Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2024

☐ Transmission Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______

Commission file number: 001-41052

Tivic Health Systems, Inc.

(Exact name of registrant as specified in its charter)

    Delaware
(State or other jurisdiction of incorporation or organization)

    81-4016391
(I.R.S. Employer Identification No.)

    25821 Industrial Blvd., Suite 100
Hayward, CA 94545
(Address of principal executive offices including zip code)

(888) 276-6888
(Registrant’s telephone number, including area code)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

    Title of Each Class
Common Stock, par value $0.0001 per share

    Trading Symbol(s)
TIVC

    Name of Each Exchange on Which Registered
The Nasdaq Stock Market LLC

   

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act (Check one):



☐ Large accelerated Filer	☐ Accelerated Filer
☒ Non-accelerated Filer	☒ Smaller reporting company
☒ Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒

As of May 14, 2024, 6,183,592 shares of the registrant’s common stock, par value $0.0001 per share, were issued and outstanding.

Table of Contents



PART I - FINANCIAL INFORMATION

		Page
Item 1.	Financial Statements	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28

Item 4.	Controls and Procedures	28

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	29

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

Item 3.	Defaults upon Senior Securities	29

Item 4.	Mine Safety Disclosures	29

Item 5.	Other Information	29

Item 6.	Exhibits	30

	Signatures	32

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our condensed financial statements included in this Quarterly Report on Form 10‑Q are as follows:


Condensed Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	2
Condensed Statements of Operations for the three months ended March 31, 2024 and 2023 (unaudited)	3
Condensed Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023 (unaudited)	4
Condensed Statements of Cash Flow for the three months ended March 31, 2024 and 2023 (unaudited)	4
Notes to Condensed Financial Statements (unaudited)	6

This Quarterly Report on Form 10‑Q for the quarter ended March 31, 2024, should be read in conjunction with the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 25, 2024.

The accompanying condensed financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10‑Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2024 are not necessarily indicative of the results that can be expected for the full year.

Tivic Health Systems, Inc.

Condensed Balance Sheets (Unaudited)

March 31, 2024 and December 31, 2023

(in thousands, except share and per share data)


	March 31,			December 31,
	2024			2023
ASSETS
Current assets
Cash and cash equivalents	$	1,668		$	3,395
Accounts receivable, net		74			174
Inventory, net		774			756
Deferred offering costs		61			—
Prepaid expenses and other current assets		250			327
Total current assets		2,827			4,652
Property and equipment, net		121			122
Right-of-use assets, operating lease		304			349
Other assets		34			34
Total assets	$	3,286		$	5,157

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	547		$	713
Other accrued expenses		265			495
Operating lease liability, current		180			193
Total current liabilities		992			1,401
Operating lease liability		141			176
Total liabilities		1,133			1,577
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023		—			—
Common stock, $0.0001 par value, 200,000,000 shares authorized; 1,473,592 and 1,466,092 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively		—			—
Additional paid in capital		41,520			41,466
Accumulated deficit		(39,367	)		(37,886	)
Total stockholders’ equity		2,153			3,580
Total liabilities and stockholders’ equity	$	3,286		$	5,157

The accompanying notes are an integral part of these unaudited condensed financial statements.

Tivic Health Systems, Inc.

Condensed Statements of Operations (Unaudited)

Three Months Ended March 31, 2024 and 2023

(in thousands, except share and per share data)


	Three Months Ended
	March 31,
	2024			2023
Revenue	$	334		$	376
Cost of sales		167			263
Gross profit		167			113
Operating expenses:
Research and development		256			490
Sales and marketing		505			458
General and administrative		887			1,281
Total operating expenses		1,648			2,229
Loss from operations		(1,481	)		(2,116	)
Net loss	$	(1,481	)	$	(2,116	)
Net loss per share - basic and diluted	$	(1.01	)	$	(10.52	)
Weighted-average number of shares - basic and diluted		1,467,740			201,222

The accompanying notes are an integral part of these unaudited condensed financial statements.

Tivic Health Systems, Inc.

Condensed Statements of Stockholders’ Equity (Unaudited)

Three Months Ended March 31, 2024 and 2023

(in thousands except share and per share data)

For the Three Months Ended March 31, 2023


									Additional					Total
	Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balances at January 1, 2023		—	$	—		96,778	$	—	$	33,272	$	(29,642	)	$	3,630
Issuance of common stock, net of issuance costs						200,000		—		3,412		—			3,412
Issuance of warrants		—		—		—		—		195		—			195
Stock-based compensation expense		—		—		—		—		84		—			84
Net loss		—		—		—		—		—		(2,116	)		(2,116	)
Balances at March 31, 2023		—	$	—		296,778	$	—	$	36,963	$	(31,758	)	$	5,205

For the Three Months Ended March 31, 2024


									Additional					Total
	Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balances at January 1, 2024		—	$	—		1,466,092	$	—	$	41,466	$	(37,886	)	$	3,580
Issuance of common stock for restricted stock award		—		—		7,500		—		—		—			—
Stock-based compensation expense		—		—		—		—		54		—			54
Net loss		—		—		—		—		—		(1,481	)		(1,481	)
Balances at March 31, 2024		—	$	—		1,473,592	$	—	$	41,520	$	(39,367	)	$	2,153

The accompanying notes are an integral part of these unaudited condensed financial statements.

Tivic Health Systems, Inc.

Condensed Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2024 and 2023

(in thousands)


	Three Months Ended
	March 31,
	2024			2023
Cash flows from operating activities
Net loss	$	(1,481	)	$	(2,116	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation		54			84
Depreciation		1			2
Amortization of right-of-use asset		45			42
Inventory allowances		(4	)		—
Changes is operating assets and liabilities:
Accounts receivable		100			31
Inventory		(14	)		(80	)
Prepaid expenses and other current assets		77			(59	)
Accounts payable		(166	)		(229	)
Accrued expenses		(230	)		(76	)
Lease liabilities		(48	)		(25	)
Net cash used in operating activities		(1,666	)		(2,426	)
Cash flows from investing activities
Acquisition of property and equipment		—			(94	)
Net cash used in investing activities		—			(94	)
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs		—			4,191
Offering costs in advance of sale of common stock		(61	)		(21	)
Net cash provided by (used in) financing activities		(61	)		4,170
Net increase (decrease) in cash and cash equivalents		(1,727	)		1,650
Cash and cash equivalents
Beginning of period		3,395			3,517
End of period	$	1,668		$	5,167

Supplemental disclosure on noncash financing activities
Issuance of common stock warrant	$	—		$	195
Deferred offering costs charged to additional paid-in-capital	$	—		$	584

The accompanying notes are an integral part of these unaudited condensed financial statements.

Tivic Health Systems, Inc.

Notes to Unaudited Condensed Financial Statements

(amounts are as indicated)

1. Formation and Business of the Company

Tivic Health Systems, Inc. (the “Company”) was incorporated in the state of California on September 22, 2016 for the purpose of developing and commercializing non-invasive bioelectronic medicine. In June 2021, the Company was reincorporated as a Delaware corporation. The Company's first commercial product, ClearUP, is an FDA approved medical device for the treatment of sinus pain, pressure and nasal congestion. The Company is headquartered in Hayward, California.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed balance sheet as of December 31, 2023, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of March 31, 2024, and for the three months ended March 31, 2024 and March 31, 2023, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all accounting entries and adjustments (including normal, recurring adjustments) considered necessary for a fair presentation of the financial position and the results of operations for the interim periods have been made. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024.

Going Concern Uncertainty

During the three months ended March 31, 2024 and 2023, the Company incurred a net loss of $1.5 million and $2.1 million, respectively. At March 31, 2024, the Company had an accumulated deficit of $39.4 million. Cash and cash equivalents at March 31, 2024 were $1.7 million. During the three month periods ended March 31, 2024 and 2023, the Company had negative cash flows from operations of $1.7 million and $2.4 million, respectively. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance date of the financial statements. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern within one year after the date the financial statements are issued.

Future capital requirements will depend upon many factors, including, without limitation, progress with developing, manufacturing and marketing our technologies; the time and costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other proprietary rights; our ability to establish collaborative arrangements; completion of any acquisitions or other strategic transactions; marketing activities and competing technological and market developments, including regulatory changes and overall economic conditions in our target markets. Our ability to generate revenue and achieve profitability requires us to successfully market and secure purchase orders for our products and services from existing as well as new customers. We also will be required to efficiently manufacture and deliver on those purchase orders. These activities, including our planned research and development efforts, may require significant uses of working capital. There can be no assurance that we will generate revenue and cash as expected in our current business plan.

The Company recognizes it will need to raise additional capital to continue research and development and to fund its planned operations, clinical trials and, if regulatory approval is obtained, commercialization of future products. We may seek additional funds through equity or debt offerings and/or borrowings under notes payable, lines of credit or other sources. We do not know whether additional financing will be available on commercially acceptable terms, or at all, when needed. If adequate funds are not available or are not available on commercially acceptable terms, our ability to fund our operations, support the growth of our business or otherwise respond to competitive pressures could be significantly delayed or limited, which could materially adversely affect our business, financial conditions, or results of operations.

Reverse Stock Split

In August 2023, the Company’s Board of Directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation to effect a 1-for-100 reverse stock split of the issued and outstanding shares of the Company’s common

stock, which was effected on August 23, 2023. There was no change to the par value, or authorized shares, of either the common stock or preferred stock, as a result of the reverse stock split. Fractional shares were not issued, and instead, the Company issued one whole share of the post reverse split common stock to any stockholder who otherwise would have been entitled to receive a fractional share as a result of the reverse stock split. Consequently, 84 shares of common stock were issued in lieu of fractional shares. In addition, all options, warrants and other convertible securities of the Company outstanding immediately prior to the reverse stock split were adjusted by dividing the number of shares of common stock into which such options, warrants and other convertible securities were exercisable or convertible by 100 and multiplying the exercise or conversion price thereof by 100, all in accordance with the terms of the plans, agreements or arrangements governing such options, warrants and other convertible securities and subject to rounding pursuant to such terms. All share and per share amounts for the common stock, as well as the stock options, and warrants outstanding and exercise prices thereof, included in the financial statements and these footnotes thereto have been retroactively restated to give effect to the reverse stock split.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ materially from those estimates. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. As of March 31, 2024 and December 31, 2023, cash and cash equivalents totaled $1.7 million and $3.4 million, respectively.

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount, net of allowances for credit losses and returns reserves. The allowance for credit losses is based on our assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for credit losses by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. As of each March 31, 2024 and December 31, 2023, the allowance for credit losses balance was zero.

Inventory

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. Inventories are reviewed periodically to identify slow-moving inventory based on anticipated sales activity. As of March 31, 2024 and December 31, 2023, the reserve for obsolescence was $28 thousand and $32 thousand, respectively.

Deferred Offering Costs

Deferred offering costs are comprised of costs incurred in connection with financing arrangements that have not closed as of the end of the period. As of March 31, 2024, deferred offering costs of $61 thousand, primarily consisted of legal fees, technical accounting support, printer costs and other regulatory filing fees related to the sale of Company securities in a registered public offering, which closed subsequent to quarter-end (see Note 13 for additional information regarding the offering). Deferred offering costs are reclassified to additional paid in capital upon closing of the financing transaction. There were no deferred offering costs as of December 31, 2023.

Property and Equipment

Property and equipment are recorded at cost net of accumulated depreciation. Depreciation is computed on a straight-line method over the estimated useful lives of the assets, three to four years. Upon retirement or sale of assets, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Repairs and maintenance costs that do not improve or extend the lives of the respective assets are charged to operations as incurred.

Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of these asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over its remaining life. When indications of impairment are present and the estimated undiscounted future cash flows from the use of these assets is less than the assets’ carrying value, the related assets will be written down to fair value. There were no impairments of the Company’s long-lived assets for the periods presented.

Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Revenue Recognition

The Company recognizes revenue from product sales in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard applies to all contracts with customers, except contracts that are within scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments.

Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are in within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inceptions, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company sells its products through direct sales and resellers. Revenue is recognized when control of the promised goods is transferred to the customers or the resellers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Revenue associated with products holding rights of return are recognized when the Company concludes there is not a risk of significant revenue reversal in the future periods for the expected consideration in the transaction.

The Company may receive payments at the onset of the contract and before goods have been delivered. In such instances, the Company records a deferred revenue liability. The Company recognizes these contract liabilities as revenue after the revenue criteria are met. As of March 31, 2024 and December 31, 2023, the contract liability related to the Company’s deferred revenues approximated $3 thousand and $8 thousand, respectively, and is included in “Other Accrued Expenses” on the accompanying balance sheets.

The Company relies on third parties to have procedures in place to detect and prevent credit card fraud, as the Company has exposure to losses from fraudulent charges. The Company records the losses related to chargebacks as incurred.

The Company has also elected to exclude from the measurement of the transaction price sales taxes remitted to governmental authorities.

The table below presents revenue by channel for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
Product Revenue by Sales Channel	2024			2023
Product Revenue
Direct-to-consumer	$	301		$	303
Reseller		62			98
Returns		(29	)		(25	)
Revenue	$	334		$	376

Sales Tax

Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and therefore, is excluded from net sales.

Shipping and Handling

Shipping and handling fees paid by customers are recorded in revenue, with the related expenses recorded in cost of sales. There were no shipping and handling fees paid by customers for the three months ended March 31, 2024 and 2023.

Shipping costs for delivery of product to customers in the three months ended March 31, 2024 and 2023 were $17 thousand and $15 thousand, respectively.

Product Warranty

The Company generally offers a one-year limited warranty on its products. The Company estimates the costs associated with the warranty obligation using historical data of warranty claims and costs incurred to satisfy those claims. Estimated warranty costs are expensed to cost of sales.

Returns

The Company estimates a reserve for future product returns based on several factors, including historical returns as a percentage of revenue, an understanding of the reasons for past returns and any other known factors that indicate a return is imminent. Reserves for sales returns are estimated and recorded in the same period as the underlying revenue recognition as a deduction to arrive at net product sales and as a liability classified as "Other Accrued Expenses" on the balance sheet. As of March 31, 2024 and December 31, 2023, the reserve for sales returns was $11 thousand and $52 thousand, respectively.

Sales and Marketing Expenses

Sales and marketing expenses are expensed as incurred and consist primarily of merchandising, customer service and targeted online marketing costs, such as display advertising, keyword search campaigns, search engine optimization and social media and offline marketing costs such as television, radio and print advertising. Sales and marketing expenses also include payroll costs and stock-based compensation expense for employees involved in marketing activities. Sales and marketing expenses are primarily related to growing the customer base.

Research and Development Expenses

Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, payroll taxes, employee benefits, materials, supplies, depreciation on and maintenance of research equipment, the cost of services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation, and general support services. All costs associated with research and development are expensed as incurred.

Stock-Based Compensation

The Company accounts for stock-based compensation arrangements with employees and non-employee consultants using a fair value method, which requires the recognition of compensation expense for costs related to all stock-based payments, including stock options. The fair value method requires the Company to estimate the fair value of stock-based payment awards to employees and non-employees on the date of grant using an option pricing model.

Stock-based compensation costs are based on the fair value of the underlying option calculated using the Black-Scholes option-pricing model and recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Company measures equity-based compensation awards granted to non-employees at fair value as the awards vest and recognizes the resulting value as compensation expense at each financial reporting period.

Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, expected dividend yield, expected term, risk-free rate of return, and the estimated fair value of the underlying common stock. Due to the lack of company-specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. The group of representative companies have characteristics similar to the Company, including stage of product development and focus on the life science industry. The Company uses the simplified method, which is the average of the final vesting tranche date and the contractual term, to calculate the expected term for options granted to employees as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company uses an assumed dividend yield of zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The Company accounts for forfeitures as they occur.

Net Loss per Common Share

The Company computes net loss per share of common stock in conformity with the two-class method required for participating securities. Diluted net loss per share is computed similar to basic net loss per share, except that the denominator is increased to include the number of additional shares for the potential dilutive effects of warrants, convertible preferred stock and stock options outstanding during the period calculated in accordance with the treasury stock method, or the two-class method, whichever is more dilutive. For all periods presented, basic and diluted net loss per share is the same, as inclusion of any additional share equivalents would be anti-dilutive.

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents and accounts receivable. Cash and cash equivalents include a checking account and a money market account held at one national financial institution in the United States. At times, such deposits may be in excess of insured limits. Management believes that the financial institution at which the Company holds its deposits is financially sound, and accordingly, minimal credit risk exists with respect to the financial institution. The Company has not experienced any losses on its deposits of cash and cash equivalents. As of each March 31, 2024 and December 31, 2023, the Company had cash and cash equivalents balances exceeding FDIC insured limits by $1.0 million and $3.0 million, respectively.

The Company extends credit to customers in the normal course of business and performs credit evaluations of its customers. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the financial statements.

During the first quarter of 2024, the majority, or 82%, of the Company's sales have been to individual customers. In 2023, the majority, or 79%, of the Company’s sales were to individual consumers. As of March 31, 2024, the Company had two reseller customers whose accounts receivable balance totaled more than 10% or more of the Company’s total accounts receivable (77% and 12%) compared with one such customer at December 31, 2023 (81%).

For the three months ended March 31, 2024, the Company had one customer who individually accounted for 10% or more of the Company’s total revenue (18%), compared to one such customer for the same period in 2023 (20%).

The lingering negative impacts of the COVID-19 pandemic, the ongoing conflicts between Russia and Ukraine as well as Israel and Hamas, economic uncertainty in human capital management and certain other macroeconomic factors including climate change, inflation, and rising interest rates. Additionally, events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems. These factors, amongst other things, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations. We will continue to monitor material impacts on our business strategies and operating results.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The guidance, which becomes effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, requires public entities that are required to report segment information in accordance with Topic 280, Segment Reporting, to improve reportable segment

disclosures about significant segment expenses. We do not believe that ASU 2023-07 will have a material impact on our reporting as we operate in one reportable segment.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)- Improvements to Income Tax Disclosures. The guidance applies to all entities that are subject to Topic 740, Income taxes and becomes effective for public business entities for annual periods beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2024. The guidance requires enhanced disclosures related to income taxes including: additional information in the rate reconciliation; further breakdown of income taxes paid; and other disclosures that may help investors to better understand the entities tax landscape. We do not believe that ASU 2023-09 will have a material impact on our financial reporting.

3. Financial Instruments and Fair Value Measurements

The Company’s financial instruments consist of money market funds. The following tables show the Company’s cash equivalents carrying value and fair value at March 31, 2024 and December 31, 2023 (in thousands):


	As of March 31, 2024 (unaudited)
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	1,243	$	1,243	$	1,243	$	—	$	—
Total assets	$	1,243	$	1,243	$	1,243	$	—	$	—


	As of December 31, 2023
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	3,243	$	3,243	$	3,243	$	—	$	—
Total assets	$	3,243	$	3,243	$	3,243	$	—	$	—

Cash equivalents – Cash equivalents of $1.2 million and $3.2 million as of March 31, 2024 and December 31, 2023, respectively, consisted of money market funds. Money market funds are classified as Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

There have been no changes to the valuation methodologies utilized by the Company during the three months ended March 31, 2024 compared to the year ended December 31, 2023. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the three months ended March 31, 2024 and the year ended December 31, 2023.

4. Inventory, net (in thousands)


	March 31,			December 31,
	2024			2023
	(unaudited)
Raw materials	$	618		$	752
Work in process		19			—
Finished goods		165			36
Inventory at cost		802			788
Less reserve for obsolescence		(28	)		(32	)
Inventory, net	$	774		$	756

Property and equipment, net (in thousands)


	March 31, 2024			December 31, 2023
Computers and equipment	$	11		$	11
Manufacturing tools and dies		148			148
Total property and equipment		159			159
Less accumulated depreciation		(38	)		(37	)
Property and equipment, net	$	121		$	122

Depreciation expense was $1 thousand and $2 thousand for the three months ended March 31, 2024 and 2023, respectively.

6. Commitments and Contingencies

Lease

The Company executed a noncancelable operating lease for approximately 9,091 square feet of office space in Hayward, California in November 2021 as its headquarters. The lease expires in October 2025 and there is no option to renew for an additional term. The Company is obligated to pay, on a pro-rata basis, real estate taxes and operating costs related to the premises. Upon lease execution, the Company evaluated the lease and determined it should be capitalized as an operating lease. As there was no interest rate implicit in the lease, the Company estimated the incremental borrowing rate at 6% based on the rate available under its revolving credit line, as well as an assessment of the Company's risk based on its financial position at the time and its potential to obtain a collateralized loan for a period similar to the lease term.

Lease costs for the three months ended March 31, 2024 and 2023 were $51 thousand and $50 thousand, respectively.

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2024 is shown below:


Remaining lease term (in years)	1.50
Discount rate	6.0	%

Cash paid for amounts included in the measurement of operating lease liabilities were $51 thousand and $50 thousand for the three months ended March 31, 2024 and 2023, respectively, which is included in operating activities in the statement of operations.

Future minimum maturities of lease liabilities recognized on the condensed balance sheets as of March 31, 2024 are as follows (in thousands):


Fiscal Year
Remainder of 2024	$	157
2025		178
Total minimum lease payments		335
Less imputed interest		(14	)
Present value of lease payments	$	321

ALOM Fulfillment Services Agreement

On November 25, 2022, the Company entered into a Fulfillment Services Agreement (the “ALOM Agreement”), with ALOM Technologies Corporation (“ALOM”). Pursuant to the ALOM Agreement, commencing on November 28, 2022, ALOM began providing, on a non-exclusive basis, certain assembly, procurement, storage, returns, and fulfillment services to our end customers and retailers within the United States. During the term of the ALOM Agreement, ALOM shall provide the services in accordance with

purchase orders issued by us from time to time. The consideration payable by us to ALOM for services rendered under the ALOM Agreement will be calculated and invoiced based on fixed hourly rates and fixed unit pricing, as applicable, subject to certain exceptions; provided that, commencing April 1, 2023, we became subject to $25 thousand minimum monthly purchase requirement. The ALOM Agreement has a three-year initial term, with automatic annual renewals, and may be terminated for convenience by either party upon sixty days written notice to the other party. On March 5, 2024, the ALOM Agreement was amended to waive hourly account management charges and minimum monthly purchase requirements for the period from January 2024 through June 2024, and to extend the initial term of the agreement to December 31, 2024.

Contingencies

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when future expenditures are probable and such expenditures can be reasonably estimated. The Company recorded no liabilities for contingent matters as of March 31, 2024.

7. Other Accrued Expenses (in thousands)


	March 31, 2024		December 31, 2023
Accrued payroll and related	$	100	$	218
Delaware franchise tax		20		160
Research study costs		66		51
Other		79		66
Total other accrued expenses	$	265	$	495

8. Preferred Stock

There were no series of preferred stock designated and no shares issued or outstanding at March 31, 2024 and December 31, 2023.

The Company’s board of directors is authorized, without action by its stockholders, to designate and issue up to 10,000,000 shares of preferred stock in one or more series, and to fix the voting rights, designations, powers, preferences, the relative, participating, optional or other special rights, if any, and any qualifications, limitations and restrictions thereof, applicable to the shares of any series of preferred stock that they may designate in the future.

9. Common Stock

At March 31, 2024 and December 31, 2023, there were 1,473,592 and 1,466,092 shares of Company common stock issued and outstanding, respectively.

On February 13, 2023, the Company sold 200,000 shares of its common stock in an underwritten public offering at a price of $25 per share, less underwriting discounts and commissions, resulting in gross proceeds to the Company of $5.0 million. The net proceeds to the Company, after deducting the underwriting discount and commissions and expenses paid by the Company, was approximately $3.6 million. In addition, pursuant to the underwriting agreement entered into in connection with the offering, the Company granted the underwriter a 45-day option to purchase up to an additional 30,000 shares of common stock, solely to cover over-allotments. This option expired in March 2023, and the underwriter did not exercise its option to purchase any additional shares prior to such expiration. Additionally, as partial consideration for services rendered in connection with the offering, the Company issued warrants to purchase an aggregate of 10,000 shares of Company common stock to designees of ThinkEquity. The designees paid an aggregate of $100 for the warrants. The warrants have an initial exercise price of $31.25 per share, have a term of four years from the commencement of sales in the offering, and are exercisable commencing six months from closing.

On July 11, 2023, the Company sold 325,000 shares of its common stock to certain investors at a price of $5.50 per share, resulting in gross proceeds to the Company of approximately $1.8 million. Net proceeds to the Company, after deducting placement agent fees and offering expenses paid by the Company, was approximately $1.5 million. As compensation for services rendered by the placement agent, the Company paid the placement agent a cash fee of 8.0% of the aggregate gross proceeds of the offering (amounting to $143 thousand) at closing, as well as $90 thousand for the reimbursement of certain expenses. Additionally, as partial consideration for services rendered in connection with the offering, the Company issued the placement agent unregistered warrants to purchase an aggregate of 13,000 shares of Company common stock, representing 4.0% of the aggregate shares sold in the offering. The warrants

have an initial exercise price of $6.60 per share (equal to 120% of the offering price per share), have a term of five years from the commencement of sales in the offering, and are exercisable commencing six months from closing.

On July 19, 2023, the Company sold 512,500 shares of its common stock to certain investors at a price of $4.00 per share, resulting in gross proceeds to the Company of approximately $2.1 million. Net proceeds to the Company, after deducting placement agent fees and offering expenses paid by the Company, was approximately $1.7 million. As compensation for services rendered by the placement agent, the Company paid the placement agent a cash fee of 8.0% of the aggregate gross proceeds of the offering (amounting to $164 thousand) at closing, as well as $60 thousand for the reimbursement of certain expenses. Additionally, as partial consideration for services rendered in connection with the offering, the Company issued the placement agent unregistered warrants to purchase an aggregate of 20,500 shares of common stock, representing 4.0% of the aggregate shares sold in the offering. The warrants have an initial exercise price of $4.80 per share (equal to 120% of the offering price per share), have a term of five years from the commencement of sales in the offering, and are exercisable commencing six months from closing.

On August 9, 2023, the Company sold 331,730 shares of its common stock to certain investors at a price of $4.10 per share, resulting in gross proceeds to the Company of approximately $1.4 million. Net proceeds to the Company, after deducting placement agent fees and offering expenses paid by the Company, was approximately $1.1 million. As compensation for services rendered by the placement agent, the Company paid the placement agent a cash fee of 8.0% of the aggregate gross proceeds of the offering (amounting to approximately $109 thousand) at closing, as well as $60 thousand for the reimbursement of certain expenses. Additionally, as partial consideration for services rendered in connection with the offering, the Company issued the placement agent unregistered warrants to purchase an aggregate of 13,270 shares of Company common stock, representing 4.0% of the aggregate shares sold in the offering. The warrants have an initial exercise price of $4.92 per share (equal to 120% of the offering price per share), have a term of five years from the commencement of sales in the offering, and are exercisable commencing six months from closing.

Effective August 23, 2023, the Company's board of directors approved a reverse stock split of the Company's issued and outstanding shares of common stock, par value $0.0001 per share, at a ratio of 1-for-100. As a result of the reverse stock split, the total number of shares of common stock held by each stockholder of the Company were converted automatically into the number of shares of common stock equal to the number of issued and outstanding shares of common stock held by each such stockholder immediately prior to the reverse stock split divided by 100. The Company issued one whole share of the post reverse stock split common stock to any stockholder who otherwise would have been entitled to receive a fractional share as a result of the reverse stock split. As a result, no fractional shares were issued in connection with the reverse stock split and no cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the reverse stock split. Also, all options, warrants and other convertible securities of the Company outstanding immediately prior to the reverse stock split were adjusted by dividing the number of shares of common stock into which such options, warrants and other convertible securities were exercisable or convertible by 100 and multiplying the exercise or conversion price thereof by 100, all in accordance with the terms of the plans, agreements or arrangements governing such options, warrants and other convertible securities and subject to rounding pursuant to such terms. There was no change to the par value, or authorized shares, of either the common stock or preferred stock, as a result of the reverse stock split. All share and per share amounts for the common stock, as well as the warrants outstanding and exercise prices thereof, have been retroactively restated to give effect to the reverse stock split.

Common stockholders are entitled to dividends if and when declared by the Board of Directors subject to the rights of the preferred stockholders. As of March 31, 2024, no dividends on common stock had been declared by the Company. At March 31, 2024 and December 31, 2023, the Company had reserved shares of common stock for issuance as follows:


	March 31,		December 31,
	2024		2023
Warrants to purchase common stock		59,497		59,497
Options issued and outstanding		54,369		14,661
Shares available for future stock option grants		32,786		7,190
Total		146,652		81,348

10. Common Stock Warrants

Historically, the Company has entered into warrant agreements in connection with certain consulting agreements and equity offerings. In August 2023, the Company implemented a 1-for-100 reverse stock split wherein, per the terms of the agreements, the number of shares of common stock issuable upon exercise of each of the warrants outstanding at that time was reduced by dividing the quantity outstanding by 100 and the exercise price of each such warrant was multiplied by 100. No other terms of the warrants were changed as a result of the reverse stock split.

In July 2021, the Company entered into a consulting agreement, pursuant to which 500 warrants to purchase common stock were granted and an additional 500 warrants to purchase common stock were granted in November 2021. The warrants are exercisable upon issuance, have an exercise price of $104 per share and have a term of five years. The consulting agreement was effective as of February 2021, had an initial monthly fee of $5 thousand and a term of two years. The agreement was amended in May of 2022 to increase the monthly payment to $7.5 thousand. Currently, the agreement is automatically renewing on a month-to-month basis until terminated by either party. The warrant issuances are indexed to, and settled in, the Company’s own common stock and were classified within stockholders’ equity.

In November 2021, the Company issued warrants to purchase 1,727 shares of common stock to designees of ThinkEquity LLC (“ThinkEquity”), the underwriter of the IPO. The warrants may be exercised at any time on or after May 9, 2022, have an exercise price of $625 per share and have a term of five years. The warrant issuances are indexed to and settled in the Company’s own common stock and were classified within stockholders’ equity.

In February 2023, the Company issued warrants to purchase 10,000 shares of common stock to designees of ThinkEquity, the underwriter of the underwritten public offering of 200,000 shares of Company common stock that closed in February 2023. The designees paid an aggregate of $0.1 thousand for the warrants. The warrants may be exercised at any time on or after August 7, 2023, have an exercise price of $31.25 per share, and have a term of four years commencing 180 days following the commencement of sales in the offering. The warrant issuances were indexed to and settled in the Company’s own stock and were classified within stockholders’ equity.

In July and August 2023, the Company issued a total of 47,670 warrants to purchase shares of common stock to Maxim Group LLC ("Maxim"), the placement agent for each of the three public offerings of the Company's common stock completed during the period. The warrants are exercisable at any time beginning six months after the closing date of the applicable equity offering and expire five years from the from the commencement of sales under the applicable offering. Of the warrants issued in the offerings, 13,000 are exercisable beginning on January 11, 2024 at a price of $6.60 per share; 20,500 are exercisable beginning on January 19, 2024 at a price of $4.80 per share; and 13,270 are exercisable beginning on February 9, 2024 at a price of $4.92 per share.

The Company estimated the value of the warrants in 2023 using the Black-Scholes options valuation model. The fair value of the warrants issued in February 2023 was $195 thousand and was recognized as issuance costs of the common stock issued in the underwritten public offering and was classified within stockholders' equity. The fair value of the warrants issued in July and August 2023 totaled $168 thousand and was recognized as issuance costs of the common stock issued in the three offerings during the period and was classified within stockholders' equity.

The fair value of the warrants issued in 2023 was estimated on the date of grant using the following assumptions:


	2023
	Minimum	Maximum
Expected life (in years)	4.0	5.0
Expected volatility	116.1%	123.9%
Risk-free interest rate	3.98%	4.24%
Dividend yield	0%	0%

A summary of the Company’s outstanding warrants as of March 31, 2024 is as follows:


Class of Shares	Number of Warrants		Exercise Price		Expiration Date
Common Stock		500	$	104.00	July 1, 2026
Common Stock		500	$	104.00	November 15, 2026
Common Stock		1,727	$	625.00	November 10, 2026
Common Stock		10,000	$	31.25	August 9, 2027
Common Stock		13,000	$	6.60	July 10, 2028
Common Stock		20,500	$	4.80	July 14, 2028
Common Stock		13,270	$	4.92	August 4, 2028

11. Equity Incentive Plans

In 2017, the Company adopted its 2017 Equity Incentive Plan (the “2017 Plan”).

On November 10, 2021, the 2017 Plan terminated and was replaced by the 2021 Plan (defined below), and future issuances of incentive instruments will be governed by the 2021 Plan. To the extent that outstanding awards under the 2017 Plan are forfeited or lapse unexercised, the shares of common stock subject to such awards will no longer be available for future issuance.

2021 Equity Incentive Plan

In 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”). Options granted under the 2021 Plan may be Incentive Stock Options or Non-statutory Stock Options, as determined by the Compensation Committee of the Company’s board of directors, who is responsible for administering the 2021 Plan. Stock Purchase Rights may also be granted under the 2021 Plan. The term shall be no more than ten years from the date of grant thereof. In the case of an Incentive Stock Option granted to an optionee who, at the time the option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the option shall be five years from the date of grant or such shorter term as may be provided in the option Agreement. To the extent outstanding awards under the 2021 Plan are forfeited or lapse unexercised, the shares of common stock subject to such awards will be available for future issuance under the 2021 Plan. The 2021 Plan provides that additional shares will automatically be added to the shares authorized for issuance under the 2021 Plan on January 1 of each year. The number of shares added each year will be equal to the lesser of: (i) 5.0% of the outstanding shares of the Company’s common stock on December 31st of the preceding calendar year or (ii) such number of shares determined by the board of directors, in its discretion. On January 1, 2023, 4,839 shares were automatically added to the number of shares authorized for issuance under 2021 Plan (an increase equal to 5% of the number of the outstanding shares of Company common stock as of December 31, 2022. On January 1, 2024, 73,304 shares were automatically added to the number of shares authorized for issuance under 2021 Plan (an increase equal to 5% of the number of the outstanding shares of Company common stock as of December 31, 2023.

In the case of an incentive stock option (i) granted to an employee who, at the time of grant of such option, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any parent or subsidiary of the Company, the exercise price shall be no less than 110% of the fair market value per share on the date of grant; (ii) granted to any other employee, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. In the case of a non-statutory stock option (i) granted to an employee who, at the time of grant of such option, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any parent or subsidiary of the Company, the exercise price shall be no less than 110% of the fair market value per share on the date of grant; (ii) granted to any other service provider, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. Notwithstanding the foregoing, options may be granted with a per share exercise price other than as required above pursuant to a merger or other corporate transaction.

The options may include provisions permitting exercise of the option prior to full vesting. Any unvested shares upon termination shall be subject to repurchase by the Company at the original exercise price of the option.

As of March 31, 2024, there were 32,786 shares of common stock available for issuance under the 2021 Plan.

Stock options granted under the Company’s equity incentive plans generally vest over four years from the date of grant.

The following table summarizes the stock option award activity for the three months ended March 31, 2024:


	Outstanding			Exercisable
January 1, 2024		14,661			6,110
Granted		42,000			—
Vested		—			347
Canceled or expired		(2,292	)		(781	)
Exercised		—			—
March 31, 2024		54,369			5,676

The weighted-average exercise price as of March 31, 2024 for stock options outstanding and stock options exercisable was $34.52 and $200.07, respectively. The weighted average remaining contractual life as of March 31, 2024 for stock options outstanding and stock options exercisable was 9.28 and 5.88 years, respectively.

The following table sets forth the status of the Company's non-vested restricted common stock awards:


			Weighted-Average
	Number of		Grant Date
	Shares		Fair Value Per Share
January 1, 2024		—	$	-
Issuance of restricted common stock		7,500	$	1.34
Vested		—	$	-
Cancelled		—	$	-
March 31, 2024		7,500	$	1.34

There were no restricted stock awards outstanding during the year ended December 31, 2023.

Stock-Based Compensation

Total stock-based compensation recorded in the condensed statements of operations is allocated as follows (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Research and development	$	22	$	31
Sales and marketing		—		2
General and administrative		32		51
Total stock-based compensation	$	54	$	84

12. Net Loss per Share

The following outstanding potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share for the periods presented due to their antidilutive effect:


	Three Months Ended
	March 31,
	2024		2023
Warrants to purchase common stock		59,497		12,727
Common stock options issued and outstanding		54,369		12,239
Total		113,866		24,966

13. Subsequent Events

On May 9, 2024, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement”) with certain investors, pursuant to which the Company agreed to sell, issue and deliver, in a registered public offering (the “Offering”) (i) 4,710,000 shares (“Shares”) of common stock, (ii) 4,710,000 Series A warrants (the “Series A Warrants”) to purchase up to 4,710,000 shares of common stock and (iii) 7,065,000 Series B warrants (the “Series B Warrants” and collectively with the Series A Warrants, the “Common Warrants”) to purchase up to 7,065,000 shares of common stock, to the investors. Under the terms of the Purchase Agreement, the Company agreed to sell one share of common stock together with one Series A Warrant and one and a half Series B Warrants at a combined public offering price of $0.85 per share and Common Warrants. The Common Warrants are exercisable immediately upon issuance and have an exercise price of $0.85 per share, subject to adjustment. The Series A Warrants will expire one year from the date of issuance and the Series B Warrants will expire five years from the date of issuance.

The Offering closed on May 13, 2024. The securities were registered pursuant to the registration statement on Form S-1 (File No. 333-278383), which was initially filed with the SEC on March 29, 2024, and amended on April 29, 2024 and May 8, 2024, and declared effective on May 9, 2024.

Maxim acted as placement agent, on a “reasonable best efforts” basis, in connection with the Offering. On May 9, 2024, the Company and Maxim entered into a Placement Agency Agreement (the “Placement Agency Agreement”), pursuant to which, as
compensation for services rendered by Maxim in connection with the Offering, the Company agreed to pay Maxim an
aggregate cash fee of 7.0% of the gross proceeds of the Offering (amounting to $280 thousand) at closing, as well as $100 thousand for the reimbursement of certain of Maxim’s expenses. Additionally, the Company issued to Maxim, as part of Maxim's compensation, 188,400 warrants to purchase up to an aggregate of 188,400 shares of common stock (the “Placement Agent Warrants”), equal to 4.0% of the aggregate number of Shares placed in the Offering. The Placement Agent Warrants have a term of five years from the commencement of sales under the Offering, are exercisable commencing six months from the closing date, and have an exercise price of $0.935 per share (equal to 110% of the combined public offering price per share and Common Warrants).

The Company received gross proceeds from the Offering of approximately $4.0 million, before deducting placement agent fees and other estimated offering expenses payable by the Company. The net proceeds to the Company from the Offering, after deducting the placement agent fees and expenses and estimated Offering expenses (excluding proceeds to the Company, if any, from the future exercise of the Common Warrants and Placement Agent Warrants), were approximately $3.5 million. The Company intends to use the net proceeds from the Offering as working capital for general corporate purposes.

In conjunction with the closing of the Offering, the Company entered into a Warrant Agency Agreement with Equiniti Trust Company, LLC (“Equiniti”), pursuant to which Equiniti agreed to act as warrant agent with respect to the Common Warrants issued by the Company in the Offering.

In addition, the Company (i) has agreed not to issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of the Company’s (or its subsidiary’s) securities for a period of ninety days from the closing of the Offering, subject to certain exceptions and (ii) shall not effect or enter into an agreement to effect any issuance by the Company or any of its subsidiaries of common stock or common stock equivalents (or a combination of units thereof) involving a variable rate transaction. Additionally, in connection with the Offering, each of the officers and directors of the Company entered into lock-up agreements, pursuant to which they agreed not to sell or transfer any of the Company securities they hold, subject to certain exceptions, during the 90-day period following the closing of the Offering.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with the interim condensed financial statements and related notes included elsewhere in this Quarterly Report on Form 10‑Q, as well as our audited financial statements and related notes as disclosed in our Annual Report on Form 10‑K for the fiscal year ended December 31, 2023. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part II, Item 1A “Risk Factors” or in other parts of this Quarterly Report on Form 10‑Q, as well as those identified in the “Risk Factors” section of our Annual Report on Form 10‑K for the fiscal year ended December 31, 2023, each of which Risk Factors are incorporated in this Quarterly Report on Form 10-Q by reference. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. See “Forward-Looking Statements.”

Business Overview

Tivic Health is a health tech company focused on bioelectronic medicine. Bioelectronic medicine is a branch of the global neuromodulation market that treats disease and conditions by modulating the electrical signals carried along various nerve pathways. The field grew out of the neuromodulation industry and relied, historically, on implantable devices (e.g., pacemakers, spinal implants, deep brainstimulators). IDTechEx has identified several fast-growing areas in the bioelectronic medicine field, including peripheral nerve stimulation, which it has indicated is forecasted to grow at a 35% CAGR from 2019 through 2029. Tivic currently has two non-invasive bioelectronic platforms designed to deliver therapeutic benefits via manipulation of such signals without the use of traditional implanted technology.

Commercial Platforms

Tivic has developed two complementary platforms. Tivic’s first commercial platform is a handheld design that interfaces non-invasively with the trigeminal, sympathetic, and other facial and cranial nerve structures. This platform is the basis for Tivic’s existing product, currently marketed with FDA approval as ClearUP Sinus Pain Relief for the treatment of sinus pain and congestion.

The second platform is a research-stage platform directed to vagus nerve stimulation, which is currently undergoing clinical evaluation.

First Commercial Product

Tivic Health currently markets one commercial product under the brand name “ClearUP Sinus Pain Relief.” ClearUP is built on our patented, handheld neuromodulation design and was developed by Tivic Health for the treatment of sinus and allergy-related conditions. It uses ultra-low current electrical waves to relieve sinus pain and congestion symptoms that are prevalent in nasal allergies, sinus infections, chronicsinusitus, cold and flu and other disease conditions. ClearUP had U.S. FDA approval for the treatment of sinus pain and congestion, and is the first FDA-approved bioelectronic treatment of the foregoing indications. Additionally, ClearUP has E.U. CE Mark approval for the treatment of sinus pain, pressure and congestion.

The FDA initially provided clearance to our ClearUP product under a 510(k) as an allergy treatment in January 2019. The FDA granted ClearUP a subsequent De Novo clearance in March 2021, which expanded ClearUP’s label, enabling marketing of ClearUP for allergies, sinusitis, cold, flu, and any inflammatory condition involving congestion.

A 2023 study with over 2,000 representative consumers conducted by Intellego Insights (commissioned by Tivic Health) identified that approximately 85 million U.S. adults experience inflammation-related symptoms related to allergies, congestion, head pain, and sinus issues. Of the consumers that participated in the study, 58% of sufferers try to avoid medication, if at all possible.

Customers can purchase ClearUP products directly from Tivic via our own website and through major online stores, including Amazon, Walmart, BestBuy, FSAStore and HSA Store. The Company has also entered distribution agreements with McKesson, Cardinal Health and Amerisource Bergen (now Cencora).

A sham-controlled clinical trial is in progress with the Icahn School of Medicine at Mount Sinai, to extend the use of Tivic’s handheld monopolar platform to the management of pain resulting from functional endoscopic sinus surgery and other facial surgeries. If successful, the Company may develop additional products addressing this clinical use case, which would require new regulatory clearances for a novel indication.

We have also previously evaluated the market opportunity for use of ClearUP as part of a migraine treatment toolkit. While we believe that both clinical and market rationale are positive for such use, we have, for the time being, determined to down-prioritize any clinical studies of migraine-related indications based on the aggressive competition among entrenched incumbents and limited uptake, to date, of existing devices for the treatment and/or prevention of migraine.

Recent Developments

May 2024 Public Offering

On May 13, 2024, we sold an aggregate of (i) 4,710,000 shares of common stock, (ii) Series A warrants to purchase up to 4,710,000 shares of common stock and (iii) Series B warrants to purchase up to 7,065,000 shares of common stock to certain investors in a registered public offering at a combined public offering price of $0.85 per share and accompanying warrants. We also issued Maxim Group LLC, who served as the placement agent for the offering, warrants to purchase 188,400 shares of common stock as partial compensation for services rendered in connection with the offering. The securities were registered pursuant to the registration statement on Form S-1 (File No. 333-278383), which was initially filed with the Securities and Exchange Commission (the “SEC”) on March 29, 2024, and amended on April 29, 2024 and May 8, 2024, and declared effective on May 9, 2024.

We received gross proceeds from the offering of approximately $4.0 million, before deducting placement agent fees and other estimated offering expenses payable by the Company. Net proceeds to the Company from the Offering, after deducting the placement agent fees and expenses and estimated offering expenses (excluding proceeds to the Company, if any, from the future exercise of the warrant issued in connection with the offering), were approximately $3.5 million. See Note 13 to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q for additional information regarding this offering.

VNS Clinical Research

On May 8, 2024, we announced the final results of our pilot research study with The Feinstein Institutes for Medical Research at Northwell Health. Through this collaboration, we have confirmed the effectiveness of our patent-pending non-invasive cervical vagus nerve stimulation (“ncVNS”) approach, which induces responses in the autonomic, cardiac, and central nervous systems and can be expected to have clinical utility in several major disease areas.

•

Compared to baseline measurement, our ncVNS intervention resulted in a 97% increase in the root mean square of successive differences (“RMSSD”) measure of heart rate variability, which is a widely accepted proxy for vagus nerve activity.

•

Measurements of brain activity using EEG demonstrated that our ncVNS intervention increased frontal theta power by 24% and reduced gamma power in several brain regions, including a 66% reduction in frontal gamma power. These changes in brain activity are consistent with reduced arousal and anxiety.

•

During ncVNS stimulation, subjects had sustained pupil constriction, a 9.5% reduction in pupil diameter, an outcome associated with activation of the parasympathetic nervous system.

Previous studies of non-invasive VNS devices have reported mixed results regarding autonomic nervous system changes. The magnitude of our ncVNS data imply potential for greater clinical effects and enhanced reproducibility. While these results were in healthy subjects, the data suggest our ncVNS approach may have clinical utility in several patient populations including those with epilepsy, post-traumatic stress disorder, and ischemic stroke, among others.

Operational Updates

In Q1 2024, we invested in our product, innovation and development as follows:

•

We launched ClearUP 2.0 and began decommissioning older models. The new version included new power management circuitry and improved power management for faster charging and longer battery life.

•

We entered a limited exclusive distribution agreement with McKesson Medical, one of the Top 10 Medical Equipment Distributors and Suppliers in the nation. Under the terms of the agreement, McKesson affiliate Simply Medical will have certain exclusive distribution rights for Tivic Health’s ClearUP product for Walmart, Target, eBay and Kroger, as well as non-exclusive distribution rights in other specified on-line channels.

•

We announced completion of enrollment in its clinical study with The Feinstein Institute for Medical Research, Northwell Health, testing a proprietary approach to non-invasive vagus nerve stimulation, for which we publicly announced the final data analysis results on May 8, 2024.

•

We continued to invest in our intellectual property portfolio, filing our first vagus nerve stimulation patent and prosecuting existing filings.

We have continued to intentionally maintain a small core team at this stage of the Company, including decreasing our headcount to reduce operating expenses. We have relied, and continue to rely, heavily on third-party service providers, including marketing agencies, contract manufacturing organizations, software-as-a-service platforms, clinical research organizations, academic research partnerships, finance and accounting support, and legal support to carry out our operations.

Results of Operations

Comparison of the Three Months Ended March 31, 2024 and 2023

The following table summarizes our results of operations (in thousands):


	Three Months Ended March 31,
	2024			2023			Change
	(unaudited)
Revenue	$	334		$	376		$	(42	)
Cost of sales		167			263			(96	)
Gross profit		167			113			54
Operating expenses:
Research and development		256			490			(234	)
Sales and marketing		505			458			47
General and administrative		887			1,281			(394	)
Total operating expenses		1,648			2,229			(581	)
Loss from operations		(1,481	)		(2,116	)		635
Net loss	$	(1,481	)	$	(2,116	)	$	635

Revenue

Revenue is currently generated through the sale of our ClearUP device and ancillary products, including accessories and accelerated shipping charges, and is net of return reserves. Sales are currently made directly to consumers online through our own website, Amazon and Walmart. We also sell to major and specialty retailers, such as BestBuy, and FSAStore. Noninvasive bioelectronic medicine is an emerging market space that provides consumers with non-drug treatments for various diseases and ClearUP is the first FDA-approved bioelectronic treatment for sinus pain and congestion.

For the three months ended March 31, 2024, revenue decreased overall by $42 thousand, or 11.2%, compared to the same period in 2023, primarily due to a 35% decrease in unit sales, offset by a 35% increase in the per unit average sales price.

We expect some variability in sales due to reduction in marketing spend and price point positioning for target markets, with the net impact resulting in a higher gross profit and lower loss from operations.

Cost of Sales

Cost of sales consists primarily of the materials and services to manufacture our products, the internal personnel costs to oversee manufacturing and supply chain functions, and the shipment of goods to customers. A significant portion of our cost of sales is currently in fixed and semi-fixed expenses associated with the management of manufacturing and supply chain. Cost of sales is expected to increase on an absolute basis as sales volume increases. Cost of sales is expected to decrease as a proportion of revenue with (i) the continued optimization of our supply chain, and (ii) the allocation of fixed and semi-fixed expenses over increasing unit sales volume over time.

For the three months ended March 31, 2024, cost of sales decreased by $96 thousand, or 37%, compared to the same period in 2023, primarily driven by the decrease in sales volume. Variable cost was $133 thousand, or $74.32 per unit, for the three months ended March 31, 2024, compared to $192 thousand, or $69.81 per unit, for the same period in 2023. The decrease in variable cost was primarily driven

by lower manufacturing and fulfillment costs. Fixed costs were $38 thousand, or $21.04 per unit, for the three months ended March 31, 2024, compared to $71 thousand, or $25.61 per unit, for the same period in 2023. The decrease in the fixed cost was primarily due to lower product support costs.

Gross Margin

Gross margin has been and will continue to be affected by, and is likely to fluctuate on a quarterly basis due to, a variety of factors, including sales volumes, product and channel mix, pricing strategies, costs of finished goods, product return rates, new product launches and potential new manufacturing partners and suppliers. We expect our gross margin to improve with optimization of our product design, supply-chain, and any increase in sales volume over which fixed and semi-fixed costs are allocated.

Operating Expenses

Research and Development Expenses

Research and development expenses consist primarily of costs incurred to conduct research, including the discovery, development and validation of product candidates. Research and development expenses include personnel costs, including stock-based compensation expense, third-party contractor services, including development and testing of prototype devices, and maintenance of limited in-house research facilities. We expense research and development costs as they are incurred. We expect research and development expenses to increase with the discovery and validation of new product candidates.

For the three months ended March 31, 2024, research and development expenses decreased by $234 thousand compared to the same period in 2023. The decrease was due to reduced headcount and certain expenses incurred in 2023 which did not recur in 2024. The emphasis of research and development activities in 2023 was primarily related to a large segmentation study to identify additional incremental market segments with high willingness to pay, product design in our next generation device, intellectual property protection, and the study at The Feinstein Institutes for Medical Research on vagus nerve stimulation.

Sales and Marketing Expenses

Sales and marketing expenses include personnel costs and expenses for advertising and other marketing services. Personnel costs consist of salaries, bonuses, benefits and stock-based compensation expense. We expect sales and marketing expenses to increase modestly as we continue to expand our markets and distribution channels.

For the three months ended March 31, 2024, sales and marketing expenses increased by $47 thousand compared to the same period in 2023. The increase was due primarily to a four-month test program ending in February 2024 with InStep Health focused on education of healthcare professionals about the ClearUP solution.

General and Administrative Expenses

General and administrative expenses include D&O insurance, personnel costs, expenses for outside professional services and other expenses. Personnel costs consist of salaries, bonuses, benefits and stock-based compensation expense. Outside professional services consist of legal, finance, accounting and audit services, and other consulting fees. We expect general and administrative expenses to remain relatively flat.

For the three months ended March 31, 2024, general and administrative expenses decreased by $394 thousand compared to the same period in 2023. The overall decreases were primarily attributable to reduced headcount, lower consulting and professional fee expenses, as well as other general administrative expenses.

Liquidity and Capital Resources

Sources of Liquidity

Since our formation in September 2016, we have devoted substantially all of our efforts to research and development, to regulatory clearance and to early market development and testing for our first product, released in September 2019 in the United States. We are not profitable and have incurred net losses and negative cash flows from our operations in each year since our inception. As of March 31, 2024, we had cash and cash equivalents of $1.7 million, working capital of $1.8 million and an accumulated deficit of $39.4 million. We have financed our operations to date primarily through issuances of SAFE instruments, convertible notes and convertible preferred stock and the proceeds from registered offerings of our securities. In 2021, we completed our IPO, generating net proceeds to the Company of approximately $14.9 million, and we borrowed $2.6 million by issuing convertible notes payable, the outstanding balance of all of which converted into shares of our common stock in connection with our IPO. On February 13, 2023, we completed the sale of 200,000 shares of our common stock in a firm commitment, fully underwritten registered public offering, resulting in net proceeds to the Company of approximately $3.6 million. From July 11, 2023 to August 9, 2023, we sold an aggregate of 1,169,230 shares of our common stock to certain investors in a series of registered public offerings, resulting in aggregate net proceeds to the Company of approximately $4.3 million. Additionally, in May 2024, we sold an aggregate of 4,710,000 shares of our common stock, together with Series A Warrants to purchase an aggregate of 4,710,000 shares of common stock and Series B Warrants to purchase an aggregate of 7,065,000 shares of common stock, to certain investors in a registered public offering, resulting in net proceeds to the company of approximately $3.5 million.

Although we have taken measures to decrease our operating expenses, we expect that our operating expenses may increase significantly as we discover, acquire, validate and develop additional product candidates; seek regulatory approval and, if approved, proceed to commercialization of new products; obtain, maintain, protect and enforce our intellectual property portfolio; and hire additional personnel. Furthermore, we have incurred and will continue to incur additional costs associated with operating as a public company that we did not experience as a private company. Management expects to incur substantial additional operating losses for the foreseeable future to expand our markets, complete development or acquisition of new product lines, obtain regulatory approvals, launch and commercialize our products and continue research and development programs. Based on the Company’s current cash levels and burn rate, amongst other things, the Company believes its cash and financial resources may be insufficient to meet the Company’s anticipated needs for the twelve months following the date of issuance of the financial statements for the quarter ended March 31, 2024, included elsewhere in this Report, which raises substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance date of the financial statements.

Plan of Operation and Future Funding Requirements

We have used our capital resources primarily, to date, to fund marketing and advertising for ClearUP, development of both our trigeminal and our vagus nerve platforms and product candidates, evaluating and diligencing potential licensing and acquisition candidates, and the establishment of public company operating infrastructure and general operations. Although we have taken measures to decrease our operating expenses, we expect that our operating expenses may increase as we advance our vagus nerve platform, as well as discover, acquire, validate or develop additional product candidates; seek regulatory approval and, if approved, proceed to commercialization of new products; obtain, maintain, protect and enforce our intellectual property portfolio; hire additional personnel; and maintain compliance with material government (in addition to environmental) regulations. We plan to increase our research and development investments in our vagus nerve platform and clinical applications thereof in 2024.

Furthermore, we have incurred, and will continue to incur, costs associated with operating as a public company that we did not experience as a private company. We expect to continue to incur losses for the foreseeable future. At this time, due to the inherently unpredictable nature of research and new product adoption as well as other macroeconomic factors, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize future product candidates, if at all. For the same reasons, we are also unable to predict how quickly we will generate significant revenue from ClearUP product sales or whether, or when, if ever, we may achieve profitability from the sales of one or more products. Clinical and preclinical development timelines, the probability of success, and costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be best developed and/or monetized through future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

As previously disclosed, we encountered disruptions in our supply of various materials and components in 2022 due to the well-documented shortages and constraints in the global supply chain. Although we currently do not anticipate a supply shortage, unforeseen shortages may continue to pose a material risk for the Company in the near term or future. We regularly evaluate alternative and secondary source suppliers in order to ensure that we are able to source sufficient components and materials to manufacture our products. Global supply chain shortages (especially when coupled with the increase in inflation and other economic factors) could result in an

increase in the cost of the components used in our products, which could result in a decrease of our gross margins or in us having to increase the price at which we sell our products until supply chain constraints are resolved. Additionally, in the event that we are unable to source sufficient components and materials from our current suppliers, or to develop relationships with additional suppliers, to manufacture enough of our products to satisfy demand, we may have to cease or slow down production and our business operations and financial condition may be materially harmed and we may need to alter our plan of operation.

In addition to the foregoing, we may, from time to time, consider opportunities for strategic acquisitions or other strategic transactions that we believe will align with our growth plan, complement our product offerings and be in the best interest of the Company and our shareholders. If an acquisition or other strategic transaction is identified and pursued, a substantial portion of our cash reserves may be required to complete such acquisition or other strategic transaction. If we identify an attractive acquisition that would require more cash to complete than we are willing or able to use from our cash reserves, we will consider financing options to complete the acquisition, including through equity and/or debt financings.

We have generated operating losses in each period since inception. We have incurred an accumulated deficit of $39.4 million through March 31, 2024. We expect to incur additional losses in the future as we expand both our research and development activities. Based on our current cash levels and burn rate, amongst other things, we believe our cash and financial resources may be insufficient to meet our anticipated needs for the next twelve months. As a result, we expect that we will need to raise additional capital to continue operating our business and fund our planned operations, including research and development, clinical trials and, if regulatory approval is obtained, commercialization of future product candidates.

We currently generate sales revenue direct-to-consumer though our own websites, Amazon.com and Walmart.com. We also sell to major and specialty U.S. online retailers such as BestBuy and FSAStore and through distributors including McKesson's affiliate Simply Medical, Cardinal Health and Cencora (formerly known as Amerisource Bergen). Our ability to grow sales revenue will depend on successfully executing a comprehensive marketing campaign to drive additional sales through existing and new channels. Long-term growth will be commensurate with our ability to successfully identify, develop, and secure regulatory approval of one or more additional product candidates beyond ClearUP. Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through private or public equity or debt financings, collaborative or other arrangements with corporate, foundation or government funding sources, or through other sources of financing. We do not know whether additional financing will be available on commercially acceptable terms, or at all, when needed. If adequate funds are not available or are not available on commercially acceptable terms, our ability to fund our operations, support the growth of our business or otherwise respond to competitive pressures could be significantly delayed or limited, which could materially adversely affect our business, financial conditions or results of operations, and we may have to significantly delay, scale back or discontinue the development and commercialization of our products and/or future product candidates.

The timing and amount of our operating expenditures will depend largely on:

•

our ability to raise additional capital if and when necessary and on terms favorable to the Company;

•

the timing and progress of sales initiatives driving top-line revenue;

•

the availability of electronic parts and other components for our products, as well as our ability to source such parts and components at favorable prices;

•

the timing and adoption rate of ClearUP line extensions at lower cost of goods;

•

the payment terms and timing of commercial contracts entered into for manufacturing and sales of our products to and through online third-party retailers;

•

the timing and progress of preclinical and clinical development activities;

•

the number and scope of preclinical and clinical programs we decide to pursue;

•

the timing and amount of milestone payments we may receive under any future collaboration agreements;

•

whether we close potential future strategic acquisition opportunities, and if we do, our ability to successfully integrate acquired assets and/or businesses with our own;

•

our ability to source new business opportunities through licenses and research and development programs and to establish new collaboration arrangements;

•

the costs involved in prosecuting and enforcing patent and other intellectual property claims;

•

the cost and timing of additional regulatory approvals beyond those currently held by us;

•

our efforts to enhance operational systems and hire additional personnel, including personnel to support finance, sales, marketing, operations and development of our product candidates and satisfy our obligations as a public company; and

•

our efforts to maintain compliance with material government (including environmental) regulations.

Until such time, if ever, as we can generate substantial revenue from product sales, we expect to fund our operations and capital funding needs through equity and/or debt financings. We may also consider entering into collaboration arrangements or selectively partnering with third parties for clinical development and commercialization. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of additional debt would result in debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations or our ability to incur additional indebtedness or pay dividends, among other items. If we raise additional funds through governmental funding, collaborations, strategic partnerships and alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are not able to secure adequate additional funding, we may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially and adversely affect our business, financial condition, results of operations and prospects.

Cash Flows

The following table summarizes our cash flows for the period indicated (in thousands):


	Three Months Ended
	March 31,
	2024			2023
	(unaudited)			(unaudited)
Cash used in operating activities	$	(1,666	)	$	(2,426	)
Cash used in investing activities		—			(94	)
Cash provided by (used in) financing activities		(61	)		4,170
Net increase (decrease) in cash and cash equivalents	$	(1,727	)	$	1,650

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2024 was $1.7 million, which consisted primarily of a net loss of $1.5 million, decreased by non-cash charges of $96 thousand and a net increase of $281 thousand in our net operating assets and liabilities. The non-cash charges primarily consisted of stock-based compensation of $54 thousand and amortization of right-of-use assets of $45 thousand. The change in our net operating assets and liabilities was primarily due to a decrease in accounts payable and accrued expenses of $396 thousand, an increase in accounts receivable of $100 thousand, and a decrease of $48 thousand in lease liabilities.

Net cash used in operating activities for the three months ended March 31, 2023 was $2.4 million, which consisted primarily of a net loss of $2.1 million, decreased by non-cash charges of $128 thousand and a net decrease of $438 thousand in our net operating assets and liabilities. The non-cash charges primarily consisted of stock-based compensation of $84 thousand and amortization of right-of-use assets of $42 thousand.

Investing Activities

There was no cash used in investing activities for the three months ended March 31, 2024. Net cash used in investing activities during the three months ended March 31, 2023 was related to the purchases of property and equipment.

Financing Activities

Our financing activities used $61 thousand of cash during the three months ended March 31, 2024, which consisted of offering costs incurred in advance of the sale of our securities in the registered public offering that closed on May 13, 2024. For the three months ended March 31, 2023, our financing activities provided $4.2 million of cash, which consisted primarily of proceeds from the sale of 200,000 shares of our common stock, net of offering discounts and other costs.

Known Trends or Uncertainties

As discussed elsewhere in this Report, the world has continued to be been affected by the lingering effects of the COVID-19 pandemic, the ongoing conflicts between Russia and Ukraine as well as Israel and Hamas, economic uncertainty in human capital management (“HCM”) and certain other macroeconomic factors. Inflation has risen, Federal Reserve interest rates have increased over the last year, and the general consensus among economists continues to suggest that we should expect a higher recession risk to continue for the near term. Climate change continues to be an intense topic of public discussion and is adding additional challenges and financial burden due to impending preparations and changes in the customer mindset. These factors, amongst other things, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations. Effects of the pandemic and recent economic volatility have negatively impacted our business in various ways over the last three years, including as a result of global supply chain constraints at least partially attributable to the pandemic. We will continue to monitor material impacts on our HCM strategies, including potential of employee attrition, amongst other things.

We encountered disruptions in our supply of various materials and components in 2022 due to the well-documented shortages and constraints in the global supply chain. We experienced increased pricing, longer lead-times, unavailability of product and limited supplies, protracted delivery dates, and shortages of certain parts and supplies that were necessary components for our products. As a result, we carried increased inventory balances in 2023 to ensure availability of necessary products and to secure pricing. Although we currently do not anticipate a supply shortage will continue to pose a material risk for the Company in the near term, we are continuing to evaluate alternative and secondary source suppliers in order to ensure that we are able to source sufficient components and materials to manufacture our products. Global supply chain shortages (especially when coupled with the increase in inflation and other economic factors) could result in an increase in the cost of the components used in our products, which could result in a decrease of our gross margins or in us having to increase the price at which we sell our products until supply chain constraints are resolved. Additionally, in the event that the price of our components increases significantly or we are unable to source sufficient components and materials from our current suppliers, or to develop relationships with additional suppliers, to manufacture enough of our products to satisfy demand, we may have to cease or slow down production and our business operations and financial condition may be materially harmed and we may need to alter our plan of operation.

The United States has recently implemented tariffs on certain imported goods, including on certain items imported from China. In addition, China has imposed tariffs on a wide range of American products and placed restrictions on the export of certain items, including gallium and germanium, in retaliation for these American tariffs. As a result, there is a concern that the imposition of additional tariffs by the United States could result in the adoption of additional tariffs or export restrictions by China and/or other countries. Any resulting trade war could negatively impact our business. The imposition of tariffs on items imported by us from China or other countries could increase our costs and could result in lowering our gross margin on products sold.

Additionally, U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflicts in Ukraine and the Middle East could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as further supply chain interruptions. Additionally, the recent military conflict in Ukraine has led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia. Additional potential sanctions and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds.

Although our business has not been materially impacted by the ongoing military conflict between Russian and Ukraine or the conflict between Israel and Hamas to date, it is impossible to predict the extent to which our operations, or those of our suppliers and manufacturers, will be impacted in the short and long term, or the ways in which the conflict may impact our business. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. We are continuing to monitor the situations in Ukraine, the Middle East and globally to assess potential impacts on our business.

As a result of these global issues and other macroeconomic factors, it has been difficult to accurately forecast our revenues or financial results, especially given the near and long term impact of the pandemic, and geopolitical issues, inflation, the Federal Reserve maintaining high interest rates and the potential for a recession. In addition, while the potential impact and duration of these issues on the economy and our business may be difficult to assess or predict, these world events have resulted in, and may continue to result in, significant disruption of global financial markets, and may reduce our ability to access additional capital, which could negatively affect our liquidity in the future. Our results of operations could be materially below our forecasts as well, which could adversely affect our results of operations, disappoint analysts and investors, or cause our stock price to decline. Furthermore, a decrease in orders in a given period could negatively affect our revenues in future periods.

These global issues and events may also have the effect of heightening many risks associated with our customers and supply chain. We may take further actions that alter our operations as may be required by federal, state, or local authorities from time to time, or which we determine are in our best interests. In addition, we may decide to postpone or abandon planned investments in our business in response to changes in our business, which may impact our ability to attract and retain customers and our rate of innovation, either of which could harm our business.

Inflation

Inflation has increased recently and future rates are unknown. Inflationary factors, such as increases in the cost of our products (and components thereof), interest rates, overhead costs and transportation costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise) due to supply chain constraints, consequences associated with the ongoing conflicts between Russia and Ukraine, employee availability and wage increases, trade tariffs imposed on certain products from China and increased component and services pricing.

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements.

Contractual Obligations and Commitments

Office Lease

Lease costs recorded during the three month periods ended March 31, 2024 and 2023 were $51 thousand and $50 thousand, respectively.

We enter into contracts in the normal course of business with our contract manufacturer and other vendors to assist in the manufacturing of our products and performance of our research and development activities and other services for operating purposes. These contracts generally provide for termination for convenience after expiration of an advance notice period ranging from 0 to 60 days, and therefore are cancelable contracts and not included in the table of contractual obligations and commitments. There have been no material changes to our previously disclosed business strategy with respect to our contractual obligations as disclosed under Management’s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Critical Accounting Policies and Significant Judgments and Estimates

Our condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to sales return reserves, stock-based compensation, and going concern. Management bases its estimates and judgments on historical experience and on various other factors, including the macro-economic factors, that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The methods, estimates, and judgments used by us in applying these critical accounting policies have a significant impact on the results we report in our condensed consolidated financial statements. Our significant accounting policies and estimates are included in our Annual Report on Form 10‑K for the fiscal year ended December 31, 2023, filed with the SEC on March 25, 2024.

Information regarding our significant accounting policies and estimates can also be found in Note 2 to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, see Note 2 to our condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10‑Q.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic and current reports that we file with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and our interim Chief Financial Officer, after evaluating our “disclosure controls and procedures” (as defined in Exchange Act Rules 13a 15(e) and 15d 15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”), have concluded that as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and interim Chief Financial Officer, where appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Controls Over Financial Reporting

There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and our interim Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well-designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently a party to any legal proceedings, litigation or claims, nor are aware of any pending, threatened, or unasserted claims, which, if determined adversely to us, would have a material adverse effect on our business, financial condition, results of operations or cash flows. We may from time to time, be a party to litigation and subject to claims incident to the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

Item 1A. Risk Factors

Please carefully consider the information set forth in this Quarterly Report on Form 10-Q and the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). The risks described in our Annual Report, as well as other risks and uncertainties, could materially and adversely affect our business, results of operations, and financial condition, which in turn could materially and adversely affect the trading price of shares of our common stock. The occurrence of any of the risks discussed in such filings, or other events that we do not currently anticipate or that we currently deem immaterial, could harm our business, prospects, financial condition and results of operations. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Securities

During the quarter ended March 31, 2024, there were no unregistered sales of our securities that were not reported in a Current Report on Form 8-K.

Repurchases

The Company did not repurchase any of the Company's outstanding equity securities during the three months ended March 31, 2024.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended March 31, 2024, none of our directors or officers entered into, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” that were intended to satisfy the affirmative defense conditions of Rule 10b5-1, in each case as defined in Item 408 of Regulation S-K.

Item 6. Exhibits



Exhibit Number	Exhibit description	Incorporated by Reference (Form Type)	Filing Date	Filed herewith

3.1	Amended and Restated Certificate of Incorporation, dated November 12, 2021.	8-K	11/15/2021

3.2	Amended and Restated Bylaws, dated November 12, 2021.	8-K	11/15/2021

3.3	Certificate of Amendment to the Amended and Restated Bylaws of the Company, dated July 5, 2023.	8-K	7/6/2023

3.4	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Tivic Health Systems, Inc., filed August 21, 2023 (effective August 23, 2023).	8-K	8/22/2023

4.1	Specimen Stock Certificate.	S-1/A	9/9/2021

4.2	Form of Representative’s Warrant (IPO).	S-1/A	9/9/2021

4.3	Warrant to Purchase Common Stock issued to Hannover International, Inc., dated July 1, 2021.	S-1/A	10/29/2021

4.4	Form of Representative's Warrant (February 2023 Offering).	8-K	2/13/2023

4.5	Placement Agent Warrant, dated July 11, 2023.	8-K	7/11/2023

4.6	Placement Agent Warrant, dated July 19, 2023.	8-K	7/19/2023

4.7	Placement Agent Warrant, dated August 9, 2023.	8-K	8/9/2023

4.8	Form of Series A Warrant, dated May 13, 2024.	8-K	5/13/2024

4.9	Form of Series B Warrant, dated May 13, 2024.	8-K	5/13/2024

4.10	Placement Agent Warrant, dated May 13, 2024.	8-K	5/13/2024

4.11	Warrant Agency Agreement, dated May 13, 2024, by and between Tivic Health Systems, Inc. and Equiniti Trust Company, LLC.	8-K	5/13/2024

10.1	Form of Securities Purchase Agreement, dated May 9, 024 by and between Tivic Health Systems, Inc. and the investors party thereto.	8-K	5/13/2024

10.2	Placement Agency Agreement, dated May 9, 2024, by and between Tivic Health Systems, Inc. and Maxim Group LLC.	8-K	5/13/2024

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			X

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			X

32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.			*

101.INS	Inline XBRL Instance Document.			**

101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents.			**

104	Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.			**


*	Furnished herewith.
**	The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

SIGNATURE

In accordance with Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the Hayward, State of California, on May 15, 2024.



Date: May 15, 2024	By:	/s/ Jennifer Ernst
		Jennifer Ernst
		Title: Chief Executive Officer
		(Principal Executive Officer)

Date: May 15, 2024	By:	/s/ Kimberly Bambach

		Title: Interim Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jennifer Ernst, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Tivic Health Systems, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date: May 15, 2024	By:	/s/ Jennifer Ernst
		Jennifer Ernst
		Chief Executive Officer
		(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly Bambach, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Tivic Health Systems, Inc.;

(a)

(b)

(c)

(d)

disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(a)

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Date: May 15, 2024	By:	/s/ Kimberly Bambach
		Kimberly Bambach
		Interim Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Tivic Health Systems, Inc. (the “Company”) for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jennifer Ernst, Chief Executive Officer of the Company, and Kimberly Bambach, Interim Chief Financial Officer of the Company, do each hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to her knowledge:

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.



Date: May 15, 2024	By:	/s/ Jennifer Ernst
		Jennifer Ernst
		Chief Executive Officer
		(Principal Executive Officer)



Date: May 15, 2024	By:	/s/ Kimberly Bambach
		Kimberly Bambach
		Interim Chief Financial Officer
		(Principal Financial and Accounting Officer)

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 14, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Securities Act File Number	001-41052
Entity Registrant Name	Tivic Health Systems, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-4016391
Entity Address, State or Province	CA
Entity Address, Address Line One	25821 Industrial Blvd.,
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Hayward
Entity Address, Postal Zip Code	94545
City Area Code	888
Local Phone Number	276-6888
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	TIVC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,183,592
Entity Central Index Key	0001787740
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 1,668	$ 3,395
Accounts receivable, net	74	174
Inventory, net	774	756
Deferred offering costs	61	0
Prepaid expenses and other current assets	250	327
Total current assets	2,827	4,652
Property and equipment, net	121	122
Right-of-use assets, operating lease	304	349
Other assets	34	34
Total assets	3,286	5,157
Current liabilities
Accounts payable	547	713
Other accrued expenses	265	495
Operating lease liability, current	180	193
Total current liabilities	992	1,401
Operating lease liability	141	176
Total liabilities	1,133	1,577
Commitments and contingencies (Note 6)
Stockholders' equity
Common stock, $0.0001 par value, 200,000,000 shares authorized; 1,473,592 and 1,466,092 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	0	0
Additional paid in capital	41,520	41,466
Accumulated deficit	(39,367)	(37,886)
Total stockholders' equity	2,153	3,580
Total liabilities and stockholders' equity	$ 3,286	$ 5,157

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	1,473,592	1,466,092
Common stock, shares outstanding	1,473,592	1,466,092

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 334	$ 376
Cost of sales	167	263
Gross profit	167	113
Operating expenses:
Research and development	256	490
Sales and marketing	505	458
General and administrative	887	1,281
Total operating expenses	1,648	2,229
Loss from operations	(1,481)	(2,116)
Net loss	$ (1,481)	$ (2,116)
Net loss per share - basic	$ (1.01)	$ (10.52)
Net loss per share - diluted	$ (1.01)	$ (10.52)
Weighted-average number of shares - basic	1,467,740	201,222
Weighted-average number of shares - diluted	1,467,740	201,222

Condensed Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2022	$ 3,630		$ 33,272	$ (29,642)
Beginning Balance (Shares) at Dec. 31, 2022		96,778
Issuance of common stock, net of issuance costs	3,412		3,412
Issuance of common stock, net of issuance costs (in shares)		200,000
Issuance of warrants	195		195
Stock-based compensation expense	84		84
Net loss	(2,116)			(2,116)
Ending Balance at Mar. 31, 2023	5,205		36,963	(31,758)
Ending Balance (Shares) at Mar. 31, 2023		296,778
Beginning Balance at Dec. 31, 2023	3,580		41,466	(37,886)
Beginning Balance (Shares) at Dec. 31, 2023		1,466,092
Issuance of common stock for restricted stock award (in shares)		7,500
Stock-based compensation expense	54		54
Net loss	(1,481)			(1,481)
Ending Balance at Mar. 31, 2024	$ 2,153		$ 41,520	$ (39,367)
Ending Balance (Shares) at Mar. 31, 2024		1,473,592

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (1,481)	$ (2,116)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	54	84
Depreciation	1	2
Amortization of right-of-use asset	45	42
Inventory allowances	(4)
Changes is operating assets and liabilities:
Accounts receivable	100	31
Inventory	(14)	(80)
Prepaid expenses and other current assets	77	(59)
Accounts payable	(166)	(229)
Accrued expenses	(230)	(76)
Lease liabilities	(48)	(25)
Net cash used in operating activities	(1,666)	(2,426)
Cash flows from investing activities
Acquisition of property and equipment		(94)
Net cash used in investing activities		(94)
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs		4,191
Offering costs in advance of sale of common stock	(61)	(21)
Net cash provided by (used in) financing activities	(61)	4,170
Net increase (decrease) in cash and cash equivalents	(1,727)	1,650
Cash and cash equivalents
Beginning of period	3,395	3,517
End of period	$ 1,668	5,167
Supplemental disclosure on noncash financing activities
Issuance of common stock warrant		195
Deferred offering costs charged to additional paid-in-capital		$ 584

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (1,481)	$ (2,116)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Formation and Business of the Company

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Formation and Business of the Company

1. Formation and Business of the Company

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

Going Concern Uncertainty

Reverse Stock Split

Use of Estimates

Cash and Cash Equivalents

Accounts Receivable

Inventory

Deferred Offering Costs

Property and Equipment

Impairment of Long-Lived Assets

Commitments and Contingencies

Revenue Recognition

The Company has also elected to exclude from the measurement of the transaction price sales taxes remitted to governmental authorities.

The table below presents revenue by channel for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
Product Revenue by Sales Channel	2024			2023
Product Revenue
Direct-to-consumer	$	301		$	303
Reseller		62			98
Returns		(29	)		(25	)
Revenue	$	334		$	376

Sales Tax

Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and therefore, is excluded from net sales.

Shipping and Handling

Shipping costs for delivery of product to customers in the three months ended March 31, 2024 and 2023 were $17 thousand and $15 thousand, respectively.

Product Warranty

Returns

Sales and Marketing Expenses

Research and Development Expenses

Stock-Based Compensation

Net Loss per Common Share

Concentration of Credit Risk and Other Risks and Uncertainties

Recently Issued Accounting Pronouncements

disclosures about significant segment expenses. We do not believe that ASU 2023-07 will have a material impact on our reporting as we operate in one reportable segment.

Financial Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

3. Financial Instruments and Fair Value Measurements


	As of March 31, 2024 (unaudited)
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	1,243	$	1,243	$	1,243	$	—	$	—
Total assets	$	1,243	$	1,243	$	1,243	$	—	$	—


	As of December 31, 2023
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	3,243	$	3,243	$	3,243	$	—	$	—
Total assets	$	3,243	$	3,243	$	3,243	$	—	$	—

Inventory, net

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventory, net

4. Inventory, net (in thousands)


	March 31,			December 31,
	2024			2023
	(unaudited)
Raw materials	$	618		$	752
Work in process		19			—
Finished goods		165			36
Inventory at cost		802			788
Less reserve for obsolescence		(28	)		(32	)
Inventory, net	$	774		$	756

Property and equipment, net

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net (in thousands)


	March 31, 2024			December 31, 2023
Computers and equipment	$	11		$	11
Manufacturing tools and dies		148			148
Total property and equipment		159			159
Less accumulated depreciation		(38	)		(37	)
Property and equipment, net	$	121		$	122

Depreciation expense was $1 thousand and $2 thousand for the three months ended March 31, 2024 and 2023, respectively.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

6. Commitments and Contingencies

Lease

Lease costs for the three months ended March 31, 2024 and 2023 were $51 thousand and $50 thousand, respectively.

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2024 is shown below:


Remaining lease term (in years)	1.50
Discount rate	6.0	%

Future minimum maturities of lease liabilities recognized on the condensed balance sheets as of March 31, 2024 are as follows (in thousands):


Fiscal Year
Remainder of 2024	$	157
2025		178
Total minimum lease payments		335
Less imputed interest		(14	)
Present value of lease payments	$	321

ALOM Fulfillment Services Agreement

Contingencies

Other Accrued Expenses

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Other Accrued Expenses

7. Other Accrued Expenses (in thousands)


	March 31, 2024		December 31, 2023
Accrued payroll and related	$	100	$	218
Delaware franchise tax		20		160
Research study costs		66		51
Other		79		66
Total other accrued expenses	$	265	$	495

Preferred Stock

9 Months Ended

Sep. 30, 2023

Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract]

Preferred Stock

8. Preferred Stock

There were no series of preferred stock designated and no shares issued or outstanding at March 31, 2024 and December 31, 2023.

Common Stock

3 Months Ended

Mar. 31, 2024

Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract]

Common Stock

9. Common Stock

At March 31, 2024 and December 31, 2023, there were 1,473,592 and 1,466,092 shares of Company common stock issued and outstanding, respectively.


	March 31,		December 31,
	2024		2023
Warrants to purchase common stock		59,497		59,497
Options issued and outstanding		54,369		14,661
Shares available for future stock option grants		32,786		7,190
Total		146,652		81,348

Common Stock Warrants

3 Months Ended

Mar. 31, 2024

Warrants and Rights Note Disclosure [Abstract]

Common Stock Warrants

10. Common Stock Warrants

The fair value of the warrants issued in 2023 was estimated on the date of grant using the following assumptions:


	2023
	Minimum	Maximum
Expected life (in years)	4.0	5.0
Expected volatility	116.1%	123.9%
Risk-free interest rate	3.98%	4.24%
Dividend yield	0%	0%

A summary of the Company’s outstanding warrants as of March 31, 2024 is as follows:


Class of Shares	Number of Warrants		Exercise Price		Expiration Date
Common Stock		500	$	104.00	July 1, 2026
Common Stock		500	$	104.00	November 15, 2026
Common Stock		1,727	$	625.00	November 10, 2026
Common Stock		10,000	$	31.25	August 9, 2027
Common Stock		13,000	$	6.60	July 10, 2028
Common Stock		20,500	$	4.80	July 14, 2028
Common Stock		13,270	$	4.92	August 4, 2028

Equity Incentive Plans

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

11. Equity Incentive Plans

In 2017, the Company adopted its 2017 Equity Incentive Plan (the “2017 Plan”).

2021 Equity Incentive Plan

As of March 31, 2024, there were 32,786 shares of common stock available for issuance under the 2021 Plan.

Stock options granted under the Company’s equity incentive plans generally vest over four years from the date of grant.

The following table summarizes the stock option award activity for the three months ended March 31, 2024:


	Outstanding			Exercisable
January 1, 2024		14,661			6,110
Granted		42,000			—
Vested		—			347
Canceled or expired		(2,292	)		(781	)
Exercised		—			—
March 31, 2024		54,369			5,676

The following table sets forth the status of the Company's non-vested restricted common stock awards:


			Weighted-Average
	Number of		Grant Date
	Shares		Fair Value Per Share
January 1, 2024		—	$	-
Issuance of restricted common stock		7,500	$	1.34
Vested		—	$	-
Cancelled		—	$	-
March 31, 2024		7,500	$	1.34

There were no restricted stock awards outstanding during the year ended December 31, 2023.

Stock-Based Compensation

Total stock-based compensation recorded in the condensed statements of operations is allocated as follows (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Research and development	$	22	$	31
Sales and marketing		—		2
General and administrative		32		51
Total stock-based compensation	$	54	$	84

Net Loss per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Loss per Share

12. Net Loss per Share


	Three Months Ended
	March 31,
	2024		2023
Warrants to purchase common stock		59,497		12,727
Common stock options issued and outstanding		54,369		12,239
Total		113,866		24,966

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

Going Concern Uncertainty

Reverse Stock Split

Use of Estimates

Cash and Cash Equivalents

Accounts Receivable

Inventory

Deferred Financing Costs

Deferred Offering Costs

Property and Equipment

Impairment of Long-Lived Assets

Commitments and Contingencies

Revenue Recognition

The Company has also elected to exclude from the measurement of the transaction price sales taxes remitted to governmental authorities.

The table below presents revenue by channel for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
Product Revenue by Sales Channel	2024			2023
Product Revenue
Direct-to-consumer	$	301		$	303
Reseller		62			98
Returns		(29	)		(25	)
Revenue	$	334		$	376

Sales Tax

Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and therefore, is excluded from net sales.

Shipping and Handling

Shipping costs for delivery of product to customers in the three months ended March 31, 2024 and 2023 were $17 thousand and $15 thousand, respectively.

Product Warranty

Returns

Sales and Marketing Expenses

Research and Development Expenses

Stock-Based Compensation

Net Loss per Common Share

Concentration of Credit Risk and Other Risks and Uncertainties

Recently Issued Accounting Pronouncements

disclosures about significant segment expenses. We do not believe that ASU 2023-07 will have a material impact on our reporting as we operate in one reportable segment.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Revenue by Channel

The table below presents revenue by channel for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
Product Revenue by Sales Channel	2024			2023
Product Revenue
Direct-to-consumer	$	301		$	303
Reseller		62			98
Returns		(29	)		(25	)
Revenue	$	334		$	376

Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Summary of Cash Equivalents and Conversion Right Liability's Carrying Value and Fair Value


	As of March 31, 2024 (unaudited)
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	1,243	$	1,243	$	1,243	$	—	$	—
Total assets	$	1,243	$	1,243	$	1,243	$	—	$	—


	As of December 31, 2023
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	3,243	$	3,243	$	3,243	$	—	$	—
Total assets	$	3,243	$	3,243	$	3,243	$	—	$	—

Inventory, net (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Summary of Inventory, net


	March 31,			December 31,
	2024			2023
	(unaudited)
Raw materials	$	618		$	752
Work in process		19			—
Finished goods		165			36
Inventory at cost		802			788
Less reserve for obsolescence		(28	)		(32	)
Inventory, net	$	774		$	756

Property and equipment, net (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Components of Property and Equipment, Net


	March 31, 2024			December 31, 2023
Computers and equipment	$	11		$	11
Manufacturing tools and dies		148			148
Total property and equipment		159			159
Less accumulated depreciation		(38	)		(37	)
Property and equipment, net	$	121		$	122

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Summary of Weighted Average Remaining Lease Term And Discount Rate

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2024 is shown below:


Remaining lease term (in years)	1.50
Discount rate	6.0	%

Summary of Future Minimum Maturities of Lease Liabilities

Future minimum maturities of lease liabilities recognized on the condensed balance sheets as of March 31, 2024 are as follows (in thousands):


Fiscal Year
Remainder of 2024	$	157
2025		178
Total minimum lease payments		335
Less imputed interest		(14	)
Present value of lease payments	$	321

Other Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Schedule of Other Accrued Expenses


	March 31, 2024		December 31, 2023
Accrued payroll and related	$	100	$	218
Delaware franchise tax		20		160
Research study costs		66		51
Other		79		66
Total other accrued expenses	$	265	$	495

Common Stock (Tables)

3 Months Ended

Mar. 31, 2024

Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract]

Summary of Reserved Shares of Common Stock for Issuance


	March 31,		December 31,
	2024		2023
Warrants to purchase common stock		59,497		59,497
Options issued and outstanding		54,369		14,661
Shares available for future stock option grants		32,786		7,190
Total		146,652		81,348

Common Stock Warrants (Tables)

3 Months Ended

Mar. 31, 2024

Warrants and Rights Note Disclosure [Abstract]

Summary of Fair Value of the Warrants Estimated on Date of Grant Using Assumptions

The fair value of the warrants issued in 2023 was estimated on the date of grant using the following assumptions:


	2023
	Minimum	Maximum
Expected life (in years)	4.0	5.0
Expected volatility	116.1%	123.9%
Risk-free interest rate	3.98%	4.24%
Dividend yield	0%	0%

Summary of the Company's Outstanding Warrants

A summary of the Company’s outstanding warrants as of March 31, 2024 is as follows:


Class of Shares	Number of Warrants		Exercise Price		Expiration Date
Common Stock		500	$	104.00	July 1, 2026
Common Stock		500	$	104.00	November 15, 2026
Common Stock		1,727	$	625.00	November 10, 2026
Common Stock		10,000	$	31.25	August 9, 2027
Common Stock		13,000	$	6.60	July 10, 2028
Common Stock		20,500	$	4.80	July 14, 2028
Common Stock		13,270	$	4.92	August 4, 2028

Equity Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary of the Option Award Activity

The following table summarizes the stock option award activity for the three months ended March 31, 2024:


	Outstanding			Exercisable
January 1, 2024		14,661			6,110
Granted		42,000			—
Vested		—			347
Canceled or expired		(2,292	)		(781	)
Exercised		—			—
March 31, 2024		54,369			5,676

Summary of Non-vested Restricted Common Stock Awards Issued to Employees

The following table sets forth the status of the Company's non-vested restricted common stock awards:


			Weighted-Average
	Number of		Grant Date
	Shares		Fair Value Per Share
January 1, 2024		—	$	-
Issuance of restricted common stock		7,500	$	1.34
Vested		—	$	-
Cancelled		—	$	-
March 31, 2024		7,500	$	1.34

Summary of Total Stock-based Compensation Expense Recorded Related to Share-based Payment Awards

Total stock-based compensation recorded in the condensed statements of operations is allocated as follows (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Research and development	$	22	$	31
Sales and marketing		—		2
General and administrative		32		51
Total stock-based compensation	$	54	$	84

Net Loss per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Summary of Outstanding Potentially Dilutive Common Stock Equivalents have been Excluded from the Calculation of Diluted Net Loss Per Share


	Three Months Ended
	March 31,
	2024		2023
Warrants to purchase common stock		59,497		12,727
Common stock options issued and outstanding		54,369		12,239
Total		113,866		24,966

Summary of Significant Accounting Policies - Additional Information (Details)		3 Months Ended		12 Months Ended
	Aug. 23, 2023 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) Customer $ / shares shares	Mar. 31, 2023 USD ($) Customer	Dec. 31, 2023 USD ($) $ / shares
Concentration Risk [Line Items]
Common stock, par value \| $ / shares	$ 0.0001	$ 0.0001		$ 0.0001
Reverse stock split, description	1-for-100
Reverse stock split, conversion ratio	0.01
Number of shares included in conversion of securities \| shares	100
Number of shares issued post reverse stock split \| shares	1
Issuance of fractional shares \| shares	0
Cash paid	$ 0
Other consideration paid	$ 0
Accounts Receivable
Reserve for sales returns		$ 11,000		$ 52,000
Inventory
Less reserve for obsolescence		28,000		32,000
Revenue Recognition
Contract liability related to deferred revenues		3,000		8,000
Cash flows from operations		(1,666,000)	$ (2,426,000)
Net Income (Loss)		(1,481,000)	(2,116,000)
Cash and cash equivalents		1,668,000		3,395,000
Accumulated deficit		(39,367,000)		(37,886,000)
Allowance for credit losses		$ 0		0
Product warranty limited period		1 year
Impairments of long-lived assets		$ 0
Assumed dividend yield		0.00%
Cash and cash equivalents balances exceeding FDIC insured limits		$ 1,000,000		3,000,000
Deferred offering costs		$ 61,000		$ 0
Minimum [Member]
Revenue Recognition
Estimated useful lives of the assets		3 years
Maximum [Member]
Revenue Recognition
Estimated useful lives of the assets		4 years
Common Stock [Member]
Concentration Risk [Line Items]
Issuance of fractional shares \| shares		84
Shipping and Handling [Member]
Revenue Recognition
Shipping and handling fees paid by customers		$ 0	0
Shipping costs for delivery of product to customers		$ 17,000	$ 15,000
Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Revenue Recognition
Number of reseller customers \| Customer		2
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Customer one
Revenue Recognition
Concentration risk (as a percent)		77.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Customer two
Revenue Recognition
Concentration risk (as a percent)		12.00%		81.00%
Revenue from Contract with Customer, Product and Service Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer one
Revenue Recognition
Number of customers \| Customer		1
Concentration risk (as a percent)		18.00%	20.00%
Revenue from Contract with Customer, Product and Service Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer two
Revenue Recognition
Number of customers \| Customer			1
Revenue from Contract with Customer, Product and Service Benchmark [Member] \| Geographic Concentration Risk [Member] \| Major Customer
Revenue Recognition
Concentration risk (as a percent)		82.00%	79.00%

Summary of Significant Accounting Policies - Summary of Revenue by Channel (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 334	$ 376
Sales Returns	(29)	(25)
Product Revenue [Member] \| Direct-To-Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	301	303
Product Revenue [Member] \| Reseller [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 62	$ 98

Financial Instruments and Fair Value Measurements - Summary of Cash Equivalents and Conversion Right Liability's Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Money market funds carrying amount	$ 1,243	$ 3,243
Cash equivalents carrying amount	1,243	3,243
Money market funds	1,243	3,243
Total assets	1,243	3,243
Fair Value, Inputs, Level 1
Assets
Money market funds	1,243	3,243
Total assets	$ 1,243	$ 3,243

Financial Instruments and Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Cash equivalents	$ 1,243,000	$ 3,243,000
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount1	0	0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount1	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	$ 0	$ 0

Inventory, net - Summary of Inventory, net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 618	$ 752
Work in process	19	0
Finished goods	165	36
Inventory at cost	802	788
Less reserve for obsolescence	(28)	(32)
Inventory, net	$ 774	$ 756

Property and equipment, net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 159	$ 159
Less accumulated depreciation	(38)	(37)
Property and equipment, net	121	122
Computers and Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	11	11
Manufacturing Tools and Dies
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 148	$ 148

Property and equipment, net (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1	$ 2

Commitments and Contingencies - Additional Information (Details)			1 Months Ended		3 Months Ended
	Mar. 05, 2024	Nov. 25, 2022 USD ($)	Feb. 28, 2023 USD ($)	Feb. 28, 2021 USD ($)	Mar. 31, 2024 USD ($) ft²	Mar. 31, 2023 USD ($)	Nov. 30, 2021 shares	Jul. 21, 2021 $ / shares shares
Loss Contingencies [Line Items]
Lease, expiration month and year					2025-10
Area of office space leased \| ft²					9,091
Lessee, operating lease, option to extend					The lease expires in October 2025 and there is no option to renew for an additional term.
Lessee, Operating Lease, Existence of Option to Extend [true false]					false
Lease cost					$ 51,000	$ 50,000
Cash paid for amounts included in the measurement of lease liabilities					51,000	$ 50,000
Contingent liabilities					$ 0
Line of credit facility, interest rate during period					6.00%
Consulting agreement
Loss Contingencies [Line Items]
Warrants to purchase common stock \| shares							500	500
Warrants, Exercise Price \| $ / shares								$ 104
Consulting agreement, monthly fee				$ 5,000
Amended consulting agreement monthly fee			$ 7,500
Alom Technologies Corporation \| Fulfillment services agreement
Loss Contingencies [Line Items]
Purchase commitment commencement date		Apr. 01, 2023
Purchase commitments with third-party suppliers		$ 25,000
Initial term of agreement		3 years
Purchase commitment termination written notice period		60 days
Extended Agreement Date	Dec. 31, 2024

Commitments and Contingencies - Summary of Weighted Average Remaining Lease Term And Discount Rate (Details)	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Remaining lease term (in years)	1 year 6 months
Discount rate	6.00%

Commitments and Contingencies - Schedule of Future Minimum Maturities of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Future minimum lease payments remaining
Remainder of 2024	$ 157
2025	178
Total minimum lease payments	335
Less imputed interest	(14)
Present value of lease payments	$ 321

Other Accrued Expenses - Schedule of Other Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued payroll and related	$ 100	$ 218
Delaware franchise tax	20	160
Research study costs	66	51
Other	79	66
Total other accrued expenses	$ 265	$ 495

Preferred Stock - Additional Information (Details) - shares	Mar. 31, 2024	Dec. 31, 2023
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, shares authorized	10,000,000	10,000,000

Common Stock - Additional Information (Details)						3 Months Ended
Common Stock - Additional Information (Details)	Aug. 23, 2023 USD ($) $ / shares shares	Aug. 09, 2023 USD ($) $ / shares shares	Jul. 19, 2023 USD ($) $ / shares shares	Jul. 11, 2023 USD ($) $ / shares shares	Feb. 13, 2023 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 $ / shares shares	Feb. 28, 2023 USD ($) $ / shares	Nov. 30, 2021 $ / shares
Class of Stock [Line Items]
Proceeds from issuance of common stock, net of issuance costs							$ 4,191,000
Common stock, par value \| $ / shares	$ 0.0001					$ 0.0001		$ 0.0001
Reverse stock split, description	1-for-100
Reverse stock split, conversion ratio	0.01
Number of shares included in conversion of securities \| shares	100
Number of shares issued post reverse stock split \| shares	1
Issuance of fractional shares \| shares	0
Cash paid	$ 0
Other consideration paid	$ 0
Dividends on common stock declared						$ 0
Common stock, shares outstanding \| shares						1,473,592		1,466,092
Common stock, shares issued \| shares						1,473,592		1,466,092
Designees of Think Equity
Class of Stock [Line Items]
Exercise Price \| $ / shares									$ 31.25	$ 625
Payments for the purchase of warrants issued									$ 100
Underwritten Public Offering
Class of Stock [Line Items]
Proceeds from issuance of common stock, net of issuance costs					$ 5,000,000
Number of shares issued during the period \| shares					200,000
Net proceeds after deducting underwriting discounts and commissions and other offering expenses					$ 3,600,000
Number of days granted underwriters option to purchase additional common share					45 days
Granted underwriters option to purchase additional number of common share \| shares					30,000
Public offering price \| $ / shares					$ 25
Underwritten Public Offering \| Designees of Think Equity
Class of Stock [Line Items]
Warrant Issued \| shares					10,000
Exercise Price \| $ / shares					$ 31.25
Term of warrants					4 years
Warrant exercisable commencing period					6 months
Payments for the purchase of warrants issued					$ 100
Registered Public Offering \| Underwriting Agreement
Class of Stock [Line Items]
Sale of stock, transaction date		Aug. 09, 2023	Jul. 19, 2023	Jul. 11, 2023
Sale of common stock \| shares		331,730	512,500	325,000
Common stock, public offering price per share \| $ / shares		$ 4.10	$ 4.00	$ 5.50
Proceeds from issuance of common stock, net of issuance costs		$ 1,400,000	$ 2,100,000	$ 1,800,000
Net proceeds from sale of stock		$ 1,100,000	$ 1,700,000	$ 1,500,000
Registered Public Offering \| Underwriting Agreement \| Placement Agent
Class of Stock [Line Items]
Payment of cash fee percentage on gross proceeds of offering		8.00%	8.00%	8.00%
Payment of cash fee on gross proceeds of offering		$ 109,000	$ 164,000	$ 143,000
Reimbursement of certain expenses		$ 60,000	$ 60,000	$ 90,000
Unregistered Warrants \| Underwriting Agreement \| Placement Agent
Class of Stock [Line Items]
Warrant Issued \| shares		13,270	20,500	13,000
Sale of stock, percentage		4.00%	4.00%	4.00%
Exercise Price \| $ / shares		$ 4.92	$ 4.80	$ 6.60
Percentage of Initial warrant exercise price with compare offering price		120.00%	120.00%	120.00%
Term of warrants		5 years	5 years	5 years
Warrant exercisable commencing period		6 months	6 months	6 months

Common Stock - Summary of Reserved Shares of Common Stock for Issuance (Details) - shares	Mar. 31, 2024	Dec. 31, 2023
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract]
Warrants to purchase common stock	59,497	59,497
Options issued and outstanding	54,369	14,661
Shares available for future stock option grants	32,786	7,190
Total	146,652	81,348

Common Stock Warrants - Additional Information (Details)		1 Months Ended		2 Months Ended
	Aug. 23, 2023 shares	Feb. 28, 2023 USD ($) $ / shares shares	Feb. 28, 2021 USD ($)	Aug. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2024 $ / shares shares	Dec. 31, 2023 shares	Nov. 30, 2021 $ / shares shares	Jul. 21, 2021 $ / shares shares
Class of Warrant or Right [Line Items]
Reverse stock split, description	1-for-100
Reverse stock split, conversion ratio	0.01
Number of shares included in conversion of securities	100
Number of Warrants					59,497	59,497
Fair value of the warrants \| $		$ 195,000		$ 168,000
Estimated method fair value of the warrants		Black-Scholes options valuation model
Warrants Expiration Date One
Class of Warrant or Right [Line Items]
Number of Warrants					500
Warrants, Exercise Price \| $ / shares					$ 104.00
Warrants Expiration Date Two
Class of Warrant or Right [Line Items]
Number of Warrants					500
Warrants, Exercise Price \| $ / shares					$ 104.00
Warrants Expiration Date Three
Class of Warrant or Right [Line Items]
Number of Warrants					1,727
Warrants, Exercise Price \| $ / shares					$ 625.00
Warrants Expiration Date Four
Class of Warrant or Right [Line Items]
Number of Warrants					10,000
Warrants, Exercise Price \| $ / shares					$ 31.25
Warrants Expiration Date Five
Class of Warrant or Right [Line Items]
Number of Warrants					13,000
Warrants, Exercise Price \| $ / shares					$ 6.60
Warrants Expiration Date Six
Class of Warrant or Right [Line Items]
Number of Warrants					20,500
Warrants, Exercise Price \| $ / shares					$ 4.80
Warrants Expiration Date Seven
Class of Warrant or Right [Line Items]
Number of Warrants					13,270
Warrants, Exercise Price \| $ / shares					$ 4.92
Maxim Group, LLC
Class of Warrant or Right [Line Items]
Warrants to purchase common stock				47,670
Maxim Group, LLC \| Warrants Expiration Date Five
Class of Warrant or Right [Line Items]
Warrants to purchase common stock				13,000
Warrants exrecisable beginning date				Jan. 11, 2024
Warrants, Exercise Price \| $ / shares				$ 6.6
Maxim Group, LLC \| Warrants Expiration Date Six
Class of Warrant or Right [Line Items]
Warrants to purchase common stock				20,500
Warrants exrecisable beginning date				Jan. 19, 2024
Warrants, Exercise Price \| $ / shares				$ 4.8
Maxim Group, LLC \| Warrants Expiration Date Seven
Class of Warrant or Right [Line Items]
Warrants to purchase common stock				13,270
Warrants exrecisable beginning date				Feb. 09, 2024
Warrants, Exercise Price \| $ / shares				$ 4.92
Maxim Group, LLC \| Maximum
Class of Warrant or Right [Line Items]
Warrants, term				5 years
Maxim Group, LLC \| Minimum
Class of Warrant or Right [Line Items]
Warrants, term				6 months
Designees of Think Equity
Class of Warrant or Right [Line Items]
Warrants to purchase common stock		10,000					1,727
Warrants, Exercise Price \| $ / shares		$ 31.25					$ 625
Payments for the purchase of warrants issued \| $		$ 100
Warrants, term		4 years					5 years
Warrant agreement
Class of Warrant or Right [Line Items]
Reverse stock split, description	1-for-100
Reverse stock split, conversion ratio	0.01
Number of shares included in conversion of securities	100
Consulting agreement
Class of Warrant or Right [Line Items]
Warrants to purchase common stock							500	500
Warrants, Exercise Price \| $ / shares								$ 104
Warrants, term								5 years
Consulting agreement, monthly fee \| $			$ 5,000
Amended consulting agreement monthly fee \| $		$ 7,500
Consulting agreement, term			2 years
Underwriting Agreement \| ThinkEquity LLC
Class of Warrant or Right [Line Items]
Sale of common stock		200,000

Common Stock Warrants - Fair Value of the Warrants Estimated Using Assumptions (Details)	Dec. 31, 2023
Expected life (in years) \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	4
Expected life (in years) \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	5
Expected volatility \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	116.1
Expected volatility \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	123.9
Risk-free interest rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	3.98
Risk-free interest rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	4.24
Dividend yield \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	0
Dividend yield \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Estimated warrants on the date of grant	0

Common Stock Warrants - Outstanding Warrants (Details) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Class of Warrant or Right [Line Items]
Number of Warrants	59,497	59,497
Warrants Expiration Date One
Class of Warrant or Right [Line Items]
Number of Warrants	500
Exercise Price	$ 104.00
Expiration Date	Jul. 01, 2026
Warrants Expiration Date Two
Class of Warrant or Right [Line Items]
Number of Warrants	500
Exercise Price	$ 104.00
Expiration Date	Nov. 15, 2026
Warrants Expiration Date Three
Class of Warrant or Right [Line Items]
Number of Warrants	1,727
Exercise Price	$ 625.00
Expiration Date	Nov. 10, 2026
Warrants Expiration Date Four
Class of Warrant or Right [Line Items]
Number of Warrants	10,000
Exercise Price	$ 31.25
Expiration Date	Aug. 09, 2027
Warrants Expiration Date Five
Class of Warrant or Right [Line Items]
Number of Warrants	13,000
Exercise Price	$ 6.60
Expiration Date	Jul. 10, 2028
Warrants Expiration Date Six
Class of Warrant or Right [Line Items]
Number of Warrants	20,500
Exercise Price	$ 4.80
Expiration Date	Jul. 14, 2028
Warrants Expiration Date Seven
Class of Warrant or Right [Line Items]
Number of Warrants	13,270
Exercise Price	$ 4.92
Expiration Date	Aug. 04, 2028

Equity Incentive Plans - Additional Information (Details)		1 Months Ended		3 Months Ended	12 Months Ended
	Aug. 23, 2023 shares	Dec. 31, 2023 shares	Dec. 31, 2022	Mar. 31, 2024 $ / shares shares	Dec. 31, 2022	Jan. 01, 2024 shares	Jan. 01, 2023 shares
Equity Incentive Plans
Option term				10 years
Shares available to award		7,190		32,786
Percentage of number of shares added each year		5.00%	5.00%		5.00%
Vesting Period				4 years
Weighted-average exercise price of stock options outstanding \| $ / shares				$ 34.52
Weighted-average exercise price of stock options exercisable \| $ / shares				$ 200.07
Weighted average remaining contractual life for stock options outstanding				9 years 3 months 10 days
Weighted average remaining contractual life for stock options exercisable				5 years 10 months 17 days
Reverse stock split, description	1-for-100
Reverse stock split, conversion ratio	0.01
Number of shares included in conversion of securities	100
Share-based Payment Arrangement, Employee
Equity Incentive Plans
Percentage of voting power				10.00%
Exercise price on percentage of fair market value per share on the date of grant				110.00%
Share-based Payment Arrangement, Nonemployee
Equity Incentive Plans
Exercise price on percentage of fair market value per share on the date of grant				100.00%
Incentive Stock Option
Equity Incentive Plans
Option term				5 years
Restricted stock
Equity Incentive Plans
Stock awards outstanding		0
2021 Plan
Equity Incentive Plans
Number of shares authorized						73,304	4,839
Shares available to award				32,786
Percentage of voting power				10.00%

Equity Incentive Plans - Summary of the Option Award Activity (Details)	3 Months Ended
	Mar. 31, 2024 shares
Outstanding
Balance at the beginning	14,661
Granted	42,000
Canceled or expired	(2,292)
Balance at the end	54,369
Exercisable
Balance at the beginning	6,110
Vested	347
Canceled or expired	(781)
Balance at the ending	5,676

Equity Incentive Plans - Summary of Non-vested Restricted Common Stock Awards Issued to Employees (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Issuance of restricted common stock \| shares	7,500
Balance at the end \| shares	7,500
Weighted- Average Grant-Date Fair Value Per Share
Issuance of restricted common stock (in dollars per share) \| $ / shares	$ 1.34
Balance at the end \| $ / shares	$ 1.34

Equity Incentive Plans - Summary of Total Stock-based Compensation Expense Recorded Related to Share-based Payment Awards (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation	$ 54	$ 84
Research and Development Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation	22	31
Selling and Marketing Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation		2
General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation	$ 32	$ 51

Net Loss per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share	113,866	24,966
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share	59,497	12,727
Common stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share	54,369	12,239

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	May 09, 2024	Mar. 31, 2023
Subsequent Event [Line Items]
Gross Proceeds		$ 4,191
Subsequent Event \| Purchase Agreement \| Registered Public Offering
Subsequent Event [Line Items]
Sale of stock, transaction date	May 09, 2024
Sale of common stock	4,710,000
Common stock, public offering price per share	$ 0.85
Gross Proceeds	$ 4,000
Net proceeds from sale of stock	$ 3,500
Exercise Price	$ 0.85
Subsequent Event \| Purchase Agreement \| Registered Public Offering \| Series A Warrants
Subsequent Event [Line Items]
Warrants to purchase common stock	4,710,000
Subsequent Event \| Purchase Agreement \| Registered Public Offering \| Series A Warrants \| Maximum
Subsequent Event [Line Items]
Warrant issued	4,710,000
Subsequent Event \| Purchase Agreement \| Registered Public Offering \| Series B Warrants
Subsequent Event [Line Items]
Warrants to purchase common stock	7,065,000
Subsequent Event \| Purchase Agreement \| Registered Public Offering \| Series B Warrants \| Maximum
Subsequent Event [Line Items]
Warrant issued	7,065,000
Subsequent Event \| Placement Agency Agreement \| Registered Public Offering \| Maxim
Subsequent Event [Line Items]
Payment of cash fee percentage on gross proceeds of offering	7.00%
Payment of cash fee on gross proceeds of offering	$ 280
Reimbursement of certain expenses	$ 100
Subsequent Event \| Placement Agency Agreement \| Placement Agent Warrants \| Maxim
Subsequent Event [Line Items]
Warrants to purchase common stock	188,400
Percentage of warrant exercise price with compare offering price and common warrants	110.00%
Sale of stock, percentage	4.00%
Exercise Price	$ 0.935
Term of warrants	5 years
Warrant exercisable commencing period	6 months
Subsequent Event \| Placement Agency Agreement \| Placement Agent Warrants \| Maxim \| Maximum
Subsequent Event [Line Items]
Warrant issued	188,400

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