10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________

FORM 10-Q

_____________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission file number 001-39990

Elicio Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	11-3430072
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
451 D Street, 5th Floor Boston, Massachusetts	02210
(Address of Principal Executive Offices)	(Zip Code)

(857) 209-0050

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	ELTX	The Nasdaq Global Select Market

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

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

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

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

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

The number of shares of the issuer’s common stock outstanding as of November 7, 2023 was 8,407,106.

TABLE OF CONTENTS
PART I FINANCIAL INFORMATION	Page
Item 1. Financial Statements	6
Condensed Consolidated Balance Sheets (unaudited)	6
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)	7
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (unaudited)	8
Condensed Consolidated Statements of Cash Flows (unaudited)	10
Notes to Unaudited Interim Condensed Consolidated Financial Statements	11
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures	36
Item 4. Controls and Procedures	36
PART II OTHER INFORMATION
Item 1. Legal Proceedings	38
Item 1A. Risk Factors	39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3. Defaults Upon Senior Securities	41
Item 4. Mine Safety Disclosures	41
Item 5. Other Information	41
Item 6. Exhibits	42
Signatures	43

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Forward-Looking Statements

This Quarterly Report on Form 10-Q, including the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements concerning our business strategy and plans, future operating results and financial position, as well as our objectives and expectations for our future operations, are forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would,” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:

•our financial condition, including our ability to obtain the funding necessary to advance the development of ELI-002 and any other future product candidates, and our ability to continue as a going concern;

•the ability of our clinical trials to demonstrate safety and efficacy of our product candidates, and other positive results;

•our ability to utilize our platform to develop a pipeline of product candidates to address unmet needs in cancer and infectious disease;

•the timing, progress and results of clinical trials for ELI-002, and other product candidates we may develop, including statements regarding the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the studies or trials will become available, and research and development programs;

•the timing, scope and likelihood of regulatory filings and approvals, including timing of INDs (as defined below) and U.S. Food and Drug Administration (“FDA”) approval of ELI-002 and any other future product candidates;

•the timing, scope or likelihood of foreign regulatory filings and approvals;

•our ability to develop and advance current product candidates and programs into, and successfully complete, clinical studies;

•our manufacturing, commercialization, and marketing capabilities and strategy;

•the need to hire additional personnel and our ability to attract and retain such personnel;

•the size of the market opportunity for our product candidates, including estimates of the number of patients who suffer from the diseases we are targeting;

•expectations regarding the approval and use of our product candidates in combination with other drugs;

•expectations regarding potential for accelerated approval or other expedited regulatory designation;

•our competitive position and the success of competing therapies that are or may become available;

•our anticipated research and development activities and projected expenditures;

•existing regulations and regulatory developments in the United States, Europe and other jurisdictions;

•the extent to which global economic and political developments, including the ongoing conflict between Ukraine and Russia, the conflicts in the Middle East, and other geopolitical events, will affect our business operations, clinical trials, or financial condition;

•our expectations regarding other macroeconomic trends;

•our intellectual property position, including the scope of protection we are able to establish and maintain for intellectual property rights covering ELI-002, other product candidates we may develop, including the extensions of existing patent terms where available, the validity of intellectual property rights held by third parties, and our ability not to infringe, misappropriate or otherwise violate any third-party intellectual property rights;

•our continued reliance on third parties to conduct additional clinical trials of our product candidates, and for the manufacture of our product candidates for clinical trials;

•our ability to have manufactured sufficient supplies of drug product for clinical testing and commercialization;

•our ability to obtain, and negotiate favorable terms of, any collaboration, licensing or other arrangements that may be necessary or desirable to develop, manufacture or commercialize our product candidates;

•our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

•our projected financial performance;

•the period over which we estimate our existing cash and cash equivalents will be sufficient to fund our planned operating expenses and capital expenditure requirements; and

•the impact of laws and regulations.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

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Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in our Current Report on Form 8-K filed with the SEC on June 2, 2023 and elsewhere in this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into or review of all relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements.

This Quarterly Report on Form 10-Q also contains estimates, projections and other information concerning our industry, our business and the markets for certain drugs, including data regarding the estimated size of those markets, their projected growth rates and the incidence of certain medical conditions. Information that is based on estimates, forecasts, projections or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from reports, research surveys, studies and similar data prepared by third parties, industry, medical and general publications, government data and similar sources. In some cases, we do not expressly refer to the sources from which this data is derived. In that regard, when we refer to one or more sources of this type of data in any paragraph, you should assume that other data of this type appearing in the same paragraph is derived from the same sources, unless otherwise expressly stated or the context otherwise requires.

EXPLANATORY NOTE

On June 1, 2023, Elicio Operating Company, Inc. (“Former Elicio”), completed the previously announced merger transaction in accordance with the terms and conditions of the Agreement and Plan of Merger and Reorganization, dated as of January 17, 2023 (the “Merger Agreement”), by and among the Delaware corporation formerly known as “Angion Biomedica Corp.” (“Angion”), Arkham Merger Sub, Inc., a wholly owned subsidiary of Angion (“Merger Sub”), and Former Elicio, pursuant to which Merger Sub merged with and into Former Elicio, with Former Elicio surviving the merger as a wholly owned subsidiary of Angion (the “Merger”). Additionally, on June 1, 2023, Angion changed its name from “Angion Biomedica Corp.” to “Elicio Therapeutics, Inc.” (the “Company”).

Prior to the effective time of the Merger, on June 1, 2023, in connection with the transactions contemplated by the Merger Agreement, the Company effected a reverse stock split of the Company’s common stock, par value $0.01 per share (“Company common stock”), at a ratio of 10:1 (the “Reverse Stock Split”). At the effective time of the Merger, each outstanding share of Former Elicio capital stock (after giving effect to the automatic conversion of all shares of Former Elicio preferred stock into shares of Former Elicio common stock and excluding any shares held as treasury stock by Former Elicio or held or owned by Angion or any subsidiary of Angion or Former Elicio and any dissenting shares) was converted into the right to receive 0.0181 shares of Company common stock. The information in this Quarterly Report on Form 10-Q as of and for the periods prior to the effective date of the Merger gives effect to the Reverse Stock Split.

Since Former Elicio was determined to be the accounting acquirer in connection with the Merger, for periods prior to the Merger, the condensed consolidated financial statements were prepared on a stand-alone basis for Former Elicio and did not include the combined entities’ activity or financial position. Subsequent to the Merger, the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2023 include the acquired business from June 2, 2023 through September 30, 2023, and assets and liabilities at their acquisition date fair value. Historical share and per share figures of Former Elicio have been retroactively restated based on the exchange ratio of 0.0181.

In this Quarterly Report on Form 10-Q, unless the context indicates otherwise, the terms “Company,” “we,” “us,” and “our” refer to (i) Angion for periods prior to the effectiveness of the Merger and (ii) Elicio Therapeutics, Inc.

4

(as a combined company) for periods following the effectiveness of the Merger. Following the completion of the Merger, the business conducted by the Company became primarily the business conducted by Former Elicio.

Trademarks

This Quarterly Report on Form 10-Q includes trademarks, service marks and trade names owned by us or other companies. All trademarks, service marks and trade names included in this Quarterly Report on Form 10-Q are the property of their respective owners. We do not intend our use or display of other companies’ trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

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Part I FINANCIAL INFORMATION

Item 1. Financial Statements

ELICIO THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

(unaudited)

	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	14,841	$	6,156
Restricted cash, current	1,671		1,641
Prepaid expenses and other current assets	3,419		2,920
Total current assets	19,931		10,717
Property and equipment, net	772		1,147
Operating lease, right-of-use assets	6,768		7,350
Restricted cash, noncurrent	683		617
Other long-term prepaid assets	2,833		2,833
Total assets	$	30,987	$	22,664
Liabilities, convertible preferred stock, and stockholders’ equity (deficit)
Current liabilities
Accounts payable	$	4,406	$	2,805
Accrued expenses	4,416		1,935
Deferred research obligation	1,664		1,436
Operating lease liability, current	938		692
Unvested option exercise liability, current	36		—
Warrant liability	26		—
Total current liabilities	11,486		6,868
Operating lease liability, noncurrent	6,215		6,789
Unvested option exercise liability, non current	—		92
Total liabilities	17,701		13,749
Commitments and contingencies - Note 10
Convertible preferred stock:
Series A convertible preferred stock, $0.06 par value: no shares and 132,387 shares authorized, issued and outstanding at September 30, 2023 and December 31, 2022, respectively	—		7,495
Series B convertible preferred stock, $0.06 par value: no shares and 1,927,375 shares authorized, issued and outstanding at September 30, 2023 and December 31, 2022, respectively	—		62,944
Series C convertible preferred stock, $0.06 par value: no shares and 4,888,798 shares authorized at September 30, 2023 and December 31, 2022, respectively; no shares and 2,938,158 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	—		40,621
Total convertible preferred stock	—		111,060
Stockholders' equity (deficit):
Common stock, $0.01 par value; 300,000,000 shares authorized at September 30, 2023 and December 31, 2022; 8,384,723 shares and 320,281 shares issued at September 30, 2023 and December 31, 2022, respectively; 8,378,361 and 320,281 outstanding as of September 30, 2023 and December 31, 2022, respectively	84		3
Treasury stock, at cost, 14,455 shares and no shares outstanding as of September 30, 2023 and December 31, 2022, respectively	(150)		—
Additional paid-in capital	146,631		4,860
Accumulated other comprehensive income (loss)	(25)		—
Accumulated deficit	(133,254)		(107,008)
Total stockholders' equity (deficit)	13,286		(102,145)
Total liabilities, convertible preferred stock, and stockholders' equity (deficit)	$	30,987	$	22,664

        

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

6

ELICIO THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating expenses:
Research and development	$	7,264	$	4,593	$	17,692	$	13,813
General and administrative	3,507		1,177		8,661		3,959
Total operating expenses	10,771		5,770		26,353		17,772
Loss from operations	(10,771)		(5,770)		(26,353)		(17,772)
Other income (expense)
Change in fair value of warrant liability	6		—		(17)		—
Change in fair value of embedded derivatives	—		(360)		429		(286)
Gain on extinguishment of promissory notes payable	—		—		604		—
Loss on sale of equipment	(105)		—		(105)		(4)
Foreign exchange transaction loss	(33)		—		(45)		—
Interest income	246		10		298		10
Interest expense	(1)		(1,078)		(1,057)		(3,505)
Total other income (expense)	113		(1,428)		107		(3,785)
Net loss	(10,658)		(7,198)		(26,246)		(21,557)
Other comprehensive loss:
Foreign currency translation adjustment	(23)		—		(25)		—
Comprehensive loss	$	(10,681)	$	(7,198)	$	(26,271)	$	(21,557)
Net loss per common share, basic and diluted	$	(1.27)	$	(22.67)	$	(3.19)	$	(68.52)
Weighted average common shares outstanding, basic and diluted	8,376,384		317,512		8,240,326		314,619

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

7

ELICIO THERAPEUTICS, INC.

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(unaudited)

	Convertible Preferred Stock			Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Equity (Deficit)
	Shares	Amount		Shares	Par Value		Shares	Amount
Balance as of December 31, 2022 (1)	4,997,920	$	111,060	320,281	$	3	—	$	—	$	4,860	$	—	$	(107,008)	$	(102,145)
Exercise of stock options	—	—		4,699	—		—	—		40		—		—		40
Issuance of common stock upon net settlement of restricted stock units	—	—		2,601	—		—	—		34		—		—		34
Stock-based compensation	—	—		—	—		—	—		224		—		—		224
Net loss	—	—		—	—		—	—		—		—		(8,029)		(8,029)
Balance as of March 31, 2023	4,997,920	111,060		327,581	3		—	—		5,158		—		(115,037)		(109,876)
Exercise of stock options	—	—		4,460	—		—	—		—		—		—		—
Issuance of common stock upon net settlement of restricted stock units	—	—		903	—		—	—		11		—		—		11
Conversion of preferred stock	(4,997,920)	(111,060)		4,997,920	50		—	—		111,010		—		—		111,060
Issuance of common stock to Angion stockholders as result of Merger and reset to par of $0.01, net of transaction cost of $2.4 million	—	—		3,012,854	30		—	—		19,709		—		—		19,739
Settlement of promissory notes in connection with Merger	—	—		—	—		—	—		10,028		—		—		10,028
Issuance of common stock upon accelerated vesting of restricted stock units due to Merger, net of treasury stock	—	—		26,550	1		—	—		26		—		—		27
Return of common stock to pay withholding taxes on restricted stock	—	—		—	—		(14,455)	(150)		—		—		—		(150)
Stock-based compensation	—	—		—	—		—	—		279		—		—		279
Foreign currency translation adjustment	—	—		—	—		—	—		—		(2)		—		(2)
Net loss	—	—		—	—		—	—		—		—		(7,559)		(7,559)
Balance as of June 30, 2023	—	—		8,370,268	84		(14,455)	(150)		146,221		(2)		(122,596)		23,557
Exercise of stock options	—	—		7,190	—					60		—		—		60
Issuance of common stock upon net settlement of restricted stock units	—	—		903	—		—	—		11		—		—		11
Stock-based compensation	—	—		—	—		—	—		339		—		—		339
Foreign currency translation adjustment	—	—		—	—		—	—		—		(23)		—		(23)
Net loss	—	—		—	—		—	—		—		—		(10,658)		(10,658)
Balance as of September 30, 2023	—	$	—	8,378,361	$	84	(14,455)	$	(150)	$	146,631	$	(25)	$	(133,254)	$	13,286

(1) Retroactively restated for the reverse recapitalization as described in Note 3.

8

	Convertible Preferred Stock			Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity (Deficit)
	Shares	Amount		Shares	Par Value		Shares	Amount
Balance as of December 31, 2021 (1)	1,408,100	$	70,439	310,200	$	3	—	$	—	$	4,261	$	—	$	(78,801)	$	(74,537)
Exercise of stock options	—	—		71	—		—	—		1		—		—		1
Vesting of restricted common stock	—	—		2,775	—		—	—		3		—		—		3
Stock-based compensation	—	—		—	—		—	—		157		—		—		157
Net loss	—	—		—	—		—	—		—		—		(7,060)		(7,060)
Balance as of March 31, 2022	1,408,100	70,439		313,046	3		—	—		4,422		—		(85,861)		(81,436)
Vesting of restricted common stock	—	—		2,775	—		—	—		3		—		—		3
Exercise of stock options	—	—		181	—		—	—		3		—		—		3
Issuance of Series C convertible preferred stock, net of issuance costs of approximately $0.3 million	103,637	1,169		—	—		—	—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		113		—		—		113
Net loss	—	—		—	—		—	—		—		—		(7,299)		(7,299)
Balance as of June 30, 2022	1,511,737	71,608		316,002	3		—	—		4,541		—		(93,160)		(88,616)
Issuance of Series C convertible preferred stock, net of issuance costs of approximately $0.7 million	668,942	8,840		—	—		—	—		—		—		—		—
Exercise of stock options	—	—		341	—		—	—		4		—		—		4
Vesting of restricted common stock	—	—		2,775	—		—	—		3		—		—		3
Stock-based compensation	—	—		—	—		—	—		110		—		—		110
Net loss	—	—		—	—		—	—		—		—		(7,198)		(7,198)
Balance as of September 30, 2022	2,180,679	$	80,448	319,118	$	3	—	$	—	$	4,658	$	—	$	(100,358)	$	(95,697)

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

(1) Retroactively restated for the reverse recapitalization as described in Note 3.

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ELICIO THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net loss	$	(26,246)	$	(21,557)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	302		290
Amortization of right-of-use assets, operating leases	582		473
Non-cash interest expense	1,061		3,509
Change in fair value of embedded derivative	(429)		286
Change in fair value of warrant liability	17		—
Stock-based compensation	842		380
Gain on extinguishment of promissory note payable	(604)		—
Loss on disposal of property and equipment, net	105		4
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(41)		(1,513)
Other long-term prepaid assets	—		114
Accounts payable	63		1,407
Accrued expenses and other current liabilities	1,910		(70)
Deferred research obligation	228		2,152
Operating lease liabilities	(588)		(378)
Net cash used in operating activities	(22,798)		(14,903)
Cash flows from investing activities:
Purchases of property and equipment	(66)		(559)
Proceeds from sale of property and equipment	34		—
Net cash used in investing activities	(32)		(559)
Cash flows from financing activities:
Cash acquired in connection with the reverse merger	24,000		—
Merger transaction costs	(2,366)		—
Proceeds from issuance of promissory notes payable	10,000		—
Proceeds from issuance of Series C-1 convertible preferred stock, net of issuance costs	—		10,009
Payment for purchase of treasury stock	(150)		—
Exercise of stock options	127		17
Net cash provided by financing activities	31,611		10,026
Effect of foreign currency on cash	—		—
Net increase (decrease) in cash, cash equivalents, and restricted cash	8,781		(5,436)
Cash, cash equivalents and restricted cash at beginning of period	8,414		10,045
Cash, cash equivalents and restricted cash at the end of the period	$	17,195	$	4,609
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	14,841	$	1,839
Restricted cash	2,354		2,770
Total cash, cash equivalents and restricted cash	$	17,195	$	4,609
Supplemental disclosure of noncash investing and financing activities:
Loss on disposal of property and equipment	$	139	$	4
Accretion of promissory note discount from embedded derivative	$	130	$	—
Accretion of promissory note to face value	$	897	$	—
Settlement of promissory notes payable	$	10,028	$	—
Interest expense from convertible notes payable	$	34	$	—
Accretion of convertible notes discount from embedded derivative	$	—	$	1,639
Accretion of convertible notes discount from issuance costs	$	—	$	219
Interest expense from convertible notes payable	$	—	$	574

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

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Table of Contents

ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements

Note 1—Description of the Business and Financial Condition

Elicio Therapeutics, Inc. (“Elicio” or the “Company”) was incorporated in Delaware as Vedantra Pharmaceuticals Inc., in August 2011. Elicio is a clinical-stage biotechnology company developing a pipeline of novel immunotherapies for the treatment of cancer. In December 2018, Elicio formed a wholly-owned subsidiary, Elicio Securities Corporation (“ESC”), a Massachusetts corporation. ESC is an investment company. Elicio and ESC are collectively referred to as “Elicio” throughout these unaudited consolidated financial statements.

Reverse Merger Transaction

On January 17, 2023, the Company entered into a definitive merger agreement (the “Merger Agreement”) with Angion Biomedica Corp. (“Angion”), a clinical development corporation. In accordance with the terms and conditions of the Agreement and Plan of Merger and Reorganization, by and among Angion, Arkham Merger Sub, Inc., a wholly owned subsidiary of Angion (“Merger Sub”), and Elicio Operating Company, Inc. (“Former Elicio”), pursuant to which Merger Sub merged with and into Former Elicio, with Former Elicio surviving the merger as a wholly owned subsidiary of Angion (the “Merger”).

On June 1, 2023, the Company completed the Merger in accordance with the terms and conditions of the Merger Agreement and Angion changed its name from “Angion Biomedica Corp.” to “Elicio Therapeutics, Inc.” Immediately following the consummation of the Merger, there were approximately 9.7 million shares of the Company’s common stock outstanding on a fully-diluted basis, with Former Elicio equity holders collectively owning approximately 65.2% of the Company and Angion equity holders collectively owning approximately 34.8% of the Company, in each case on a fully diluted basis.

The Merger was accounted for as a reverse recapitalization, with Former Elicio being treated as the acquirer for accounting purposes. See discussions of the transactions in connection with the Merger at Note 3 - Merger and Related Transactions.

Liquidity and Going Concern

The Company has experienced net losses and negative cash flows from operating activities since inception. As of September 30, 2023, the Company had an accumulated deficit of $133.3 million. The Company expects that its operating losses and operating cash flows will continue for the foreseeable future as the Company continues to develop its product candidates.

As of September 30, 2023, the Company had $14.8 million in cash and cash equivalents. The Company’s losses from operations, negative operating cash flows and accumulated deficit, as well as the additional capital needed to fund operations for at least twelve months following the issuance of the condensed consolidated financial statements, raise substantial doubt about the Company’s ability to continue as a going concern. The Company expects to incur substantial expenditures in the foreseeable future for the development of its product candidates and will require additional financing to continue this development. The Company plans to address this condition through the sale of Company common stock in public offerings and/or private placements, debt financings, or through other capital sources, including licensing arrangements, partnerships and collaborations with other companies or other strategic transactions, but there is no assurance these plans will be completed successfully or at all. If the Company is unable to obtain additional capital when and as needed to continue as a going concern, it might have to further reduce or scale back its operations and/or liquidate its assets, and the values it receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on a basis that assumes that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

Note 2—Summary of Significant Accounting Policies

Basis of Presentation

The Company's unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting, consistent in all material respects with those applied in the Company’s audited financial statements and accompanying notes for the year ended December 31, 2022 and 2021 included in the Company’s proxy statement/prospectus/information statement on Form S-4 filed April 26, 2023, as amended (the “Form S-4”). Any reference in these notes to applicable guidance is meant to refer to the authoritative accounting principles generally accepted in the United States as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). This report should be read in conjunction with the audited consolidated financial statements in the Form S-4.

The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Angion Pty Ltd. (“Angion Pty”), which was established on August 22, 2019, and its wholly-owned subsidiary, ESC, which was established in Massachusetts in December 2018. The Company established Angion Pty, an Australian subsidiary, for the purpose of qualifying for research credits for studies conducted in Australia and ESC is an investment company. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company’s significant accounting policies are described in Note 2 to its consolidated financial statements for the year ended December 31, 2022, included in its Form S-4. There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2023.

Since Former Elicio was determined to be the accounting acquirer in connection with the Merger, for periods prior to the Merger, the condensed consolidated financial statements were prepared on a stand-alone basis for Former Elicio and did not include the combined entities activity or financial position. Subsequent to the Merger, the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2023 include the acquired business from June 2, 2023 through September 30, 2023, and assets and liabilities at their acquisition date fair value. Historical share and per share figures of the Former Elicio have been retroactively restated based on the exchange ratio of 0.0181.

Segments

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment. The Company has determined that the chief executive officer is the CODM.

Use of Estimates

The Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates reflected in these condensed consolidated financial statements include but are not limited to, the accrual of research and development expenses, the valuation of stock-based awards, the operating right of use assets and operating lease liability, and going concern.

Foreign Currency Translation and Transactions

The United States Dollar (“USD”) is the functional currency for the Company’s operations outside the United States. Accordingly, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in USD at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into USD at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Gains and losses realized from non-USD transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity’s

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

functional currency are included in other income (expense) in the accompanying condensed consolidated statements of operations and comprehensive loss.

Concentrations of Credit Risk and Off-Balance Sheet Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and restricted cash. At times, cash balances deposited at major financial banking institutions exceed the federally insured limit. The Company regularly monitors the financial condition of the institutions in which it has depository accounts and believes the risk of loss is minimal. The Company has not experienced any losses in such accounts.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of deposits at major financial banking institutions and highly liquid investments with an original maturity of three months or less at the date of purchase. As of September 30, 2023 and December 31, 2022, the Company’s cash equivalents were held in institutions in the United States and include deposits in a money market fund which were unrestricted as to withdrawal or use.

Restricted Cash

Restricted cash consists of cash securing a collateral letter of credit issued in connection with the Company’s facility operating lease and a research grant. See notes 6 and 10 for further discussion.

Fair Value Measurement

The Company follows the guidance prescribed by ASC Topic 820, Fair Value Measurements, which establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value that focuses on an exit price which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

Level 1:    Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at measurement.

Level 2:    Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3:    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts of financial instruments reflected in the condensed consolidated balance sheets for cash and cash equivalents, current and non-current restricted cash, accounts payable, and accrued expenses approximate their respective fair values because of the short-term maturity of those financial instruments.

Property and Equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

from their respective accounts, and the resulting gain or loss is recorded in the consolidated statement of operations and comprehensive loss. Repair and maintenance expenditures are charged to expense as incurred.

Asset Class	Estimated Useful Lives
Equipment	5 years
Furniture and fixtures	3 years
Leasehold improvements	Term of the lease

Impairment of Long-Lived Assets

Periodically, the Company evaluates its long-lived assets, which consist primarily of property and equipment, and right of use asset for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the three and nine months ended September 30, 2023 and 2022, no impairments have occurred.

Derivative Financial Instruments

The convertible and promissory notes include embedded derivatives requiring bifurcation in accordance with ASC 815, Derivatives and Hedging. The valuation of the instruments are determined using widely accepted valuation techniques including the probability weighted expected return model. The fair value was determined using a model with the assumptions for equity value proceeds, probability of occurrence of various liquidation scenarios, timeline to liquidity and risk-free interest rate. The fair value of the derivative instruments are measured at each reporting period with changes in fair value reported in earnings (loss).

Convertible Preferred Stock

Former Elicio had classified convertible preferred stock, par value $0.06 per share, (the “Preferred Stock”) as temporary equity in the accompanying consolidated balance sheets due to certain changes in control events that are outside of the Former Elicio’s control, including sale or transfer of control of Former Elicio, as holders of the Preferred Stock could cause redemption of the shares in these situations. Former Elicio did not accrete the carrying values of the Preferred Stock to the redemption values since a liquidation event was not considered probable as of December 31, 2022. Subsequent adjustments of the carrying values to the ultimate redemption values would be made only if it becomes probable that such a liquidation event will occur. During the prior reporting period an immaterial error was discovered in Former Elicio's 2022 audited financial statements whereas the amount of Series A and Series B Preferred Stock did not include 41,887 and 609,755 shares, respectively, that were deemed to be issued due to the antidilutive protection triggered by the Series C shares issued in October 2022 at a price below $1.00. As a result of the Merger, all Former Elicio preferred stock were converted into Company common stock on June 1, 2023. See Note 7.

Income Taxes

The Company provides for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. A valuation allowance is provided if, based upon the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions when the Company management determines that it is probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has not identified any significant uncertain tax positions as of September 30, 2023.

Research and Development

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

Research and development costs are charged to expense as incurred and consist of expenses incurred in performing research and development activities, including salaries and benefits, materials and supplies, preclinical expenses, stock-based compensation expense, depreciation of equipment, contract services, and other outside expenses. The Company accrues for costs incurred by external service providers, based on estimates of services performed and costs. These estimates include the level of services performed by the third parties, and other indicators of the services completed. Based on the timing of payments to service providers, the Company may also record prepaid expenses for those service providers that will be recognized as expenses in future periods as the related services are rendered. Research and development costs may be offset by research and development refundable tax rebates received by the Company’s wholly-owned Australian subsidiary.

Leases

ASU No. 2016-02, Leases (“ASC 842”) establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations as well as the reduction of the ROU asset.

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

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

Research Grant

The Company recognizes the amount of grant income based on the activity in allowable expenses covered under the grant and has elected to recognize the funds earned as an offset to the related research expenses recorded in operations. Advances from the grant that have yet to be recognized are recorded as restricted cash if the grant requires the funds to be isolated from general cash and cash equivalents. The Company records a liability for any research activity that is required under the grant but has not yet been performed. The liability is recorded as deferred research obligation on the condensed consolidated balance sheets.

Stock-based Compensation

The Company issues stock-based awards to employees and non-employees, generally in the form of stock options. The Company accounts for stock-based awards in accordance with ASC 718, Compensation—Stock Compensation, which requires all stock-based payments, to be recognized in the condensed consolidated statements of operations based on their fair values. The expense is recognized on a straight line basis over the requisite service period, which is generally the vesting period. The Company has elected to account for option forfeitures as they occur.

The Company uses the Black-Scholes option-pricing model (“Black-Scholes”) to determine the weighted-average fair value of options granted, which uses as inputs the fair value of the Company common stock, assumptions the Company makes for the volatility of its Company common stock, the expected term of its stock options, the risk-free interest rate for a period that approximates the expected term of its stock options and its expected dividend yield.

Compensation cost of awards that contain a performance condition are recognized when success is considered probable during the performance period.

Prior to the Merger, there was no public market for Former Elicio’s common stock. The estimated fair value of the Company common stock underlying Former Elicio’s stock-based awards was determined by Former Elicio’s board of directors as of the grant date of each option grant. To determine the fair value of Former Elicio’s common

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

stock underlying option grants, Former Elicio’s board of directors considered, among other things, input from management and valuations of Former Elicio's common stock prepared by third-party valuation firms performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants' Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Following the Merger, the fair value of Company common stock is based on the closing stock price on the date of grant as reported on the Nasdaq Global Select Market.

Net Loss Per Share

Basic net loss per share of Company common stock is computed by dividing net loss attributable to Company common stockholders by the weighted average number of shares of Company common stock outstanding for the period. Diluted net loss per share excludes the potential impact of Company common stock options, warrants and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company's net loss. Since the Company had net losses for the three and nine months ended September 30, 2023 and 2022, basic and diluted net loss per common share are the same.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU No. 2016-13), which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial assets and certain other instruments, including but not limited to, available-for-sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption of the standard had no material impact on its condensed consolidated financial statements.

Note 3—Merger and Related Transactions

As described in Note 1, Former Elicio merged with a wholly owned subsidiary of Angion on June 1, 2023. The Merger was accounted for as a reverse recapitalization under U.S. GAAP. Former Elicio was considered the accounting acquirer for financial reporting purposes. This determination was based on the facts that, immediately following the Merger: (i) Former Elicio stockholders own a substantial majority of the voting rights; (ii) Former Elicio designated a majority (six of nine) of the initial members of the Company’s board of directors of the combined company; (iii) Former Elicio’s executive management team became the management team of the combined company; and (iv) the Company was named Elicio Therapeutics, Inc. and is headquartered in Boston, Massachusetts. Accordingly, for accounting purposes, the Merger was treated as the equivalent of Former Elicio issuing stock to acquire the net assets of Angion. As a result of the Merger, the net assets of Angion were recorded at their acquisition-date fair value, which approximated book value due to the short-term nature of the instruments, in the financial statements of Former Elicio and the reported operating results prior to the Merger were those of Former Elicio. Historical common share amounts of Former Elicio have been retroactively restated based on the exchange ratio of 0.0181 (the “Exchange Ratio”). It was concluded that any in-process research and development assets that remained as of the Merger would be de minimis when compared to the cash and investments obtained through the Merger.

Prior to the effective time of the Merger, on June 1, 2023, in connection with the transactions contemplated by the Merger Agreement, the Company effected a reverse stock split of Angion’s common stock, par value $0.01 per share (“Angion common stock”), at a ratio of 10:1 (the “Reverse Stock Split”). At the effective time of the Merger, each outstanding share of Former Elicio capital stock (after giving effect to the automatic conversion of all shares of Former Elicio preferred stock into shares of Former Elicio common stock and excluding any shares held as treasury stock by Former Elicio or held or owned by Angion or any subsidiary of Angion or Former Elicio and any dissenting shares) was converted into the right to receive 0.0181 shares of Angion common stock, which resulted in the issuance by Angion of an aggregate of 5,375,751 shares of Angion common stock to the stockholders of Former Elicio (the “Exchange Shares”), and a total of 8,387,025 shares of the Company common stock being issued and outstanding immediately following the effective time of the Merger. In addition, Angion assumed the Elicio 2022 Equity Incentive Plan and the Elicio 2012 Equity Incentive Plan (the “Elicio Plans”) and each outstanding and unexercised option to purchase Former Elicio common stock and each outstanding and unexercised warrant to

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

purchase Former Elicio capital stock were adjusted with such stock options and warrants henceforth representing the right to purchase a number of shares of the Company’s common stock equal to the Exchange Ratio multiplied by the number of shares of Former Elicio common stock previously represented by such options, and warrants at an exercise price equal to the exercise price of Former Elicio capital stock divided by the Exchange Ratio.

In connection with execution of the Merger Agreement, Angion made a bridge loan to Former Elicio pursuant to a note purchase agreement and promissory notes up to an aggregate principal amount of $12.5 million, issued with a 20% original issue discount, with an initial closing held substantially concurrently with the execution of the Merger Agreement for a principal amount of $6.25 million on account of a $5.0 million loan and an additional closing for a principal amount of $6.25 million on account of a $5.0 million loan upon delivery by Former Elicio to Angion of Former Elicio’s audited financial statements for the year ended December 31, 2022.

As part of the recapitalization, the Company obtained the assets and liabilities listed below (in thousands):

Cash and cash equivalents	$	24,000
Other current assets	539
Promissory notes	10,028
Accrued liabilities	(2,438)
Net assets acquired	$	32,129

Per the terms of the Merger Agreement, upon completion of the Merger, all obligations owed by Former Elicio related to the promissory notes were automatically forgiven and the amount advanced by Angion, along with any accrued and unpaid interest, was credited towards the net cash balance used to calculate the assets and liabilities listed above. Upon settlement of the promissory notes, the Company recognized a gain of $0.6 million related to extinguishment of the promissory notes.

The Company recognized the net assets acquired, excluding the promissory notes and transaction costs of $2.9 million, as a reduction to additional paid-in capital in the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2023.

Note 4—Fair Value Measurements

The following tables present the Company's financial assets and liabilities measured at fair value on a recurring basis and their assigned levels within the fair value hierarchy (in thousands):

	September 30, 2023
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	16,302	$	—	$	—	$	16,302
Total assets	$	16,302	$	—	$	—	$	16,302
Warrant liabilities	$	—	$	—	$	26	$	26
Total liabilities	$	—	$	—	$	26	$	26

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	5,340	$	—	$	—	$	5,340
Total assets	$	5,340	$	—	$	—	$	5,340

_________________

(1) Included in cash, cash equivalents, and restricted cash on the condensed consolidated balance sheets. This balance includes cash requirements settled on a nightly basis.

There were no transfers made among the three levels in the fair value hierarchy during periods presented.

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Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

As part of the Merger transaction, Former Elicio adopted Angion’s warrant liabilities. The following table presents a summary of changes in Level 3 in the fair value of the Company’s common stock warrant liability (in thousands):

	September 30, 2023		December 31, 2022
Balance, beginning of the period	$	—	$	—
Existing Angion Warrant Liability	9		—
Change in fair value	17		—
Balance, end of the period	$	26	$	—

Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with assets and liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The fair value of the warrants issued by the Company has been estimated using a variant of Black-Scholes. The underlying equity included in Black-Scholes was valued based on the equity value implied from sales of preferred and common stock at each measurement date. The fair value of the warrants was impacted by the model selected as well as assumptions surrounding unobservable inputs including the underlying equity value, expected volatility of the underlying equity, risk free interest rate, and the expected term.

The Company records the change in the fair value of common stock warrants in change in fair value of warrant liability in the condensed consolidated statements of operations.

The fair value of the common stock warrant liability was estimated using the following assumptions:

	September 30, 2023	June 1, 2023
Weighted average strike price	$76.00	$76.00
Contractual term (years)	4.9	5.2
Volatility (annual)	153.2%	100.0%
Risk-free rate	4.6%	3.9%
Dividend yield (per share)	0.0%	0.0%

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Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

Note 5—Balance Sheet Components

Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Prepaid research and development contract services	$	2,379	$	2,132
Advanced professional fees	209		648
Prepaid insurance	496		104
Miscellaneous receivables	102		—
Other prepaid expenses and other current assets	233		36
Total prepaid and other current assets	$	3,419	$	2,920

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Equipment	$	1,678	$	1,787
Furniture and fixtures	374		359
Leasehold improvements	132		124
Total property and equipment	2,184		2,270
Less: accumulated depreciation	(1,412)		(1,123)
Property and equipment, net	$	772	$	1,147

Depreciation expense for the three and nine months ended September 30, 2023 was immaterial and $0.3 million, respectively. Depreciation expense for the three and nine months ended September 30, 2022 was $0.1 million and $0.3 million, respectively.

Other long-term prepaid assets

Other long-term prepaid assets consisted of the advance payments for clinical trial services, totaling $2.8 million as of September 30, 2023 and December 31, 2022, respectively.

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Accrued professional fees	$	951	$	180
Accrued compensation and benefits	1,577		1,491
Accrued research and development	1,875		260
Other accrued expenses	13		4
Total accrued expenses	$	4,416	$	1,935

Note 6 — Research Grant

In September 2022, Former Elicio entered into a grant agreement with the Gastro-Intestinal (“GI”) Research Foundation, a not-for-profit organization focused on supporting research to treat, cure and prevent digestive

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Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

diseases. Of the $2.8 million award, $2.3 million was received in September 2022 and the remaining $0.5 million was received in June 2023 with the completion of the development efforts as defined in the agreement. For the three and nine months ended September 30, 2023, the Company incurred zero and $1.9 million in research and development expenses related to this project. For both the three and nine months ended September 30, 2022, the Company incurred $0.1 million in research and development expenses related to this project.

In September 2023, the Company entered into a second grant agreement with the GI Research Foundation for $3.1 million, with such amount received net of a $0.5 million credit. The grant funds available as of September 30, 2023 are $1.7 million, which are reflected in restricted cash and the deferred research obligation in the accompanying consolidated balance sheets. For the three and nine months ended September 30, 2023 the Company incurred $1.4 million in research and development expenses related to this project.

The award money for both agreements was earned and recognized as a contra research and development expense as the expenses were incurred.

Note 7—Convertible Preferred Stock, Common Stock and Stockholders' Equity

Authorized Shares

The Company's current Amended and Restated Certificate of Incorporation, as amended, authorizes 300,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share.

Convertible Preferred Stock

Former Elicio’s convertible preferred stock consisted of Series A preferred stock (“Series A Preferred Shares”), Series B preferred stock (“Series B Preferred Shares”) and Series C preferred stock (“Series C Preferred Shares”).

Series C Convertible Preferred Stock

In May 2022, Former Elicio authorized the sale and issuance of up to 760,200 shares of $0.06 par value Series C Preferred Shares at an original issuance price of $66.30 per share and up to 325,800 shares of Series C Preferred for the settlement of the Convertible Notes Payable. The Series C Preferred Shares financing was structured to be issued in rolling closes in 2022.

From the period May through September 2022, Former Elicio issued 772,579 shares of Series C Preferred Shares for gross proceeds of approximately $11.0 million. Former Elicio incurred cash issuance costs of approximately $1.0 million in connection with these shares.

Conversion of Convertible Preferred Stock

On June 1, 2023, Former Elicio completed the Merger with Angion in accordance with the Merger Agreement. Under the terms of the Merger Agreement, immediately prior to the effective time of the Merger, each share of Former Elicio’s preferred stock was converted into a share of Former Elicio’s common stock. At the closing of the Merger, the Company issued an aggregate of 5,375,751 shares of its common stock to Former Elicio stockholders, based on an exchange ratio of 0.0181 shares of the Company’s common stock for each share of Former Elicio’s common stock outstanding immediately prior to the Merger, including those shares of common stock issued upon conversion of the Former Elicio preferred stock. No shares and 772,579 shares of convertible preferred stock were issued during the nine months ended September 30, 2023 and 2022, respectively.

The authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences of Former Elicio as of December 31, 2022 were as follows (in thousands, except share and per share amounts):

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

	Authorized Shares	Shares Issued and Outstanding	Aggregate Liquidation Amount	Proceeds Net of Liquidation Costs
Series A Convertible Preferred Shares	132,387	132,387	$7,495	$7,495
Series B Convertible Preferred Shares	1,927,375	1,927,375	$72,803	$62,944
Series C Convertible Preferred Shares	4,888,798	2,938,158	$41,816	$40,621
Total Preferred Shares	6,948,560	4,997,920

The Series A and Series B Preferred Shares were deemed changed as of October 18, 2022 into 132,387 and 1,927,375 preferred shares (retroactively restated for the reverse recapitalization as described in Note 3) due to the antidilutive protection triggered by the Series C shares issued in October 2022 at a price below $1.00.

As a result of the Merger, the aggregate amount of 4,997,920 shares of Former Elicio preferred stock (retroactively restated for the reverse recapitalization as described in Note 3) were converted into 4,997,920 shares of Former Elicio's common stock to be exchanged for the same number of shares of the Company’s common stock.

Note 8—Stock-Based Compensation

2012 Plan and 2022 Plan

Pursuant to the Merger Agreement, the Company assumed the Former Elicio 2022 Equity Incentive Plan and the Former Elicio 2012 Equity Incentive Plan (the “Former Elicio Plans”) and all stock options issued and outstanding under the Former Elicio Plans. Each outstanding and unexercised option to purchase Former Elicio common stock was adjusted with such Company stock options henceforth representing the right to purchase a number of shares of the Company’s common stock based on an exchange ratio of 0.0181. Any restriction on the exercise of any Former Elicio stock option assumed by the Company will continue in full force and effect and the term, exercisability, vesting schedule, accelerated vesting provisions, and any other provisions of such Former Elicio stock option will otherwise remain unchanged; provided, however, that the Company’s board of directors or a committee thereof will assume the responsibility and the authority of Former Elicio’s board of directors or any committee thereof with respect to each Former Elicio stock option assumed by the Company.

2015 Plan

In June 2019, Angion approved an Amended and Restated 2015 Equity Incentive Plan (the “2015 Plan”) permitting the granting of incentive stock options, non-statutory stock options, restricted stock and other stock-based awards. Following the effectiveness of the 2021 Equity Incentive Plan (“2021 Plan”), the Company ceased making grants under the 2015 Plan. However, the 2015 Plan continues to govern the terms and conditions of the outstanding awards granted under it. Shares of common stock subject to awards granted under the 2015 Plan that cease to be subject to such awards by forfeiture or otherwise after the termination of the 2015 Plan will be available for issuance under the 2021 Plan.

2021 Plan and Amendment to 2021 Plan

On January 25, 2021, Angion’s board of directors approved the 2021 Plan (“2021 Plan”) which permits the granting of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to employees, directors, officers and consultants. The 2021 Plan provides that the number of shares reserved and available for issuance will automatically increase each January 1 by the lesser of 5% of the Company’s common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s board of directors. On March 17, 2023, Angion’s board of directors approved an amendment to the 2021 Plan to increase the cumulative number of shares of common stock reserved for issuance thereunder by 30,113 shares.

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

As of September 30, 2023, 570,271 shares and 91,707 shares remain available for future grants under the 2021 plan and 2022 plan, respectively.

Stock Options

The following table summarizes information and activity related to the Company’s stock options:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Total Intrinsic Value (in thousands)
Outstanding as of December 31, 2022	854,076	$	5.24	7.72	$	—
Options granted	186,572	9.96
Existing Angion Options outstanding	351,656	61.99
Options exercised	(61,791)	10.08
Forfeited (unvested)	(19,579)	33.97
Outstanding as of September 30, 2023	1,310,934	$	19.99	7.68	$	2,841
Options vested and exercisable	597,723	$	38.50	5.59	$	645

The aggregate intrinsic value in the above table is calculated as the difference between the estimated fair value of the Company's common stock price and the exercise price of the stock options. 186,572 stock options were granted in the nine months ended September 30, 2023. The weighted average grant date fair value per share for the stock option grants during the nine months ended September 30, 2023 was $9.96. As of September 30, 2023, the total unrecognized compensation related to unvested stock option awards granted was $2.7 million, which the Company expects to recognize over a weighted-average period of approximately 1.64 years.

Stock-based Compensation Expense

The following table summarizes total stock-based compensation expense recorded in the condensed consolidated statements of operations (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Research and development	$	13	$	68	$	425	$	200
General and administrative	326		42		417		180
Total	$	339	$	110	$	842	$	380

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

The fair value of each option is estimated on the date of grant using Black-Scholes with the assumptions noted in the table below. The fair value of an award with only a service condition is amortized as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Compensation cost of awards that contain a performance condition are recognized when success is considered probable during the performance period. The Company has elected to account for forfeitures as they occur, rather than estimating the number of awards that are expected to vest. The risk-free interest rate is estimated using the weighted average rate of return on U.S. Treasury notes with a life that approximates the expected life of the option. The expected term of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate expected term. The contractual life of the option was used for the expected life of options granted to non-employees. Expected volatility is based on the weighted average of the historical volatility of a peer group of publicly traded companies. The assumed dividend yield is based upon the Company's expectation of not paying dividends in the foreseeable future.

The fair value of each employee and non-employee stock option grant was estimated on the date of grant using Black-Scholes based on the following assumptions.

Options	Three months ended September 30,		Nine months ended September 30,
	2023	2022	2023	2022
Risk-free interest rate	4.4%	2.3%	3.7%	2.3%
Expected dividend yield	0.0%	0.0%	0.0%	0.0%
Expected term in years (employees)	6.06	6.54	6.00	6.54
Expected volatility	71.7% - 72.1%	60.3% - 62.1%	71.9% - 72.5%	60.3% - 62.1%

In March 2021 and June 2022, certain employees of the Company early exercised options to purchase shares of the Company’s common stock. The shares had not fully vested at the time of exercise and were recorded as an unvested option exercise liability. As the shares vest, the Company recognizes the shares and related expense as issuance of common stock upon settlement of restricted stock on the Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the periods ended September 30, 2023 and December 31, 2022.

Employee Stock Purchase Plan

In January 2021, the board of directors of Angion approved the Employee Stock Purchase Plan (the “ESPP”). The ESPP was effective on the date immediately prior to the effectiveness of the Angion's registration statement relating to the IPO. The offering period and purchase period was determined by Angion’s board of directors. Pursuant to the Merger Agreement, the Company assumed the ESPP. No offering periods or purchasing periods were active as of September 30, 2023. As of September 30, 2023, 68,958 shares under the ESPP remain available for purchase and no offerings have been authorized.

Restricted Stock Units

In March 2021, Former Elicio granted restricted stock units (“RSUs”) with service and performance vesting conditions to an employee. The completion of the Merger satisfied the performance vesting criteria and triggered accelerated vesting for all unvested RSUs. As a result, the employee received 41,005 shares on June 1, 2023. To pay for the tax withholdings that were due upon vesting of the RSUs, the employee sold 14,455 shares to the Company, which are held in treasury stock as of September 30, 2023.

Note 9—Warrants

In accordance with ASC 815, the warrants classified as liabilities are recorded at fair value at the issuance date, with changes in the fair value recognized in the condensed consolidated statements of operations at the end of each reporting period. Refer to Note 4 for changes in the fair value recognized during the periods reported.

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

In accordance with ASC 815, the warrants classified as equity do not meet the definition of a derivative and are classified in stockholders' equity in the condensed consolidated balance sheets.

There was no warrant activity during the nine months ended September 30, 2023, other than the assumption of the previously issued Angion warrants by the Company.

The following table summarizes information regarding common stock warrants outstanding at September 30, 2023:

	Warrants	Weighted Average Exercise Price		Weighted Average Life (years)
Outstanding at December 31, 2022	144,814	$	53.59	6.5
Angion Warrants assumed	3,950	76.00		4.9
Outstanding at September 30, 2023	148,764	$	54.19	6.5

Note 10—Commitments and Contingencies

Operating Leases

In July 2021, the Company signed an operating lease for office and laboratory space in Boston, Massachusetts (the “Boston Lease”). The Boston lease commenced in February 2022 with the term set to expire in January 2030. The lease has rent payments escalating annually, which total $11.1 million in the aggregate. As a result, at the commencement of the lease the Company recognized a right-of-use lease asset of $8.0 million with a corresponding lease liability of $8.0 million based on the present value of the minimum rental payments. In addition, the Company will make payments for operating expenses and real estate taxes. In June 2023, the Company secured a letter of credit for the deposit on the lease and has a deposit in the amount of $0.7 million, which was reported as Restricted Cash on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022.

As part of the Merger Agreement, the Company also assumed a lease for clinical and regulatory space in Newton, Massachusetts (the “Newton lease”), comprising approximately 6,157 square feet for approximately $0.2 million per year, under a non-cancelable operating lease through June 30, 2024.

Lease expense for all leases for the three and nine months ended September 30, 2023 was $0.4 million and $1.1 million, respectively, and $0.3 million and $0.9 million, for the three and nine months ended September 30, 2022, respectively. All expenses are included in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive loss.

The following table summarizes quantitative information about the Company's operating leases (dollars in thousands):

	Nine Months Ended September 30,
	2023			2022
Operating cash flows from operating leases	$	1,002		$	798
Right-of-use assets exchanged for operating lease liabilities	$	—		$	8,017
Weighted-average remaining lease term—operating leases (in years)	6.2			7.3
Weighted-average discount rate—operating leases	7.7		%	8.0		%

As of September 30, 2023, maturities of lease liabilities were as follows (in thousands):

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

Year Ended December 31,	Amounts
2023 (remaining three months)	$	375
2024	1,427
2025	1,349
2026	1,383
2027	1,425
Thereafter	3,232
Total	9,191
Less present value discount	(2,038)
Operating lease liabilities	7,153
Less: operating lease liability, current portion	(938)
Operating lease liability, noncurrent portion	$	6,215

Legal Proceedings

From time to time, the Company may be involved in legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of its business or otherwise.

The outcome of any future litigation is uncertain. Such litigation, if not resolved, could result in substantial costs to the Company, including any costs associated with the indemnification of directors and officers.

The Company may be exposed to litigation in connection with its products under development and operations. The Company’s policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. The Company is not aware of any material legal matters.

License Agreements

In July 2012 and January 2016, Former Elicio licensed certain intellectual property from a university. The license term for both licenses extends until terminated by either party under certain provisions. The Company is required to pay certain contractual maintenance and milestone payments related to clinical trials and royalties on product sales over the term of the contract, with minimum annual royalty payments commencing in the calendar year after commercialization. In January 2019, Former Elicio licensed additional intellectual property and terminated a license obtained in July 2012 from the university. No commercialization royalties have been achieved.

Future minimum annual maintenance payments are $0.1 million for the year ended December 31, 2023 and for each year thereafter. Future minimum annual payments are due until the termination of the agreement.

Note 11—Income Taxes

The Company did not record a provision or benefit for income taxes during the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023 and December 31, 2022, the Company continues to maintain a full valuation allowance against all of its deferred tax assets in light of its history of cumulative net losses.

Note 12—Net Loss Per Share

The Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration for potentially dilutive securities. The Company computes diluted net loss per share of common stock after giving consideration to all potentially dilutive shares of common stock, including options to purchase common stock and preferred stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential shares of common stock and preferred stock have been anti-dilutive and basic and diluted loss per share were the same for all periods presented.

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ELICIO THERAPEUTICS, INC.

Notes to Unaudited Interim Condensed Consolidated Financial Statements (Continued)

Basic and diluted net loss per share attributable to common stockholders was calculated at September 30, as follows (in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator
Net loss	$	(10,658)	$	(7,198)	$	(26,246)	$	(21,557)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted	8,376,384		317,512		8,240,326		314,619
Net loss per share, basic and diluted	$	(1.27)	$	(22.67)	$	(3.19)	$	(68.52)

The table below provides potentially dilutive securities not included in the calculation of the diluted net loss per share because to do so would be anti-dilutive:

	Nine Months Ended September 30,
	2023	2022
Convertible preferred stock	—	2,180,699
Shares issuable upon exercise of stock options	2,836	7,582
Shares issuable upon the exercise of warrants	148,764	144,815
Options to purchase Common Stock	1,310,934	224,319
Total	1,462,534	2,557,415

Note 13—Related Party Transactions

The Company paid $0.1 million and $0.7 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively, for consulting services provided by an entity affiliated with the Company’s former interim chief financial officer and former board member.

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

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q and in our audited financial statements and accompanying notes for the year ended December 31, 2022 and 2021 included in our proxy statement/prospectus/information statement on Form S-4 filed April 26, 2023, as amended (the “Form S-4”). In addition to the historical financial information, this discussion contains forward-looking statements involving risks, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions, forecasts and projections. Our actual results and the timing of selected events could differ materially from those discussed in these forward-looking statements as a result of several factors, including those set forth under the section of this Quarterly Report on Form 10-Q titled “Risk Factors” and the Current Report on Form 8-K filed on June 2, 2023, which you should read carefully to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the section titled “Forward-Looking Statements” at the beginning of this report.

Overview

We are a clinical-stage biotechnology company developing a pipeline of novel immunotherapies for the treatment of cancer. Through our Amphiphile, or AMP, platform technology, our goal is to re-engineer the body’s immune response to defeat diseases using potent lymph node targeted vaccines and immunotherapies.

Our proprietary AMP technology precisely traffics immuno-modulatory molecules to the lymph nodes, the “schoolhouse” of the immune system, enhancing the magnitude, potency, functionality, and durability of the immune response. The lymph nodes are a primary site in the body where most immune cells are located. The lymph nodes are where the immune system naturally collects information about health and disease in order to orchestrate the mechanisms of immunity which protect us from pathogens and tumors. By efficiently targeting these sites within the body we are taking advantage of the power and the unique biology of the lymph nodes to improve responses across a broad range of diseases. We are utilizing our lymph-node targeting technology to build a pipeline of therapeutic cancer vaccines, which will be the focus of the company.

Our core business is the development of therapeutic cancer vaccines. ELI-002, our lead clinical program, is designed to stimulate an immune response against the KRAS mutations driving 25% of solid tumors. ELI-002 2P, our 2-peptide formulation designed to treat cancers driven by G12D and G12R mutations in KRAS, is currently being studied in an ongoing phase 1 (AMPLIFY-201) trial in patients with mutant (m)KRAS-driven pancreatic ductal adenocarcinoma (“PDAC”) and colorectal cancer. Initial data for ELI-002 2P was presented at the 2023 American Society of Clinical Oncology (“ASCO”) Annual Meeting and additional preliminary data including relapse-free survival data was presented at the 2023 AACR Special Conference on Pancreatic Cancer. We presented updated preliminary immunogenicity data from the ongoing phase 1 study of ELI-002 2P at the Society for Immunotherapy of Cancer 38th Annual Meeting (“SITC 2023”). ELI-002 7P, our 7-peptide formulation, is currently being studied in AMPLIYFY-7P, a phase 1/2 trial in patients with high relapse risk mKRAS-driven solid tumors. The AMPLIYFY-7P study’s independent data monitoring committee supported initiation of a randomized phase 2 trial studying ELI-002 7P as a monotherapy in adjuvant PDAC patients, which we plan to initiate in early 2024.

Our operations to date have been financed primarily by aggregate net proceeds of $99.6 million from the issuance of convertible preferred stock, convertible notes, and the exercise of stock options and common stock warrants. Since inception, we have had significant annual operating losses. Our net loss was $10.7 million and $7.2 million for the three months ended September 30, 2023 and 2022, respectively, and $26.2 million and $21.6 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, we had an accumulated deficit of $133.3 million and $14.8 million in cash and cash equivalents.

Elicio Operating Company, Inc. (“Former Elicio”) was incorporated in Delaware as Vedantra Pharmaceuticals Inc. in August 2011. In December 2018, Former Elicio formed a wholly owned subsidiary, Elicio Securities Corporation, a Massachusetts corporation.

On January 17, 2023, Former Elicio entered into a definitive merger agreement (the “Merger Agreement”) with Angion Biomedica Corp (“Angion”), a clinical-stage biotechnology company. In accordance with the terms and conditions of the Agreement and Plan of Merger and Reorganization, by and among Angion, Arkham Merger Sub, Inc., a wholly owned subsidiary of Angion (“Merger Sub”), and Former Elicio, pursuant to which Merger Sub merged with and into Former Elicio, with Former Elicio surviving the merger as a wholly owned subsidiary of Angion (the “Merger”).

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On June 1, 2023, the Merger was completed in accordance with the terms and conditions of the Merger Agreement and Angion changed its name from “Angion Biomedica Corp.” to “Elicio Therapeutics, Inc.” Immediately following the consummation of the Merger, there were approximately 9.7 million shares of our common stock outstanding on a fully-diluted basis, with Former Elicio equity holders collectively owning approximately 65.2% of the Company and Angion equity holders collectively owning approximately 34.8% of the Company, in each case on a fully diluted basis.

We are currently facing substantial doubt about our ability to continue as a going concern, given our cash position and cash runway. We believe that our cash on hand will enable us to fund our operations into the first quarter of calendar year 2024 based on our current plan. This period could be shortened if there are any significant increases in planned or actual spending on development programs or more rapid progress of development programs than anticipated. There is no assurance that financing will be available when needed to allow us to continue as a going concern. Our losses from operations, negative operating cash flows and accumulated deficit, as well as the additional capital needed to fund operations for at least twelve months following the issuance of the unaudited condensed consolidated financial statements, raise substantial doubt about our ability to continue as a going concern. We expect to incur substantial expenditures in the foreseeable future for the development of our product candidates and will require additional financing to continue this development. We plan to address this condition through the sale of common stock in public offerings and/or private placements, debt financings, or through other capital sources, including licensing arrangements, partnerships and collaborations with other companies or other strategic transactions, but there is no assurance these plans will be completed successfully or at all. If we are unable to obtain additional capital when and as needed to continue as a going concern, we might have to further reduce or scale back our operations and/or liquidate our assets, and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our financial statements.

Our unaudited condensed consolidated financial statements appearing elsewhere in this 10-Q statement have been prepared on a basis that assumes that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Our unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our accounts payable and accrued expenses. We expect to continue to incur net losses for the foreseeable future, and we expect our research and development expenses, general and administrative expenses, and capital expenditures will continue to increase. In particular, we expect our expenses to increase as we continue our development of, and seek regulatory approvals for, our product candidates, as well as hire additional personnel, pay fees to outside consultants, attorneys and accountants, and incur other increased costs associated with being a public company. In addition, if and when we seek and obtain regulatory approval to commercialize any product candidate, we will also incur increased expenses in connection with commercialization and marketing of any such product. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities. We anticipate that our expenses will increase significantly in connection with our ongoing activities, as we:

• advance our lead product candidate, ELI-002, to late stage clinical trials;

• advance our preclinical programs to clinical trials;

• expand our pipeline of product candidates;

• seek regulatory approval for our investigational medicines;

• maintain, expand, protect and defend our intellectual property portfolio;

• acquire or in-license technology;

• expand our clinical, scientific, management and administrative teams; and

• operate as a public company.

We believe that our cash on hand will enable us to fund our operations into the first quarter of calendar year 2024 based on our current plan. We have based this estimate on assumptions that may prove to be wrong, and we

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could exhaust our available capital resources sooner than we expect. To finance our operations beyond that point we will need to raise additional capital, which cannot be assured. The Company’s losses from operations, negative operating cash flows and accumulated deficit, as well as the additional capital needed to fund operations for at least twelve months following the issuance of the unaudited condensed consolidated financial statements, raise substantial doubt about the Company’s ability to continue as a going concern.

We have not had any products approved for sale. We do not expect to generate any product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates. If we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. As a result, until such time, if ever, that we can generate substantial product revenue, we expect to finance our cash needs through equity offerings, debt financings or other capital sources, including collaborations, licenses or similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed or on favorable terms, if at all. Any failure to raise capital as and when needed could have a negative impact on our financial condition and on our ability to pursue our business plans and strategies, including our research and development activities. If we are unable to raise capital, we will need to delay, reduce or terminate planned activities to reduce costs.

Components of Results of Operations

The following discussion summarizes the key factors our management believes are necessary for an understanding of our financial statements.

Operating Expenses

Our operating expenses since inception have consisted primarily of research and development expenses and general and administrative costs.

Research and Development Expenses

Our research and development expenses consist primarily of costs incurred for the development of our product candidates and our drug discovery efforts, which include:

• personnel costs, which include salaries, benefits and equity-based compensation expense;

• expenses incurred under agreements with consultants and contract organizations that conduct research and

development activities on our behalf;

• costs related to sponsored research service agreements;

• costs related to production of preclinical and clinical materials, including fees paid to contract manufacturers;

• laboratory and vendor expenses related to the execution of preclinical studies and planned clinical trials; and

• laboratory supplies and equipment used for internal research and development activities.

We expense all research and development costs in the periods in which they are incurred. Costs for certain research and development activities are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and service providers.

Our research and development expenses are not currently tracked on a program-by-program basis. We use our personnel and infrastructure resources across multiple research and development programs directed toward identifying and developing product candidates. Substantially all our research and development costs are incurred on the development of ELI-002 and ELI-004, an AMP adjuvant that is a significant component of ELI-002, and our preclinical candidates.

We expect our research and development expenses to increase substantially for the foreseeable future as we continue to invest in research and development activities related to developing our product candidates, including investments in conducting clinical trials, manufacturing and otherwise advancing our programs. The process of conducting the clinical research necessary to obtain regulatory approval is costly and time-consuming, and the successful development of our product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing and costs of the efforts that will be needed to complete the development of, or the period, if any, in which material net cash inflows may commence from ELI-002 or any of our preclinical candidates. This is due to the numerous risks and uncertainties associated with developing drugs, including the uncertainty of:

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•the scope, rate of progress and expense of our research and development activities;

•clinical trials and early-stage results;

•the terms and timing of regulatory approvals; and

•the ability to market, commercialize and achieve market acceptance for ELI-002, or any of our preclinical candidates that we or our future collaboration partners may develop in the future.

Any of these variables with respect to the development of ELI-002, or any other of our preclinical candidates that we may develop could result in a significant change in the costs and timing associated with the development of such candidates. For example, if the FDA or other regulatory authority were to require us to conduct pre-clinical and clinical studies beyond those which we currently anticipate will be required for the completion of clinical development or if we experience significant delays in enrollment in any clinical trials, we could be required to expend significant additional financial resources and time on the completion of our clinical development programs.

General and Administrative Expenses

Our general and administrative expenses consist primarily of personnel costs, including equity-based compensation, and other expenses for outside professional services, including legal, recruiting, audit and accounting and facility-related costs not otherwise included in research and development expenses. Personnel costs consist of salaries, benefits and equity-based compensation expense, for our personnel in executive and other administrative functions. We expect our general and administrative expenses to increase over the next several years to support our continued research and development activities, manufacturing activities, increased costs of expanding our operations and operating as a public company. These increases will likely include increases related to the hiring of additional personnel and legal, regulatory and other fees and services associated with maintaining compliance with Nasdaq Stock Market LLC (“Nasdaq”), Marketplace Rules, or the Nasdaq Listing Rules and Securities and Exchange Commission (“SEC”) requirements, accounting and audit fees, director and officer insurance costs and investor relations costs associated with being a public company.

Other Income (Expense)

For the three and nine months ended September 30, 2023 and 2022, other income and expense consisted primarily of interest income, foreign exchange transaction losses, loss on sale of equipment, interest expense, changes in fair value of the embedded derivative, gain on extinguishment of promissory notes, and gains and losses related to the re-measurement of our warrant liabilities.

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Results of Operations

Comparison of the Three Months Ended September 30, 2023 and 2022

The following table summarizes our results of operations for the periods indicated:

	Three Months Ended September 30,
	2023		2022		$ Change		% Change
	(In thousands, except percentages)
Operating expenses:
Research and development	$	7,264	$	4,593	$	2,671	58	%
General and administrative	3,507		1,177		2,330		198	%
Total operating expenses	10,771		5,770		5,001		87	%
Loss from operations	(10,771)		(5,770)		(5,001)		87	%
Total other income (expense)	113		(1,428)		1,541		(108)	%
Net loss	$	(10,658)	$	(7,198)	$	(3,460)

Research and Development Expenses

Research and development expenses were $7.3 million for the three months ended September 30, 2023, compared to $4.6 million for the three months ended September 30, 2022. The increase of $2.7 million was primarily due to GMP manufacturing and clinical trial expenses as the Company advanced ELI-002 clinical development.

General and Administrative Expenses

General and administrative expenses were $3.5 million for the three months ended September 30, 2023, compared to $1.2 million for the three months ended September 30, 2022. The increase of $2.3 million was primarily due to higher personnel-related costs in support of organizational growth and higher professional fees incurred in connection with operating as a public company.

Other Income (Expense)

Other income (expense) for the three months ended September 30, 2023 was income of $0.1 million compared to expense of $1.4 million for the three months ended September 30, 2022. The decrease of $1.5 million was primarily due to reduced interest expense associated with the conversion of the convertible notes to preferred stock as part of the Series C Preferred Stock offering.

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Comparison of the Nine Months Ended September 30, 2023 and 2022

The following table summarizes our results of operations for the periods indicated:

	Nine Months Ended September 30,
	2023		2022		$ Change		% Change
	(In thousands, except percentages)
Operating expenses:
Research and development	$	17,692	$	13,813	$	3,879	28	%
General and administrative	8,661		3,959		4,702		119	%
Total operating expenses	26,353		17,772		8,581		48	%
Loss from operations	(26,353)		(17,772)		(8,581)		48	%
Other income (expense), net	107		(3,785)		3,892		(103)	%
Net loss	$	(26,246)	$	(21,557)	$	(4,689)

Research and Development Expenses

Research and development expenses were $17.7 million for the nine months ended September 30, 2023, compared to $13.8 million for the nine months ended September 30, 2022. The increase of $3.9 million was primarily due to an increase in external costs associated with ELI-002 manufacturing and clinical trials.

General and Administrative Expenses

General and administrative expenses were $8.7 million for the nine months ended September 30, 2023, compared to $4.0 million for the nine months ended September 30, 2022. The increase of $4.7 million was primarily due to higher personnel-related costs in support of organizational growth and higher professional fees incurred in connection with the Merger and operating as a public company.

Other Income (Expense)

Other expense for the nine months ended September 30, 2023 was income of $0.1 million compared to expense of $3.8 million for the nine months ended September 30, 2022. The decrease of $3.9 million was primarily due to reduced interest expense associated with the convertible notes.

Liquidity and Capital Resources

Sources and Uses of Liquidity

Our operations through September 30, 2023 have been financed primarily by aggregate net proceeds of $99.6 million from the issuance of common stock, convertible preferred stock, convertible notes, the exercise of stock options and common stock warrants and proceeds from the Merger. Since inception, we have had significant operating losses. Our net loss was $26.2 million and $21.6 million for the nine months ended September 30, 2023 and nine months ended September 30, 2022, respectively. As of September 30, 2023, we had an accumulated deficit of $133.3 million and $14.8 million in cash and cash equivalents. Our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures, and to a lesser extent, general and administrative expenditures. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable and accrued expenses.

Our losses from operations, negative operating cash flows and accumulated deficit, as well as the additional capital needed to fund operations for at least twelve months following the issuance of the unaudited condensed consolidated financial statements, raise substantial doubt about our ability to continue as a going concern. We expect to incur substantial expenditures in the foreseeable future for the development of our product candidates and will require additional financing to continue this development. The unaudited condensed consolidated financial statements appearing elsewhere in this Form 10-Q have been prepared on a basis that assumes that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal

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course of business. The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. We plan to address this condition through the sale of common stock in public offerings and/or private placements, debt financings, or through other capital sources, including licensing arrangements, partnerships and collaborations with other companies or other strategic transactions. However, there is no assurance that we will be successful in raising additional capital or that such additional funds will be available on acceptable terms, if at all. Should we be unable to raise this amount of capital our operating plans will be limited to the amount of capital that we can access. We may also consider steps to reduce our operating expenses. There can be no assurances that we will be successful in any of the foregoing.

Future Cash Needs and Funding Requirements

Based on our current operating plan, we believe our cash and cash equivalents will be sufficient to fund our planned operations into the first quarter of calendar year 2024. However, we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all our available capital resources sooner than we expect. We are unable to estimate the exact amount of our operating capital requirements. The amount and timing of our future funding requirements will depend on many factors, including, but not limited to:

▪the scope, progress, results and costs of researching and developing product candidates, and conducting preclinical studies and clinical trials;

▪the outcome of any future clinical trials, for any existing or future product candidates;

▪whether we are able to take advantage of any FDA expedited development and approval programs for any of its product candidates;

▪the outcome, costs and timing of seeking and obtaining and maintaining FDA and any foreign regulatory approvals;

▪the costs associated with any delays we may encounter as a result of evolving regulatory requirements or adverse results with respect to any of our product candidates;

▪the number and characteristics of product candidates we pursue, including product candidates in preclinical development;

▪the ability of our product candidates to progress through clinical development successfully;

▪our need to expand our research and development activities, including to conduct additional clinical trials;

▪market acceptance of our product candidates, including physician adoption, market access, pricing and reimbursement;

▪the costs of acquiring, licensing or investing in businesses, products, product candidates and technologies;

▪our ability to maintain, expand and defend the scope of our intellectual property portfolio, including the amount and timing of any payments potentially required to make, or that we may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights;

▪our need and ability to hire additional personnel, including management, clinical development, medical and commercial personnel;

▪the effect of competing technological, market developments and government policy;

▪the costs associated with being a public company, including our need to implement additional internal systems and infrastructure, including financial and reporting systems;

▪the costs associated with securing and establishing commercialization and manufacturing capabilities, as well as those associated with packaging, warehousing and distribution;

▪the economic and other terms, timing of and success of our existing licensing arrangements and any collaboration, licensing or other arrangements into which we may enter in the future and timing and amount of payments thereunder; and

▪the timing, receipt and amount of sales and general commercial success of any future approved products, if any.

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Until such time as we can generate significant revenue from sales of product candidates, if ever, we expect to finance our operations through the sale of common stock in public offerings and/or private placements, debt financings, or through other capital sources, including licensing arrangements, partnerships and collaborations with other companies or other strategic transactions. Adequate funding may not be available to us on acceptable terms, or at all. To the extent we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise funds through additional collaborations, or other similar arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to and/or may reduce the value of our common stock. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development or commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates itself.

Summary Statement of Cash Flows

The following table sets forth a summary of our net cash flow activity for the nine months ended September 30, 2023 and 2022 (in thousands):

	Nine Months Ended September 30,
	2023		2022
Net cash provided by (used in)
Operating activities	$	(22,798)	$	(14,903)
Investing activities	(32)		(559)
Financing activities	31,611		10,026
Effect of foreign currency on cash	—		—
Net increase (decrease) in cash	$	8,781	$	(5,436)

Operating Activities

For the nine months ended September 30, 2023, net cash used in operating activities was $22.8 million, which primarily consisted of a net loss of $26.2 million which was partially offset by the change in net operating assets and liabilities of $1.6 million and the net non-cash charges of $1.8 million. The cash provided by the change in net operating assets and liabilities was due to a $0.2 million increase in deferred research obligation, a $2.0 million increase in accrued expense and accounts payable, and $0.6 million decrease in operating lease. The net non-cash charges were primarily related to $1.1 million of interest expense related to the accretion of promissory notes payable, $0.8 million of stock-based compensation, $0.6 million decrease in the right of use asset, $0.3 million of depreciation offset by $0.4 million increase in the fair value of the embedded derivative associated with the promissory notes payable and $0.6 million of gain on the extinguishment of the promissory notes payable.

For the nine months ended September 30, 2022, net cash used in operating activities was $14.9 million, which primarily consisted of a net loss of $21.6 million and the use of cash from the change in net operating assets and liabilities of $1.7 million which was partially offset by net non-cash charges of $5.0 million. The cash provided by to the change in net operating assets and liabilities was due to a $2.1 million increase in deferred research obligation, a $1.3 million increase in accounts payable and accrued expenses, a $1.4 million decrease in prepaid expenses and a $0.4 million decrease in operating lease. The net non-cash charges were primarily related to $3.5 million of interest expense related to convertible notes, $0.4 million of stock-based compensation, $0.3 million of depreciation, $0.5 million decrease in the right of use asset, and a $0.3 million decrease in the fair value of the embedded derivative associated with the convertible notes.

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Investing Activities

For the nine months ended September 30, 2023, cash provided by or used in investing activities was immaterial.

For the nine months ended September 30, 2022, net cash used in investing activity was $0.6 million, which was driven by the purchase of property and equipment.

Financing Activities

For the nine months ended September 30, 2023, net cash provided by financing activities was $31.6 million as a result of the Merger.

For the nine months ended September 30, 2022, net cash provided by financing activities was $10.0 million, consisting primarily of proceeds from the issuance of preferred stock.

Critical Accounting Policies and Significant Judgements and Estimates

Our condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The preparation of our condensed consolidated financial statements and related disclosures requires us to make estimates and judgments affecting the reported amounts of assets, liabilities, costs and expenses. We base our estimates on historical experience, known trends and events and various other factors we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Use of Estimates” in our Current Report on Form 8-K filed with the SEC on June 2, 2023. During the nine months ended September 30, 2023, except as described in Note 2 to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting policies from those previously disclosed.

Emerging Growth Company and Smaller Reporting Company Status

We are a smaller reporting company and an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay the adoption of new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. Other exemptions and reduced reporting requirements under the JOBS Act for emerging growth companies include presentation of only two years of audited financial statements in a registration statement for an initial public offering, an exemption from the requirement to provide an auditor's report on internal controls over financial reporting pursuant to Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”) an exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation, and less extensive disclosure about our executive compensation arrangements.

We have elected to use the extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that (i) we are no longer an emerging growth company or (ii) we affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our condensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting standards as of public company effective dates.

We will remain an emerging growth company until the earliest of (i) December 31, 2026, (ii) the last day of our first fiscal year in which we have total annual gross revenue of $1.235 billion or more, (iii) the date on which we are deemed to be a “large accelerated filer,” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which means the market value of equity securities held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

Even after we no longer qualify as an emerging growth company, we may still qualify as a “smaller reporting company” and/or “non-accelerated filer” which may allow us to take advantage of many of the same exemptions

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from disclosure requirements including not being required to comply for a period of time with the auditor attestation requirements of Section 404 of Sarbanes-Oxley, and reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures at September 30, 2023. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under 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 by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our principal executive officer and principal financial officer, after evaluating the effectiveness of our “disclosure controls and procedures” (as defined in the Exchange Act Rule 13a-15(e), or Rule 15d-15(e)), with the participation of our management, have each concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial reporting described below.

During the 2022 audit procedures performed around convertible preferred stock, an adjustment in the amount of $843,000, related to the modification of the Series A preferred stock dividend rights, and associated issuance of warrants during 2018 was identified. It was further determined the modification of the dividend rights and the issuance of warrants should have been accounted for as an extinguishment.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be detected on a timely basis. Although the identified adjustment was immaterial to our financial statements, we determined that there was a risk that a similar event could have occurred without being prevented or detected on a timely basis that could have given rise to a potentially material misstatement in our financial statements or disclosures.

Although we have initiated efforts to remediate this material weakness, including enhanced review processes to address infrequent, complex transactions, the material weakness has not been fully remediated as of September 30, 2023 and continues to be disclosed as a material weakness in the Company’s Form 10-Q for the three and nine month periods ended September 30, 2023.

Our remediation efforts are intended to address the identified material weakness. Management is committed to continuous improvement of our internal control over financial reporting and will continue to diligently review our internal control over financial reporting.

Changes in Internal Control Over Financial Reporting

Other than the material weakness described above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)) under the Exchange Act) that occurred during the

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quarter ended September 30, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitation on the Effectiveness Over Financial Reporting

The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable and not absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but there can be no assurance such improvements will be sufficient to provide us with effective internal control over financial reporting.

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Part II OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be involved in legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of business or otherwise.

The outcome of any future litigation is uncertain. Such litigation, if not resolved, could result in substantial costs to us, including any costs associated with the indemnification of directors and officers.

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Item 1A. Risk Factors

Investing in our common stock involves a high degree of risk. You should carefully consider the risk factors, described in our Form 8-K filed on June 2, 2023 as well as the other information in this Quarterly Report on Form 10-Q, before deciding whether to invest in shares of our common stock. There have been no material changes in our risk factors from those described in our current report on Form 8-K filed on June 2, 2023, other than the updates to the risk factors set forth below.

We may be unsuccessful in raising the capital necessary to address our going concern issues, or if we are successful, it may be on terms that are highly dilutive to existing stockholders.

Historically, we funded our operations by raising capital from external sources and from the Merger. However, we are currently facing significant challenges to our ability to raise capital through the sale of common stock, including the following factors:

•in general, it is difficult for development stage companies to raise capital under current market conditions, especially those with early-stage programs like ours;

•the perception that we may be unable to continue as a going concern may impede our ability to attract further equity investment; and

•our common stock has limited trading volume, which limits the demand for our common stock.

Given these factors, there can be no assurances we will be successful at raising sufficient capital to address our going concern issues. However, if we are successful, it may be on terms that are very highly dilutive to existing stockholders.In addition, if we are unable to raise additional capital, we will have to delay, curtail or eliminate one or more of our research and development programs or cease operations.

We have identified a material weakness in our internal control over financial reporting related to our control environment. If we do not remediate the material weaknesses in our internal control over financial reporting, or if we fail to establish and maintain effective internal control, we may not be able to accurately report our financial results, which may cause investors to lose confidence in our reported financial information and may lead to a decline in the market price of our stock.

As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls. Pursuant to Section 404 of the Sarbanes-Oxley Act, or Section 404, we are required to furnish a report by our management on our internal control over financial reporting in our periodic reports filed with the SEC. However, while we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. To achieve compliance with Section 404 within the prescribed period, we will be engaged in a process to document and evaluate our internal control over financial reporting, which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside consultants and adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for internal control over financial reporting. Despite our efforts, there is a risk that we will not be able to conclude, within the prescribed timeframe or at all, that our internal control over financial reporting is effective as required by Section 404. If we identify additional material weaknesses, it could result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements. A material weakness is a deficiency, or 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 and corrected on a timely basis.

We have identified a material weakness in our internal control over financial reporting related to our control environment. More specifically, we have determined that we have not maintained adequate formal accounting policies, processes and controls related to complex transactions as a result of a lack of finance and accounting staff with the appropriate GAAP technical expertise needed to identify, evaluate and account for complex and non-routine transactions.

Over the next several months, we plan to implement a number of measures to address the material weakness we have identified. We plan to design additional controls around identification, documentation and application of

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technical accounting guidance with particular emphasis on complex and non-routine transactions. These controls are expected to include an additional review process to ensure that the correct conclusions are reached with respect to complex and non-routine transactions and avoid the potential for a material misstatement of our financial statements. We intend to complete the implementation of our remediation plan during 2023. However, we cannot assure you that we will be successful in remediating the material weakness we identified or that our internal control over financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future.

Any failure to remediate the material weakness we identified or develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our operating results or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to remediate the material weakness we identified or implement and maintain effective internal control over financial reporting could also adversely affect the results of management reports and independent registered public accounting firm audits of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures, and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the market price of our common stock.

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

Recent Sales of Unregistered Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

During the fiscal quarter ended September 30, 2023, none of our directors or executive officers adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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Item 6. Exhibits

Exhibit Number	Exhibit Description	Incorporated by Reference			Filed Herewith
		Form	Date	Number
10.1+	Separation and Release Agreement, dated October 19, 2023, by and between Annette Matthies, Ph.D. and Elicio Therapeutics, Inc.	8-k	10/20/2023	10.1+
10.2+	Non-Employee Director Compensation Program				X
31.1	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1^	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
32.2^	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
101.INS	XBRL Instance Document.				X
101.SCH	XBRL Taxonomy Extension Schema Document.				X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.				X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.				X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.				X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.				X
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).				X

__________________________________

+ Management contract or compensatory plan arrangement.

^ The certification that accompanies this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is not deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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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.

		ELICIO THERAPEUTICS, INC.
		By:	/s/ ROBERT CONNELLY
Date:	November 13, 2023		Robert Connelly President and Chief Executive Officer (Principal Executive Officer)

		ELICIO THERAPEUTICS, INC.
		By:	/s/ BRIAN PIEKOS
Date:	November 13, 2023		Brian Piekos Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

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EX-10.1

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7

DocuSign Envelope ID: F8DF99CD-2063-4E6C-87EB-824FD71C07B7 19-Oct-2023

EX-10.2

Revised June 2023

ELICIO THERAPEUTICS, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM

Non-employee members of the board of directors (the “Board”) of Elicio Therapeutics, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Program (this “Program”), which is being adopted pursuant to the Board’s resolutions on June 2, 2023. The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company. This Program shall remain in effect until it is revised or rescinded by further action of the Board. This Program may be amended, modified or terminated by the Board at any time, without advance notice, in its sole discretion. The terms and conditions of this Program shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors. This Program shall be effective upon the effectiveness of the registration statement for the Company’s initial public offering (the “Effective Date”).

1.Cash Compensation.

a.Annual Retainers. Each Non-Employee Director shall be eligible to receive an annual retainer of $40,000 for service on the Board.

b.Additional Annual Retainers. In addition, a Non-Employee Director shall receive the following annual retainers:

i.Non-Executive Chairman of the Board. A Non-Employee Director serving as the Non-Executive Chairman of the Board shall receive an additional annual retainer of $35,000 for such service.

ii.Lead Director of the Board. A Non-Employee Director serving as the Lead Director of the Board shall receive an additional annual retainer of $20,000 for such service.

iii.Audit Committee. A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $15,000 for such service. A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $7,500 for such service.

iv.Compensation Committee. A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $10,000 for such service. A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.

v.Nominating and Corporate Governance Committee. A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $8,000 for such service. A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.

Revised June 2023

c.Payment of Retainers. The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth (15th) day following the end of each calendar quarter. In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, the retainer paid to such Non-Employee Director shall be prorated for the portion of such calendar quarter actually served as a Non-Employee Director, or in such position, as applicable.

2.Equity Compensation. Non-Employee Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2021 Equity Incentive Award Plan, as amended from time to time, or any other applicable Company equity incentive plan then-maintained by the Company (in any case, the “Equity Plan”) and shall be evidenced by the execution and delivery of award agreements in substantially the forms approved by the Board from time to time. All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of stock options hereby are subject in all respects to the terms of the Equity Plan.

a.Initial Awards. Each Non-Employee Director who is initially elected or appointed to the Board after the Effective Date shall automatically be granted, on the date of such initial election or appointment, an option (an “Initial Award”) to purchase 30,000 shares of the Company’s common stock (“Shares”). No Non-Employee Director shall be granted more than one Initial Award.

b.Subsequent Awards. A Non-Employee Director who (i) has been serving on the Board immediately prior to any annual meeting of the Company’s stockholders after the Effective Date and (ii) will continue to serve as a Non-Employee Director immediately following such meeting, shall be automatically granted, on the date of such annual meeting, an option (a “Subsequent Award”) to purchase 15,000 Shares.

c.Termination of Service of Employee Directors. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their service with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(a) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Subsequent Awards as described in Section 2(b) above.

d.Terms of Awards Granted to Non-Employee Directors

i.Purchase Price. The per Share exercise price of each option granted to a Non-Employee Director shall equal the Fair Market Value (as defined in the Equity Plan) of a Share on the date the option is granted. Without limiting the foregoing, Fair Market Value as of the Effective Date shall be equal to the price per Share to the public in the Company’s initial public offering, as set forth on the cover of the final prospectus of the initial public offering of Company common stock.

ii.Vesting. Subject to Section 2(d)(iii) below, each Initial Award shall vest and become exercisable in thirty-six (36) substantially equal installments on each monthly anniversary of the date of grant, subject to the Non-Employee Director continuing to provide services to the Company through

Revised June 2023

each such vesting date. Subject to Section 2(d)(iii) below, each Subsequent Award shall vest and become exercisable in full on the earlier of the one year anniversary of the date of grant and the next annual meeting of the Company’s stockholders after the grant date, subject to the Non-Employee Director continuing to provide services to the Company through such vesting date.

iii.Accelerated Vesting.

1.Termination Due to Death or Disability. In the event that any Non-Employee Director incurs a Termination of Service (as defined in the Equity Plan) due to such Non-Employee Director’s death or Disability (as defined the Equity Plan), each of such Non-Employee Director’s Initial Award and Subsequent Award(s), along with any other stock options or other equity-based awards held by such Non-Employee Director, shall vest and, if applicable, become exercisable with respect to one hundred percent (100%) of the Shares subject thereto upon such Termination of Service.

2.Change in Control. In the event that a Change in Control (as defined in the Equity Plan) occurs, each Initial Award and Subsequent Award, along with any other stock options or other equity-based awards held by any Non-Employee Director, shall vest and, if applicable, become exercisable with respect to one hundred percent (100%) of the Shares subject thereto as of immediately prior to such Change in Control.

iv.Term. The term of each stock option granted to a Non-Employee Director shall be ten (10) years from the date the option is granted.

3.Reimbursements. The Company shall reimburse each Non-Employee Director for all reasonable, documented, out-of-pocket travel and other business expenses incurred by such Non-Employee Director in the performance of his or her duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as in effect from time to time.

* * * * *

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert Connelly, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Elicio 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.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

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

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

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

	ELICIO THERAPEUTICS, INC.
	By:	/s/ ROBERT CONNELLY
Date: November 13, 2023		Robert Connelly President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian Piekos, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Elicio 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.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

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

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

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

	ELICIO THERAPEUTICS, INC.
	By:	/s/ Brian Piekos
Date: November 13, 2023		Brian Piekos Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

The undersigned officer of Elicio Therapeutics, Inc. (the “Company”) certifies to such officer’s knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2023 (the “Quarterly Report”), as filed with the Securities and Exchange Commission, 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 this Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	ELICIO THERAPEUTICS, INC.
	By:	/s/ ROBERT CONNELLY
Date: November 13, 2023		Robert Connelly President and Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

The undersigned officer of Elicio Therapeutics, Inc. (the “Company”) certifies to the officer’s knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.    The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2023 (the “Quarterly Report”), as filed with the Securities and Exchange Commission, 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 this Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	ELICIO THERAPEUTICS, INC.
	By:	/s/ BRIAN PIEKOS
Date: November 13, 2023		Brian Piekos Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 07, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Entity Transition Report	false
Entity File Number	001-39990
Entity Registrant Name	Elicio Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3430072
Entity Address, Address Line One	451 D Street, 5th Floor
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02210
City Area Code	857
Local Phone Number	209-0050
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	ELTX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,407,106
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001601485
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 14,841	$ 6,156
Restricted cash, current	1,671	1,641
Prepaid expenses and other current assets	3,419	2,920
Total current assets	19,931	10,717
Property and equipment, net	772	1,147
Operating lease, right-of-use assets	6,768	7,350
Restricted cash, noncurrent	683	617
Other long-term prepaid assets	2,833	2,833
Total assets	30,987	22,664
Current liabilities
Accounts payable	4,406	2,805
Accrued expenses	4,416	1,935
Deferred research obligation	1,664	1,436
Operating lease liability, current	938	692
Unvested option exercise liability, current	36	0
Warrant liability	26	0
Total current liabilities	11,486	6,868
Operating lease liability, noncurrent	6,215	6,789
Unvested option exercise liability, non current	0	92
Total liabilities	17,701	13,749
Commitments and contingencies - Note 10
Convertible preferred stock:
Total convertible preferred stock	0	111,060	[1]
Stockholders' equity (deficit):
Common stock, $0.01 par value; 300,000,000 shares authorized at September 30, 2023 and December 31, 2022; 8,384,723 shares and 320,281 shares issued at September 30, 2023 and December 31, 2022, respectively; 8,378,361 and 320,281 outstanding as of September 30, 2023 and December 31, 2022, respectively	84	3
Treasury stock, at cost, 14,455 shares and no shares outstanding as of September 30, 2023 and December 31, 2022, respectively	(150)	0
Additional paid-in capital	146,631	4,860
Accumulated other comprehensive income (loss)	(25)	0
Accumulated deficit	(133,254)	(107,008)
Total stockholders' equity (deficit)	13,286	(102,145)	[1]
Total liabilities, convertible preferred stock, and stockholders' equity (deficit)	30,987	22,664
Series A Preferred Stock
Convertible preferred stock:
Total convertible preferred stock	0	7,495
Series B Preferred Stock
Convertible preferred stock:
Total convertible preferred stock	0	62,944
Series C preferred stock
Convertible preferred stock:
Total convertible preferred stock	$ 0	$ 40,621

[1] Retroactively restated for the reverse recapitalization as described in Note 3.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Jun. 30, 2023	Jun. 01, 2023	Mar. 31, 2023	Dec. 31, 2022		Oct. 18, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	[2]
Convertible preferred stock, par value (in dollars per share)					$ 0.06
Convertible preferred stock, shares authorized (in shares)					6,948,560
Convertible preferred stock, shares issued (in shares)					4,997,920
Convertible preferred stock, shares outstanding (in shares)	0	0		4,997,920	4,997,920	[1]		2,180,679	1,511,737	1,408,100	1,408,100
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01			$ 0.01
Common stock, shares authorized (in shares)	300,000,000				300,000,000
Common stock, shares issued (in shares)	8,384,723		8,387,025		320,281
Common stock, shares outstanding (in shares)	8,378,361		8,387,025		320,281
Treasury stock, shares outstanding (in shares)	14,455				0
Series A Preferred Stock
Convertible preferred stock, par value (in dollars per share)	$ 0.06				$ 0.06
Convertible preferred stock, shares authorized (in shares)	0				132,387
Convertible preferred stock, shares issued (in shares)	0				132,387		132,387
Convertible preferred stock, shares outstanding (in shares)	0				132,387
Series B Preferred Stock
Convertible preferred stock, par value (in dollars per share)	$ 0.06				$ 0.06
Convertible preferred stock, shares authorized (in shares)	0				1,927,375
Convertible preferred stock, shares issued (in shares)	0				1,927,375		1,927,375
Convertible preferred stock, shares outstanding (in shares)	0				1,927,375
Series C preferred stock
Convertible preferred stock, par value (in dollars per share)	$ 0.06				$ 0.06
Convertible preferred stock, shares authorized (in shares)	0				4,888,798
Convertible preferred stock, shares issued (in shares)	0				2,938,158
Convertible preferred stock, shares outstanding (in shares)	0				2,938,158

[1] Retroactively restated for the reverse recapitalization as described in Note 3.

[2] Retroactively restated for the reverse recapitalization as described in Note 3.

XML

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating expenses:
Research and development	$ 7,264	$ 4,593	$ 17,692	$ 13,813
General and administrative	3,507	1,177	8,661	3,959
Total operating expenses	10,771	5,770	26,353	17,772
Loss from operations	(10,771)	(5,770)	(26,353)	(17,772)
Other income (expense)
Change in fair value of warrant liability	6	0	(17)	0
Change in fair value of embedded derivatives	0	(360)	429	(286)
Gain on extinguishment of promissory notes payable	0	0	604	0
Loss on sale of equipment	(105)	0	(105)	(4)
Foreign exchange transaction loss	(33)	0	(45)	0
Interest income	246	10	298	10
Interest expense	(1)	(1,078)	(1,057)	(3,505)
Total other income (expense)	113	(1,428)	107	(3,785)
Net loss	(10,658)	(7,198)	(26,246)	(21,557)
Other comprehensive loss:
Foreign currency translation adjustment	(23)	0	(25)	0
Comprehensive loss	$ (10,681)	$ (7,198)	$ (26,271)	$ (21,557)
Net loss per common share, basic (in dollars per share)	$ (1.27)	$ (22.67)	$ (3.19)	$ (68.52)
Net loss per common share, diluted (in dollars per share)	$ (1.27)	$ (22.67)	$ (3.19)	$ (68.52)
Weighted average common shares outstanding, basic (in shares)	8,376,384	317,512	8,240,326	314,619
Weighted average common shares outstanding, diluted (in shares)	8,376,384	317,512	8,240,326	314,619

XML

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands		Total	Reverse Recapitalization	Conversion Of Convertible Preferred Stock	Conversion of Convertible Debt	Common Stock		Common Stock Reverse Recapitalization	Common Stock Conversion Of Convertible Preferred Stock	Treasury Stock		Additional Paid-in Capital	Additional Paid-in Capital Reverse Recapitalization	Additional Paid-in Capital Conversion Of Convertible Preferred Stock	Additional Paid-in Capital Conversion of Convertible Debt	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2021	[1]	1,408,100
Beginning balance at Dec. 31, 2021	[1]	$ 70,439
Balance at end of period (in shares) at Mar. 31, 2022		1,408,100
Ending balance at Mar. 31, 2022		$ 70,439
Balance at beginning of period (in shares) at Dec. 31, 2021	[1]					310,200
Beginning balance at Dec. 31, 2021	[1]	(74,537)				$ 3				$ 0		$ 4,261				$ 0	$ (78,801)
Treasury stock, beginning balance (in shares) at Dec. 31, 2021	[1]									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						71
Exercise of stock options		1										1
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						2,775
Issuance of common stock upon net settlement of restricted stock units and performance stock units		3										3
Stock-based compensation		157										157
Net loss		(7,060)															(7,060)
Balance at end of period (in shares) at Mar. 31, 2022						313,046
Ending balance at Mar. 31, 2022		$ (81,436)				$ 3				$ 0		4,422				0	(85,861)
Treasury stock, ending balance (in shares) at Mar. 31, 2022										0
Balance at beginning of period (in shares) at Dec. 31, 2021	[1]	1,408,100
Beginning balance at Dec. 31, 2021	[1]	$ 70,439
Balance at end of period (in shares) at Sep. 30, 2022		2,180,679
Ending balance at Sep. 30, 2022		$ 80,448
Balance at beginning of period (in shares) at Dec. 31, 2021	[1]					310,200
Beginning balance at Dec. 31, 2021	[1]	(74,537)				$ 3				$ 0		4,261				0	(78,801)
Treasury stock, beginning balance (in shares) at Dec. 31, 2021	[1]									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment		0
Net loss		(21,557)
Balance at end of period (in shares) at Sep. 30, 2022						319,118
Ending balance at Sep. 30, 2022		$ (95,697)				$ 3				$ 0		4,658				0	(100,358)
Treasury stock, ending balance (in shares) at Sep. 30, 2022										0
Balance at beginning of period (in shares) at Mar. 31, 2022		1,408,100
Beginning balance at Mar. 31, 2022		$ 70,439
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series C convertible preferred stock, net of issuance costs (in shares)		103,637
Issuance of Series C convertible preferred stock, net of issuance costs		$ 1,169
Balance at end of period (in shares) at Jun. 30, 2022		1,511,737
Ending balance at Jun. 30, 2022		$ 71,608
Balance at beginning of period (in shares) at Mar. 31, 2022						313,046
Beginning balance at Mar. 31, 2022		(81,436)				$ 3				$ 0		4,422				0	(85,861)
Treasury stock, beginning balance (in shares) at Mar. 31, 2022										0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						181
Exercise of stock options		3										3
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						2,775
Issuance of common stock upon net settlement of restricted stock units and performance stock units		3										3
Stock-based compensation		113										113
Net loss		(7,299)															(7,299)
Balance at end of period (in shares) at Jun. 30, 2022						316,002
Ending balance at Jun. 30, 2022		$ (88,616)				$ 3				$ 0		4,541				0	(93,160)
Treasury stock, ending balance (in shares) at Jun. 30, 2022										0
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series C convertible preferred stock, net of issuance costs (in shares)		668,942
Issuance of Series C convertible preferred stock, net of issuance costs		$ 8,840
Balance at end of period (in shares) at Sep. 30, 2022		2,180,679
Ending balance at Sep. 30, 2022		$ 80,448
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						341
Exercise of stock options		4										4
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						2,775
Issuance of common stock upon net settlement of restricted stock units and performance stock units		3										3
Stock-based compensation		110										110
Foreign currency translation adjustment		0
Net loss		(7,198)															(7,198)
Balance at end of period (in shares) at Sep. 30, 2022						319,118
Ending balance at Sep. 30, 2022		$ (95,697)				$ 3				$ 0		4,658				0	(100,358)
Treasury stock, ending balance (in shares) at Sep. 30, 2022										0
Balance at beginning of period (in shares) at Dec. 31, 2022	[2]	4,997,920
Beginning balance at Dec. 31, 2022	[2]	$ 111,060
Balance at end of period (in shares) at Mar. 31, 2023		4,997,920
Ending balance at Mar. 31, 2023		$ 111,060
Balance at beginning of period (in shares) at Dec. 31, 2022		320,281				320,281	[2]
Beginning balance at Dec. 31, 2022	[2]	$ (102,145)				$ 3				$ 0		4,860				0	(107,008)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022		0								0	[2]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						4,699
Exercise of stock options		$ 40										40
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						2,601
Issuance of common stock upon net settlement of restricted stock units and performance stock units		34										34
Stock-based compensation		224										224
Net loss		(8,029)															(8,029)
Balance at end of period (in shares) at Mar. 31, 2023						327,581
Ending balance at Mar. 31, 2023		$ (109,876)				$ 3				$ 0		5,158				0	(115,037)
Treasury stock, ending balance (in shares) at Mar. 31, 2023										0
Balance at beginning of period (in shares) at Dec. 31, 2022	[2]	4,997,920
Beginning balance at Dec. 31, 2022	[2]	$ 111,060
Balance at end of period (in shares) at Sep. 30, 2023		0
Ending balance at Sep. 30, 2023		$ 0
Balance at beginning of period (in shares) at Dec. 31, 2022		320,281				320,281	[2]
Beginning balance at Dec. 31, 2022	[2]	$ (102,145)				$ 3				$ 0		4,860				0	(107,008)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022		0								0	[2]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		61,791
Foreign currency translation adjustment		$ (25)
Net loss		$ (26,246)
Balance at end of period (in shares) at Sep. 30, 2023		8,378,361				8,378,361
Ending balance at Sep. 30, 2023		$ 13,286				$ 84				$ (150)		146,631				(25)	(133,254)
Treasury stock, ending balance (in shares) at Sep. 30, 2023		(14,455)								(14,455)
Balance at beginning of period (in shares) at Mar. 31, 2023		4,997,920
Beginning balance at Mar. 31, 2023		$ 111,060
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of preferred stock (in shares)		(4,997,920)
Conversion of preferred stock		$ (111,060)
Balance at end of period (in shares) at Jun. 30, 2023		0
Ending balance at Jun. 30, 2023		$ 0
Balance at beginning of period (in shares) at Mar. 31, 2023						327,581
Beginning balance at Mar. 31, 2023		(109,876)				$ 3				$ 0		5,158				0	(115,037)
Treasury stock, beginning balance (in shares) at Mar. 31, 2023										0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						4,460
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						903		26,550
Issuance of common stock upon net settlement of restricted stock units and performance stock units		11	$ 27					$ 1				11	$ 26
Conversion of preferred stock (in shares)									4,997,920
Conversion of preferred stock and settlement of promissory notes				$ 111,060	$ 10,028				$ 50					$ 111,010	$ 10,028
Issuance of common stock, net of issuance costs (in shares)						3,012,854
Issuance of common stock, net of issuance costs		19,739				$ 30						19,709
Return of common stock to pay withholding taxes on restricted stock (in shares)										(14,455)
Return of common stock to pay withholding taxes on restricted stock		(150)								$ (150)
Stock-based compensation		279										279
Foreign currency translation adjustment		(2)														(2)
Net loss		(7,559)															(7,559)
Balance at end of period (in shares) at Jun. 30, 2023						8,370,268
Ending balance at Jun. 30, 2023		$ 23,557				$ 84				$ (150)		146,221				(2)	(122,596)
Treasury stock, ending balance (in shares) at Jun. 30, 2023										(14,455)
Balance at end of period (in shares) at Sep. 30, 2023		0
Ending balance at Sep. 30, 2023		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)						7,190
Exercise of stock options		60										60
Issuance of common stock upon net settlement of restricted stock units and performance stock units (in shares)						903
Issuance of common stock upon net settlement of restricted stock units and performance stock units		11										11
Stock-based compensation		339										339
Foreign currency translation adjustment		(23)														(23)
Net loss		$ (10,658)															(10,658)
Balance at end of period (in shares) at Sep. 30, 2023		8,378,361				8,378,361
Ending balance at Sep. 30, 2023		$ 13,286				$ 84				$ (150)		$ 146,631				$ (25)	$ (133,254)
Treasury stock, ending balance (in shares) at Sep. 30, 2023		(14,455)								(14,455)

[1] Retroactively restated for the reverse recapitalization as described in Note 3.

[2] Retroactively restated for the reverse recapitalization as described in Note 3.

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Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01	$ 0.01
Stock issuance costs	$ 2.4	$ 0.7	$ 0.3

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Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (10,658,000)	$ (7,198,000)	$ (26,246,000)	$ (21,557,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	0	100,000	302,000	290,000
Amortization of right-of-use assets, operating leases			582,000	473,000
Non-cash interest expense			1,061,000	3,509,000
Change in fair value of embedded derivative	0	360,000	(429,000)	286,000
Change in fair value of warrant liability	(6,000)	0	17,000	0
Stock-based compensation			842,000	380,000
Gain on extinguishment of promissory note payable	0	0	(604,000)	0
Loss on disposal of property and equipment, net	105,000	0	105,000	4,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets			(41,000)	(1,513,000)
Other long-term prepaid assets			0	114,000
Accounts payable			63,000	1,407,000
Accrued expenses and other current liabilities			1,910,000	(70,000)
Deferred research obligation			228,000	2,152,000
Operating lease liabilities			(588,000)	(378,000)
Net cash used in operating activities			(22,798,000)	(14,903,000)
Cash flows from investing activities:
Purchases of property and equipment			(66,000)	(559,000)
Proceeds from sale of property and equipment			34,000	0
Net cash used in investing activities			(32,000)	(559,000)
Cash flows from financing activities:
Cash acquired in connection with the reverse merger			24,000,000	0
Merger transaction costs			(2,366,000)	0
Proceeds from issuance of promissory notes payable			10,000,000	0
Proceeds from issuance of Series C-1 convertible preferred stock, net of issuance costs			0	10,009,000
Payment for purchase of treasury stock			(150,000)	0
Exercise of stock options			127,000	17,000
Net cash provided by financing activities			31,611,000	10,026,000
Effect of foreign currency on cash			0	0
Net increase (decrease) in cash, cash equivalents, and restricted cash			8,781,000	(5,436,000)
Cash, cash equivalents and restricted cash at beginning of period			8,414,000	10,045,000
Cash, cash equivalents and restricted cash at the end of the period	17,195,000	4,609,000	17,195,000	4,609,000
Components of cash, cash equivalents and restricted cash:
Cash and cash equivalents	14,841,000	1,839,000	14,841,000	1,839,000
Restricted cash	2,354,000	2,770,000	2,354,000	2,770,000
Total cash, cash equivalents and restricted cash	$ 17,195,000	$ 4,609,000	17,195,000	4,609,000
Supplemental disclosure of noncash investing and financing activities:
Loss on disposal of property and equipment			139,000	4,000
Accretion of promissory note discount from embedded derivative			130,000	0
Accretion of promissory note to face value			897,000	0
Settlement of promissory notes payable			10,028,000	0
Interest expense from convertible notes payable			34,000	0
Accretion of convertible notes discount from embedded derivative			0	1,639,000
Accretion of convertible notes discount from issuance costs			0	219,000
Interest expense from convertible notes payable			$ 0	$ 574,000

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Description of the Business and Financial Condition

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business and Financial Condition

Description of the Business and Financial Condition

Elicio Therapeutics, Inc. (“Elicio” or the “Company”) was incorporated in Delaware as Vedantra Pharmaceuticals Inc., in August 2011. Elicio is a clinical-stage biotechnology company developing a pipeline of novel immunotherapies for the treatment of cancer. In December 2018, Elicio formed a wholly-owned subsidiary, Elicio Securities Corporation (“ESC”), a Massachusetts corporation. ESC is an investment company. Elicio and ESC are collectively referred to as “Elicio” throughout these unaudited consolidated financial statements.

Reverse Merger Transaction

On January 17, 2023, the Company entered into a definitive merger agreement (the “Merger Agreement”) with Angion Biomedica Corp. (“Angion”), a clinical development corporation. In accordance with the terms and conditions of the Agreement and Plan of Merger and Reorganization, by and among Angion, Arkham Merger Sub, Inc., a wholly owned subsidiary of Angion (“Merger Sub”), and Elicio Operating Company, Inc. (“Former Elicio”), pursuant to which Merger Sub merged with and into Former Elicio, with Former Elicio surviving the merger as a wholly owned subsidiary of Angion (the “Merger”).

On June 1, 2023, the Company completed the Merger in accordance with the terms and conditions of the Merger Agreement and Angion changed its name from “Angion Biomedica Corp.” to “Elicio Therapeutics, Inc.” Immediately following the consummation of the Merger, there were approximately 9.7 million shares of the Company’s common stock outstanding on a fully-diluted basis, with Former Elicio equity holders collectively owning approximately 65.2% of the Company and Angion equity holders collectively owning approximately 34.8% of the Company, in each case on a fully diluted basis.

The Merger was accounted for as a reverse recapitalization, with Former Elicio being treated as the acquirer for accounting purposes. See discussions of the transactions in connection with the Merger at Note 3 - Merger and Related Transactions.

Liquidity and Going Concern

The Company has experienced net losses and negative cash flows from operating activities since inception. As of September 30, 2023, the Company had an accumulated deficit of $133.3 million. The Company expects that its operating losses and operating cash flows will continue for the foreseeable future as the Company continues to develop its product candidates.

As of September 30, 2023, the Company had $14.8 million in cash and cash equivalents. The Company’s losses from operations, negative operating cash flows and accumulated deficit, as well as the additional capital needed to fund operations for at least twelve months following the issuance of the condensed consolidated financial statements, raise substantial doubt about the Company’s ability to continue as a going concern. The Company expects to incur substantial expenditures in the foreseeable future for the development of its product candidates and will require additional financing to continue this development. The Company plans to address this condition through the sale of Company common stock in public offerings and/or private placements, debt financings, or through other capital sources, including licensing arrangements, partnerships and collaborations with other companies or other strategic transactions, but there is no assurance these plans will be completed successfully or at all. If the Company is unable to obtain additional capital when and as needed to continue as a going concern, it might have to further reduce or scale back its operations and/or liquidate its assets, and the values it receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on a basis that assumes that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The Company's unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting, consistent in all material respects with those applied in the Company’s audited financial statements and accompanying notes for the year ended December 31, 2022 and 2021 included in the Company’s proxy statement/prospectus/information statement on Form S-4 filed April 26, 2023, as amended (the “Form S-4”). Any reference in these notes to applicable guidance is meant to refer to the authoritative accounting principles generally accepted in the United States as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). This report should be read in conjunction with the audited consolidated financial statements in the Form S-4.

The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Angion Pty Ltd. (“Angion Pty”), which was established on August 22, 2019, and its wholly-owned subsidiary, ESC, which was established in Massachusetts in December 2018. The Company established Angion Pty, an Australian subsidiary, for the purpose of qualifying for research credits for studies conducted in Australia and ESC is an investment company. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company’s significant accounting policies are described in Note 2 to its consolidated financial statements for the year ended December 31, 2022, included in its Form S-4. There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2023.

Since Former Elicio was determined to be the accounting acquirer in connection with the Merger, for periods prior to the Merger, the condensed consolidated financial statements were prepared on a stand-alone basis for Former Elicio and did not include the combined entities activity or financial position. Subsequent to the Merger, the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2023 include the acquired business from June 2, 2023 through September 30, 2023, and assets and liabilities at their acquisition date fair value. Historical share and per share figures of the Former Elicio have been retroactively restated based on the exchange ratio of 0.0181.

Segments

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment. The Company has determined that the chief executive officer is the CODM.

Use of Estimates

The Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates reflected in these condensed consolidated financial statements include but are not limited to, the accrual of research and development expenses, the valuation of stock-based awards, the operating right of use assets and operating lease liability, and going concern.

Foreign Currency Translation and Transactions

The United States Dollar (“USD”) is the functional currency for the Company’s operations outside the United States. Accordingly, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in USD at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into USD at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Gains and losses realized from non-USD transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity’s

functional currency are included in other income (expense) in the accompanying condensed consolidated statements of operations and comprehensive loss.

Concentrations of Credit Risk and Off-Balance Sheet Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and restricted cash. At times, cash balances deposited at major financial banking institutions exceed the federally insured limit. The Company regularly monitors the financial condition of the institutions in which it has depository accounts and believes the risk of loss is minimal. The Company has not experienced any losses in such accounts.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of deposits at major financial banking institutions and highly liquid investments with an original maturity of three months or less at the date of purchase. As of September 30, 2023 and December 31, 2022, the Company’s cash equivalents were held in institutions in the United States and include deposits in a money market fund which were unrestricted as to withdrawal or use.

Restricted Cash

Restricted cash consists of cash securing a collateral letter of credit issued in connection with the Company’s facility operating lease and a research grant. See notes 6 and 10 for further discussion.

Fair Value Measurement

The Company follows the guidance prescribed by ASC Topic 820, Fair Value Measurements, which establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value that focuses on an exit price which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

Level 1:    Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at measurement.

Level 2:    Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3:    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts of financial instruments reflected in the condensed consolidated balance sheets for cash and cash equivalents, current and non-current restricted cash, accounts payable, and accrued expenses approximate their respective fair values because of the short-term maturity of those financial instruments.

Property and Equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated

from their respective accounts, and the resulting gain or loss is recorded in the consolidated statement of operations and comprehensive loss. Repair and maintenance expenditures are charged to expense as incurred.

Asset Class	Estimated Useful Lives
Equipment	5 years
Furniture and fixtures	3 years
Leasehold improvements	Term of the lease

Impairment of Long-Lived Assets

Periodically, the Company evaluates its long-lived assets, which consist primarily of property and equipment, and right of use asset for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the three and nine months ended September 30, 2023 and 2022, no impairments have occurred.

Derivative Financial Instruments

The convertible and promissory notes include embedded derivatives requiring bifurcation in accordance with ASC 815, Derivatives and Hedging. The valuation of the instruments are determined using widely accepted valuation techniques including the probability weighted expected return model. The fair value was determined using a model with the assumptions for equity value proceeds, probability of occurrence of various liquidation scenarios, timeline to liquidity and risk-free interest rate. The fair value of the derivative instruments are measured at each reporting period with changes in fair value reported in earnings (loss).

Convertible Preferred Stock

Former Elicio had classified convertible preferred stock, par value $0.06 per share, (the “Preferred Stock”) as temporary equity in the accompanying consolidated balance sheets due to certain changes in control events that are outside of the Former Elicio’s control, including sale or transfer of control of Former Elicio, as holders of the Preferred Stock could cause redemption of the shares in these situations. Former Elicio did not accrete the carrying values of the Preferred Stock to the redemption values since a liquidation event was not considered probable as of December 31, 2022. Subsequent adjustments of the carrying values to the ultimate redemption values would be made only if it becomes probable that such a liquidation event will occur. During the prior reporting period an immaterial error was discovered in Former Elicio's 2022 audited financial statements whereas the amount of Series A and Series B Preferred Stock did not include 41,887 and 609,755 shares, respectively, that were deemed to be issued due to the antidilutive protection triggered by the Series C shares issued in October 2022 at a price below $1.00. As a result of the Merger, all Former Elicio preferred stock were converted into Company common stock on June 1, 2023. See Note 7.

Income Taxes

The Company provides for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. A valuation allowance is provided if, based upon the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions when the Company management determines that it is probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has not identified any significant uncertain tax positions as of September 30, 2023.

Research and Development

Research and development costs are charged to expense as incurred and consist of expenses incurred in performing research and development activities, including salaries and benefits, materials and supplies, preclinical expenses, stock-based compensation expense, depreciation of equipment, contract services, and other outside expenses. The Company accrues for costs incurred by external service providers, based on estimates of services performed and costs. These estimates include the level of services performed by the third parties, and other indicators of the services completed. Based on the timing of payments to service providers, the Company may also record prepaid expenses for those service providers that will be recognized as expenses in future periods as the related services are rendered. Research and development costs may be offset by research and development refundable tax rebates received by the Company’s wholly-owned Australian subsidiary.

Leases

ASU No. 2016-02, Leases (“ASC 842”) establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations as well as the reduction of the ROU asset.

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

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

Research Grant

The Company recognizes the amount of grant income based on the activity in allowable expenses covered under the grant and has elected to recognize the funds earned as an offset to the related research expenses recorded in operations. Advances from the grant that have yet to be recognized are recorded as restricted cash if the grant requires the funds to be isolated from general cash and cash equivalents. The Company records a liability for any research activity that is required under the grant but has not yet been performed. The liability is recorded as deferred research obligation on the condensed consolidated balance sheets.

Stock-based Compensation

The Company issues stock-based awards to employees and non-employees, generally in the form of stock options. The Company accounts for stock-based awards in accordance with ASC 718, Compensation—Stock Compensation, which requires all stock-based payments, to be recognized in the condensed consolidated statements of operations based on their fair values. The expense is recognized on a straight line basis over the requisite service period, which is generally the vesting period. The Company has elected to account for option forfeitures as they occur.

The Company uses the Black-Scholes option-pricing model (“Black-Scholes”) to determine the weighted-average fair value of options granted, which uses as inputs the fair value of the Company common stock, assumptions the Company makes for the volatility of its Company common stock, the expected term of its stock options, the risk-free interest rate for a period that approximates the expected term of its stock options and its expected dividend yield.

Compensation cost of awards that contain a performance condition are recognized when success is considered probable during the performance period.

Prior to the Merger, there was no public market for Former Elicio’s common stock. The estimated fair value of the Company common stock underlying Former Elicio’s stock-based awards was determined by Former Elicio’s board of directors as of the grant date of each option grant. To determine the fair value of Former Elicio’s common

stock underlying option grants, Former Elicio’s board of directors considered, among other things, input from management and valuations of Former Elicio's common stock prepared by third-party valuation firms performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants' Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Following the Merger, the fair value of Company common stock is based on the closing stock price on the date of grant as reported on the Nasdaq Global Select Market.

Net Loss Per Share

Basic net loss per share of Company common stock is computed by dividing net loss attributable to Company common stockholders by the weighted average number of shares of Company common stock outstanding for the period. Diluted net loss per share excludes the potential impact of Company common stock options, warrants and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company's net loss. Since the Company had net losses for the three and nine months ended September 30, 2023 and 2022, basic and diluted net loss per common share are the same.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU No. 2016-13), which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial assets and certain other instruments, including but not limited to, available-for-sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption of the standard had no material impact on its condensed consolidated financial statements.

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Merger and Related Transactions

9 Months Ended

Sep. 30, 2023

Reverse Recapitalization [Abstract]

Merger and Related Transactions

Merger and Related Transactions

As described in Note 1, Former Elicio merged with a wholly owned subsidiary of Angion on June 1, 2023. The Merger was accounted for as a reverse recapitalization under U.S. GAAP. Former Elicio was considered the accounting acquirer for financial reporting purposes. This determination was based on the facts that, immediately following the Merger: (i) Former Elicio stockholders own a substantial majority of the voting rights; (ii) Former Elicio designated a majority (six of nine) of the initial members of the Company’s board of directors of the combined company; (iii) Former Elicio’s executive management team became the management team of the combined company; and (iv) the Company was named Elicio Therapeutics, Inc. and is headquartered in Boston, Massachusetts. Accordingly, for accounting purposes, the Merger was treated as the equivalent of Former Elicio issuing stock to acquire the net assets of Angion. As a result of the Merger, the net assets of Angion were recorded at their acquisition-date fair value, which approximated book value due to the short-term nature of the instruments, in the financial statements of Former Elicio and the reported operating results prior to the Merger were those of Former Elicio. Historical common share amounts of Former Elicio have been retroactively restated based on the exchange ratio of 0.0181 (the “Exchange Ratio”). It was concluded that any in-process research and development assets that remained as of the Merger would be de minimis when compared to the cash and investments obtained through the Merger.

Prior to the effective time of the Merger, on June 1, 2023, in connection with the transactions contemplated by the Merger Agreement, the Company effected a reverse stock split of Angion’s common stock, par value $0.01 per share (“Angion common stock”), at a ratio of 10:1 (the “Reverse Stock Split”). At the effective time of the Merger, each outstanding share of Former Elicio capital stock (after giving effect to the automatic conversion of all shares of Former Elicio preferred stock into shares of Former Elicio common stock and excluding any shares held as treasury stock by Former Elicio or held or owned by Angion or any subsidiary of Angion or Former Elicio and any dissenting shares) was converted into the right to receive 0.0181 shares of Angion common stock, which resulted in the issuance by Angion of an aggregate of 5,375,751 shares of Angion common stock to the stockholders of Former Elicio (the “Exchange Shares”), and a total of 8,387,025 shares of the Company common stock being issued and outstanding immediately following the effective time of the Merger. In addition, Angion assumed the Elicio 2022 Equity Incentive Plan and the Elicio 2012 Equity Incentive Plan (the “Elicio Plans”) and each outstanding and unexercised option to purchase Former Elicio common stock and each outstanding and unexercised warrant to

purchase Former Elicio capital stock were adjusted with such stock options and warrants henceforth representing the right to purchase a number of shares of the Company’s common stock equal to the Exchange Ratio multiplied by the number of shares of Former Elicio common stock previously represented by such options, and warrants at an exercise price equal to the exercise price of Former Elicio capital stock divided by the Exchange Ratio.

In connection with execution of the Merger Agreement, Angion made a bridge loan to Former Elicio pursuant to a note purchase agreement and promissory notes up to an aggregate principal amount of $12.5 million, issued with a 20% original issue discount, with an initial closing held substantially concurrently with the execution of the Merger Agreement for a principal amount of $6.25 million on account of a $5.0 million loan and an additional closing for a principal amount of $6.25 million on account of a $5.0 million loan upon delivery by Former Elicio to Angion of Former Elicio’s audited financial statements for the year ended December 31, 2022.

As part of the recapitalization, the Company obtained the assets and liabilities listed below (in thousands):

Cash and cash equivalents	$	24,000
Other current assets	539
Promissory notes	10,028
Accrued liabilities	(2,438)
Net assets acquired	$	32,129

Per the terms of the Merger Agreement, upon completion of the Merger, all obligations owed by Former Elicio related to the promissory notes were automatically forgiven and the amount advanced by Angion, along with any accrued and unpaid interest, was credited towards the net cash balance used to calculate the assets and liabilities listed above. Upon settlement of the promissory notes, the Company recognized a gain of $0.6 million related to extinguishment of the promissory notes.

The Company recognized the net assets acquired, excluding the promissory notes and transaction costs of $2.9 million, as a reduction to additional paid-in capital in the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2023.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following tables present the Company's financial assets and liabilities measured at fair value on a recurring basis and their assigned levels within the fair value hierarchy (in thousands):

	September 30, 2023
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	16,302	$	—	$	—	$	16,302
Total assets	$	16,302	$	—	$	—	$	16,302
Warrant liabilities	$	—	$	—	$	26	$	26
Total liabilities	$	—	$	—	$	26	$	26

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	5,340	$	—	$	—	$	5,340
Total assets	$	5,340	$	—	$	—	$	5,340

_________________

(1) Included in cash, cash equivalents, and restricted cash on the condensed consolidated balance sheets. This balance includes cash requirements settled on a nightly basis.

There were no transfers made among the three levels in the fair value hierarchy during periods presented.

As part of the Merger transaction, Former Elicio adopted Angion’s warrant liabilities. The following table presents a summary of changes in Level 3 in the fair value of the Company’s common stock warrant liability (in thousands):

	September 30, 2023		December 31, 2022
Balance, beginning of the period	$	—	$	—
Existing Angion Warrant Liability	9		—
Change in fair value	17		—
Balance, end of the period	$	26	$	—

Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with assets and liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The fair value of the warrants issued by the Company has been estimated using a variant of Black-Scholes. The underlying equity included in Black-Scholes was valued based on the equity value implied from sales of preferred and common stock at each measurement date. The fair value of the warrants was impacted by the model selected as well as assumptions surrounding unobservable inputs including the underlying equity value, expected volatility of the underlying equity, risk free interest rate, and the expected term.

The Company records the change in the fair value of common stock warrants in change in fair value of warrant liability in the condensed consolidated statements of operations.

The fair value of the common stock warrant liability was estimated using the following assumptions:

	September 30, 2023	June 1, 2023
Weighted average strike price	$76.00	$76.00
Contractual term (years)	4.9	5.2
Volatility (annual)	153.2%	100.0%
Risk-free rate	4.6%	3.9%
Dividend yield (per share)	0.0%	0.0%

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Balance Sheet Components

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Prepaid research and development contract services	$	2,379	$	2,132
Advanced professional fees	209		648
Prepaid insurance	496		104
Miscellaneous receivables	102		—
Other prepaid expenses and other current assets	233		36
Total prepaid and other current assets	$	3,419	$	2,920

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Equipment	$	1,678	$	1,787
Furniture and fixtures	374		359
Leasehold improvements	132		124
Total property and equipment	2,184		2,270
Less: accumulated depreciation	(1,412)		(1,123)
Property and equipment, net	$	772	$	1,147

Depreciation expense for the three and nine months ended September 30, 2023 was immaterial and $0.3 million, respectively. Depreciation expense for the three and nine months ended September 30, 2022 was $0.1 million and $0.3 million, respectively.

Other long-term prepaid assets

Other long-term prepaid assets consisted of the advance payments for clinical trial services, totaling $2.8 million as of September 30, 2023 and December 31, 2022, respectively.

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Accrued professional fees	$	951	$	180
Accrued compensation and benefits	1,577		1,491
Accrued research and development	1,875		260
Other accrued expenses	13		4
Total accrued expenses	$	4,416	$	1,935

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Research Grant

9 Months Ended

Sep. 30, 2023

Research and Development [Abstract]

Research Grant

Research GrantIn September 2022, Former Elicio entered into a grant agreement with the Gastro-Intestinal (“GI”) Research Foundation, a not-for-profit organization focused on supporting research to treat, cure and prevent digestive

diseases. Of the $2.8 million award, $2.3 million was received in September 2022 and the remaining $0.5 million was received in June 2023 with the completion of the development efforts as defined in the agreement. For the three and nine months ended September 30, 2023, the Company incurred zero and $1.9 million in research and development expenses related to this project. For both the three and nine months ended September 30, 2022, the Company incurred $0.1 million in research and development expenses related to this project.

In September 2023, the Company entered into a second grant agreement with the GI Research Foundation for $3.1 million, with such amount received net of a $0.5 million credit. The grant funds available as of September 30, 2023 are $1.7 million, which are reflected in restricted cash and the deferred research obligation in the accompanying consolidated balance sheets. For the three and nine months ended September 30, 2023 the Company incurred $1.4 million in research and development expenses related to this project.

The award money for both agreements was earned and recognized as a contra research and development expense as the expenses were incurred.

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Convertible Preferred Stock, Common Stock and Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Convertible Preferred Stock, Common Stock and Stockholders' Equity

Convertible Preferred Stock, Common Stock and Stockholders' Equity

Authorized Shares

The Company's current Amended and Restated Certificate of Incorporation, as amended, authorizes 300,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share.

Convertible Preferred Stock

Former Elicio’s convertible preferred stock consisted of Series A preferred stock (“Series A Preferred Shares”), Series B preferred stock (“Series B Preferred Shares”) and Series C preferred stock (“Series C Preferred Shares”).

Series C Convertible Preferred Stock

In May 2022, Former Elicio authorized the sale and issuance of up to 760,200 shares of $0.06 par value Series C Preferred Shares at an original issuance price of $66.30 per share and up to 325,800 shares of Series C Preferred for the settlement of the Convertible Notes Payable. The Series C Preferred Shares financing was structured to be issued in rolling closes in 2022.

From the period May through September 2022, Former Elicio issued 772,579 shares of Series C Preferred Shares for gross proceeds of approximately $11.0 million. Former Elicio incurred cash issuance costs of approximately $1.0 million in connection with these shares.

Conversion of Convertible Preferred Stock

On June 1, 2023, Former Elicio completed the Merger with Angion in accordance with the Merger Agreement. Under the terms of the Merger Agreement, immediately prior to the effective time of the Merger, each share of Former Elicio’s preferred stock was converted into a share of Former Elicio’s common stock. At the closing of the Merger, the Company issued an aggregate of 5,375,751 shares of its common stock to Former Elicio stockholders, based on an exchange ratio of 0.0181 shares of the Company’s common stock for each share of Former Elicio’s common stock outstanding immediately prior to the Merger, including those shares of common stock issued upon conversion of the Former Elicio preferred stock. No shares and 772,579 shares of convertible preferred stock were issued during the nine months ended September 30, 2023 and 2022, respectively.

The authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences of Former Elicio as of December 31, 2022 were as follows (in thousands, except share and per share amounts):

	Authorized Shares	Shares Issued and Outstanding	Aggregate Liquidation Amount	Proceeds Net of Liquidation Costs
Series A Convertible Preferred Shares	132,387	132,387	$7,495	$7,495
Series B Convertible Preferred Shares	1,927,375	1,927,375	$72,803	$62,944
Series C Convertible Preferred Shares	4,888,798	2,938,158	$41,816	$40,621
Total Preferred Shares	6,948,560	4,997,920

The Series A and Series B Preferred Shares were deemed changed as of October 18, 2022 into 132,387 and 1,927,375 preferred shares (retroactively restated for the reverse recapitalization as described in Note 3) due to the antidilutive protection triggered by the Series C shares issued in October 2022 at a price below $1.00.

As a result of the Merger, the aggregate amount of 4,997,920 shares of Former Elicio preferred stock (retroactively restated for the reverse recapitalization as described in Note 3) were converted into 4,997,920 shares of Former Elicio's common stock to be exchanged for the same number of shares of the Company’s common stock.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

2012 Plan and 2022 Plan

Pursuant to the Merger Agreement, the Company assumed the Former Elicio 2022 Equity Incentive Plan and the Former Elicio 2012 Equity Incentive Plan (the “Former Elicio Plans”) and all stock options issued and outstanding under the Former Elicio Plans. Each outstanding and unexercised option to purchase Former Elicio common stock was adjusted with such Company stock options henceforth representing the right to purchase a number of shares of the Company’s common stock based on an exchange ratio of 0.0181. Any restriction on the exercise of any Former Elicio stock option assumed by the Company will continue in full force and effect and the term, exercisability, vesting schedule, accelerated vesting provisions, and any other provisions of such Former Elicio stock option will otherwise remain unchanged; provided, however, that the Company’s board of directors or a committee thereof will assume the responsibility and the authority of Former Elicio’s board of directors or any committee thereof with respect to each Former Elicio stock option assumed by the Company.

2015 Plan

In June 2019, Angion approved an Amended and Restated 2015 Equity Incentive Plan (the “2015 Plan”) permitting the granting of incentive stock options, non-statutory stock options, restricted stock and other stock-based awards. Following the effectiveness of the 2021 Equity Incentive Plan (“2021 Plan”), the Company ceased making grants under the 2015 Plan. However, the 2015 Plan continues to govern the terms and conditions of the outstanding awards granted under it. Shares of common stock subject to awards granted under the 2015 Plan that cease to be subject to such awards by forfeiture or otherwise after the termination of the 2015 Plan will be available for issuance under the 2021 Plan.

2021 Plan and Amendment to 2021 Plan

On January 25, 2021, Angion’s board of directors approved the 2021 Plan (“2021 Plan”) which permits the granting of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to employees, directors, officers and consultants. The 2021 Plan provides that the number of shares reserved and available for issuance will automatically increase each January 1 by the lesser of 5% of the Company’s common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s board of directors. On March 17, 2023, Angion’s board of directors approved an amendment to the 2021 Plan to increase the cumulative number of shares of common stock reserved for issuance thereunder by 30,113 shares.

As of September 30, 2023, 570,271 shares and 91,707 shares remain available for future grants under the 2021 plan and 2022 plan, respectively.

Stock Options

The following table summarizes information and activity related to the Company’s stock options:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Total Intrinsic Value (in thousands)
Outstanding as of December 31, 2022	854,076	$	5.24	7.72	$	—
Options granted	186,572	9.96
Existing Angion Options outstanding	351,656	61.99
Options exercised	(61,791)	10.08
Forfeited (unvested)	(19,579)	33.97
Outstanding as of September 30, 2023	1,310,934	$	19.99	7.68	$	2,841
Options vested and exercisable	597,723	$	38.50	5.59	$	645

The aggregate intrinsic value in the above table is calculated as the difference between the estimated fair value of the Company's common stock price and the exercise price of the stock options. 186,572 stock options were granted in the nine months ended September 30, 2023. The weighted average grant date fair value per share for the stock option grants during the nine months ended September 30, 2023 was $9.96. As of September 30, 2023, the total unrecognized compensation related to unvested stock option awards granted was $2.7 million, which the Company expects to recognize over a weighted-average period of approximately 1.64 years.

Stock-based Compensation Expense

The following table summarizes total stock-based compensation expense recorded in the condensed consolidated statements of operations (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Research and development	$	13	$	68	$	425	$	200
General and administrative	326		42		417		180
Total	$	339	$	110	$	842	$	380

The fair value of each option is estimated on the date of grant using Black-Scholes with the assumptions noted in the table below. The fair value of an award with only a service condition is amortized as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Compensation cost of awards that contain a performance condition are recognized when success is considered probable during the performance period. The Company has elected to account for forfeitures as they occur, rather than estimating the number of awards that are expected to vest. The risk-free interest rate is estimated using the weighted average rate of return on U.S. Treasury notes with a life that approximates the expected life of the option. The expected term of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate expected term. The contractual life of the option was used for the expected life of options granted to non-employees. Expected volatility is based on the weighted average of the historical volatility of a peer group of publicly traded companies. The assumed dividend yield is based upon the Company's expectation of not paying dividends in the foreseeable future.

The fair value of each employee and non-employee stock option grant was estimated on the date of grant using Black-Scholes based on the following assumptions.

Options	Three months ended September 30,		Nine months ended September 30,
	2023	2022	2023	2022
Risk-free interest rate	4.4%	2.3%	3.7%	2.3%
Expected dividend yield	0.0%	0.0%	0.0%	0.0%
Expected term in years (employees)	6.06	6.54	6.00	6.54
Expected volatility	71.7% - 72.1%	60.3% - 62.1%	71.9% - 72.5%	60.3% - 62.1%

In March 2021 and June 2022, certain employees of the Company early exercised options to purchase shares of the Company’s common stock. The shares had not fully vested at the time of exercise and were recorded as an unvested option exercise liability. As the shares vest, the Company recognizes the shares and related expense as issuance of common stock upon settlement of restricted stock on the Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the periods ended September 30, 2023 and December 31, 2022.

Employee Stock Purchase Plan

In January 2021, the board of directors of Angion approved the Employee Stock Purchase Plan (the “ESPP”). The ESPP was effective on the date immediately prior to the effectiveness of the Angion's registration statement relating to the IPO. The offering period and purchase period was determined by Angion’s board of directors. Pursuant to the Merger Agreement, the Company assumed the ESPP. No offering periods or purchasing periods were active as of September 30, 2023. As of September 30, 2023, 68,958 shares under the ESPP remain available for purchase and no offerings have been authorized.

Restricted Stock Units

In March 2021, Former Elicio granted restricted stock units (“RSUs”) with service and performance vesting conditions to an employee. The completion of the Merger satisfied the performance vesting criteria and triggered accelerated vesting for all unvested RSUs. As a result, the employee received 41,005 shares on June 1, 2023. To pay for the tax withholdings that were due upon vesting of the RSUs, the employee sold 14,455 shares to the Company, which are held in treasury stock as of September 30, 2023.

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Warrants

9 Months Ended

Sep. 30, 2023

Warrants And Rights Outstanding [Abstract]

Warrants

WarrantsIn accordance with ASC 815, the warrants classified as liabilities are recorded at fair value at the issuance date, with changes in the fair value recognized in the condensed consolidated statements of operations at the end of each reporting period. Refer to Note 4 for changes in the fair value recognized during the periods reported.

In accordance with ASC 815, the warrants classified as equity do not meet the definition of a derivative and are classified in stockholders' equity in the condensed consolidated balance sheets.

There was no warrant activity during the nine months ended September 30, 2023, other than the assumption of the previously issued Angion warrants by the Company.

The following table summarizes information regarding common stock warrants outstanding at September 30, 2023:

	Warrants	Weighted Average Exercise Price		Weighted Average Life (years)
Outstanding at December 31, 2022	144,814	$	53.59	6.5
Angion Warrants assumed	3,950	76.00		4.9
Outstanding at September 30, 2023	148,764	$	54.19	6.5

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Leases

In July 2021, the Company signed an operating lease for office and laboratory space in Boston, Massachusetts (the “Boston Lease”). The Boston lease commenced in February 2022 with the term set to expire in January 2030. The lease has rent payments escalating annually, which total $11.1 million in the aggregate. As a result, at the commencement of the lease the Company recognized a right-of-use lease asset of $8.0 million with a corresponding lease liability of $8.0 million based on the present value of the minimum rental payments. In addition, the Company will make payments for operating expenses and real estate taxes. In June 2023, the Company secured a letter of credit for the deposit on the lease and has a deposit in the amount of $0.7 million, which was reported as Restricted Cash on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022.

As part of the Merger Agreement, the Company also assumed a lease for clinical and regulatory space in Newton, Massachusetts (the “Newton lease”), comprising approximately 6,157 square feet for approximately $0.2 million per year, under a non-cancelable operating lease through June 30, 2024.

Lease expense for all leases for the three and nine months ended September 30, 2023 was $0.4 million and $1.1 million, respectively, and $0.3 million and $0.9 million, for the three and nine months ended September 30, 2022, respectively. All expenses are included in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive loss.

The following table summarizes quantitative information about the Company's operating leases (dollars in thousands):

	Nine Months Ended September 30,
	2023			2022
Operating cash flows from operating leases	$	1,002		$	798
Right-of-use assets exchanged for operating lease liabilities	$	—		$	8,017
Weighted-average remaining lease term—operating leases (in years)	6.2			7.3
Weighted-average discount rate—operating leases	7.7		%	8.0		%

As of September 30, 2023, maturities of lease liabilities were as follows (in thousands):

Year Ended December 31,	Amounts
2023 (remaining three months)	$	375
2024	1,427
2025	1,349
2026	1,383
2027	1,425
Thereafter	3,232
Total	9,191
Less present value discount	(2,038)
Operating lease liabilities	7,153
Less: operating lease liability, current portion	(938)
Operating lease liability, noncurrent portion	$	6,215

Legal Proceedings

From time to time, the Company may be involved in legal proceedings, as well as demands, claims and threatened litigation, which arise in the normal course of its business or otherwise.

The outcome of any future litigation is uncertain. Such litigation, if not resolved, could result in substantial costs to the Company, including any costs associated with the indemnification of directors and officers.

The Company may be exposed to litigation in connection with its products under development and operations. The Company’s policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. The Company is not aware of any material legal matters.

License Agreements

In July 2012 and January 2016, Former Elicio licensed certain intellectual property from a university. The license term for both licenses extends until terminated by either party under certain provisions. The Company is required to pay certain contractual maintenance and milestone payments related to clinical trials and royalties on product sales over the term of the contract, with minimum annual royalty payments commencing in the calendar year after commercialization. In January 2019, Former Elicio licensed additional intellectual property and terminated a license obtained in July 2012 from the university. No commercialization royalties have been achieved.

Future minimum annual maintenance payments are $0.1 million for the year ended December 31, 2023 and for each year thereafter. Future minimum annual payments are due until the termination of the agreement.

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Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company did not record a provision or benefit for income taxes during the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023 and December 31, 2022, the Company continues to maintain a full valuation allowance against all of its deferred tax assets in light of its history of cumulative net losses.

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Net Loss Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per ShareThe Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration for potentially dilutive securities. The Company computes diluted net loss per share of common stock after giving consideration to all potentially dilutive shares of common stock, including options to purchase common stock and preferred stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential shares of common stock and preferred stock have been anti-dilutive and basic and diluted loss per share were the same for all periods presented.

Basic and diluted net loss per share attributable to common stockholders was calculated at September 30, as follows (in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator
Net loss	$	(10,658)	$	(7,198)	$	(26,246)	$	(21,557)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted	8,376,384		317,512		8,240,326		314,619
Net loss per share, basic and diluted	$	(1.27)	$	(22.67)	$	(3.19)	$	(68.52)

The table below provides potentially dilutive securities not included in the calculation of the diluted net loss per share because to do so would be anti-dilutive:

	Nine Months Ended September 30,
	2023	2022
Convertible preferred stock	—	2,180,699
Shares issuable upon exercise of stock options	2,836	7,582
Shares issuable upon the exercise of warrants	148,764	144,815
Options to purchase Common Stock	1,310,934	224,319
Total	1,462,534	2,557,415

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Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsThe Company paid $0.1 million and $0.7 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively, for consulting services provided by an entity affiliated with the Company’s former interim chief financial officer and former board member.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (10,658)	$ (7,559)	$ (8,029)	$ (7,198)	$ (7,299)	$ (7,060)	$ (26,246)	$ (21,557)

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company's unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting, consistent in all material respects with those applied in the Company’s audited financial statements and accompanying notes for the year ended December 31, 2022 and 2021 included in the Company’s proxy statement/prospectus/information statement on Form S-4 filed April 26, 2023, as amended (the “Form S-4”). Any reference in these notes to applicable guidance is meant to refer to the authoritative accounting principles generally accepted in the United States as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). This report should be read in conjunction with the audited consolidated financial statements in the Form S-4.

Consolidation

The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Angion Pty Ltd. (“Angion Pty”), which was established on August 22, 2019, and its wholly-owned subsidiary, ESC, which was established in Massachusetts in December 2018. The Company established Angion Pty, an Australian subsidiary, for the purpose of qualifying for research credits for studies conducted in Australia and ESC is an investment company. All significant intercompany balances and transactions have been eliminated in consolidation.

Segments

Segments

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment. The Company has determined that the chief executive officer is the CODM.

Use of Estimates

Use of EstimatesThe Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates reflected in these condensed consolidated financial statements include but are not limited to, the accrual of research and development expenses, the valuation of stock-based awards, the operating right of use assets and operating lease liability, and going concern.

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

The United States Dollar (“USD”) is the functional currency for the Company’s operations outside the United States. Accordingly, nonmonetary assets and liabilities originally acquired or assumed in other currencies are recorded in USD at the exchange rates in effect at the date they were acquired or assumed. Monetary assets and liabilities denominated in other currencies are translated into USD at the exchange rates in effect at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Gains and losses realized from non-USD transactions, including intercompany balances not considered as permanent investments, denominated in currencies other than an entity’s

functional currency are included in other income (expense) in the accompanying condensed consolidated statements of operations and comprehensive loss.

Concentrations of Credit Risk and Off-Balance Sheet Risk

Concentrations of Credit Risk and Off-Balance Sheet RiskFinancial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and restricted cash. At times, cash balances deposited at major financial banking institutions exceed the federally insured limit. The Company regularly monitors the financial condition of the institutions in which it has depository accounts and believes the risk of loss is minimal. The Company has not experienced any losses in such accounts.

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents

Cash and cash equivalents are comprised of deposits at major financial banking institutions and highly liquid investments with an original maturity of three months or less at the date of purchase. As of September 30, 2023 and December 31, 2022, the Company’s cash equivalents were held in institutions in the United States and include deposits in a money market fund which were unrestricted as to withdrawal or use.

Restricted Cash

Restricted cash consists of cash securing a collateral letter of credit issued in connection with the Company’s facility operating lease and a research grant. See notes 6 and 10 for further discussion.

Fair Value Measurement

Fair Value Measurement

The Company follows the guidance prescribed by ASC Topic 820, Fair Value Measurements, which establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value that focuses on an exit price which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

Level 1:    Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at measurement.

Level 2:    Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3:    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts of financial instruments reflected in the condensed consolidated balance sheets for cash and cash equivalents, current and non-current restricted cash, accounts payable, and accrued expenses approximate their respective fair values because of the short-term maturity of those financial instruments.

Property and Equipment

Property and Equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. Upon sale or retirement, the cost and accumulated depreciation are eliminated

from their respective accounts, and the resulting gain or loss is recorded in the consolidated statement of operations and comprehensive loss. Repair and maintenance expenditures are charged to expense as incurred.

Asset Class	Estimated Useful Lives
Equipment	5 years
Furniture and fixtures	3 years
Leasehold improvements	Term of the lease

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Periodically, the Company evaluates its long-lived assets, which consist primarily of property and equipment, and right of use asset for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the three and nine months ended September 30, 2023 and 2022, no impairments have occurred.

Derivative Financial Instruments

Derivative Financial Instruments

The convertible and promissory notes include embedded derivatives requiring bifurcation in accordance with ASC 815, Derivatives and Hedging. The valuation of the instruments are determined using widely accepted valuation techniques including the probability weighted expected return model. The fair value was determined using a model with the assumptions for equity value proceeds, probability of occurrence of various liquidation scenarios, timeline to liquidity and risk-free interest rate. The fair value of the derivative instruments are measured at each reporting period with changes in fair value reported in earnings (loss).

Convertible Preferred Stock

Convertible Preferred StockFormer Elicio had classified convertible preferred stock, par value $0.06 per share, (the “Preferred Stock”) as temporary equity in the accompanying consolidated balance sheets due to certain changes in control events that are outside of the Former Elicio’s control, including sale or transfer of control of Former Elicio, as holders of the Preferred Stock could cause redemption of the shares in these situations. Former Elicio did not accrete the carrying values of the Preferred Stock to the redemption values since a liquidation event was not considered probable as of December 31, 2022. Subsequent adjustments of the carrying values to the ultimate redemption values would be made only if it becomes probable that such a liquidation event will occur. During the prior reporting period an immaterial error was discovered in Former Elicio's 2022 audited financial statements whereas the amount of Series A and Series B Preferred Stock did not include 41,887 and 609,755 shares, respectively, that were deemed to be issued due to the antidilutive protection triggered by the Series C shares issued in October 2022 at a price below $1.00. As a result of the Merger, all Former Elicio preferred stock were converted into Company common stock on June 1, 2023.

Income Taxes

Income Taxes

The Company provides for income taxes in accordance with ASC Topic 740, Income Taxes. Deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. A valuation allowance is provided if, based upon the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions when the Company management determines that it is probable that a loss will be incurred related to these matters and the amount of the loss is reasonably determinable. The Company has not identified any significant uncertain tax positions as of September 30, 2023.

Research and Development and Research Grant

Research and DevelopmentResearch and development costs are charged to expense as incurred and consist of expenses incurred in performing research and development activities, including salaries and benefits, materials and supplies, preclinical expenses, stock-based compensation expense, depreciation of equipment, contract services, and other outside expenses. The Company accrues for costs incurred by external service providers, based on estimates of services performed and costs. These estimates include the level of services performed by the third parties, and other indicators of the services completed. Based on the timing of payments to service providers, the Company may also record prepaid expenses for those service providers that will be recognized as expenses in future periods as the related services are rendered. Research and development costs may be offset by research and development refundable tax rebates received by the Company’s wholly-owned Australian subsidiary.

Research Grant

The Company recognizes the amount of grant income based on the activity in allowable expenses covered under the grant and has elected to recognize the funds earned as an offset to the related research expenses recorded in operations. Advances from the grant that have yet to be recognized are recorded as restricted cash if the grant requires the funds to be isolated from general cash and cash equivalents. The Company records a liability for any research activity that is required under the grant but has not yet been performed. The liability is recorded as deferred research obligation on the condensed consolidated balance sheets.

Leases

Leases

ASU No. 2016-02, Leases (“ASC 842”) establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations as well as the reduction of the ROU asset.

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

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

Stock-based Compensation

Stock-based Compensation

The Company issues stock-based awards to employees and non-employees, generally in the form of stock options. The Company accounts for stock-based awards in accordance with ASC 718, Compensation—Stock Compensation, which requires all stock-based payments, to be recognized in the condensed consolidated statements of operations based on their fair values. The expense is recognized on a straight line basis over the requisite service period, which is generally the vesting period. The Company has elected to account for option forfeitures as they occur.

The Company uses the Black-Scholes option-pricing model (“Black-Scholes”) to determine the weighted-average fair value of options granted, which uses as inputs the fair value of the Company common stock, assumptions the Company makes for the volatility of its Company common stock, the expected term of its stock options, the risk-free interest rate for a period that approximates the expected term of its stock options and its expected dividend yield.

Compensation cost of awards that contain a performance condition are recognized when success is considered probable during the performance period.

Prior to the Merger, there was no public market for Former Elicio’s common stock. The estimated fair value of the Company common stock underlying Former Elicio’s stock-based awards was determined by Former Elicio’s board of directors as of the grant date of each option grant. To determine the fair value of Former Elicio’s common

stock underlying option grants, Former Elicio’s board of directors considered, among other things, input from management and valuations of Former Elicio's common stock prepared by third-party valuation firms performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants' Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Following the Merger, the fair value of Company common stock is based on the closing stock price on the date of grant as reported on the Nasdaq Global Select Market.

Net Loss Per Share

Net Loss Per Share

Basic net loss per share of Company common stock is computed by dividing net loss attributable to Company common stockholders by the weighted average number of shares of Company common stock outstanding for the period. Diluted net loss per share excludes the potential impact of Company common stock options, warrants and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company's net loss. Since the Company had net losses for the three and nine months ended September 30, 2023 and 2022, basic and diluted net loss per common share are the same.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU No. 2016-13), which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial assets and certain other instruments, including but not limited to, available-for-sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption of the standard had no material impact on its condensed consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Schedule of Property and Equipment

Asset Class	Estimated Useful Lives
Equipment	5 years
Furniture and fixtures	3 years
Leasehold improvements	Term of the lease

Property and equipment, net consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Equipment	$	1,678	$	1,787
Furniture and fixtures	374		359
Leasehold improvements	132		124
Total property and equipment	2,184		2,270
Less: accumulated depreciation	(1,412)		(1,123)
Property and equipment, net	$	772	$	1,147

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Merger and Related Transactions (Tables)

9 Months Ended

Sep. 30, 2023

Reverse Recapitalization [Abstract]

Schedule of Reverse Recapitalization

As part of the recapitalization, the Company obtained the assets and liabilities listed below (in thousands):

Cash and cash equivalents	$	24,000
Other current assets	539
Promissory notes	10,028
Accrued liabilities	(2,438)
Net assets acquired	$	32,129

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the Company's financial assets and liabilities measured at fair value on a recurring basis and their assigned levels within the fair value hierarchy (in thousands):

	September 30, 2023
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	16,302	$	—	$	—	$	16,302
Total assets	$	16,302	$	—	$	—	$	16,302
Warrant liabilities	$	—	$	—	$	26	$	26
Total liabilities	$	—	$	—	$	26	$	26

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Money market funds(1)	$	5,340	$	—	$	—	$	5,340
Total assets	$	5,340	$	—	$	—	$	5,340

_________________

(1) Included in cash, cash equivalents, and restricted cash on the condensed consolidated balance sheets. This balance includes cash requirements settled on a nightly basis.

Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a summary of changes in Level 3 in the fair value of the Company’s common stock warrant liability (in thousands):

	September 30, 2023		December 31, 2022
Balance, beginning of the period	$	—	$	—
Existing Angion Warrant Liability	9		—
Change in fair value	17		—
Balance, end of the period	$	26	$	—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a summary of changes in Level 3 in the fair value of the Company’s common stock warrant liability (in thousands):

	September 30, 2023		December 31, 2022
Balance, beginning of the period	$	—	$	—
Existing Angion Warrant Liability	9		—
Change in fair value	17		—
Balance, end of the period	$	26	$	—

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The fair value of the common stock warrant liability was estimated using the following assumptions:

	September 30, 2023	June 1, 2023
Weighted average strike price	$76.00	$76.00
Contractual term (years)	4.9	5.2
Volatility (annual)	153.2%	100.0%
Risk-free rate	4.6%	3.9%
Dividend yield (per share)	0.0%	0.0%

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Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Prepaid research and development contract services	$	2,379	$	2,132
Advanced professional fees	209		648
Prepaid insurance	496		104
Miscellaneous receivables	102		—
Other prepaid expenses and other current assets	233		36
Total prepaid and other current assets	$	3,419	$	2,920

Schedule of Property and Equipment, Net

Asset Class	Estimated Useful Lives
Equipment	5 years
Furniture and fixtures	3 years
Leasehold improvements	Term of the lease

Property and equipment, net consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Equipment	$	1,678	$	1,787
Furniture and fixtures	374		359
Leasehold improvements	132		124
Total property and equipment	2,184		2,270
Less: accumulated depreciation	(1,412)		(1,123)
Property and equipment, net	$	772	$	1,147

Schedule of Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	September 30, 2023		December 31, 2022
Accrued professional fees	$	951	$	180
Accrued compensation and benefits	1,577		1,491
Accrued research and development	1,875		260
Other accrued expenses	13		4
Total accrued expenses	$	4,416	$	1,935

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Convertible Preferred Stock, Common Stock and Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Convertible Preferred Stock and Liquidation Preferences

The authorized, issued and outstanding shares of the convertible preferred stock and liquidation preferences of Former Elicio as of December 31, 2022 were as follows (in thousands, except share and per share amounts):

	Authorized Shares	Shares Issued and Outstanding	Aggregate Liquidation Amount	Proceeds Net of Liquidation Costs
Series A Convertible Preferred Shares	132,387	132,387	$7,495	$7,495
Series B Convertible Preferred Shares	1,927,375	1,927,375	$72,803	$62,944
Series C Convertible Preferred Shares	4,888,798	2,938,158	$41,816	$40,621
Total Preferred Shares	6,948,560	4,997,920

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following table summarizes information and activity related to the Company’s stock options:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Total Intrinsic Value (in thousands)
Outstanding as of December 31, 2022	854,076	$	5.24	7.72	$	—
Options granted	186,572	9.96
Existing Angion Options outstanding	351,656	61.99
Options exercised	(61,791)	10.08
Forfeited (unvested)	(19,579)	33.97
Outstanding as of September 30, 2023	1,310,934	$	19.99	7.68	$	2,841
Options vested and exercisable	597,723	$	38.50	5.59	$	645

Schedule of Components of Stock-Based Compensation Expense

The following table summarizes total stock-based compensation expense recorded in the condensed consolidated statements of operations (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Research and development	$	13	$	68	$	425	$	200
General and administrative	326		42		417		180
Total	$	339	$	110	$	842	$	380

Schedule of Black-Scholes Option-Pricing Model Following Assumptions

The fair value of each employee and non-employee stock option grant was estimated on the date of grant using Black-Scholes based on the following assumptions.

Options	Three months ended September 30,		Nine months ended September 30,
	2023	2022	2023	2022
Risk-free interest rate	4.4%	2.3%	3.7%	2.3%
Expected dividend yield	0.0%	0.0%	0.0%	0.0%
Expected term in years (employees)	6.06	6.54	6.00	6.54
Expected volatility	71.7% - 72.1%	60.3% - 62.1%	71.9% - 72.5%	60.3% - 62.1%

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Warrants (Tables)

9 Months Ended

Sep. 30, 2023

Warrants And Rights Outstanding [Abstract]

Schedule of Outstanding Warrants

The following table summarizes information regarding common stock warrants outstanding at September 30, 2023:

	Warrants	Weighted Average Exercise Price		Weighted Average Life (years)
Outstanding at December 31, 2022	144,814	$	53.59	6.5
Angion Warrants assumed	3,950	76.00		4.9
Outstanding at September 30, 2023	148,764	$	54.19	6.5

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Quantitative Information Regarding NovaPark Operating Leases

The following table summarizes quantitative information about the Company's operating leases (dollars in thousands):

	Nine Months Ended September 30,
	2023			2022
Operating cash flows from operating leases	$	1,002		$	798
Right-of-use assets exchanged for operating lease liabilities	$	—		$	8,017
Weighted-average remaining lease term—operating leases (in years)	6.2			7.3
Weighted-average discount rate—operating leases	7.7		%	8.0		%

Schedule of Maturities of Lease Liabilities

As of September 30, 2023, maturities of lease liabilities were as follows (in thousands):

Year Ended December 31,	Amounts
2023 (remaining three months)	$	375
2024	1,427
2025	1,349
2026	1,383
2027	1,425
Thereafter	3,232
Total	9,191
Less present value discount	(2,038)
Operating lease liabilities	7,153
Less: operating lease liability, current portion	(938)
Operating lease liability, noncurrent portion	$	6,215

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Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Net Loss Per Share, Basic and Diluted

Basic and diluted net loss per share attributable to common stockholders was calculated at September 30, as follows (in thousands, except share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator
Net loss	$	(10,658)	$	(7,198)	$	(26,246)	$	(21,557)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted	8,376,384		317,512		8,240,326		314,619
Net loss per share, basic and diluted	$	(1.27)	$	(22.67)	$	(3.19)	$	(68.52)

Schedule of Antidilutive Securities Excluded From Computation of Net Loss per Share

The table below provides potentially dilutive securities not included in the calculation of the diluted net loss per share because to do so would be anti-dilutive:

	Nine Months Ended September 30,
	2023	2022
Convertible preferred stock	—	2,180,699
Shares issuable upon exercise of stock options	2,836	7,582
Shares issuable upon the exercise of warrants	148,764	144,815
Options to purchase Common Stock	1,310,934	224,319
Total	1,462,534	2,557,415

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Description of the Business and Financial Condition (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 01, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Weighted average common shares outstanding, diluted (in shares)	9,700,000	8,376,384	317,512	8,240,326	314,619
Accumulated deficit		$ 133,254		$ 133,254		$ 107,008
Cash and cash equivalents		$ 14,841	$ 1,839	$ 14,841	$ 1,839	$ 6,156
Former Elicio Equity Holders
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership percentage	65.20%
Former Angion Equity Holders
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership percentage	34.80%

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Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) operating_segment $ / shares shares	Sep. 30, 2022 USD ($)	Jun. 01, 2023	Dec. 31, 2022 $ / shares shares	Oct. 31, 2022 $ / shares	Oct. 18, 2022 shares
Class of Stock [Line Items]
Recapitalization exchange ratio					0.0181
Number of operating segments | operating_segment			1
Impairment of long lived assets | $	$ 0	$ 0	$ 0	$ 0
Convertible preferred stock, par value (in dollars per share) | $ / shares						$ 0.06
Convertible preferred stock, shares issued (in shares)						4,997,920
Series A Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share) | $ / shares	$ 0.06		$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)	0		0			132,387		132,387
Series A Preferred Stock | Revision of Prior Period, Error Correction, Adjustment
Class of Stock [Line Items]
Convertible preferred stock, shares issued (in shares)						41,887
Series B Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share) | $ / shares	$ 0.06		$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)	0		0			1,927,375		1,927,375
Series B Preferred Stock | Revision of Prior Period, Error Correction, Adjustment
Class of Stock [Line Items]
Convertible preferred stock, shares issued (in shares)						609,755
Series C preferred stock
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share) | $ / shares	$ 0.06		$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)	0		0			2,938,158
Price per share of shares issued (in dollars per share) | $ / shares							$ 1.00

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Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)	Sep. 30, 2023
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years

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Merger and Related Transactions - Narrative (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 01, 2023 USD ($) board_member $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Jun. 30, 2023 $ / shares	Dec. 31, 2022 $ / shares shares
Reverse Recapitalization [Line Items]
Number of members of the board of directors | board_member	9
Recapitalization exchange ratio	0.0181
Common stock, par value (in dollars per share) | $ / shares		$ 0.01		$ 0.01		$ 0.01	$ 0.01
Shares sold in offering (in shares) | shares	5,375,751
Common stock, shares issued (in shares) | shares	8,387,025	8,384,723		8,384,723			320,281
Common stock, shares outstanding (in shares) | shares	8,387,025	8,378,361		8,378,361			320,281
Gain on extinguishment of promissory notes payable		$ 0	$ 0	$ 604	$ 0
Transaction costs		$ 2,900		$ 2,900
Bridge Loan Between Angion and Former Elicio | Notes Payable
Reverse Recapitalization [Line Items]
Debt instrument, face amount	$ 12,500
Debt instrument, issuance discount percent	20.00%
Bridge Loan Between Angion and Former Elicio, Discount Amount, Initial Closing | Notes Payable
Reverse Recapitalization [Line Items]
Debt instrument, face amount	$ 6,250
Bridge Loan Between Angion and Former Elicio, Initial Closing | Notes Payable
Reverse Recapitalization [Line Items]
Debt instrument, face amount	5,000
Bridge Loan Between Angion and Former Elicio, Discount Amount, Additional Closing | Notes Payable
Reverse Recapitalization [Line Items]
Debt instrument, face amount	6,250
Bridge Loan Between Angion and Former Elicio, Additional Closing | Notes Payable
Reverse Recapitalization [Line Items]
Debt instrument, face amount	$ 5,000
Angion Common Stock
Reverse Recapitalization [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Stock split, conversion ratio	0.1
Former Elicio
Reverse Recapitalization [Line Items]
Number of members of the board of directors | board_member	6

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Merger and Related Transactions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) $ in Thousands	Jun. 01, 2023 USD ($)
Reverse Recapitalization [Abstract]
Cash and cash equivalents	$ 24,000
Other current assets	539
Promissory notes	10,028
Accrued liabilities	(2,438)
Net assets acquired	$ 32,129

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Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair value measurements, recurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Money market funds	$ 16,302	$ 5,340
Total assets	16,302	5,340
Liabilities:
Warrant liabilities	26
Total liabilities	26
Level 1
Assets:
Money market funds	16,302	5,340
Total assets	16,302	5,340
Liabilities:
Warrant liabilities	0
Total liabilities	0
Level 2
Assets:
Money market funds	0	0
Total assets	0	0
Liabilities:
Warrant liabilities	0
Total liabilities	0
Level 3
Assets:
Money market funds	0	0
Total assets	0	$ 0
Liabilities:
Warrant liabilities	26
Total liabilities	$ 26

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Fair Value Measurements - Fair Value, Liabilities, Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Existing Angion Warrant Liability		$ 0
Warrant Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of the period	$ 0	0
Existing Angion Warrant Liability	9
Change in fair value	17	0
Balance, ending of the period	$ 26	$ 0

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Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3	Sep. 30, 2023 $ / shares	Jun. 01, 2023 $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, contractual term	4 years 10 months 24 days	5 years 2 months 12 days
Weighted average strike price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	76.00	76.00
Volatility (annual)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	1.532	1.000
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.046	0.039
Dividend yield (per share)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.000	0.000

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Balance Sheet Components - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid research and development contract services	$ 2,379	$ 2,132
Advanced professional fees	209	648
Prepaid insurance	496	104
Miscellaneous receivables	102	0
Other prepaid expenses and other current assets	233	36
Prepaid expenses and other current assets	$ 3,419	$ 2,920

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Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment	$ 2,184	$ 2,270
Less: accumulated depreciation	(1,412)	(1,123)
Property and equipment, net	772	1,147
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,678	1,787
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	374	359
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 132	$ 124

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Balance Sheet Components - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation	$ 0	$ 100,000	$ 302,000	$ 290,000
Other long-term prepaid assets	$ 2,833,000		$ 2,833,000		$ 2,833,000

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Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued professional fees	$ 951	$ 180
Accrued compensation and benefits	1,577	1,491
Accrued research and development	1,875	260
Other accrued expenses	13	4
Total accrued expenses	$ 4,416	$ 1,935

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Research Grant (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Research and development	$ 7,264,000	$ 4,593,000	$ 17,692,000	$ 13,813,000
Restricted cash, current	1,671,000		1,671,000			$ 1,641,000
Research Grant Agreement with GIRF Sept. 2022
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Grant award		2,800,000		2,800,000
Grant award received		2,300,000		2,300,000	$ 500,000
Research and development	0	$ 100,000	1,900,000	$ 100,000
Research Grant Agreement with GIRF July 2023
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Grant award	3,100,000		3,100,000
Research and development	1,400,000		1,400,000
Credit	$ 500,000		$ 500,000

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Convertible Preferred Stock, Common Stock and Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended			5 Months Ended	9 Months Ended
	May 31, 2022 $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2023 $ / shares shares	Jun. 01, 2023 shares	Mar. 31, 2023 shares	Dec. 31, 2022 $ / shares shares		Oct. 31, 2022 $ / shares	Oct. 18, 2022 shares	Mar. 31, 2022 shares	Dec. 31, 2021 shares	[2]
Class of Stock [Line Items]
Common stock, shares authorized (in shares)						300,000,000			300,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.01				$ 0.01			$ 0.01
Preferred stock, shares authorized (in shares)						10,000,000
Preferred stock, par value (in dollars per share) | $ / shares						$ 0.01
Convertible preferred stock, shares authorized (in shares)									6,948,560
Convertible preferred stock, par value (in dollars per share) | $ / shares									$ 0.06
Issuance of Series C convertible preferred stock, net of issuance costs (in shares)			668,942	103,637
Issuance of Series C convertible preferred stock, net of issuance costs | $			$ 8,840	$ 1,169
Stock issuance costs | $		$ 2,400	$ 700	$ 300
Common stock, shares issued (in shares)						8,384,723	8,387,025		320,281
Recapitalization exchange ratio							0.0181
Convertible preferred stock, shares issued (in shares)									4,997,920
Convertible preferred stock, shares outstanding (in shares)		0	2,180,679	1,511,737	2,180,679	0		4,997,920	4,997,920	[1]			1,408,100	1,408,100
Conversion Of Convertible Preferred Stock | Common Stock
Class of Stock [Line Items]
Conversion of preferred stock (in shares)		4,997,920
Former Elicio
Class of Stock [Line Items]
Convertible preferred stock, shares outstanding (in shares)							4,997,920
Former Elicio Equity Holders
Class of Stock [Line Items]
Common stock, shares issued (in shares)							5,375,751
Series C preferred stock
Class of Stock [Line Items]
Convertible preferred stock, shares authorized (in shares)						0			4,888,798
Convertible preferred stock, par value (in dollars per share) | $ / shares						$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)						0			2,938,158
Price per share of shares issued (in dollars per share) | $ / shares											$ 1.00
Convertible preferred stock, shares outstanding (in shares)						0			2,938,158
Series C preferred stock | Former Elicio
Class of Stock [Line Items]
Convertible preferred stock, shares authorized (in shares)	760,200
Convertible preferred stock, par value (in dollars per share) | $ / shares	$ 0.06
Shares issued, price per share (in dollars per share) | $ / shares	$ 66.30
Shares authorized from conversion of convertible debt (in shares)	325,800
Issuance of Series C convertible preferred stock, net of issuance costs (in shares)					772,579
Issuance of Series C convertible preferred stock, net of issuance costs | $					$ 11,000
Stock issuance costs | $					$ 1,000
Convertible preferred stock
Class of Stock [Line Items]
Shares issued during period (in shares)						0
Series A Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock, shares authorized (in shares)						0			132,387
Convertible preferred stock, par value (in dollars per share) | $ / shares						$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)						0			132,387			132,387
Convertible preferred stock, shares outstanding (in shares)						0			132,387
Series B Preferred Stock
Class of Stock [Line Items]
Convertible preferred stock, shares authorized (in shares)						0			1,927,375
Convertible preferred stock, par value (in dollars per share) | $ / shares						$ 0.06			$ 0.06
Convertible preferred stock, shares issued (in shares)						0			1,927,375			1,927,375
Convertible preferred stock, shares outstanding (in shares)						0			1,927,375

[1] Retroactively restated for the reverse recapitalization as described in Note 3.

[2] Retroactively restated for the reverse recapitalization as described in Note 3.

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Convertible Preferred Stock, Common Stock and Stockholders' Equity - Conversion of Convertible Preferred Stock and Liquidation Preferences (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022		Oct. 18, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	[2]
Temporary Equity [Line Items]
Convertible preferred stock, shares authorized (in shares)				6,948,560
Convertible preferred stock, shares issued (in shares)				4,997,920
Convertible preferred stock, shares outstanding (in shares)	0	0	4,997,920	4,997,920	[1]		2,180,679	1,511,737	1,408,100	1,408,100
Series A Preferred Stock
Temporary Equity [Line Items]
Convertible preferred stock, shares authorized (in shares)	0			132,387
Convertible preferred stock, shares issued (in shares)	0			132,387		132,387
Convertible preferred stock, shares outstanding (in shares)	0			132,387
Aggregate Liquidation Amount				$ 7,495
Proceeds Net of Liquidation Costs				$ 7,495
Series B Preferred Stock
Temporary Equity [Line Items]
Convertible preferred stock, shares authorized (in shares)	0			1,927,375
Convertible preferred stock, shares issued (in shares)	0			1,927,375		1,927,375
Convertible preferred stock, shares outstanding (in shares)	0			1,927,375
Aggregate Liquidation Amount				$ 72,803
Proceeds Net of Liquidation Costs				$ 62,944
Series C preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, shares authorized (in shares)	0			4,888,798
Convertible preferred stock, shares issued (in shares)	0			2,938,158
Convertible preferred stock, shares outstanding (in shares)	0			2,938,158
Aggregate Liquidation Amount				$ 41,816
Proceeds Net of Liquidation Costs				$ 40,621

[1] Retroactively restated for the reverse recapitalization as described in Note 3.

[2] Retroactively restated for the reverse recapitalization as described in Note 3.

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Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions			9 Months Ended
	Jun. 01, 2023 shares	Jan. 25, 2021	Sep. 30, 2023 USD ($) $ / shares shares	Mar. 17, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recapitalization exchange ratio	0.0181
Options granted (in shares)			186,572
Options granted (in dollars per share) | $ / shares			$ 9.96
Unrecognized compensation related to unvested stock option awards | $			$ 2.7
Unrecognized compensation related to unvested stock option awards, period for recognition (in years)			1 year 7 months 20 days
Treasury Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of treasury stock (in shares)	14,455
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)			68,958
Shares authorized for issuance (in shares)			0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	41,005
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding stock		5.00%
Shares reserved for future issuance (in shares)				30,113
Shares available for grant (in shares)			570,271
2022 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)			91,707

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Stock-Based Compensation - Schedule of Share Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Number of Stock Options
Outstanding at beginning of period (in shares) | shares	854,076
Options granted (in shares) | shares	186,572
Existing Angion Options outstanding (in shares) | shares	351,656
Options exercised (in shares) | shares	(61,791)
Options forfeited (in shares) | shares	(19,579)
Outstanding at end of period (in shares) | shares	1,310,934	854,076
Options vested and exercisable (in shares) | shares	597,723
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 5.24
Options granted (in dollars per share) | $ / shares	9.96
Existing Angion Options outstanding (in dollars per share) | $ / shares	61.99
Options exercised (in dollars per share) | $ / shares	10.08
Forfeited (unvested) (in dollars per share) | $ / shares	33.97
Outstanding at end of period (in dollars per share) | $ / shares	19.99	$ 5.24
Options vested and exercisable (in dollars per share) | $ / shares	$ 38.50
Stock Option Activity, Additional Disclosures
Options outstanding, weighted average remaining contractual life (in years)	7 years 8 months 4 days	7 years 8 months 19 days
Options vested and exercisable, weighted average remaining contractual life (in years)	5 years 7 months 2 days
Options outstanding, total intrinsic value | $	$ 2,841	$ 0
Options vested and exercisable, total intrinsic value | $	$ 645

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Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 339	$ 110	$ 842	$ 380
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	13	68	425	200
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 326	$ 42	$ 417	$ 180

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Stock-Based Compensation - Schedule of Assumptions Used to Estimate Fair Value of Stock Option Awards (Details) - Stock Option	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	4.40%	2.30%	3.70%	2.30%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term in years (employees)	6 years 21 days	6 years 6 months 14 days	6 years	6 years 6 months 14 days
Expected volatility, minimum	71.70%	60.30%	71.90%	60.30%
Expected volatility, maximum	72.10%	62.10%	72.50%	62.10%

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Warrants (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Warrants
Outstanding beginning balance (in shares) | shares	144,814
Angion Warrants assumed (in shares) | shares	3,950
Outstanding ending balance (in shares) | shares	148,764
Weighted Average Exercise Price
Outstanding beginning balance (in dollars per share) | $ / shares	$ 53.59
Angion Warrants assumed (in dollars per share) | $ / shares	76.00
Outstanding ending balance (in dollars per share) | $ / shares	$ 54.19
Weighted Average Life (years)
Outstanding beginning balance (in years)	6 years 6 months
Angion Warrants assumed (in years)	4 years 10 months 24 days
Outstanding ending balance (in years)	6 years 6 months

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Commitments and Contingencies - Narrative (Details) $ in Thousands		1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 01, 2023 USD ($) ft²	Jun. 30, 2023 USD ($)	Jul. 31, 2021 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, expense				$ 400	$ 300	$ 1,100	$ 900
Operating lease, right-of-use assets				6,768		6,768		$ 7,350
Operating lease liability, current				$ 938		938		$ 692
Letter of credit		$ 700
Future minimum payments						100
Future minimum payments, thereafter						$ 100
Boston, Massachusetts
Lessee, Lease, Description [Line Items]
Operating lease, expense			$ 11,100
Operating lease, right-of-use assets			8,000
Operating lease liability, current			$ 8,000
Newton, Massachusettes
Lessee, Lease, Description [Line Items]
Area of office space (in sqft) | ft²	6,157
Operating lease, payment per year	$ 200

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Commitments and Contingencies - Schedule of Quantitative Information about Operating Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 1,002	$ 798
Right-of-use assets exchanged for operating lease liabilities	$ 0	$ 8,017
Weighted-average remaining lease term—operating leases (in years)	6 years 2 months 12 days	7 years 3 months 18 days
Weighted-average discount rate—operating leases	7.70%	8.00%

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Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (remaining three months)	$ 375
2024	1,427
2025	1,349
2026	1,383
2027	1,425
Thereafter	3,232
Total	9,191
Less present value discount	(2,038)
Operating lease liabilities	7,153
Less: operating lease liability, current portion	(938)	$ (692)
Operating lease liability, noncurrent portion	$ 6,215	$ 6,789

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Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 0	$ 0	$ 0	$ 0

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Net Loss Per Share - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended						9 Months Ended
	Jun. 01, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator
Net loss		$ (10,658)	$ (7,559)	$ (8,029)	$ (7,198)	$ (7,299)	$ (7,060)	$ (26,246)	$ (21,557)
Denominator:
Weighted-average shares used in computing net loss per share, basic (in shares)		8,376,384			317,512			8,240,326	314,619
Weighted-average shares used in computing net loss per share, diluted (in shares)	9,700,000	8,376,384			317,512			8,240,326	314,619
Net loss per share, basic (in dollars per share)		$ (1.27)			$ (22.67)			$ (3.19)	$ (68.52)
Net loss per share, diluted (in dollars per share)		$ (1.27)			$ (22.67)			$ (3.19)	$ (68.52)

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Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Net Loss per Share (Details) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,462,534	2,557,415
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	2,180,699
Shares issuable upon exercise of stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,836	7,582
Shares issuable upon the exercise of warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	148,764	144,815
Options to purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,310,934	224,319

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Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Consulting Service Payments
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction	$ 0.1	$ 0.1	$ 0.7	$ 0.2