Series A Common Stock Warrants [Member]
Warrants outstanding (in shares) \| shares	2,532,285
Historical Diffusion common stock warrants (in dollars per share) \| $ / shares	$ 39.24
Prefunded Warrant [Member]
Warrants outstanding (in shares) \| shares	449,023
Historical Diffusion common stock warrants (in dollars per share) \| $ / shares	$ 0.001

Note 8 - Convertible Notes (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
Note 8 - Convertible Notes (Details Textual) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Changes in fair value of convertible debt					$ (0)	$ 646,000
Convertible Debt [Member]
Changes in fair value of convertible debt			$ 600,000	$ 200,000
The 2020 Notes [Member]
Proceeds from Issuance of Long-Term Debt		$ 5,100,000
The 2021 Notes [Member]
Proceeds from Issuance of Long-Term Debt	$ 6,000,000

Note 8 - Convertible Notes

6 Months Ended

Jun. 30, 2024

Long-Term Debt [Text Block]

8. Convertible Notes

In December 2020, EIP issued the 2020 Notes to predominantly related party investors for proceeds of $5.1 million. In December 2021, EIP issued the 2021 Notes to predominantly related party investors for proceeds of $6.0 million. Upon completion of the Merger in August 2023, all Convertible Notes outstanding were converted into common stock and, in certain cases, pre-funded warrants. As of June 30, 2024 and December 31, 2023, the Convertible Notes were no longer outstanding. Upon issuance, the Company elected the fair value option for the Convertible Notes in accordance with ASC 825, “Financial Instruments,” pursuant to which the entire instrument, including interest expense, is measured at fair value with the initial change in fair value deemed to be a capital contribution and any subsequent changes in fair value being recorded to other income (expense) on the unaudited condensed consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2024 there were no fair value adjustments recognized as the Convertible Notes were no longer outstanding. The fair value adjustment recognized in other income (expense) was $(0.2) million and $0.6 million for the three and six months ended June 30, 2023, respectively.

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 10,009,217	$ 7,792,846
Marketable securities, current	35,082,502	0
Prepaid expenses and other current assets	2,236,436	1,256,501
Grant receivable	0	915,404
Total current assets	47,328,155	9,964,751
Marketable securities, non-current	5,806,260	0
Other assets	56,234	7,770
Total assets	53,190,649	9,972,521
Current liabilities:
Accounts payable	725,854	662,471
Deferred grant revenue	1,401,501	0
Accrued expenses and other current liabilities	1,086,381	1,933,276
Total liabilities	3,213,736	2,595,747
Commitments and Contingencies
Stockholders’ Equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized: 8,253,741 and 5,674,520 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	8,253	5,674
Additional paid-in capital	109,260,391	61,811,889
Accumulated other comprehensive loss	(19,702)	0
Accumulated deficit	(59,272,029)	(54,440,789)
Total stockholders' equity	49,976,913	7,376,774
Total liabilities and stockholders' equity	$ 53,190,649	$ 9,972,521

Note 9 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Text Block]

9. Commitments and Contingencies

Operating Leases

The Company has a short-term lease for office space in Boston, Massachusetts and previously had a short-term agreement to utilize membership-based co-working space in Charlottesville, Virginia, the latter of which was terminated during the three months ended March 31, 2024. Lease expense was approximately $17,892 and $15,150 for the six months ended June 30, 2024 and 2023, respectively. For the three months ended June 30, 2024 and 2023, lease expense was approximately $8,400 and $7,484, respectively.

Research and Development Arrangements

In the course of normal business operations, the Company enters into agreements with universities and CROs to assist in the performance of research and development activities and with contract manufacturers to assist with chemistry, manufacturing, and controls related activities. Expenditures to CROs and other contract manufacturers represent a significant cost in clinical development for the Company. The Company could also enter into additional collaborative research, contract research, manufacturing, and supplier agreements in the future, which may require upfront payments and long-term commitments of cash.

Defined Contribution Retirement Plan

The Company has established its 401(k) Plan, which covers all employees who qualify under the terms of the plan. Eligible employees may elect to contribute to the 401(k) Plan up to 90% of their compensation, limited by the IRS-imposed maximum. The Company provides a safe harbor match with a maximum amount of 4% of the participant’s compensation. The Company made matching contributions under the 401(k) Plan of de minimis amounts for the three and six months ended June 30, 2024 and 2023.

Legal Proceedings

On August 7, 2014, a complaint was filed in the Superior Court of Los Angeles County, California by Paul Feller, the former Chief Executive Officer of the Company’s legal predecessor, under the caption Paul Feller v. RestorGenex Corporation, Pro Sports & Entertainment, Inc., ProElite, Inc. and Stratus Media Group, GmbH (Case No. BC553996). The complaint asserts various causes of action, including, among other things, promissory fraud, negligent misrepresentation, breach of contract, breach of employment agreement, breach of the covenant of good faith and fair dealing, violations of the California Labor Code and common counts. The plaintiff is seeking, among other things, compensatory damages in an undetermined amount, punitive damages, accrued interest and an award of attorneys’ fees and costs. On December 30, 2014, the Company filed a petition to compel arbitration and a motion to stay the action. On April 1, 2015, the plaintiff filed a petition in opposition to the Company’s petition to compel arbitration and a motion to stay the action. After a related hearing on April 14, 2015, the court granted the Company’s petition to compel arbitration and a motion to stay the action. On January 8, 2016, the plaintiff filed an arbitration demand with the American Arbitration Association. On November 19, 2018 at an Order to Show Cause Re Dismissal Hearing, the court found sufficient grounds not to dismiss the case and an arbitration hearing was scheduled, originally for November 2020 but later postponed due to the COVID-19 pandemic and related restrictions on gatherings in the State of California. In addition, following the November 2018 hearing, an automatic stay was placed on the arbitration in connection with the plaintiff filing for personal bankruptcy protection. On October 22, 2021, following a determination by the bankruptcy trustee not to pursue the claims and release them back to the plaintiff, the parties entered into a stipulation to abandon arbitration and return the matter to state court. A case management conference was held on February 23, 2022 at which an initial trial date of May 24, 2023 was set, and the parties have agreed to stipulate to mediation in advance of the trial. On October 20, 2022, the parties filed a joint stipulation to continue the trial and certain deadlines related to the mediation in order to allow plaintiff’s counsel to continue to seek treatment for an ongoing medical issue. On November 1, 2022, based on the parties joint stipulation, the court entered an order continuing the trial date to October 25, 2023, on October 6, 2023, the court entered an order further continuing the trial date to April 24, 2024, and on March 3, 2024, based on an additional joint stipulation of the parties, the court entered an order continuing the trial date to October 23, 2024.

The Company believes that is has meritorious defenses to the claims alleged in this matter and is defending itself vigorously. However, at this stage, the Company is unable to predict the outcome and possible loss or range of loss, if any, associated with its resolution or any potential effect the matter may have on the Company’s financial position. Depending on the outcome or resolution of this matter, it could have a material effect on the Company’s financial position, results of operations and cash flows.

Note 6 - Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2024

Prepaid Expenses and Other Current Assets [Text Block]

6. Prepaid Expenses

Prepaid expenses consisted of the following:

	June 30, 2024		December 31, 2023
Clinical expenses	$	1,906,093	$	711,362
Insurance		95,956		436,859
Professional services		54,125		37,917
Dues and memberships		54,740		—
Other		125,522		70,363
Total	$	2,236,436	$	1,256,501

Note 11 - Stock-based Compensation Stock

6 Months Ended

Jun. 30, 2024