AURX Nuo Therapeutics Inc (QB)

PART I

FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

NUO THERAPEUTICS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

NUO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

NUO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

NUO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

 

For the Three and Nine Months Ended September 30, 2024 and 2023

 

 

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

NUO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

NUO THERAPEUTICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Note 1 – Description of Business

 

Description of Business

Nuo Therapeutics, Inc. (“Nuo,” the “Company,” “we,” “us,” or “our”) is a Delaware corporation organized in 1998 under the name Informatix Holdings, Inc. In 1999, Autologous Wound Therapy, Inc., an Arkansas Corporation, merged with and into Informatix Holdings, Inc. and the name of the surviving corporation was changed to Autologous Wound Therapy, Inc. In 2000, Autologous Wound Therapy, Inc. changed its name to Cytomedix, Inc. (“Cytomedix”). In 2001, Cytomedix, filed for bankruptcy from which it emerged in 2002 under a Plan of Reorganization. In September 2007, Cytomedix received 510(k) clearance for the Aurix System (“Aurix”), formerly known as the AutoloGel™ System, from the U. S. Food and Drug Administration (“FDA”). In April 2010, Cytomedix acquired the Angel Whole Blood Separation System (“Angel”) and the Angel Business, from Sorin Group USA, Inc. In February 2012, Cytomedix, acquired Aldagen, Inc. (“Aldagen”), a privately held developmental cell-therapy company located in Durham, NC. In 2014, Cytomedix changed its name to Nuo Therapeutics, Inc. In 2016, Nuo filed for and emerged from bankruptcy under Chapter 11.  Effective May 1, 2019, we furloughed our remaining employees and ceased standard operational activities as we awaited developments concerning our reconsideration request with the Centers for Medicare & Medicaid Services (“CMS”) regarding Medicare coverage for Aurix.  Based on a favorable National Coverage Determination issued in April 2021, we initiated restart activities for the business beginning in October 2021.  Aldagen is a non-operational, wholly owned subsidiary of Nuo.

 

Note 2 – Liquidity and Summary of Significant Accounting Principles

 

Liquidity

Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, and executing licensing arrangements, and to a lesser extent by generating royalties and product revenues.  In mid-2019, we ceased ongoing operational activities as we worked to reach a favorable outcome to Medicare reimbursement coverage for the Aurix System. In April 2021, CMS issued an NCD mandating national reimbursement coverage for Aurix when used in chronic non-healing wounds where a diabetes clinical diagnosis exists for the patient. During the nine months ended September 30, 2024, the Company raised proceeds of (i) approximately $1,500,000 from the sale of common stock to certain accredited investors in two private placements which closed in May and September 2024 and (ii) $151,200 from the exercise of warrants. During the year ended December 31, 2023, the Company raised proceeds of approximately $1,997,500 from the sale of common stock to certain accredited investors in two equity private placements which closed in August and December 2023.

 

We have incurred, and continue to incur, recurring losses and negative cash flows.  As of September 30, 2024, we have an accumulated deficit of approximately $31.8 million and cash and cash equivalents of approximately $0.7 million.

 

The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due.

 

We believe based on the operating cash requirements and capital expenditures expected for the next twelve months that our current resources and projected revenue from sales of Aurix products are insufficient to support our operations for the next 12 months.  As such, we believe that substantial doubt about our ability to continue as a going concern exists.  The unaudited consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Even assuming we succeed in raising sufficient additional funds in the near future, we require additional capital and will seek to continue financing our operations with external capital.   Any equity financing may cause further substantial dilution to our stockholders and could involve the issuance of securities with rights senior to the common stock. Any debt financing may require us to comply with additional onerous financial covenants and restrict our business operations. Our ability to complete additional financings is dependent on, among other things, market reception of the Company and perceived likelihood of success of our business model, the state of the capital markets at the time of any proposed equity or debt offering, state of the credit markets at the time of any proposed loan financing, and on the relevant transaction terms, among other things. We may not be able to obtain additional capital as required to finance our efforts, through equity or debt financing, other transactions, or any combination thereof, on satisfactory terms or at all. Additionally, any such financing, if at all obtained, may not be adequate to meet our capital needs and to support our operations. 

 

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Basis of Presentation and Principles of Consolidation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The consolidated balance sheet at December 31, 2023, has been derived from audited financial statements of the Company as of that date. The interim unaudited consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the SEC. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited consolidated financial statements are read in conjunction with the audited financial statements and notes previously included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

 

The unaudited consolidated financial statements include the accounts of the Company and its wholly owned, controlled, and inactive subsidiary Aldagen, Inc. (“Aldagen”). All significant inter-company accounts and transactions are eliminated in consolidation.  The Company operates its business in one operating segment consisting of one reporting unit.

 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us 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 the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited consolidated financial statements, estimates are used for, but not limited to stock-based compensation, recoverability and depreciable lives of long-lived assets, deferred taxes, and associated valuation allowance and allowances for inventory obsolescence and credit losses. Actual results could differ from those estimates.

 

Credit Concentration

We generate accounts receivable from the sale of our products. Specific customer receivable balances in excess of 10% of total receivables at September 30, 2024 and December 31, 2023 is listed below.

 

		September 30, 2024				December 31, 2023
Customer A			11%				*
Customer B			*				21%
Customer C			*				12%
Customer D			*				10%

 

*  less than 10%

 

Revenue from significant customers exceeding 10% of total revenues for the three and nine months ended September 30, 2024 and 2023 is listed below.  All our revenue for both periods was generated within the U.S.

 

		Three Months Ended September 30, 2024				Three Months Ended September 30, 2023				Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
Customer A			14%				14%				18%				11%
Customer D			*				14%				*				12%
Customer E			*				12%				*				10%

 

*  less than 10%

 

Historically, we used single suppliers for several components of the Aurix product line. We outsource the manufacturing of various product components to contract manufacturers. While we believe these manufacturers demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship.

 

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Cash, Cash Equivalents, and Restricted Cash

We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents potentially subject us to a concentration of credit risk, as approximately $0.7 million held in financial institutions was in excess of the FDIC insurance limit of $250,000 as of September 30, 2024. We maintain our cash in the form of money market deposit accounts with financial institutions that we believe are credit worthy. We maintained no cash equivalents as of September 30, 2024 or December 31, 2023. As of September 30, 2023, $55,000 of cash was considered as restricted as it collateralized a corporate credit card.

 

Accounts Receivable, net

We generate accounts receivable from the sale of Aurix products and accounts receivable as of September 30, 2024 and December 31, 2023 reflects customer receivables from commercial sales activities since the re-initiation of such sales beginning in the three months ended September 30, 2022.

 

We provide for an allowance against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. We estimate credit losses expected over the life of our trade receivables and contract assets based on historical information combined with current conditions that may affect a customer’s ability to pay and reasonable and supportable forecasts. While the Company uses various credit quality metrics, it primarily monitors collectability by reviewing the duration of collection pursuits on its delinquent trade receivables and historical write-off trends. Based on the Company’s experience, the customer's delinquency status, which is analyzed periodically, is the strongest indicator of the credit quality of the underlying trade receivables. Accounts are written off against the allowance for credit losses when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. For the nine-month period ending September 30, 2024, we recorded a provision for credit losses of $17,500. As of September 30, 2024, the allowance for credit losses was approximately $49,900. During the year ended December 31, 2023, we established a provision for credit losses of $160,000. As of December 31, 2023, the allowance for credit losses was approximately $32,400.

 

Inventory, net

Our inventory is produced by third-party manufacturers and consists of raw materials and finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. We maintain an inventory of kits, reagents, and other disposables having shelf-lives that generally range from 12 months to two years.

 

As of September 30, 2024, our inventory consisted of approximately $102,000 of finished goods inventory and approximately $66,000 of raw materials acquired to facilitate the manufacturing of finished goods at our contract manufacturer and our warehouse/distribution facility. As of December 31, 2023, our inventory consisted of approximately $150,000 of finished goods inventory and approximately $60,000 of raw materials.

 

We provide for an allowance against inventory for estimated losses that may result in excess and obsolete inventory (i.e., from the expiration of products). Our allowance for expired inventory is estimated based upon the inventory’s remaining shelf-life and our anticipated ability to sell such inventory, which is estimated using past experience and future forecasts, within its remaining shelf life. Expired products are segregated and used for demonstration purposes only; we will record the associated expense for this reserve to cost of sales in the consolidated statements of operations. For the three and nine months ended September 30, 2024, we incurred a provision of inventory obsolescence of $30,000 and wrote off an aggregate of approximately $27,400 of reagent and wound dressing kit raw materials. The reserve for inventory obsolescence totaled approximately $18,700 as of September 30, 2024. For the year ended December 31, 2023, we established an allowance for expired inventory of approximately $16,000.

 

Property and Equipment, net

Property and equipment is stated at cost less accumulated depreciation.  Assets are depreciated, using the straight-line method, over their estimated useful life ranging from one to six years.  Maintenance and repairs are charged to operations as incurred.

 

Leases

At the inception of a contract, we determine if the arrangement is, or contains, a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  Rent expense is recognized on a straight-line basis over the lease term.

 

We have made certain accounting policy elections whereby we (i) do not recognize ROU assets or lease liabilities for short-term leases (those with original terms of 12-months or less) and (ii) combine lease and non-lease elements of any operating leases. 

 

Revenue Recognition

We analyze our revenue arrangements to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers; (ii) identification of distinct performance obligations in the contract; (iii) determination of contract transaction price; (iv) allocation of contract transaction price to the performance obligations; and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation. We recognize revenues upon the satisfaction of the performance obligations (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In certain instances where the revenue is variable and we cannot estimate the amount of consideration to which we expect to be entitled, we are constrained from initially recognizing revenue.  In these cases, once the estimate is no longer constrained, we recognize revenue in the amount of consideration to which we expect to be entitled.

 

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We provide for the sale of our products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products, as in the past those returns have not been material and are not expected to be material in the future. Direct costs associated with product sales are recorded at the time that revenue is recognized.

 

Stock-Based Compensation

The fair value of employee stock options is measured at the date of grant. Expected volatilities for the 2016 Omnibus Plan options are based on the equally weighted average historical volatility from five comparable public companies with an expected term consistent with ours. Expected years until exercise represents the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. We assume that the dividend rate on our common stock will be zero. There were 400,000 options granted during the three and nine months ended September 30, 2024 and 100,000 options granted during the three and nine months ended September 30, 2023. We recognize forfeitures of stock-based awards as they occur. The assumptions for options granted during the three and nine months ended September 30, 2024 and 2023 are summarized in the following table:

 

		2024				2023
Risk free rate			4.08%					4.37%
Weighted average expected years until exercise			5.5					5
Expected stock volatility			74%					100%
Dividend yield			-					-

 

 

Income Taxes

We account for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. Tax rate changes are reflected in income during the period such changes are enacted. We measure our deferred tax assets and liabilities using the enacted tax rates that we believe will apply in the years in which the temporary differences are expected to be recovered or paid. We expect that recent tax law changes contained in the Inflation Reduction Act and CHIPS Act will not have a material impact on the provision for income taxes.

 

A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. All our tax years remain subject to examination by the tax authorities.

 

Our policy for recording interest and penalties associated with audits is to record such items as a component of income before taxes. There were no such items in the nine months ended September 30, 2024 and 2023.

 

Basic and Diluted Loss per Share

In periods of net loss, basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti-dilutive.

 

For periods of net income, diluted earnings per share is computed using the more dilutive of the “treasury method” or “two class method.” Dilutive earnings per share under the “treasury method” is calculated by dividing net income available to common stockholders by the weighted- average number of shares outstanding plus the dilutive impact of all potential dilutive common shares, consisting primarily of common shares underlying common stock options and stock purchase warrants using the treasury stock method, and convertible notes using the if-converted method. Because none of the Company’s equity-linked financial instruments contain non-forfeitable rights to dividends, the “two class” method results in the same diluted earnings per share as the “treasury method.”

 

All of our potential dilutive securities are considered anti-dilutive for the three and nine months ended September 30, 2024 and 2023. The following table sets forth the potential dilutive securities excluded from the calculation of diluted loss per share for the periods presented.

 

		Nine months ended September 30, 2024				Nine months ended September 30, 2023
Shares underlying:
Common stock options			3,476,667				3,476,667
Stock purchase warrants			450,000				450,000
Financing participation right and contingent warrant			-				500,000
Performance shares			300,000				300,000
			4,226,667				4,726,667

 

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Recent Accounting Standards

 

In December 2023, the FASB issued final guidance in ASU No. 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures requiring entities to provide additional information in the rate reconciliation and disclosures about income taxes paid. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. We do not expect this ASU to have a material impact on the consolidated financial statements.

 

We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our results of operations, financial position, or cash flows.

 

Note 3 – Property and Equipment

 

Property and equipment, net consisted of the following:

 

		September 30, 2024				December 31, 2023
Medical equipment		$	538,527			$	387,665
Office/warehouse equipment			48,019				43,919
Warehouse/production equipment			23,317				23,317
			609,863				454,901
Less accumulated depreciation			(421,326	)			(409,819	)
Property and equipment, net		$	188,537			$	45,082

 

Depreciation expense was $3,972 and $3,672 for the three months ended September 30, 2024 and 2023, respectively.  Depreciation expense was $11,506 and $11,560for the nine months ended September 30, 2024 and 2023, respectively. None of our long-lived assets were deemed to be impaired during the nine months ended September 30, 2024 and 2023.

 

Note 4 – Stock Purchase Warrants

 

The following schedule reflects outstanding stock purchase warrants as of September 30, 2024 and 2023:

 

Description		September 30, 2024				September 30, 2023
2022 Sales incentive warrants			450,000				450,000
Total			450,000				450,000

 

During the year ended December 31, 2022, we issued two warrants to purchase (i) 250,000 shares of common stock at an exercise price of $1.00 per share and expiring December 31, 2027 and (ii) 200,000 shares of common stock at an exercise price of $1.50 per share and expiring December 31, 2028 to a distribution partner under an agreement whereby the warrants are exercisable subject to the distributor attaining certain performance goals set forth in the warrants based upon exceeding sales quota revenues for calendar years 2023 through potentially 2025. The warrants are equity classified. The aggregate intrinsic value for 2022 sales incentive warrants as of September 30, 2024 was zero. Additionally, we agreed to issue certain additional warrants to acquire up to 500,000 shares of common stock to the same distribution partner where the issuance of the warrant was contingent upon future financing events. This warrant was issued as of January 1, 2024 and exercised by the holder during the nine months ended September 30, 2024. A portion of the warrant was exercised for proceeds of $151,200 and the remaining balance of the warrant was cashlessly exercised and resulted in the issuance of 86,889 shares of common stock.  See Note 5 – Equity and Stock Based Compensation for further information.

 

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Note 5 – Equity and Stock-Based Compensation

 

Under the Second Amended and Restated Certificate of Incorporation, we have the authority to issue a total of 101,000,000 shares of capital stock, consisting of 100,000,000 shares of common stock and 1,000,000 shares of preferred stock, par value $0.0001 per share, which will have such rights, powers and preferences as the Board of Directors shall determine.

 

Pacific Medical Common Stock and Warrant Purchase Agreement

 

On August 24, 2022, Nuo entered into a Common Stock and Warrant Purchase Agreement (the “Agreement”) with Pacific Medical, Inc. (“Pacific Med”) for the sale and issuance of shares of common stock and warrants to purchase shares of common stock. Pacific Med is the exclusive distributor for the Aurix products within a territory that covers the states of Washington, Oregon, Idaho, Montana, Wyoming, most of California, the northern half of Nevada, plus Alaska.

 

Pursuant to the Agreement, Pacific Med purchased 500,000 shares of common stock for $500,000. As part of the purchase of common stock, we agreed to grant to Pacific Med the right to participate in any future financing by Nuo through December 31, 2023 (the “Participation Rights”) in connection with a listing of our common stock on a national securities exchange. The Participation Rights entitled Pacific Med to purchase up to 500,000 shares of common stock upon substantially the same terms, conditions, and price provided for in such financing. If such a financing did not occur by December 31, 2023, we agreed to issue Pacific Med a warrant with a January 1, 2024 issuance date and exercisable until June 30, 2024, to purchase up to 500,000 shares of Common Stock at a price equal to the lower of $2.00 per share or the 20-day volume weighted average closing price per share ending December 31, 2023 (the “2024 Financing Participation warrant”). We issued the 2024 Financing Participation warrant to Pacific Med on January 1, 2024 with an exercise price of $0.56 per share. Pacific Med exercised (i) 270,000 of the warrants for cash proceeds of $151,200 and (ii) the remaining 230,000 warrants cashlessly in exchange for the issuance of 86,889 shares of common stock during the nine months ended September 30, 2024. The common stock, Participation Rights, and 2024 Financing Participation warrant are equity classified.

 

As part of the Agreement and as additional incentive compensation with respect to Pacific Med’s performance under its existing sales and distribution arrangement, we also provided to Pacific Med two compensatory performance-based stock purchase warrants and certain contingently issuable performance shares. The first warrant entitles Pacific Med to purchase up to 250,000 shares of common stock at a price of $1.00 per share (the “First Warrant”) upon Pacific Med attaining certain performance goals set forth in the First Warrant based upon exceeding sales quota revenue, as agreed between the Company and Pacific Med, for calendar years 2023 and/or 2024. The second warrant entitles Pacific Med to purchase up to 200,000 shares of Common Stock at a price of $1.50 per share (the “Second Warrant”) upon Pacific Med attaining certain performance goals set forth in the Second Warrant based upon exceeding sales quota revenue, as agreed between the Company and Pacific Med, for calendar years 2024 and/or 2025. The First Warrant will expire December 31, 2027 and the Second Warrant will expire December 31, 2028. The fair value of the First Warrant and Second Warrant at the date of issuance was approximately $434,000 and $345,000, respectively, based on a Black-Scholes option pricing model. As the exercisability of the two warrants is not considered probable as of September 30, 2024, there was no recognition of stock-based compensation expense for the nine months ended September 30, 2024. When exercisability is determined to be probable, the issuance date fair value of the warrant earned through such date will be recognized with the balance of the fair value recognized ratably over the remaining period of performance. We also agreed to issue up to 300,000 shares of common stock to Pacific Med subject to and upon the achievement of certain milestones set forth in the Agreement based upon sales of our products over defined 12-month periods of between $4.5 million by June 30, 2024 through at least $12.5 million in calendar year 2025 (the Performance Shares”). The fair value of the Performance Shares at the date of issuance was approximately $615,000 based on the closing stock price on the closing of the Agreement. As the issuance of the shares is not considered probable as of September 30, 2024, there was no expense recognition for the nine months ended September 30, 2024. When issuance is determined to be probable, the issuance date fair value of the shares through such date will be recognized with the balance of the fair value recognized ratably over the remaining period of performance.

 

2024 Private Placement Equity Issuances

 

We sold 2,000,000 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in May and September 2024 for proceeds of $650,875 and $849,125, respectively.  Certain related parties including a principal shareholder, a member of the Board of Directors, and a member of senior management invested an aggregate of $281,250 in the two private placement transactions.

 

2023 Private Placement Equity Issuances

 

We sold 2,442,500 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in August and December 2023 for proceeds of $1,997,500.  Certain related parties including a principal shareholder, a member of the Board of Directors, and a member of senior management invested an aggregate of $760,000 in the two 2023 private placement transactions.

 

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Stock-Based Compensation

 

In July 2016, the Board of Directors approved the 2016 Omnibus Incentive Plan (the “2016 Omnibus Plan” or “Plan”), and in November 2016, holders of a majority of our capital stock approved the 2016 Omnibus Plan, as amended and restated, which provides for the grant of equity and cash incentive awards to officers, directors and employees of, and consultants to, Nuo Therapeutics and its subsidiaries. Further, in March 2022, the Board approved an amendment to the 2016 Omnibus Plan to increase the shares available under the Plan to 4,250,000 and remove an annual evergreen provision, which was approved by the holders of a majority of our outstanding common stock and which became effective in June 2022.

 

A summary of stock option activity under the 2016 Omnibus Plan during the nine months ended September 30, 2024 is presented below: 

 

Stock Options – 2016 Omnibus Plan		Shares				Weighted Average Exercise Price				Weighted Average Remaining Contractual Term
Outstanding at January 1, 2024			3,189,167			$	0.64				5.69
Granted			400,000				0.33				10.00
Exercised			-				-				-
Forfeited or expired			(112,500	)			0.75				-
Outstanding at September 30, 2024			3,476,667			$	0.60				5.33
Exercisable at September 30, 2024			2,861,528			$	0.62				4.50

 

There were 400,000 stock options granted to non-executive employees and members of the Board of Directors under the 2016 Omnibus Plan during the three and nine months ended September 30, 2024. The fair value of the granted options vesting over one and three years was approximately $86,700. There were 100,000 incentive stock options granted to an employee under the Plan during the three and nine months ended September 30, 2023. The aggregate intrinsic value for outstanding and exercisable options as of September 30, 2024 was approximately $323,700 and $222,700, respectively.

 

For the three months ended September 30, 2024 and 2023, we recorded stock-based compensation expense of $20,916 and $11,527, respectively. For the nine months ended September 30, 2024 and 2023, we recorded stock-based compensation expense of $27,078 and $18,665, respectively. As of September 30, 2024, there was approximately $133,600 of unrecognized compensation cost related to the non-vested stock options which is expected to be recognized prior to year-end 2027.

 

Note 6 – Commitments and Contingencies

 

Lease Agreements

 

In January 2022, we entered into a commercial operating lease agreement for office space in Florida, expiring on December 31, 2024. The lease required us to pay for insurance, taxes, and our share of common operating expenses. The lease resulted in an increase in right of use assets and lease liabilities of $89,312, using a discount rate of 10%. Effective March 24, 2024, Nuo and the landlord agreed to terminate the lease effective immediately.   We incurred no costs related to the lease termination and the remaining right of use asset and operating lease liability were written off with the resulting immaterial difference recorded as a gain in other income.

 

In February 2022, we entered into a commercial operating lease for our primary office and warehouse/distribution space in Texas. The lease requires us to pay for insurance, taxes, and our share of common operating expenses. This lease expires in March 2027. The space remained under buildout and landlord control during the three months ended March 31, 2022 with Nuo acquiring control of the lease space effective April 1, 2022; as a result, a right of use asset and lease liability was recognized of $337,226 as of April 1, 2022 using a discount rate of 10%.

 

Total operating lease costs were approximately $26,300 and $39,400 for the three months ended September 30, 2024 and 2023, respectively, consisting solely of base rental and common area maintenance costs.   Total operating lease costs were approximately $92,400 and $118,200 for the nine months ended September 30, 2024 and 2023, respectively. The Company has no financing leases. 

 

Future undiscounted cash flows under this lease are:

 

2024			19,460
2025			80,273
2026			82,705
2027			21,284
Total operating lease payments			203,722
Discount factor			(24,414	)
Present value of operating lease liabilities			179,308
Current portion of operating lease liabilities			(64,619	)
Non-current portion of operating lease liabilities		$	114,689

 

Note 7 – Subsequent Events

 

The Company has evaluated subsequent events through the date the consolidated financial statements were available to be issued. No material events requiring disclosure were identified.

 

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

 

The following discussion and analysis of the financial condition and results of operations of Nuo Therapeutics, Inc. ("Nuo," the "Company," "we," "us," or "our") should be read in conjunction with the financial statements and related notes appearing elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”), filed with the U.S. Securities and Exchange Commission (the "SEC") on April 19, 2024. 

 

Special Note Regarding Forward Looking Statements

 

Certain statements, other than purely historical information in this Quarterly Report (including this section) constitute “forward-looking statements”. Forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “will be,” “will continue,” “will likely result,” “could,” “may” and words of similar import. These statements reflect the Company’s current view of future events and are subject to certain risks and uncertainties as noted in this Quarterly Report and in other reports filed by us with the SEC, including Forms 8-K, 10-Q, and 10-K. These risks and uncertainties include, among others, the following:

 

	●	our limited revenue base and sources of working capital;
	●	our limited operating experience;
	●	our ability to continue as a going concern
	●	the dilutive impact of raising additional equity or debt;
	●	our ability to timely and accurately report our financial results and prevent fraud if we are unable to maintain effective disclosure and internal controls;
	●	acceptance of our product by the medical community and patients;
	●	our ability to obtain adequate reimbursement from third-party payors;
	●	our ability to contract with healthcare providers;
	●	our reliance on several single source suppliers and our ability to source raw materials at affordable costs;
	●	our ability to protect our intellectual property;
	●	our compliance with governmental regulations;
	●	our ability to successfully sell and market the Aurix System;
	●	our ability to attract and retain key personnel, including both our executive officers; and
	●	our ability to successfully pursue strategic collaborations to help develop, support, or commercialize our current and future products.

 

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those anticipated in these forward-looking statements.

 

In addition to the risks identified under the heading “Risk Factors” in our Annual Report and the other filings referenced above, other sections of this report may include additional factors which could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business, or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

 

The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release any revisions to its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events.

 

Business Overview

 

We are a regenerative therapies company focused on developing and marketing products for chronic wound care primarily within the U.S. We commercialize innovative cell-based technologies that harness the regenerative capacity of the human body to trigger natural healing. The use of autologous (i.e., from self, the patient’s own) biological therapies for tissue repair and regeneration is part of a clinical strategy designed to improve long-term recovery in inherently complex chronic conditions with significant unmet medical needs.

 

 

Our current commercial offering consists of point of care technology for the safe and effective separation of autologous blood to produce a platelet-based therapy for the chronic wound care market. This offering is known as “Aurix” or the “Aurix System”. The FDA cleared the Aurix System for marketing in 2007 as a device under Section 510(k) of the Federal Food, Drug, and Cosmetic Act (“FDCA”). Aurix is one of two platelet derived products cleared by the FDA for chronic wound care use and is indicated for most exuding wounds. The advanced wound care market, within which Aurix competes, is composed of advanced wound care dressings, wound care devices, and wound care biologics. Advanced wound care was estimated to be an approximate $10.8 billion global market in 2021 and estimated to be an approximately $4.15 billion North American market in 2020. Estimates indicate that 1-2% of the population in developed countries will suffer from a chronic wound at least once over their lifetime. According to the National Institute of Health, treatment of diabetic foot ulcers cost an estimated $9-$13 billion annually in the U.S. alone. An aging population and the still increasing prevalence of diabetes suggests a continued increase in the patient population at risk of developing chronic, non-healing wounds.

 

The Aurix System produces a platelet rich plasma (“PRP”) gel at the point of care using the patient’s own platelets and plasma sourced from a small draw of peripheral blood. Aurix comprises a natural, endogenous complement of protein and non-protein signal molecules that contribute to effective healing. During treatment, the patient’s platelets are activated and release hundreds of growth factor proteins and other signaling molecules that form a biologically active hematogel. Aurix delivers concentrations of the natural complement of cytokines, growth factors and chemokines that are known to regulate angiogenesis (i.e., the development of new blood vessels), cell growth, and the formation of new tissue. Once applied to the prepared wound bed, the biologically active Aurix hematogel can restore the balance in the wound environment to transform a non-healing wound to a wound that heals naturally.

 

In 2012, a Medicare National Coverage Determination (“NCD”) from CMS reversed a twenty-year non-coverage decision for autologous blood derived products used in wound care. This NCD allowed for Medicare coverage under the Coverage with Evidence Development (“CED”) program.  CED programs have been employed for a selected variety of other therapies.  Under a CED program, CMS provides reimbursement for items or services on the condition that they be used in approved clinical protocols or in the collection of additional clinical data.  Under the CED program applicable to the Aurix System, a facility treating a patient with Aurix would be reimbursed by Medicare when health outcomes data were collected to inform future coverage decisions. The intent of the CED program was to evaluate the outcomes of Aurix therapy for the broader Medicare population when used in a “real world” continuum of care.  

 

In May 2019, we transmitted a letter memorandum to CMS’ Coverage and Analysis Group (“CAG”) in support of our formal request for reconsideration of the then existing NCD based on clinical data collected and published under the CED program.

 

On April 13, 2021, CMS issued a final coverage decision memo indicating that Medicare would nationally cover autologous PRP for the treatment of chronic non-healing diabetic wounds for a duration of 20 weeks under Section 1862(a)(1)(A) of the Social Security Act. This coverage applies when using devices whose FDA-cleared indications include the management of exuding cutaneous wounds, such as diabetic ulcers. Coverage of autologous PRP beyond 20 weeks for diabetic foot ulcers and for the treatment of all other chronic, non-diabetic, non-healing wounds would be determined by local Medicare Administrative Contractors ("MACs").

 

For 2024, the Medicare national average reimbursement rate for the Aurix System is $1,739 per treatment under the Hospital Outpatient Prospective Payment System ("OPPS') final rules. the national average reimbursement rate will increase to $1,822 per treatment effective January 1, 2025.  We market the Aurix System at an approximate cost of $800 per treatment to wound care providers in the hospital outpatient setting.

 

Under the 2021 NCD, while coverage for Aurix was mandated in the physician office setting, the payment rate was subject to determination by the local MACs with payment rates received ranging from approximately $120 to $800 per treatment.  Based upon our perception of inconsistent, inadequate, and heterogeneous payment rates from the MACs, we submitted a formal comment request that CMS establish a national payment rate to reduce access barriers to the Aurix product.

 

On November 1, 2024, CMS issued final rules for the OPPS as well as the Medicare Physician Fee Schedule (“MPFS”) which will both become effective January 1, 2025.  Under the OPPS, the national average reimbursement rate for 2025 will increase to $1,829 per treatment, an increase of approximately 5%.  Under the MPFS, which outlines the Medicare payment rates to clinicians in the physician office setting, CMS established a national payment rate of approximately $900.  We believe that potential adoption in the physician office setting in multiple geographies could be favorably impacted by the establishment of the MPFS national payment rate.

 

Our Strategy

 

Our current commercial focus is establishing engagement with providers treating chronic non-healing wounds to demonstrate the clinical benefits we believe result from the use of Aurix in the treatment of complex wounds. Increasing physician awareness of the differentiating attributes of Aurix will be key to establishing a base of product revenues upon which to grow. We anticipate developing these relationships with clinical providers and treatment facilities primarily by establishing a variety of distributor arrangements throughout the United States. Our commercial team consists of three senior employees who are leveraging their current and historical relationships to establish distributor arrangements. As of September 30, 2024, we had established contractual relationships with more than 200 individual distributor representatives including. a multi-state agreement with Pacific Medical, Inc. covering multiple large markets in the western United States. While we anticipate the number of distributor representatives will continue to expand modestly, our current focus is establishing commercial customer relationships with wound care providers in hospital outpatient wound care clinics during the remainder of 2024 and preparing for the implementation of the MPFS national payment rate in the physician office setting beginning in January 2025.  We also continue to be focused on ensuring that reimbursement mechanisms are properly administered by the local MACs under the April 2021 NCD and the MPFS final rule for 2025.

 

 

The Science Underlying Aurix/Platelet Rich Plasma

 

Normal Wound Healing

 

The science underlying wound healing is well-established. An immediate early event critical for wound healing is the influx of platelets to the wound site. Platelets bind to elements within damaged tissue such as collagen fragments and endogenous thrombin molecules and are activated to release a diversity of growth factors and other biomolecules from their alpha and dense granules (Reed 2000, Nieswandt, 2003). These biomolecules provide signals essential for biological responses regulating hemostasis and effective tissue regeneration.

 

Chronic Wounds

 

Dysregulation of numerous cellular and biological responses contribute to the chronic wound phenotype. Chronic wounds have reduced levels of growth factors and concomitant decreases in cellular proliferation (Mast 1996). There is increased cellular senescence (Telgenhoff 2005), and there generally is a lack of perfusion that can inhibit the delivery of nutrients and cells required for regeneration (Guo 2010). As the body attempts to stave off infection, elevated concentrations of free radicals accumulate in the chronic wound and further damage surrounding tissue (Moseley 2004, James 2003).

 

Aurix Therapy

 

Aurix has been cleared by FDA as safe and effective with an indication for chronic wounds such as leg ulcers, pressure ulcers, and diabetic ulcers and other exuding wounds such as mechanically or surgically debrided wounds. The Aurix therapeutic is formed by mixing a sample of a patient’s platelets and plasma with pharmaceutical grade thrombin and ascorbic acid. The thrombin activates platelets while ascorbic acid drives the synthesis of high tensile strength collagen, clears damaging free radicals and controls gel consistency. The topical dermal application of Aurix gel bypasses the lack of local perfusion to provide immediate signals for new tissue formation and ultimately healing.

 

The Efficacy of Aurix Relates to Biological Activity Released by Platelets

 

Regenerative Capacity

 

More than 300 proteins are released by human platelets in response to thrombin activation (Coppinger 2004). Important examples include vascular endothelial cell growth factor (“VEGF”), platelet derived growth factor (“PDGF”), epidermal growth factor (“EGF”), fibroblast growth factor (“FGF”) and transforming growth factor-beta (“TGF-B”) (Eppley 2004, Everts 2006). These proteins are critical for organized wound healing, regulating responses such as vascularization, cell proliferation, cell differentiation, and deposition of new extracellular matrix (Goldman 2004). Platelets also release chemokines such as Interleukin-8 (“IL-8”), stromal cell derived factor-1 (“SDF-1”), and platelet factor-4 (“PF-4”) (Chatterjee 2011, Gear 2003) that control the mobilization and migration of stem cells and fibroblasts (Werner 2003 and Gillitzer 2001), which contribute to tissue regeneration.

 

Anti-infective Activity

 

Populations of bioburden in chronic wounds vary over time and wounds invariably retain or become re-infected with some level of bacteria that is detrimental to healing (Howell-Jones 2005). In addition to regenerative capacity, platelets release anti-microbial peptides effective against a broad range of pathogens including Methicillin Resistant Staphylococcus Aureus (“MRSA”) (Moojen 2007, Jia 2010, Tang 2002, Bielecki 2007).

 

Clinical Efficacy

 

Multiple efficacy and effectiveness studies have been published in peer reviewed journals documenting the impact of using Aurix to treat chronic wounds. Key data include:

 

●

In the published study of the clinical data collected during the CED program for diabetic foot ulcers, Aurix demonstrated a significant time to heal advantage compared to wounds treated with usual and customary care (including any available advanced therapy). A higher percentage of healing was observed across all wound severities (Wagner Grade 1-4) and in a patient population with significant comorbidities. (Gude W, Hagan D, Abood F, Clausen P:   Aurix Gel is an Effective Intervention for Chronic Diabetic Foot Ulcers: A Pragmatic Randomized Controlled Trial. Advances in Skin and Wound Care, 2019; 32(9): 416-426.)

 

●

In a double blinded randomized controlled trial, 81% of the most common-sized diabetic foot ulcers healed with Aurix compared with 42% of control wounds. Mean time to healing was six weeks. (Driver V, Hanft J, Fylling, C et al.:  A Prospective, Randomized, Controlled Trial of Autologous Platelet-Rich Plasma Gel for the Treatment of Diabetic Foot Ulcers. Ostomy Wound Management, 2006; 52(6): 68-87.)

 

 

●

In 285 chronic wounds in 200 patients, 96.5% of the wounds had a positive response within an average of 2.2 weeks with an average of 2.8 Aurix treatments (de Leon J, Driver VR, Fylling CP, Carter MJ, Anderson C, Wilson J, et al.:  The Clinical Relevance of Treating Chronic Wounds with an Enhanced Near-physiological Concentration of Platelet-Rich Plasma (PRP) Gel.  Advances in Skin and Wound Care, 2011; 24(8), 357-368.)

 

●

In a retrospective, longitudinal study of 40 Wagner grade II through IV diabetic foot ulcers, most with critical limb ischemia, wounds increased in size in the approximate 100 days prior to the initiation of comprehensive wound care treatment. Upon treatment with debridement, revascularization, antibiotics and off-loading, the wounds continued to increase in size over a subsequent 75-day period. Once they were then treated with Aurix, the wounds immediately changed healing trajectory and 83% of the wounds healed with an average of 6.1 Aurix treatments per wound (Sakata, J., Sasaki, S., Handa, K., et al.  A Retrospective, Longitudinal Study to Evaluate Healing Lower Extremity Wounds in Patients with Diabetes Mellitus and Ischemia Using Standard Protocols of Care and Platelet-Rich Plasma Gel in a Japanese Wound Care Program. Ostomy Wound Management, 2012; 58(4):36-49.)

 

Results of Operations

 

Comparison of Three Months Ended September 30, 2024 and 2023

 

The amounts presented in this comparison section are rounded to the nearest thousand.

 

Revenue and Gross Profit 

 

Product revenues for the three months ended September 30, 2024 totaled approximately $371,000 in comparison to product revenues of approximately $232,000 in the three months ended September 30, 2023. Associated gross profit was approximately $270,000 in the three months ended September 30, 2024 in comparison to approximately $178,000 of gross profit in the three months ended September 30, 2023. The increase in revenues and gross profit was due to an expanding customer base over the past year as hospital wound care facilities and providers become incrementally aware of the Aurix product and the 2021 Medicare NCD. Gross profit for both the three months ended September 30, 2024 and 2023 were negatively impacted by provisions for inventory obsolescence of $30,000 and approximately $16,000, respectively.

 

Operating Expenses

 

Total operating expenses decreased approximately $120,000 to approximately $848,000 comparing the three months ended September 30, 2024 to the three months ended September 30, 2023. The decrease from the prior year was due primarily to a decrease in (i) provision for credit losses of $100,000, (ii) compensation and benefits expense of approximately $71,000 which was partially offset by an increase in (i) external consulting and professional fees of approximately $40,000 and (ii) sales infrastructure costs including distributor commissions of approximately $31,000.

 

Other Income (Expense)

 

Other expense, net for the three months ended September 30, 2024 and 2023 represents interest expense associated with the financing of insurance premiums in excess of interest income earned on excess available cash balances.

 

Comparison of Nine Months Ended September 30, 2024 and 2023

 

The amounts presented in this comparison section are rounded to the nearest thousand.

 

Revenue and Gross Profit 

 

Product revenues for the nine months ended September 30, 2024 totaled approximately $970,000 in comparison to product revenues of approximately $412,000 in the nine months ended September 30, 2023. Associated gross profit was approximately $754,000 in the nine months ended September 30, 2024 in comparison to approximately $327,000 of gross profit in the nine months ended September 30, 2023.  In line with the three-month comparison above, the increase in revenues and gross profit was due to an expanding customer base as hospital wound care facilities and providers become incrementally aware of the Aurix product and the 2021 Medicare NCD. Gross profit for both the nine months ended September 30, 2024 and 2023 were negatively impacted by provisions for inventory obsolescence of $30,000 and approximately $16,000, respectively.

 

 

Operating Expenses

 

Total operating expenses decreased approximately $260,000 to approximately $2,582,000 comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023. The decrease from the prior year was due primarily to decreases in (i) compensation and benefits expense of approximately $261,000 (ii) provision for credit losses of approximately $83,000, and (iii) operating lease costs of approximately $26,000 which was partially offset by an increase in sales infrastructure costs including distributor commissions of approximately $124,000.

 

Other Income (Expense)

 

Other income, net for the nine months ended September 30, 2024 represents interest income on available cash balances in excess of interest expense associated with the financing of insurance premiums and by a nominal other income gain.  Other expense, net for the nine months ending September 30, 2023 primarily represents the same interest expense type charges in excess of nominal interest income.

 

Liquidity and Capital Resources

 

Overview 

 

As of September 30, 2024, we had cash, cash equivalents, and restricted cash of approximately $0.7 million, total current assets of approximately $1.3 million and total current liabilities of approximately $0.7 million. As an operational business, we have a history of losses and are not currently profitable. For the years ended December 31, 2023, and 2022, we incurred net losses of approximately $3.2 million in each year. As of September 30, 2024, our accumulated deficit was approximately $31.8 million and our stockholders’ equity was approximately $0.9 million.

 

During the nine months ended September 30, 2024, we sold 2,000,000 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in May and September 2024 for total proceeds of $1,500,000.  Additionally, during the nine months ended September 30, 2024, we received proceeds of $151,200 from the exercise of warrants by Pacific Med.

 

In 2023, we sold 2,442,500 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in August and December 2023 for total proceeds of $1,997,500.

 

Our continuing losses and limited cash resources raise substantial doubt about our ability to continue as a going concern, and we need to raise substantial additional funds to continue to conduct our business.   If we are unable to secure sufficient capital to fund our operating activities, we may be forced to delay further the completion of, or significantly reduce the scope of, our current business plan.   It is uncertain whether we will be able to obtain such financing on satisfactory terms or at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

We may not be able to obtain additional capital as required to finance our efforts, through equity or debt financing or any combination thereof, on satisfactory terms or at all. Additionally, any such financing, if at all obtained, may not be adequate to meet our capital needs and to support our operations.

 

We maintain our cash deposits primarily in financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). We have not experienced any losses related to amounts in excess of FDIC limits.

 

Cash Flows

 

Net cash provided by (used in) operating, investing, and financing activities for the periods presented were as follows:

 

		Nine months ended September 30, 2024				Nine months ended September 30, 2023
Cash flows used in operating activities		$	(1,741,083	)		$	(2,496,375	)
Cash flows used in investing activities		$	(154,962	)		$	(7,244	)
Cash flow provided by financing activities		$	1,651,200			$	1,035,000

 

Operating Activities

 

Cash used in operating activities for the nine months ended September 30, 2024 of approximately $1.7 million primarily reflects our net loss of approximately $1.8 million adjusted by (i) approximately $57,000 net change in operating assets and liabilities, (ii) approximately $95,000 total depreciation and amortization expense and stock-based compensation expense and (iii) provisions for inventory obsolescence and credit losses totaling $47,500.

 

 

Cash used in operating activities for the nine months ended September 30, 2023 of approximately $2.5 million primarily reflects our net loss of approximately $2.5 million adjusted by (i) approximately $0.2 million net change in operating assets and liabilities and (ii) approximately $97,000 total depreciation and amortization expense and stock-based compensation expense and (iii) a combined provision for credit losses and inventory obsolescence of approximately $116,000.

 

Investing Activities

 

Cash used in investing activities for the nine months ended September 30, 2024 of approximately $155,000 primarily represents our initial purchase of centrifuges since our restart of commercial operations in the amount of approximately $151,000. We had limited investing activities for the nine months ended September 30, 2023. 

 

Financing Activities

 

Cash flows from financing activities for the nine months ended September 30, 2024 reflects proceeds of (i) $1,500,000 from the sale of 2,000,000 shares of common stock in two private placements that closed in May and September 2024 and (ii) $151,200 from the exercise of 270,000 warrants in June 2024.

 

Cash flows from financing activities for the nine months ended September 30, 2023 reflects $1,035,000 of proceeds raised from the sale of 517,500 shares of common stock in a private placement closed in August 2023. 

 

Inflation

 

The Company believes that the rates of inflation in recent years have not had a significant impact on its operations.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements. 

 

Critical Accounting Policies

 

Our unaudited consolidated financial statements included in Part I, Item 1 of this Quarterly Report are prepared in conformity with U.S. GAAP, which require us to make estimates and assumptions regarding future events that affect the amounts reported in our financial statements and accompanying notes. We base these estimates on our experience and assumptions regarding future events we believe to be reasonable under the circumstances. Actual results could differ from those estimates and such differences may be material to the unaudited consolidated financial statements. We have described our most critical accounting policies in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to our critical accounting policies or estimates since December 31, 2023.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Our management has carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of September 30, 2024. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective due to the un-remediated material weakness previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”) as described below under “Material Weaknesses” and “Remediation Plan.”  In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

 

 

Material Weaknesses

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. In connection with the preparation of the Annual Report and the consolidated financial statements and related disclosures therein, management identified the following material weaknesses.

 

Beginning in mid-2019, we ceased ongoing operational activities and terminated all our financial accounting and reporting resources as we worked to reach a favorable outcome to Medicare reimbursement coverage for the Aurix System. When we re-started commercial operations in 2022 and as disclosed since our Annual Report for the year ended December 31, 2021, the Company had not hired and did not maintain a sufficient complement of accounting and financial reporting resources. The lack of sufficient accounting and financial reporting resources also prevented the Company from maintaining appropriately designed, and monitoring the effectiveness of internal control over financial reporting.

 

Remediation Plan

 

Beginning in 2022, the Company engaged outside consultants to assist with various accounting and financial reporting matters and will continue assessing the need for hiring additional internal accounting and third-party financial reporting resources.  As additional financial resources are obtained and we increase our operating activity, management, under the oversight of the Audit Committee of the Board of Directors, will continue to implement measures designed to improve our internal control over financial reporting to remediate the identified material weaknesses, namely, to identify and engage, through internal hiring and the use of external third parties, a sufficient complement of accounting and financial reporting resources and to periodically assess the design and operating effectiveness of our internal controls.

 

While we believe that these efforts will improve our internal control over financial reporting, the implementation of these measures is ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles. We cannot assure you that the measures we have taken to date, or that we may take in the future, will be sufficient to remediate the material weaknesses we have identified or avoid potential future material weaknesses.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II
 
OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

There are currently no claims or actions pending against us, the ultimate disposition of which could have a material adverse effect on our results of operations, financial condition, or cash flows.

 

Item 1A. Risk Factors.

 

There have been no material changes from the risk factors as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

 

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

 

None. 

 

Item 3.    Defaults Upon Senior Securities.

 

None.

 

Item 4.    Mine Safety Disclosures.

 

Not applicable. 

Item 5.    Other Information.

 

None.

 

20

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Table of Contents

 

Item 6.    Exhibits.

 

Exhibit Number		Description
3.1		Second Amended and Restated Certificate of Incorporation of Nuo Therapeutics, Inc. (previously filed on May 10, 2016 as Exhibit 3.1 to the registrant’s Registration Statement on Form 8-A and incorporated by reference herein).
3.2		Certificate of Designation of Series A Preferred Stock of Nuo Therapeutics, Inc. (previously filed on May 10, 2016 as Exhibit 3.3 to the registrant’s Current Report on Form 8-K and incorporated by reference herein).
3.3		Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Nuo Therapeutics, Inc. (previously filed on September 5, 2018 as Exhibit 3.1 to the registrant’s Current Report on Form 8-K and incorporated by reference herein).
3.4		Amended and Restated By-Laws of Nuo Therapeutics, Inc. (previously filed on May 10, 2016 as Exhibit 3.2 to the registrant’s Registration Statement on Form 8-A and incorporated by reference herein).
10.1		Securities Purchase Agreement entered into September 18, 2024 (previously filed on September 19, 2024 as Exhibit 10.1 to the registrant’s Current Report on Form 8-K and incorporated by reference herein).
31		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following materials from Nuo Therapeutics, Inc. Form 10-Q for the quarter ended September 30, 2024, formatted in Inline Extensible Business Reporting Language (Inline XBRL): (i) Consolidated Balance Sheets at September 30, 2024 and December 31, 2023, (ii) Consolidated Statements of Operations for the three and nine month periods ended September 30, 2024 and 2023, (iii) Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the three and nine month periods ended September 30, 2024 and 2023, (iv) Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2024 and 2023 and (v)  Notes to the Unaudited Consolidated Financial Statements.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

		NUO THERAPEUTICS, INC.
Date: November 12, 2024
	By:	/s/ David E. Jorden
		David E. Jorden Chief Executive and Financial Officer
		(Principal Executive and Financial Officer)

 

Exhibit 31

 

Certification of Principal Executive and Principal Financial Officer Pursuant to Exchange Act Rule

13a-14(a)/15d-14(a) as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, David E. Jorden, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Nuo Therapeutics, Inc.;

 

2.

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;

 

3.

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;

 

4.

I am 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

 

5.

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: November 12, 2024
 
/s/ David E. Jorden

 

David E. Jorden
Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial Officer)

 

Exhibit 32

 

 

Certification of Principal Executive and Principal Financial Officer Pursuant to

18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

Pursuant to 18 U.S.C. §1350 and in connection with the Quarterly Report on Form 10-Q of Nuo Therapeutics, Inc. (the “Company”) for the period ended September 30, 2024 (the “Report”), I, David E. Jorden, Chief Executive and Chief Financial Officer of the Company, hereby certify that to my 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 results of operations of the Company.

 

Date: November 12, 2024

 

/s/ David E. Jorden

 

David E. Jorden

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial Officer)

 

 

This certification is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Act of 1934 (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

 

v3.24.3

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 11, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	000-28443
Entity Registrant Name	Nuo Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-3011702
Entity Address, Address Line One	8285 El Rio, Suite 190
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77054
City Area Code	346
Local Phone Number	396-4770
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		46,598,405
Entity Central Index Key	0001091596
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

v3.24.3

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 683,836	$ 928,681
Accounts receivable, net	329,211	250,703
Inventory, net	167,771	209,589
Prepaid expenses and other current assets	161,943	174,471
Total current assets	1,342,761	1,563,444
Property and equipment, net	188,537	45,082
Operating lease right of use assets	187,805	269,354
Total assets	1,719,103	1,877,880
Current liabilities
Accounts payable	385,417	394,518
Accrued expenses	263,991	188,622
Current portion of operating lease liabilities	64,619	91,387
Total current liabilities	714,027	674,527
Non-current portion of operating lease liabilities	114,689	164,205
Total liabilities	828,716	838,732
Commitments and Contingencies
Stockholders' equity
Common stock	4,660	4,424
Additional paid-in capital	32,649,007	30,970,965
Accumulated deficit	(31,763,280)	(29,936,241)
Total stockholders' equity	890,387	1,039,148
Total liabilities and stockholders' equity	$ 1,719,103	$ 1,877,880

v3.24.3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized (in shares)	100,000,000	100,000,000
Common Stock, Shares, Issued (in shares)	46,598,405	44,241,516
Common Stock, Shares, Outstanding (in shares)	46,598,405	44,241,516

v3.24.3

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Revenue	$ 370,951	$ 232,241	$ 970,301	$ 411,510
Costs of sales	100,504	53,818	216,430	84,724
Gross profit	270,447	178,423	753,871	326,786
Operating expenses
Selling, general and administrative	847,820	967,976	2,582,472	2,842,955
Total operating expenses	847,820	967,976	2,582,472	2,842,955
Loss from operations	(577,373)	(789,553)	(1,828,601)	(2,516,169)
Other income (expense)
Interest income (expense), net	(794)	(1,087)	212	(2,112)
Other income	0	0	1,350	0
Total other income (expense)	(794)	(1,087)	1,562	(2,112)
Net loss	$ (578,167)	$ (790,640)	$ (1,827,039)	$ (2,518,281)
Loss per common share
Basic and diluted (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.06)
Weighted average common shares outstanding
Basic and diluted (in shares)	45,613,912	42,142,141	44,840,556	41,914,648
Product [Member]
Revenue
Revenue	$ 370,951	$ 232,241	$ 970,301	$ 411,510

v3.24.3

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2022	41,799,016
Balance at Dec. 31, 2022	$ 4,180	$ 28,951,963	$ (26,764,805)	$ 2,191,338
Stock compensation expense		2,420		2,420
Net loss	$ 0	0	(855,755)	(855,755)
Balance (in shares) at Mar. 31, 2023	41,799,016
Balance at Mar. 31, 2023	$ 4,180	28,954,383	(27,620,560)	1,338,003
Balance (in shares) at Dec. 31, 2022	41,799,016
Balance at Dec. 31, 2022	$ 4,180	28,951,963	(26,764,805)	2,191,338
Net loss				(2,518,281)
Balance (in shares) at Sep. 30, 2023	42,316,516
Balance at Sep. 30, 2023	$ 4,232	30,005,576	(29,283,086)	726,722
Balance (in shares) at Dec. 31, 2022	41,799,016
Balance at Dec. 31, 2022	$ 4,180	28,951,963	(26,764,805)	2,191,338
Balance (in shares) at Dec. 31, 2023	44,241,516
Balance at Dec. 31, 2023	$ 4,424	30,970,965	(29,936,241)	1,039,148
Balance (in shares) at Mar. 31, 2023	41,799,016
Balance at Mar. 31, 2023	$ 4,180	28,954,383	(27,620,560)	1,338,003
Stock compensation expense	0	4,718	0	4,718
Net loss	$ 0	0	(871,886)	(871,886)
Balance (in shares) at Jun. 30, 2023	41,799,016
Balance at Jun. 30, 2023	$ 4,180	28,959,101	(28,492,446)	470,835
Stock compensation expense	0	11,527	0	11,527
Net loss	$ 0	0	(790,640)	(790,640)
Issuance of common stock for cash proceeds (in shares)	517,500
Issuance of common stock for cash proceeds	$ 52	1,034,948	0	1,035,000
Balance (in shares) at Sep. 30, 2023	42,316,516
Balance at Sep. 30, 2023	$ 4,232	30,005,576	(29,283,086)	726,722
Balance (in shares) at Dec. 31, 2023	44,241,516
Balance at Dec. 31, 2023	$ 4,424	30,970,965	(29,936,241)	1,039,148
Stock compensation expense		3,081		3,081
Net loss	$ 0	0	(708,781)	(708,781)
Balance (in shares) at Mar. 31, 2024	44,241,516
Balance at Mar. 31, 2024	$ 4,424	30,974,046	(30,645,022)	333,448
Balance (in shares) at Dec. 31, 2023	44,241,516
Balance at Dec. 31, 2023	$ 4,424	30,970,965	(29,936,241)	1,039,148
Net loss				(1,827,039)
Balance (in shares) at Sep. 30, 2024	46,598,405
Balance at Sep. 30, 2024	$ 4,660	32,649,007	(31,763,280)	890,387
Balance (in shares) at Mar. 31, 2024	44,241,516
Balance at Mar. 31, 2024	$ 4,424	30,974,046	(30,645,022)	333,448
Stock compensation expense	0	3,081	0	3,081
Net loss	$ 0	0	(540,091)	(540,091)
Issuance of common stock for cash proceeds (in shares)	867,833
Issuance of common stock for cash proceeds	$ 87	650,788	0	650,875
Issuance of common stock for warrant exercise (in shares)	270,000
Issuance of common stock for warrant exercise	$ 27	151,173	0	151,200
Issuance of common stock for cashless warrant exercise (in shares)	86,889
Issuance of common stock for cashless warrant exercise	$ 9	(9)	0	0
Balance (in shares) at Jun. 30, 2024	45,466,238
Balance at Jun. 30, 2024	$ 4,547	31,779,079	(31,185,113)	598,513
Stock compensation expense	0	20,916	0	20,916
Net loss	$ 0	0	(578,167)	(578,167)
Issuance of common stock for cash proceeds (in shares)	1,132,167
Issuance of common stock for cash proceeds	$ 113	849,012	0	849,125
Balance (in shares) at Sep. 30, 2024	46,598,405
Balance at Sep. 30, 2024	$ 4,660	$ 32,649,007	$ (31,763,280)	$ 890,387

v3.24.3

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (578,167)	$ (708,781)	$ (790,640)	$ (855,755)	$ (1,827,039)	$ (2,518,281)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	3,972		3,672		11,506	11,560
Stock-based compensation					27,078	18,665
Provision for credit losses					17,500	100,000	$ 160,000
Provision for inventory obsolescence	30,000				30,000	16,074
Amortization of operating lease right of use assets					56,382	66,700
Changes in operating assets and liabilities
Accounts receivable, net					(96,008)	(240,560)
Inventory, net					11,818	14,272
Prepaid expenses and other current assets					12,528	18,038
Right of use assets					25,168	0
Accounts payable					(9,101)	3,180
Accrued expenses					75,369	72,819
Operating lease liabilities					(76,284)	(58,842)
Net cash used in operating activities					(1,741,083)	(2,496,375)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment					(154,962)	(7,244)
Net cash used in investing activities					(154,962)	(7,244)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock					1,500,000	1,035,000
Net proceeds from warrant exercise					151,200	0
Net cash provided by financing activities					1,651,200	1,035,000
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH					(244,845)	(1,468,619)
Cash, cash equivalents, and restricted cash, beginning of period		928,681		2,106,208	928,681	2,106,208	2,106,208
Cash, cash equivalents, and restricted cash, end of period	683,836		637,589		683,836	637,589	928,681
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
Cash and cash equivalents		928,681		2,051,208	928,681	2,051,208	2,051,208
Restricted cash		0		55,000	0	55,000	55,000
Cash, cash equivalents, and restricted cash, beginning of period		$ 928,681		$ 2,106,208	928,681	2,106,208	2,106,208
Cash and cash equivalents	683,836		582,589		683,836	582,589	928,681
Restricted cash	0		55,000		0	55,000	0
Cash, cash equivalents, and restricted cash, end of period	$ 683,836		$ 637,589		683,836	637,589	$ 928,681
SUPPLEMENTAL INFORMATION
Interest expense					$ 3,162	$ 2,112

v3.24.3

Note 1 - Description of Business	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Nature of Operations [Text Block]	Note 1 – Description of Business   Description of Business Nuo Therapeutics, Inc. (“Nuo,” the “Company,” “we,” “us,” or “our”) is a Delaware corporation organized in 1998 under the name Informatix Holdings, Inc. In 1999, Autologous Wound Therapy, Inc., an Arkansas Corporation, merged with and into Informatix Holdings, Inc. and the name of the surviving corporation was changed to Autologous Wound Therapy, Inc. In 2000, Autologous Wound Therapy, Inc. changed its name to Cytomedix, Inc. (“Cytomedix”). In 2001, Cytomedix, filed for bankruptcy from which it emerged in 2002 under a Plan of Reorganization. In September 2007, Cytomedix received 510(k) clearance for the Aurix System (“Aurix”), formerly known as the AutoloGel™ System, from the U. S. Food and Drug Administration (“FDA”). In April 2010, Cytomedix acquired the Angel Whole Blood Separation System (“Angel”) and the Angel Business, from Sorin Group USA, Inc. In February 2012, Cytomedix, acquired Aldagen, Inc. (“Aldagen”), a privately held developmental cell-therapy company located in Durham, NC. In 2014, Cytomedix changed its name to Nuo Therapeutics, Inc. In 2016, Nuo filed for and emerged from bankruptcy under Chapter 11.  Effective May 1, 2019, we furloughed our remaining employees and ceased standard operational activities as we awaited developments concerning our reconsideration request with the Centers for Medicare & Medicaid Services (“CMS”) regarding Medicare coverage for Aurix.  Based on a favorable National Coverage Determination issued in April 2021, we initiated restart activities for the business beginning in October 2021.  Aldagen is a non-operational, wholly owned subsidiary of Nuo.

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2 – Liquidity and Summary of Significant Accounting Principles   Liquidity Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, and executing licensing arrangements, and to a lesser extent by generating royalties and product revenues.  In mid-2019, we ceased ongoing operational activities as we worked to reach a favorable outcome to Medicare reimbursement coverage for the Aurix System. In April 2021, CMS issued an NCD mandating national reimbursement coverage for Aurix when used in chronic non-healing wounds where a diabetes clinical diagnosis exists for the patient. During the nine months ended September 30, 2024, the Company raised proceeds of (i) approximately $1,500,000 from the sale of common stock to certain accredited investors in two private placements which closed in May and September 2024 and (ii) $151,200 from the exercise of warrants. During the year ended December 31, 2023, the Company raised proceeds of approximately $1,997,500 from the sale of common stock to certain accredited investors in two equity private placements which closed in August and December 2023.   We have incurred, and continue to incur, recurring losses and negative cash flows.  As of September 30, 2024, we have an accumulated deficit of approximately $31.8 million and cash and cash equivalents of approximately $0.7 million.   The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due.   We believe based on the operating cash requirements and capital expenditures expected for the next twelve months that our current resources and projected revenue from sales of Aurix products are insufficient to support our operations for the next 12 months.  As such, we believe that substantial doubt about our ability to continue as a going concern exists.  The unaudited consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.   Even assuming we succeed in raising sufficient additional funds in the near future, we require additional capital and will seek to continue financing our operations with external capital.   Any equity financing may cause further substantial dilution to our stockholders and could involve the issuance of securities with rights senior to the common stock. Any debt financing may require us to comply with additional onerous financial covenants and restrict our business operations. Our ability to complete additional financings is dependent on, among other things, market reception of the Company and perceived likelihood of success of our business model, the state of the capital markets at the time of any proposed equity or debt offering, state of the credit markets at the time of any proposed loan financing, and on the relevant transaction terms, among other things. We may not be able to obtain additional capital as required to finance our efforts, through equity or debt financing, other transactions, or any combination thereof, on satisfactory terms or at all. Additionally, any such financing, if at all obtained, may not be adequate to meet our capital needs and to support our operations.    Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The consolidated balance sheet at December 31, 2023, has been derived from audited financial statements of the Company as of that date. The interim unaudited consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the SEC. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited consolidated financial statements are read in conjunction with the audited financial statements and notes previously included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.   The unaudited consolidated financial statements include the accounts of the Company and its wholly owned, controlled, and inactive subsidiary Aldagen, Inc. (“Aldagen”). All significant inter-company accounts and transactions are eliminated in consolidation.  The Company operates its business in one operating segment consisting of one reporting unit.   Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us 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 the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited consolidated financial statements, estimates are used for, but not limited to stock-based compensation, recoverability and depreciable lives of long-lived assets, deferred taxes, and associated valuation allowance and allowances for inventory obsolescence and credit losses. Actual results could differ from those estimates.   Credit Concentration We generate accounts receivable from the sale of our products. Specific customer receivable balances in excess of 10% of total receivables at September 30, 2024 and December 31, 2023 is listed below.       September 30, 2024     December 31, 2023                     Customer A     11%       *   Customer B     *       21%   Customer C     *       12%   Customer D     *       10%     *  less than 10%   Revenue from significant customers exceeding 10% of total revenues for the three and nine months ended September 30, 2024 and 2023 is listed below.  All our revenue for both periods was generated within the U.S.       Three Months Ended September 30, 2024     Three Months Ended September 30, 2023     Nine Months Ended September 30, 2024     Nine Months Ended September 30, 2023                                     Customer A     14%       14%       18%       11%   Customer D     *       14%       *       12%   Customer E     *       12%       *       10%     *  less than 10%   Historically, we used single suppliers for several components of the Aurix product line. We outsource the manufacturing of various product components to contract manufacturers. While we believe these manufacturers demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship.   Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents potentially subject us to a concentration of credit risk, as approximately $0.7 million held in financial institutions was in excess of the FDIC insurance limit of $250,000 as of September 30, 2024. We maintain our cash in the form of money market deposit accounts with financial institutions that we believe are credit worthy. We maintained no cash equivalents as of September 30, 2024 or December 31, 2023. As of September 30, 2023, $55,000 of cash was considered as restricted as it collateralized a corporate credit card.   Accounts Receivable, net We generate accounts receivable from the sale of Aurix products and accounts receivable as of September 30, 2024 and December 31, 2023 reflects customer receivables from commercial sales activities since the re-initiation of such sales beginning in the three months ended September 30, 2022.   We provide for an allowance against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. We estimate credit losses expected over the life of our trade receivables and contract assets based on historical information combined with current conditions that may affect a customer’s ability to pay and reasonable and supportable forecasts. While the Company uses various credit quality metrics, it primarily monitors collectability by reviewing the duration of collection pursuits on its delinquent trade receivables and historical write-off trends. Based on the Company’s experience, the customer's delinquency status, which is analyzed periodically, is the strongest indicator of the credit quality of the underlying trade receivables. Accounts are written off against the allowance for credit losses when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. For the nine-month period ending September 30, 2024, we recorded a provision for credit losses of $17,500. As of September 30, 2024, the allowance for credit losses was approximately $49,900. During the year ended December 31, 2023, we established a provision for credit losses of $160,000. As of December 31, 2023, the allowance for credit losses was approximately $32,400.   Inventory, net Our inventory is produced by third-party manufacturers and consists of raw materials and finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. We maintain an inventory of kits, reagents, and other disposables having shelf-lives that generally range from 12 months to two years.   As of September 30, 2024, our inventory consisted of approximately $102,000 of finished goods inventory and approximately $66,000 of raw materials acquired to facilitate the manufacturing of finished goods at our contract manufacturer and our warehouse/distribution facility. As of December 31, 2023, our inventory consisted of approximately $150,000 of finished goods inventory and approximately $60,000 of raw materials.   We provide for an allowance against inventory for estimated losses that may result in excess and obsolete inventory (i.e., from the expiration of products). Our allowance for expired inventory is estimated based upon the inventory’s remaining shelf-life and our anticipated ability to sell such inventory, which is estimated using past experience and future forecasts, within its remaining shelf life. Expired products are segregated and used for demonstration purposes only; we will record the associated expense for this reserve to cost of sales in the consolidated statements of operations. For the three and nine months ended September 30, 2024, we incurred a provision of inventory obsolescence of $30,000 and wrote off an aggregate of approximately $27,400 of reagent and wound dressing kit raw materials. The reserve for inventory obsolescence totaled approximately $18,700 as of September 30, 2024. For the year ended December 31, 2023, we established an allowance for expired inventory of approximately $16,000.   Property and Equipment, net Property and equipment is stated at cost less accumulated depreciation.  Assets are depreciated, using the straight-line method, over their estimated useful life ranging from one to six years.  Maintenance and repairs are charged to operations as incurred.   Leases At the inception of a contract, we determine if the arrangement is, or contains, a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  Rent expense is recognized on a straight-line basis over the lease term.   We have made certain accounting policy elections whereby we (i) do not recognize ROU assets or lease liabilities for short-term leases (those with original terms of 12-months or less) and (ii) combine lease and non-lease elements of any operating leases.    Revenue Recognition We analyze our revenue arrangements to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers; (ii) identification of distinct performance obligations in the contract; (iii) determination of contract transaction price; (iv) allocation of contract transaction price to the performance obligations; and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation. We recognize revenues upon the satisfaction of the performance obligations (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In certain instances where the revenue is variable and we cannot estimate the amount of consideration to which we expect to be entitled, we are constrained from initially recognizing revenue.  In these cases, once the estimate is no longer constrained, we recognize revenue in the amount of consideration to which we expect to be entitled.   We provide for the sale of our products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products, as in the past those returns have not been material and are not expected to be material in the future. Direct costs associated with product sales are recorded at the time that revenue is recognized.   Stock-Based Compensation The fair value of employee stock options is measured at the date of grant. Expected volatilities for the 2016 Omnibus Plan options are based on the equally weighted average historical volatility from five comparable public companies with an expected term consistent with ours. Expected years until exercise represents the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. We assume that the dividend rate on our common stock will be zero. There were 400,000 options granted during the three and nine months ended September 30, 2024 and 100,000 options granted during the three and nine months ended September 30, 2023. We recognize forfeitures of stock-based awards as they occur. The assumptions for options granted during the three and nine months ended September 30, 2024 and 2023 are summarized in the following table:       2024     2023   Risk free rate     4.08%         4.37%     Weighted average expected years until exercise     5.5         5     Expected stock volatility     74%         100%     Dividend yield     -         -         Income Taxes We account for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. Tax rate changes are reflected in income during the period such changes are enacted. We measure our deferred tax assets and liabilities using the enacted tax rates that we believe will apply in the years in which the temporary differences are expected to be recovered or paid. We expect that recent tax law changes contained in the Inflation Reduction Act and CHIPS Act will not have a material impact on the provision for income taxes.   A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. All our tax years remain subject to examination by the tax authorities.   Our policy for recording interest and penalties associated with audits is to record such items as a component of income before taxes. There were no such items in the nine months ended September 30, 2024 and 2023.   Basic and Diluted Loss per Share In periods of net loss, basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti-dilutive.   For periods of net income, diluted earnings per share is computed using the more dilutive of the “treasury method” or “two class method.” Dilutive earnings per share under the “treasury method” is calculated by dividing net income available to common stockholders by the weighted- average number of shares outstanding plus the dilutive impact of all potential dilutive common shares, consisting primarily of common shares underlying common stock options and stock purchase warrants using the treasury stock method, and convertible notes using the if-converted method. Because none of the Company’s equity-linked financial instruments contain non-forfeitable rights to dividends, the “two class” method results in the same diluted earnings per share as the “treasury method.”   All of our potential dilutive securities are considered anti-dilutive for the three and nine months ended September 30, 2024 and 2023. The following table sets forth the potential dilutive securities excluded from the calculation of diluted loss per share for the periods presented.       Nine months ended September 30, 2024     Nine months ended September 30, 2023                     Shares underlying:                 Common stock options     3,476,667       3,476,667   Stock purchase warrants     450,000       450,000   Financing participation right and contingent warrant     -       500,000   Performance shares     300,000       300,000         4,226,667       4,726,667     Recent Accounting Standards   In December 2023, the FASB issued final guidance in ASU No. 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures requiring entities to provide additional information in the rate reconciliation and disclosures about income taxes paid. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. We do not expect this ASU to have a material impact on the consolidated financial statements.   We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our results of operations, financial position, or cash flows.

v3.24.3

Note 3 - Property and Equipment	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	Note 3 – Property and Equipment   Property and equipment, net consisted of the following:       September 30, 2024     December 31, 2023                     Medical equipment   $ 538,527     $ 387,665   Office/warehouse equipment     48,019       43,919   Warehouse/production equipment     23,317       23,317         609,863       454,901   Less accumulated depreciation     (421,326 )     (409,819 ) Property and equipment, net   $ 188,537     $ 45,082     Depreciation expense was $3,972 and $3,672 for the three months ended September 30, 2024 and 2023, respectively.  Depreciation expense was $11,506 and $11,560for the nine months ended September 30, 2024 and 2023, respectively. None of our long-lived assets were deemed to be impaired during the nine months ended September 30, 2024 and 2023.

v3.24.3

Note 4 - Stock Purchase Warrants	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Stock Purchase Warrants [Text Block]	Note 4 – Stock Purchase Warrants   The following schedule reflects outstanding stock purchase warrants as of September 30, 2024 and 2023:   Description   September 30, 2024     September 30, 2023                     2022 Sales incentive warrants     450,000       450,000   Total     450,000       450,000     During the year ended December 31, 2022, we issued two warrants to purchase (i) 250,000 shares of common stock at an exercise price of $1.00 per share and expiring December 31, 2027 and (ii) 200,000 shares of common stock at an exercise price of $1.50 per share and expiring December 31, 2028 to a distribution partner under an agreement whereby the warrants are exercisable subject to the distributor attaining certain performance goals set forth in the warrants based upon exceeding sales quota revenues for calendar years 2023 through potentially 2025. The warrants are equity classified. The aggregate intrinsic value for 2022 sales incentive warrants as of September 30, 2024 was zero. Additionally, we agreed to issue certain additional warrants to acquire up to 500,000 shares of common stock to the same distribution partner where the issuance of the warrant was contingent upon future financing events. This warrant was issued as of January 1, 2024 and exercised by the holder during the nine months ended September 30, 2024. A portion of the warrant was exercised for proceeds of $151,200 and the remaining balance of the warrant was cashlessly exercised and resulted in the issuance of 86,889 shares of common stock.  See Note 5 – Equity and Stock Based Compensation for further information.

v3.24.3

Note 5 - Equity and Stock-based Compensation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Equity [Text Block]	Note 5 – Equity and Stock-Based Compensation   Under the Second Amended and Restated Certificate of Incorporation, we have the authority to issue a total of 101,000,000 shares of capital stock, consisting of 100,000,000 shares of common stock and 1,000,000 shares of preferred stock, par value $0.0001 per share, which will have such rights, powers and preferences as the Board of Directors shall determine.   Pacific Medical Common Stock and Warrant Purchase Agreement   On August 24, 2022, Nuo entered into a Common Stock and Warrant Purchase Agreement (the “Agreement”) with Pacific Medical, Inc. (“Pacific Med”) for the sale and issuance of shares of common stock and warrants to purchase shares of common stock. Pacific Med is the exclusive distributor for the Aurix products within a territory that covers the states of Washington, Oregon, Idaho, Montana, Wyoming, most of California, the northern half of Nevada, plus Alaska.   Pursuant to the Agreement, Pacific Med purchased 500,000 shares of common stock for $500,000. As part of the purchase of common stock, we agreed to grant to Pacific Med the right to participate in any future financing by Nuo through December 31, 2023 (the “Participation Rights”) in connection with a listing of our common stock on a national securities exchange. The Participation Rights entitled Pacific Med to purchase up to 500,000 shares of common stock upon substantially the same terms, conditions, and price provided for in such financing. If such a financing did not occur by December 31, 2023, we agreed to issue Pacific Med a warrant with a January 1, 2024 issuance date and exercisable until June 30, 2024, to purchase up to 500,000 shares of Common Stock at a price equal to the lower of $2.00 per share or the 20-day volume weighted average closing price per share ending December 31, 2023 (the “2024 Financing Participation warrant”). We issued the 2024 Financing Participation warrant to Pacific Med on January 1, 2024 with an exercise price of $0.56 per share. Pacific Med exercised (i) 270,000 of the warrants for cash proceeds of $151,200 and (ii) the remaining 230,000 warrants cashlessly in exchange for the issuance of 86,889 shares of common stock during the nine months ended September 30, 2024. The common stock, Participation Rights, and 2024 Financing Participation warrant are equity classified.   As part of the Agreement and as additional incentive compensation with respect to Pacific Med’s performance under its existing sales and distribution arrangement, we also provided to Pacific Med two compensatory performance-based stock purchase warrants and certain contingently issuable performance shares. The first warrant entitles Pacific Med to purchase up to 250,000 shares of common stock at a price of $1.00 per share (the “First Warrant”) upon Pacific Med attaining certain performance goals set forth in the First Warrant based upon exceeding sales quota revenue, as agreed between the Company and Pacific Med, for calendar years 2023 and/or 2024. The second warrant entitles Pacific Med to purchase up to 200,000 shares of Common Stock at a price of $1.50 per share (the “Second Warrant”) upon Pacific Med attaining certain performance goals set forth in the Second Warrant based upon exceeding sales quota revenue, as agreed between the Company and Pacific Med, for calendar years 2024 and/or 2025. The First Warrant will expire December 31, 2027 and the Second Warrant will expire December 31, 2028. The fair value of the First Warrant and Second Warrant at the date of issuance was approximately $434,000 and $345,000, respectively, based on a Black-Scholes option pricing model. As the exercisability of the two warrants is not considered probable as of September 30, 2024, there was no recognition of stock-based compensation expense for the nine months ended September 30, 2024. When exercisability is determined to be probable, the issuance date fair value of the warrant earned through such date will be recognized with the balance of the fair value recognized ratably over the remaining period of performance. We also agreed to issue up to 300,000 shares of common stock to Pacific Med subject to and upon the achievement of certain milestones set forth in the Agreement based upon sales of our products over defined 12-month periods of between $4.5 million by June 30, 2024 through at least $12.5 million in calendar year 2025 (the Performance Shares”). The fair value of the Performance Shares at the date of issuance was approximately $615,000 based on the closing stock price on the closing of the Agreement. As the issuance of the shares is not considered probable as of September 30, 2024, there was no expense recognition for the nine months ended September 30, 2024. When issuance is determined to be probable, the issuance date fair value of the shares through such date will be recognized with the balance of the fair value recognized ratably over the remaining period of performance.   2024 Private Placement Equity Issuances   We sold 2,000,000 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in May and September 2024 for proceeds of $650,875 and $849,125, respectively.  Certain related parties including a principal shareholder, a member of the Board of Directors, and a member of senior management invested an aggregate of $281,250 in the two private placement transactions.   2023 Private Placement Equity Issuances   We sold 2,442,500 shares of common stock to certain accredited investors pursuant to Securities Purchase Agreements in two private placements which closed in August and December 2023 for proceeds of $1,997,500.  Certain related parties including a principal shareholder, a member of the Board of Directors, and a member of senior management invested an aggregate of $760,000 in the two 2023 private placement transactions.   Stock-Based Compensation   In July 2016, the Board of Directors approved the 2016 Omnibus Incentive Plan (the “2016 Omnibus Plan” or “Plan”), and in November 2016, holders of a majority of our capital stock approved the 2016 Omnibus Plan, as amended and restated, which provides for the grant of equity and cash incentive awards to officers, directors and employees of, and consultants to, Nuo Therapeutics and its subsidiaries. Further, in March 2022, the Board approved an amendment to the 2016 Omnibus Plan to increase the shares available under the Plan to 4,250,000 and remove an annual evergreen provision, which was approved by the holders of a majority of our outstanding common stock and which became effective in June 2022.   A summary of stock option activity under the 2016 Omnibus Plan during the nine months ended September 30, 2024 is presented below:    Stock Options – 2016 Omnibus Plan   Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term                             Outstanding at January 1, 2024     3,189,167     $ 0.64       5.69   Granted     400,000       0.33       10.00   Exercised     -       -       -   Forfeited or expired     (112,500 )     0.75       -   Outstanding at September 30, 2024     3,476,667     $ 0.60       5.33   Exercisable at September 30, 2024     2,861,528     $ 0.62       4.50     There were 400,000 stock options granted to non-executive employees and members of the Board of Directors under the 2016 Omnibus Plan during the three and nine months ended September 30, 2024. The fair value of the granted options vesting over one and three years was approximately $86,700. There were 100,000 incentive stock options granted to an employee under the Plan during the three and nine months ended September 30, 2023. The aggregate intrinsic value for outstanding and exercisable options as of September 30, 2024 was approximately $323,700 and $222,700, respectively.   For the three months ended September 30, 2024 and 2023, we recorded stock-based compensation expense of $20,916 and $11,527, respectively. For the nine months ended September 30, 2024 and 2023, we recorded stock-based compensation expense of $27,078 and $18,665, respectively. As of September 30, 2024, there was approximately $133,600 of unrecognized compensation cost related to the non-vested stock options which is expected to be recognized prior to year-end 2027.

v3.24.3

Note 6 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 6 – Commitments and Contingencies   Lease Agreements   In January 2022, we entered into a commercial operating lease agreement for office space in Florida, expiring on December 31, 2024. The lease required us to pay for insurance, taxes, and our share of common operating expenses. The lease resulted in an increase in right of use assets and lease liabilities of $89,312, using a discount rate of 10%. Effective March 24, 2024, Nuo and the landlord agreed to terminate the lease effective immediately.   We incurred no costs related to the lease termination and the remaining right of use asset and operating lease liability were written off with the resulting immaterial difference recorded as a gain in other income.   In February 2022, we entered into a commercial operating lease for our primary office and warehouse/distribution space in Texas. The lease requires us to pay for insurance, taxes, and our share of common operating expenses. This lease expires in March 2027. The space remained under buildout and landlord control during the three months ended March 31, 2022 with Nuo acquiring control of the lease space effective April 1, 2022; as a result, a right of use asset and lease liability was recognized of $337,226 as of April 1, 2022 using a discount rate of 10%.   Total operating lease costs were approximately $26,300 and $39,400 for the three months ended September 30, 2024 and 2023, respectively, consisting solely of base rental and common area maintenance costs.   Total operating lease costs were approximately $92,400 and $118,200 for the nine months ended September 30, 2024 and 2023, respectively. The Company has no financing leases.    Future undiscounted cash flows under this lease are:   2024     19,460   2025     80,273   2026     82,705   2027     21,284   Total operating lease payments     203,722             Discount factor     (24,414 ) Present value of operating lease liabilities     179,308   Current portion of operating lease liabilities     (64,619 ) Non-current portion of operating lease liabilities   $ 114,689

v3.24.3

Note 7 - Subsequent Events	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Subsequent Events [Text Block]	Note 7 – Subsequent Events   The Company has evaluated subsequent events through the date the consolidated financial statements were available to be issued. No material events requiring disclosure were identified.

v3.24.3

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5.    Other Information.   None.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

v3.24.3

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Liquidity, Policy [Policy Text Block]	Liquidity Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, and executing licensing arrangements, and to a lesser extent by generating royalties and product revenues.  In mid-2019, we ceased ongoing operational activities as we worked to reach a favorable outcome to Medicare reimbursement coverage for the Aurix System. In April 2021, CMS issued an NCD mandating national reimbursement coverage for Aurix when used in chronic non-healing wounds where a diabetes clinical diagnosis exists for the patient. During the nine months ended September 30, 2024, the Company raised proceeds of (i) approximately $1,500,000 from the sale of common stock to certain accredited investors in two private placements which closed in May and September 2024 and (ii) $151,200 from the exercise of warrants. During the year ended December 31, 2023, the Company raised proceeds of approximately $1,997,500 from the sale of common stock to certain accredited investors in two equity private placements which closed in August and December 2023.   We have incurred, and continue to incur, recurring losses and negative cash flows.  As of September 30, 2024, we have an accumulated deficit of approximately $31.8 million and cash and cash equivalents of approximately $0.7 million.   The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due.   We believe based on the operating cash requirements and capital expenditures expected for the next twelve months that our current resources and projected revenue from sales of Aurix products are insufficient to support our operations for the next 12 months.  As such, we believe that substantial doubt about our ability to continue as a going concern exists.  The unaudited consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.   Even assuming we succeed in raising sufficient additional funds in the near future, we require additional capital and will seek to continue financing our operations with external capital.   Any equity financing may cause further substantial dilution to our stockholders and could involve the issuance of securities with rights senior to the common stock. Any debt financing may require us to comply with additional onerous financial covenants and restrict our business operations. Our ability to complete additional financings is dependent on, among other things, market reception of the Company and perceived likelihood of success of our business model, the state of the capital markets at the time of any proposed equity or debt offering, state of the credit markets at the time of any proposed loan financing, and on the relevant transaction terms, among other things. We may not be able to obtain additional capital as required to finance our efforts, through equity or debt financing, other transactions, or any combination thereof, on satisfactory terms or at all. Additionally, any such financing, if at all obtained, may not be adequate to meet our capital needs and to support our operations.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The consolidated balance sheet at December 31, 2023, has been derived from audited financial statements of the Company as of that date. The interim unaudited consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the SEC. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited consolidated financial statements are read in conjunction with the audited financial statements and notes previously included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.   The unaudited consolidated financial statements include the accounts of the Company and its wholly owned, controlled, and inactive subsidiary Aldagen, Inc. (“Aldagen”). All significant inter-company accounts and transactions are eliminated in consolidation.  The Company operates its business in one operating segment consisting of one reporting unit.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us 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 the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited consolidated financial statements, estimates are used for, but not limited to stock-based compensation, recoverability and depreciable lives of long-lived assets, deferred taxes, and associated valuation allowance and allowances for inventory obsolescence and credit losses. Actual results could differ from those estimates.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Credit Concentration We generate accounts receivable from the sale of our products. Specific customer receivable balances in excess of 10% of total receivables at September 30, 2024 and December 31, 2023 is listed below.       September 30, 2024     December 31, 2023                     Customer A     11%       *   Customer B     *       21%   Customer C     *       12%   Customer D     *       10%     *  less than 10%   Revenue from significant customers exceeding 10% of total revenues for the three and nine months ended September 30, 2024 and 2023 is listed below.  All our revenue for both periods was generated within the U.S.       Three Months Ended September 30, 2024     Three Months Ended September 30, 2023     Nine Months Ended September 30, 2024     Nine Months Ended September 30, 2023                                     Customer A     14%       14%       18%       11%   Customer D     *       14%       *       12%   Customer E     *       12%       *       10%     *  less than 10%   Historically, we used single suppliers for several components of the Aurix product line. We outsource the manufacturing of various product components to contract manufacturers. While we believe these manufacturers demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents potentially subject us to a concentration of credit risk, as approximately $0.7 million held in financial institutions was in excess of the FDIC insurance limit of $250,000 as of September 30, 2024. We maintain our cash in the form of money market deposit accounts with financial institutions that we believe are credit worthy. We maintained no cash equivalents as of September 30, 2024 or December 31, 2023. As of September 30, 2023, $55,000 of cash was considered as restricted as it collateralized a corporate credit card.
Receivable [Policy Text Block]	Accounts Receivable, net We generate accounts receivable from the sale of Aurix products and accounts receivable as of September 30, 2024 and December 31, 2023 reflects customer receivables from commercial sales activities since the re-initiation of such sales beginning in the three months ended September 30, 2022.   We provide for an allowance against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. We estimate credit losses expected over the life of our trade receivables and contract assets based on historical information combined with current conditions that may affect a customer’s ability to pay and reasonable and supportable forecasts. While the Company uses various credit quality metrics, it primarily monitors collectability by reviewing the duration of collection pursuits on its delinquent trade receivables and historical write-off trends. Based on the Company’s experience, the customer's delinquency status, which is analyzed periodically, is the strongest indicator of the credit quality of the underlying trade receivables. Accounts are written off against the allowance for credit losses when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. For the nine-month period ending September 30, 2024, we recorded a provision for credit losses of $17,500. As of September 30, 2024, the allowance for credit losses was approximately $49,900. During the year ended December 31, 2023, we established a provision for credit losses of $160,000. As of December 31, 2023, the allowance for credit losses was approximately $32,400.
Inventory, Policy [Policy Text Block]	Inventory, net Our inventory is produced by third-party manufacturers and consists of raw materials and finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. We maintain an inventory of kits, reagents, and other disposables having shelf-lives that generally range from 12 months to two years.   As of September 30, 2024, our inventory consisted of approximately $102,000 of finished goods inventory and approximately $66,000 of raw materials acquired to facilitate the manufacturing of finished goods at our contract manufacturer and our warehouse/distribution facility. As of December 31, 2023, our inventory consisted of approximately $150,000 of finished goods inventory and approximately $60,000 of raw materials.   We provide for an allowance against inventory for estimated losses that may result in excess and obsolete inventory (i.e., from the expiration of products). Our allowance for expired inventory is estimated based upon the inventory’s remaining shelf-life and our anticipated ability to sell such inventory, which is estimated using past experience and future forecasts, within its remaining shelf life. Expired products are segregated and used for demonstration purposes only; we will record the associated expense for this reserve to cost of sales in the consolidated statements of operations. For the three and nine months ended September 30, 2024, we incurred a provision of inventory obsolescence of $30,000 and wrote off an aggregate of approximately $27,400 of reagent and wound dressing kit raw materials. The reserve for inventory obsolescence totaled approximately $18,700 as of September 30, 2024. For the year ended December 31, 2023, we established an allowance for expired inventory of approximately $16,000.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment, net Property and equipment is stated at cost less accumulated depreciation.  Assets are depreciated, using the straight-line method, over their estimated useful life ranging from one to six years.  Maintenance and repairs are charged to operations as incurred.
Lessee, Leases [Policy Text Block]	Leases At the inception of a contract, we determine if the arrangement is, or contains, a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  Rent expense is recognized on a straight-line basis over the lease term.   We have made certain accounting policy elections whereby we (i) do not recognize ROU assets or lease liabilities for short-term leases (those with original terms of 12-months or less) and (ii) combine lease and non-lease elements of any operating leases.
Revenue [Policy Text Block]	Revenue Recognition We analyze our revenue arrangements to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers; (ii) identification of distinct performance obligations in the contract; (iii) determination of contract transaction price; (iv) allocation of contract transaction price to the performance obligations; and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation. We recognize revenues upon the satisfaction of the performance obligations (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In certain instances where the revenue is variable and we cannot estimate the amount of consideration to which we expect to be entitled, we are constrained from initially recognizing revenue.  In these cases, once the estimate is no longer constrained, we recognize revenue in the amount of consideration to which we expect to be entitled.   We provide for the sale of our products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products, as in the past those returns have not been material and are not expected to be material in the future. Direct costs associated with product sales are recorded at the time that revenue is recognized.
Share-Based Payment Arrangement [Policy Text Block]	Stock-Based Compensation The fair value of employee stock options is measured at the date of grant. Expected volatilities for the 2016 Omnibus Plan options are based on the equally weighted average historical volatility from five comparable public companies with an expected term consistent with ours. Expected years until exercise represents the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. We assume that the dividend rate on our common stock will be zero. There were 400,000 options granted during the three and nine months ended September 30, 2024 and 100,000 options granted during the three and nine months ended September 30, 2023. We recognize forfeitures of stock-based awards as they occur. The assumptions for options granted during the three and nine months ended September 30, 2024 and 2023 are summarized in the following table:       2024     2023   Risk free rate     4.08%         4.37%     Weighted average expected years until exercise     5.5         5     Expected stock volatility     74%         100%     Dividend yield     -         -
Income Tax, Policy [Policy Text Block]	Income Taxes We account for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. Tax rate changes are reflected in income during the period such changes are enacted. We measure our deferred tax assets and liabilities using the enacted tax rates that we believe will apply in the years in which the temporary differences are expected to be recovered or paid. We expect that recent tax law changes contained in the Inflation Reduction Act and CHIPS Act will not have a material impact on the provision for income taxes.   A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. All our tax years remain subject to examination by the tax authorities.   Our policy for recording interest and penalties associated with audits is to record such items as a component of income before taxes. There were no such items in the nine months ended September 30, 2024 and 2023.
Earnings Per Share, Policy [Policy Text Block]	Basic and Diluted Loss per Share In periods of net loss, basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. In periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti-dilutive.   For periods of net income, diluted earnings per share is computed using the more dilutive of the “treasury method” or “two class method.” Dilutive earnings per share under the “treasury method” is calculated by dividing net income available to common stockholders by the weighted- average number of shares outstanding plus the dilutive impact of all potential dilutive common shares, consisting primarily of common shares underlying common stock options and stock purchase warrants using the treasury stock method, and convertible notes using the if-converted method. Because none of the Company’s equity-linked financial instruments contain non-forfeitable rights to dividends, the “two class” method results in the same diluted earnings per share as the “treasury method.”   All of our potential dilutive securities are considered anti-dilutive for the three and nine months ended September 30, 2024 and 2023. The following table sets forth the potential dilutive securities excluded from the calculation of diluted loss per share for the periods presented.       Nine months ended September 30, 2024     Nine months ended September 30, 2023                     Shares underlying:                 Common stock options     3,476,667       3,476,667   Stock purchase warrants     450,000       450,000   Financing participation right and contingent warrant     -       500,000   Performance shares     300,000       300,000         4,226,667       4,726,667
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Standards   In December 2023, the FASB issued final guidance in ASU No. 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures requiring entities to provide additional information in the rate reconciliation and disclosures about income taxes paid. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. We do not expect this ASU to have a material impact on the consolidated financial statements.   We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our results of operations, financial position, or cash flows.

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	September 30, 2024     December 31, 2023                     Customer A     11%       *   Customer B     *       21%   Customer C     *       12%   Customer D     *       10%       Three Months Ended September 30, 2024     Three Months Ended September 30, 2023     Nine Months Ended September 30, 2024     Nine Months Ended September 30, 2023                                     Customer A     14%       14%       18%       11%   Customer D     *       14%       *       12%   Customer E     *       12%       *       10%
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	2024     2023   Risk free rate     4.08%         4.37%     Weighted average expected years until exercise     5.5         5     Expected stock volatility     74%         100%     Dividend yield     -         -
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Nine months ended September 30, 2024     Nine months ended September 30, 2023                     Shares underlying:                 Common stock options     3,476,667       3,476,667   Stock purchase warrants     450,000       450,000   Financing participation right and contingent warrant     -       500,000   Performance shares     300,000       300,000         4,226,667       4,726,667

v3.24.3

Note 3 - Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	September 30, 2024     December 31, 2023                     Medical equipment   $ 538,527     $ 387,665   Office/warehouse equipment     48,019       43,919   Warehouse/production equipment     23,317       23,317         609,863       454,901   Less accumulated depreciation     (421,326 )     (409,819 ) Property and equipment, net   $ 188,537     $ 45,082

v3.24.3

Note 4 - Stock Purchase Warrants (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Description   September 30, 2024     September 30, 2023                     2022 Sales incentive warrants     450,000       450,000   Total     450,000       450,000

v3.24.3

Note 5 - Equity and Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Stock Options – 2016 Omnibus Plan   Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term                             Outstanding at January 1, 2024     3,189,167     $ 0.64       5.69   Granted     400,000       0.33       10.00   Exercised     -       -       -   Forfeited or expired     (112,500 )     0.75       -   Outstanding at September 30, 2024     3,476,667     $ 0.60       5.33   Exercisable at September 30, 2024     2,861,528     $ 0.62       4.50

v3.24.3

Note 6 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	2024     19,460   2025     80,273   2026     82,705   2027     21,284   Total operating lease payments     203,722             Discount factor     (24,414 ) Present value of operating lease liabilities     179,308   Current portion of operating lease liabilities     (64,619 ) Non-current portion of operating lease liabilities   $ 114,689

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles (Details Textual) - USD ($)	1 Months Ended				3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2024	May 31, 2024	Dec. 31, 2023	Aug. 31, 2023	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Proceeds from Warrant Exercises						$ 151,200	$ 0
Retained Earnings (Accumulated Deficit)	$ (31,763,280)		$ (29,936,241)		$ (31,763,280)	(31,763,280)		$ (29,936,241)
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	683,836		928,681		683,836	683,836	637,589	928,681	$ 2,106,208
Cash, Uninsured Amount	700,000				700,000	700,000
Accounts Receivable, Credit Loss Expense (Reversal)						17,500	100,000	160,000
Accounts Receivable, Allowance for Credit Loss	49,900		32,400		49,900	49,900		32,400
Inventory, Finished Goods, Gross	102,000		150,000		102,000	102,000		150,000
Inventory, Raw Materials, Gross	66,000		60,000		66,000	66,000		60,000
Inventory Write-down					30,000	30,000	16,074
Inventory Valuation Reserves	$ 18,700		16,000		$ 18,700	$ 18,700		16,000
The 2016 Omnibus Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross						400,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant										4,250,000
The 2016 Omnibus Plan [Member] | Incentive Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant	100,000				100,000	100,000
The 2016 Omnibus Plan [Member] | Non-executive Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross					400,000	400,000
Minimum [Member]
Property, Plant and Equipment, Useful Life	1 year				1 year	1 year
Maximum [Member]
Property, Plant and Equipment, Useful Life	6 years				6 years	6 years
Reagent and Wound Dressing Kits [Member]
Inventory, Raw Materials, Write-down					$ 27,400	$ 27,400
Asset Pledged as Collateral [Member] | Corporate Credit Card [Member]
Restricted Cash							$ 55,000
Private Placement [Member]
Proceeds from Issuance of Private Placement	$ 849,125	$ 650,875	$ 1,997,500	$ 1,997,500		$ 1,500,000		$ 1,997,500

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles - Summary of Concentration Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Customer A [Member] | Accounts Receivable [Member]
Concentration percentage			11.00%
Customer A [Member] | Revenue Benchmark [Member]
Concentration percentage	14.00%	14.00%	18.00%	11.00%
Customer D [Member] | Accounts Receivable [Member]
Concentration percentage					10.00%
Customer D [Member] | Revenue Benchmark [Member]
Concentration percentage		14.00%		12.00%
Customer B [Member] | Accounts Receivable [Member]
Concentration percentage					21.00%
Customer E [Member] | Revenue Benchmark [Member]
Concentration percentage		12.00%		10.00%
Customer C [Member] | Accounts Receivable [Member]
Concentration percentage					12.00%

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles - Summary Stock Option Valuation Assumptions (Details)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Risk free rate	4.08%	4.37%
Weighted average expected years until exercise (Year)	5 years 6 months
Expected stock volatility	74.00%	100.00%
Dividend yield	0.00%	0.00%

v3.24.3

Note 2 - Liquidity and Summary of Significant Accounting Principles - Anti-dilutive Securities Excluded From the Computation of Diluted Earnings (Loss) Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Anti-dilutive securities (in shares)	4,226,667	4,726,667
Share-Based Payment Arrangement, Option [Member]
Anti-dilutive securities (in shares)	3,476,667	3,476,667
Warrant [Member]
Anti-dilutive securities (in shares)	450,000	450,000
Contingent Warrants Upon Future Financing Events [Member]
Anti-dilutive securities (in shares)	0	500,000
Performance Shares [Member]
Anti-dilutive securities (in shares)	300,000	300,000

v3.24.3

Note 3 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Depreciation	$ 3,972	$ 3,672	$ 11,506	$ 11,560

v3.24.3

Note 3 - Property and Equipment - Property and Equipment, Net (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, plant, and equipment, gross	$ 609,863	$ 454,901
Less accumulated depreciation	(421,326)	(409,819)
Property and equipment, net	188,537	45,082
Medical Equipment [Member]
Property, plant, and equipment, gross	538,527	387,665
Office Warehouse Equipment [Member]
Property, plant, and equipment, gross	48,019	43,919
Warehouse and Production Equipment [Member]
Property, plant, and equipment, gross	$ 23,317	$ 23,317

v3.24.3

Note 4 - Stock Purchase Warrants (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022
Proceeds from Warrant Exercises	$ 151,200	$ 0
The 2022 Sales Incentive Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 1
The 2022 Sales Incentive Warrants [Member] | Distribution Partner [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 1.5
Class of Warrant or Right, Outstanding, Aggregate Intrinsic Value	$ 0
Contingent Warrants Upon Future Financing Events [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	500,000
Proceeds from Warrant Exercises	$ 151,200
Stock Issued During Period, Shares, Cashless Exercise of Warrants	86,889

v3.24.3

Note 4 - Stock Purchase Warrants - Outstanding Stock Purchase Warrants (Details) - shares	Sep. 30, 2024	Sep. 30, 2023
Outstanding warrants (in shares)	450,000	450,000
The 2022 Sales Incentive Warrants [Member]
Outstanding warrants (in shares)	450,000	450,000

v3.24.3

Note 5 - Equity and Stock-based Compensation (Details Textual) - USD ($)		1 Months Ended				3 Months Ended			9 Months Ended		12 Months Ended
	Aug. 24, 2022	Sep. 30, 2024	May 31, 2024	Dec. 31, 2023	Aug. 31, 2023	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2025	Jun. 30, 2024	Dec. 31, 2023	Jan. 01, 2024	Mar. 31, 2022
Authorized Shares, Common and Preferred		101,000,000				101,000,000			101,000,000
Common Stock, Shares Authorized (in shares)		100,000,000		100,000,000		100,000,000			100,000,000				100,000,000
Preferred Stock, Shares Authorized		1,000,000				1,000,000			1,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.0001				$ 0.0001			$ 0.0001
Stock Issued During Period, Value, New Issues						$ 849,125	$ 650,875	$ 1,035,000
Proceeds from Warrant Exercises									$ 151,200	$ 0
Share-Based Payment Arrangement, Expense						20,916		$ 11,527	27,078	$ 18,665
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 133,600				$ 133,600			$ 133,600
The 2016 Omnibus Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant															4,250,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross									400,000
The 2016 Omnibus Plan [Member] | Incentive Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant		100,000				100,000			100,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value		$ 323,700				$ 323,700			$ 323,700
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value		$ 222,700				$ 222,700			$ 222,700
The 2016 Omnibus Plan [Member] | Non-executive Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross						400,000			400,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value									$ 86,700
Principal Shareholder, Members of the Board of Directors, and a Member of Senior Management [Member]
Proceeds from Issuance of Private Placement			$ 281,250										$ 760,000
Private Placement [Member]
Stock Issued During Period, Shares, New Issues		2,000,000	2,000,000										2,442,500
Proceeds from Issuance of Private Placement		$ 849,125	$ 650,875	$ 1,997,500	$ 1,997,500				$ 1,500,000				$ 1,997,500
Participation Rights [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	500,000
Contingent Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	500,000
Class of Warrant or Right, Purchase Price of Warrants or Rights	$ 2
Class of Warrant or Right, Exercise Price of Warrants or Rights														$ 0.56
Class of Warrant or Right, Exercised During Period									270,000
Proceeds from Warrant Exercises									$ 151,200
Class of Warrant or Right, Exercised on Cashless Basis									230,000
Stock Issued During Period, Shares, Cashless Exercise of Warrants									86,889
First Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1
Warrants and Rights Outstanding	$ 434,000
Second Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.5
Warrants and Rights Outstanding	$ 345,000
First and Second Compensatory Performance-based Stock Purchase Warrants [Member]
Share-Based Payment Arrangement, Expense									$ 0
Pacific Med [Member]
Stock Issued During Period, Shares, New Issues	500,000
Stock Issued During Period, Value, New Issues	$ 500,000
Share-Based Payment Arrangement, Expense									$ 0
Sales and Distribution Agreement, Milestone Achievement, Minimum Revenue to be Achieved												$ 4,500,000
Common Stock, Capital Shares Agreed for Future Issuance Upon Milestone Achievement, Fair Value	$ 615,000
Pacific Med [Member] | Forecast [Member]
Sales and Distribution Agreement, Milestone Achievement, Minimum Revenue to be Achieved											$ 12,500,000
Pacific Med [Member] | Maximum [Member]
Common Stock, Capital Shares Agreed for Future Issuance Upon Milestone Achievement	300,000

v3.24.3

Note 5 - Equity and Stock-based Compensation - Stock Option Activity (Details) - The 2016 Omnibus Plan [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares
Shares outstanding (in shares) | shares	3,189,167
Shares outstanding, weighted-average exercise price (in dollars per share) | $ / shares	$ 0.64
Shares outstanding, weighted-average remaining contractual term (Year)	5 years 3 months 29 days	5 years 8 months 8 days
Shares granted (in shares) | shares	400,000
Shares granted, weighted-average exercise price (in dollars per share) | $ / shares	$ 0.33
Granted, weighted average remaining contractual term (Year)	10 years
Shares exercised (in shares) | shares	0
Shares exercised, weighted-average exercise price (in dollars per share) | $ / shares	$ 0
Shares forfeited or expired (in shares) | shares	(112,500)
Shares forfeited or expired, weighted-average exercise price (in dollars per share) | $ / shares	$ 0.75
Shares outstanding (in shares) | shares	3,476,667	3,189,167
Outstanding at June 30, 2024 (in dollars per share) | $ / shares	$ 0.6	$ 0.64
Shares exercisable (in shares) | shares	2,861,528
Shares exercisable, weighted-average exercise price (in dollars per share) | $ / shares	$ 0.62
Shares exercisable, weighted-average remaining contractual term (Year)	4 years 6 months

v3.24.3

Note 6 - Commitments and Contingencies (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 24, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Apr. 01, 2022	Jan. 31, 2022
Operating Lease, Right-of-Use Asset		$ 187,805		$ 187,805		$ 269,354	$ 337,226	$ 89,312
Operating Lease, Weighted Average Discount Rate, Percent							10.00%	10.00%
Gain (Loss) on Termination of Lease	$ 0
Operating Lease, Expense		$ 26,300	$ 39,400	$ 92,400	$ 118,200

v3.24.3

Note 6 - Commitments and Contingencies - Future Undiscounted Cash Flows (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
2024	$ 19,460
2025	80,273
2026	82,705
2027	21,284
Total operating lease payments	203,722
Discount factor	(24,414)
Present value of operating lease liabilities	179,308
Current portion of operating lease liabilities	(64,619)	$ (91,387)
Non-current portion of operating lease liabilities	$ 114,689	$ 164,205

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