10-Q

d

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2022

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: 001-39603

REVELATION BIOSCIENCES, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	84-3898466
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
4660 La Jolla Village Drive, Suite 100, San Diego, CA	92122
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (650) 800-3717

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of common stock and one redeemable warrant	REVBU	The Nasdaq Stock Market LLC
Common stock, par value $0.001 per share	REVB	The Nasdaq Stock Market LLC
Redeemable warrants, each exercisable for a share of common stock at an exercise price of $11.50 per share	REVBW	The Nasdaq Stock Market LLC

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 such files). Yes ☒ No ☐

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

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

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

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

As of November 7, 2022, the registrant had 23,536,070 shares of common stock, $0.001 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to the Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
PART II.	OTHER INFORMATION	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	30
Item 6.	Exhibits	30
Signatures		31

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PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

REVELATION BIOSCIENCES, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	6,195,446		$	1,274,729
Prepaid expenses and other current assets		309,628			637,342
Total current assets		6,505,074			1,912,071
Property and equipment, net		96,395			115,181
Right-of-use lease asset		—			14,960
Total assets	$	6,601,469		$	2,042,212
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	466,084		$	596,261
Accrued expenses		996,447			1,528,669
Lease liability		—			16,752
Deferred underwriting commissions		2,911,260			—
Total current liabilities		4,373,791			2,141,682
Total liabilities		4,373,791			2,141,682
Commitments and Contingencies (Note 5)
Stockholders’ equity (deficit):
Series A Preferred Stock, $0.001 par value; zero and 628,930 shares authorized, issued and outstanding at September 30, 2022 and December 31, 2021, respectively; liquidation preference of $0 and $3,999,995 at September 30, 2022 and December 31, 2021, respectively		—			3,903,730
Series A-1 Preferred Stock, $0.001 par value; zero and 1,100,000 shares authorized and zero and 684,450 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively; liquidation preference of $0 and $4,353,102 at September 30, 2022 and December 31, 2021, respectively		—			3,578,197
Common Stock, $0.001 par value; 100,000,000 and 11,000,000 shares authorized and 23,536,070 and 2,308,877 issued and outstanding at September 30, 2022 and December 31, 2021, respectively		23,536			2,309
Additional paid-in-capital		26,343,404			6,933,593
Accumulated deficit		(24,139,262	)		(14,517,299	)
Total stockholders’ equity (deficit)		2,227,678			(99,470	)
Total liabilities and stockholders’ equity (deficit)	$	6,601,469		$	2,042,212

See accompanying notes to the condensed consolidated financial statements.

1

REVELATION BIOSCIENCES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Operating expenses:
Research and development	$	381,566		$	1,532,782		$	5,037,429		$	4,249,326
General and administrative		817,898			1,511,165			4,608,755			3,844,212
Total operating expenses		1,199,464			3,043,947			9,646,184			8,093,538
Loss from operations		(1,199,464	)		(3,043,947	)		(9,646,184	)		(8,093,538	)
Other income (expense):
Other income (expense)		28,728			(557	)		24,221			(32,913	)
Total other income (expense), net		28,728			(557	)		24,221			(32,913	)
Net loss	$	(1,170,736	)	$	(3,044,504	)	$	(9,621,963	)	$	(8,126,451	)
Net loss per share, basic and diluted	$	(0.06	)	$	(0.48	)	$	(0.57	)	$	(3.83	)
Weighted-average shares used to compute net loss per share, basic and diluted		21,055,211			6,291,690			16,805,082			2,120,276

See accompanying notes to the condensed consolidated financial statements.

2

REVELATION BIOSCIENCES, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

(Unaudited)

	Series A Preferred Stock						Series A-1 Preferred Stock						Common Stock						Additional Paid-in			Accumulated			Total Stockholders’ Equity
	Shares			Amount			Shares			Amount			Shares			Amount			Capital			Deficit			(Deficit)
Balance as of December 31, 2020		628,930		$	403,733			—		$	—			2,293,154		$	2,293		$	5,536,060		$	(2,530,462	)	$	3,411,624
Issuance of common stock		—			—			—			—			15,723			16			99,982			—			99,998
Issuance of Series A-1 Preferred Stock, net		—			—			684,450			3,904,872			—			—			—			—			3,904,872
Issuance of Warrants in connection with the issuance of the Series A-1 Preferred Stock		—			—			—			(326,675	)		—			—			326,675			—			—
Payment for Series A Preferred Stock subscribed		—			3,499,997			—			—			—			—			—			—			3,499,997
Payment for common stock subscribed		—			—			—			—			—			—			499,998			—			499,998
Stock-based compensation expense		—			—			—			—			—			—			102,325			—			102,325
Net loss		—			—			—			—			—			—			—			(2,612,353	)		(2,612,353	)
Balance as of March 31, 2021		628,930			3,903,730			684,450			3,578,197			2,308,877			2,309			6,565,040			(5,142,815	)		8,906,461
Stock-based compensation expense		—			—			—			—			—			—			131,321			—			131,321
Net loss		—			—			—			—			—			—			—			(2,469,594	)		(2,469,594	)
Balance as of June 30, 2021		628,930			3,903,730			684,450			3,578,197			2,308,877			2,309			6,696,361			(7,612,409	)		6,568,188
Stock-based compensation expense		—			—			—			—			—			—			131,320			—			131,320
Net loss		—			—			—			—			—			—			—			(3,044,504	)		(3,044,504	)
Balance as of September 30, 2021		628,930		$	3,903,730			684,450		$	3,578,197			2,308,877		$	2,309		$	6,827,681		$	(10,656,913	)	$	3,655,004
Balance as of December 31, 2021		628,930		$	3,903,730			684,450		$	3,578,197			2,308,877		$	2,309		$	6,933,593		$	(14,517,299	)	$	(99,470	)
Conversion of Series A Preferred Stock to common stock		(628,930	)		(3,903,730	)		—			—			—			—			—			—			(3,903,730	)
Conversion of Series A-1 Preferred Stock to common stock		—			—			(684,450	)		(3,578,197	)		—			—			—			—			(3,578,197	)
Issuance of common stock in connection with the Business Combination, net		—			—			—			—			10,635,336			10,635			14,335,619			—			14,346,254
Equity Issuance for fees in connection with the Business Combination		—			—			—			—			300,000			300			—			—			300
Proceeds from the PIPE Investment, net		—			—			—			—			1,293,126			1,293			7,260,926			—			7,262,219
Rollover Warrant exercise		—			—			—			—			1,891			2			5,072			—			5,074
Repurchase for the Forward Share Purchase Agreement exercise		—			—			—			—			(750,000	)		(750	)		(7,651,575	)		—			(7,652,325	)
Pre-Funded Warrants exercise		—			—			—			—			1,293,541			1,294			(1,281	)		—			13
Stock-based compensation expense		—			—			—			—			—			—			137,892			—			137,892
Net loss		—			—			—			—			—			—			—			(6,616,541	)		(6,616,541	)
Balance as of March 31, 2022		—			—			—			—			15,082,771			15,083			21,020,246			(21,133,840	)		(98,511	)
Stock-based compensation expense		—			—			—			—			—			—			90,188			—			90,188
Net loss		—			—			—			—			—			—			—			(1,834,686	)		(1,834,686	)
Balance as of June 30, 2022		—			—			—			—			15,082,771			15,083			21,110,434			(22,968,526	)		(1,843,009	)
Proceeds from the July 2022 Public Offering, net		—			—			—			—			8,333,334			8,333			4,442,715			—			4,451,048
RSU awards issued		—			—			—			—			119,965			120			(120	)		—			—
Conversion of Accrued Expenses to Equity in connection with the Business Combination		—			—			—			—			—			—			749,700			—			749,700
Stock-based compensation expense		—			—			—			—			—			—			40,675			—			40,675
Net loss		—			—			—			—			—			—			—			(1,170,736	)		(1,170,736	)
Balance as of September 30, 2022		—		$	—			—		$	—			23,536,070		$	23,536		$	26,343,404		$	(24,139,262	)	$	2,227,678

See accompanying notes to the condensed consolidated financial statements.

3

REVELATION BIOSCIENCES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities:
Net loss	$	(9,621,963	)	$	(8,126,451	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		268,755			364,966
Depreciation expense		18,786			10,520
Non-cash lease expense		14,960			37,736
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		332,548			(1,436,642	)
Accounts payable		(736,246	)		165,200
Accrued expenses		(568,937	)		807,324
Operating lease liability		(16,752	)		(34,319	)
Accrued interest on Promissory Notes Payable & Convertible Note		36,920			—
Net cash used in operating activities		(10,271,929	)		(8,211,666	)
Cash flows from investing activities:
Purchase of property and equipment		—			(148,116	)
Net cash used in investing activities		—			(148,116	)
Cash flows from financing activities:
Proceeds from the Convertible Note		2,500,000			—
Repayment of the Convertible Note		(2,500,000	)		—
Proceeds from the Business Combination, net		11,923,499			—
Proceeds from the PIPE Investment, net		7,262,219			—
Proceeds from Rollover Warrant exercise		5,074			—
Repurchase for the Forward Share Purchase Agreement exercise		(7,652,325	)		—
Repayments of Promissory Notes Payable, including interest		(796,882	)		—
Proceeds from Pre-Funded Warrants exercise		13			—
Proceeds from the July 2022 Public Offering, net		4,451,048			—
Proceeds from issuance of common stock, net		—			599,996
Proceeds from issuance of Series A Preferred Stock, net		—			3,499,997
Proceeds from issuance of Series A-1 Preferred Stock, net		—			3,904,872
Net cash provided by financing activities		15,192,646			8,004,865
Net increase (decrease) in cash and cash equivalents		4,920,717			(354,917	)
Cash and cash equivalents at beginning of period		1,274,729			4,492,400
Cash and cash equivalents at end of period	$	6,195,446		$	4,137,483
Supplemental disclosure of non-cash investing and financing activities:
Current liabilities assumed in the Business Combination	$	2,149,432		$	—
Deferred underwriting commissions assumed in the Business Combination	$	2,911,260		$	—
Conversion of Series A Preferred Stock to common stock	$	3,903,730		$	—
Conversion of Series A-1 Preferred Stock to common stock	$	3,578,197		$	—
Equity Issuance for fees in connection with the Business Combination	$	300		$	—
Issuance of Common Warrants in connection with the PIPE Investment	$	3,634,262		$	—
Issuance of Placement Agent Warrants in connection with the PIPE Investment	$	508,797		$	—
Premium Financing Agreement - D&O Insurance	$	513,333		$	—
Conversion of Accrued Expenses to Equity in connection with the Business Combination	$	749,700		$	—
Issuance of New Common Stock Warrants in connection with the July 2022 Public Offering	$	4,490,457		$	—
Issuance of New Placement Agent Warrants in connection with the July 2022 Public Offering	$	310,137		$	—
Acquisition of right-of-use asset through operating lease obligation	$	—		$	67,344
Issuance of warrants in connection with Series A-1 Preferred Stock	$	—		$	326,675

See accompanying notes to the condensed consolidated financial statements.

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REVELATION BIOSCIENCES, INC.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Organization and Basis of Presentation

Revelation Biosciences, Inc. (collectively with its wholly-owned subsidiaries, the “Company” or “Revelation”), formerly known as Petra Acquisition, Inc. (“Petra”), was incorporated in Delaware on November 20, 2019. The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. On January 10, 2022 (the “Closing Date”) the Company consummated its business combination, with Revelation Biosciences Sub, Inc. (“Old Revelation” or “Revelation Sub”), the Company's wholly owned subsidiary (the “Business Combination”). Since the Business Combination, the Company is a clinical-stage biopharmaceutical company and has been focused on the development and commercialization of immunologic therapeutics and diagnostics.

The Business Combination was accounted for as a reverse recapitalization with Revelation Sub as the accounting acquirer and Petra as the acquired company for accounting purposes. Accordingly, all historical financial information presented in the unaudited condensed consolidated financial statements represents the accounts of Revelation Sub as if Revelation Sub is the predecessor to the Company. The common stock and net loss per share, prior to the Merger, have been retroactively restated as common stock and net loss per share reflecting the exchange ratio established in the Business Combination (2.725 shares of common stock for 1 share of Revelation Sub common stock (the “Common Stock Exchange Ratio”)).

Petra’s Common Stock, Public Warrants and Units were historically listed on the Nasdaq Capital Market under the symbols “PAIC,” “PAICW” and “PAICU,” respectively. On January 10, 2022, the Company’s units, common stock and warrants were listed on the Nasdaq Capital Market under the symbols “REVBU”, “REVB” and “REVBW”, respectively, (see Note 3).

The Company has incurred recurring losses since its inception, including a net loss of $9.6 million for the nine months ended September 30, 2022. As of September 30, 2022, the Company had an accumulated deficit of $24.1 million, a stockholders’ equity of $2.2 million and available cash and cash equivalents of $6.2 million. The Company expects to continue to incur significant operating and net losses, as well as negative cash flows from operations, for the foreseeable future as it continues to complete all necessary product development or future commercialization efforts. The Company has never generated revenue and does not expect to generate revenue from product sales unless and until it successfully completes development and obtains regulatory approval for REVTx-99b, REVTx-200, REVTx-300, REVDx-501 or other product candidates, which the Company expects will not be for at least several years, if ever. The Company does not anticipate that its current cash and cash equivalents balance will be sufficient to sustain operations within one year after the date that the Company’s unaudited financial statements for September 30, 2022 were issued, which raises substantial doubt about its ability to continue as a going concern.

To continue as a going concern, the Company will need, among other things, to raise additional capital resources. The Company plans to seek additional funding through public or private equity or debt financings. The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s stockholders. If the Company is unable to obtain funding, it could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect the Company’s business operations.

The unaudited condensed consolidated financial statements for September 30, 2022, have been prepared on the basis that the Company will continue as a going concern, and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability for the Company to continue as a going concern.

The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All inter-company transactions and balances have been eliminated in consolidation. Certain amounts previously reported in the financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not affect net loss, stockholders’ deficit or cash flows.

2. Summary of Significant Accounting Policies

Unaudited Interim Condensed Consolidated Financial Statements

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements as of December 31, 2021 and for the year ended December 31, 2021 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position. The

5

financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2022 are unaudited. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2021 included on Form 8-K/A, as filed with the SEC on April 22, 2022. The accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited balance sheet at December 31, 2021 contained in the above referenced Form 8-K/A.

Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. These estimates and assumptions are based on the Company’s best estimates and judgment. The Company regularly evaluates its estimates and assumptions using historical and industry experience and other factors; however, actual results could differ materially from these estimates and could have an adverse effect on the Company’s condensed consolidated financial statements.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company maintains its cash in checking and savings accounts. Income generated from cash held in savings accounts is recorded as interest income. The carrying value of the Company’s savings accounts is included in cash and approximates the fair value.

Fair Value Measurements

The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, subscription receivables, prepaid expenses, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity with the inputs to the valuation of these assets or liabilities as follows:

Level 1 — Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable inputs for similar assets or liabilities. These include quoted prices for identical or 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.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. Bank deposits are held by accredited financial institutions and these deposits may at times be in excess of federally insured limits. The Company limits its credit risk associated with cash and cash equivalents by placing them with financial institutions that it believes are of high quality. The Company has not experienced any losses on its deposits of cash or cash equivalents.

Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is five years. Maintenance and repairs are charged to operating expense as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is included in other income (expense).

6

Leases

The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. For operating leases with an initial term greater than 12 months, the Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of lease payments over the lease term at the commencement date. Operating lease right-of-use assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms include options to renew or terminate the lease when the Company is reasonably certain that the renewal option will be exercised or when it is reasonably certain that the termination option will not be exercised. For an operating lease, if the interest rate used to determine the present value of future lease payments is not readily determinable, the Company estimates the incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for the development of the Company’s product candidates, REVTx-99a/b, REVTx-200, REVTx-300 and diagnostic product, REVDx-501. Research and development costs are charged to expense as incurred. The Company records accrued expenses for estimated preclinical, clinical study and research expenses related to the services performed but not yet invoiced pursuant to contracts with research institutions, contract research organizations, and clinical manufacturing organizations that conduct and manage preclinical studies, clinical studies, research services, and development services on the Company’s behalf. Payments for these services are based on the terms of individual agreements and payment timing may differ significantly from the period in which the services were performed. Estimates are based on factors such as the work completed, including the level of patient enrollment. The Company monitors patient enrollment levels and related activity to the extent reasonably possible and makes judgments and estimates in determining the accrued balance in each reporting period. The Company’s estimates of accrued expenses are based on the facts and circumstances known at the time. If the Company underestimates or overestimates the level of services performed or the costs of these services, actual expenses could differ from estimates. As actual costs become known, the Company adjusts accrued expenses. To date, the Company has not experienced significant changes in estimates of clinical study and development services accruals.

Patent Costs

Legal costs in connection with approved patents and patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. These costs are recorded in general and administrative expense in the statements of operations.

Stock-based Compensation

The Company recognizes compensation expense related to stock options, third-party warrants, and Restricted Stock Unit (“RSU”) awards granted, based on the estimated fair value of the stock-based awards on the date of grant. The fair value of employee stock options and third-party warrants are generally determined using the Black-Scholes option-pricing model using various inputs, including estimates of historic volatility, term, risk-free rate, and future dividends. The grant date fair value of the stock-based awards, which have graded vesting, is recognized using the straight-line method over the requisite service period of each stock-based award, which is generally the vesting period of the respective stock-based awards. The Company recognizes forfeitures as they occur.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or loss in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Interest and penalties related to unrecognized tax benefits are included within the provision of income tax. To date, there have been no unrecognized tax benefits balances.

Basic and Diluted Net Loss per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potential shares of common stock. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding plus potential shares of common stock.

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Convertible preferred stock on an as converted basis, unvested and unissued RSU awards, warrants and stock options outstanding are considered potential shares of common stock and are included in the calculation of diluted net loss per share using the treasury stock method when their effect is dilutive. Potential shares of common stock are excluded from the calculation of diluted net loss per share when their effect is anti-dilutive. As of September 30, 2022 and 2021, there were 23,152,401 and 4,207,776 potential shares of common stock, respectively, (see Note 10), that were excluded from the calculation of diluted net loss per share because their effect was anti-dilutive.

Comprehensive Loss

The Company has no components of comprehensive loss other than net loss. Thus, comprehensive loss is the same as net loss for the periods presented.

Segment Reporting

Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance.

The Company has one operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations for the purposes of allocating resources and evaluating financial performance.

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 issued guidance on the accounting for income taxes that, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within the fiscal years beginning after December 15, 2022. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

3. Business Combination

As disclosed in Note 1, the Company consummated the Business Combination, pursuant to the terms of the agreement and plan of merger, dated as of August 29, 2021 (the “Business Combination Agreement”), by and among Petra, Petra Acquisition Merger, Inc., a Delaware corporation and wholly-owned subsidiary of Petra (“Merger Sub”), and Old Revelation. Pursuant to the Business Combination Agreement, on the Closing Date, (i) Merger Sub merged with and into Old Revelation (the “Merger”), with Old Revelation as the surviving company in the Merger, and, after giving effect to such Merger, Old Revelation was renamed Revelation Biosciences Sub, Inc. and became a wholly-owned subsidiary of the Company and (ii) the Company changed its name to “Revelation Biosciences, Inc.”

In accordance with the terms and subject to the conditions of the Business Combination Agreement, at the effective time of the Merger (the “Effective Time”), (i) each share of common stock and preferred stock of Old Revelation outstanding as of immediately prior to the Effective Time was exchanged for shares of common stock, par value $0.001 per share, of Revelation based on the agreed upon Common Stock Exchange Ratio; (ii) each Old Revelation RSU award outstanding as of immediately prior to the Effective Time was assumed by Revelation and was converted into that number of whole rollover RSU awards based on the Common Stock Exchange Ratio (“Rollover RSU”); and (iii) each Old Revelation warrant outstanding as of immediately prior to the Effective Time was assumed by Revelation and was converted into that number of whole rollover warrants based on the Common Stock Exchange Ratio, at an exercise price per share of common stock equal to (x) the exercise price per share of Old Revelation common stock of such Old Revelation warrant divided by (y) the Common Stock Exchange Ratio (“Rollover Warrant”).

At the Closing Date, up to 10,500,000 shares of common stock were to be issued constituting the merger consideration, (i) an aggregate of 9,871,343 shares of common stock, including conversion of all outstanding shares of the Series A Preferred Stock and Series A-1 Preferred Stock of Old Revelation, were issued in exchange for the Old Revelation stock outstanding as of immediately prior to the Effective Time, (ii) 167,867 shares of common stock were reserved for issuance for Rollover Warrants outstanding as of

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immediately prior to the Effective Time and (iii) 460,706 shares of common stock were reserved for issuance for Rollover RSU awards outstanding as of immediately prior to the Effective Time.

Immediately after giving effect to the Business Combination, there were 12,944,213 shares of common stock outstanding, and 1,294,421 shares of common stock reserved for future issuance under the 2021 Equity Incentive Plan. The pre-merger stockholders of Petra retained an aggregate of 3,072,870 shares of common stock of Petra, representing 23.7% ownership of the post-Merger company. Therefore, upon consummation of the Business Combination, there was a change in control of Petra, with the former owners of Revelation Sub acquiring control of Petra.

Prior to the Closing Date, on December 21, 2021, Petra entered into certain backstop agreements (the “Backstop Agreements”) with AXA Prime Impact Master Fund (“AXA”) (through a backstop agreement with Old Revelation), LifeSci Venture Partners (“LifeSci”) and other Petra and Old Revelation institutional, and individual investors, including Dr. Tidmarsh, Chairman of Old Revelation and present Chairman of the Company (such additional institutional and individual investors, together with LifeSci and Old Revelation collectively, the “Backstop Subscribers”). Pursuant to the Backstop Agreements, the Backstop Subscribers agreed to purchase, in the aggregate, up to $4.5 million of shares of Petra’s common stock, par value $0.001 per share, in the event that more than $31.5 million was redeemed from the trust account in connection with the Business Combination. On January 6, 2022, pursuant to the Backstop Agreements, the Backstop Subscribers purchased an aggregate of 432,072 shares of Petra Common Stock that had been surrendered for redemption totaling $4.5 million. Petra also entered into a forward share purchase agreement (the “Forward Share Purchase Agreement”) with Meteora Capital Partners and its affiliates (collectively, “Meteora”) pursuant to which Meteora committed, to purchase additional shares of the Company's common stock in open market transactions or from redeeming stockholders so that Meteora held at least 750,000 shares of common stock as of the closing of the Business Combination. The Forward Share Purchase Agreement provides that Meteora may elect to sell and transfer to the Company, on the one month anniversary of the closing of the Business Combination up to 750,000 shares of common stock held by Meteora at the time of closing of the Business Combination at a price of $10.2031 per share.

On the Closing Date, in connection with the Business Combination, stockholders holding 3,480,692 shares of Petra common stock exercised their right to redeem such shares for cash at a price of approximately $10.20 per share for payments in the aggregate of approximately $35.5 million. Additionally, approximately $7.7 million was escrowed pursuant to the Forward Share Purchase Agreement entered into by and between Petra and Meteora and approximately $4.2 million was released to Revelation. On February 4, 2022, Meteora exercised the Forward Share Purchase Agreement entered into by and between the Company. 750,000 shares were repurchased by the Company and approximately $7.7 million that was escrowed was paid to Meteora.

At the closing of the Business Combination, Petra adopted the third amended and restated certificate of incorporation, which became effective upon filing with the Secretary of State of the State of Delaware on the Closing Date.

Subsequent to the Closing Date on February 10, 2022 and February 22, 2022 the Company paid $105,490 and $691,392, respectively, to the three holders of promissory notes made to Petra in connection with the Business Combination (“Promissory Notes Payable”). The Promissory Notes Payable had a total principal of $750,000, and had accrued interest of $46,882 at the time of repayment.

The Business Combination has been accounted for as a reverse recapitalization, in accordance with U.S. GAAP. Under this method of accounting, although Petra issued shares for outstanding equity interests of Old Revelation in the Business Combination, Petra was treated as the “acquired” company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent of Old Revelation issuing stock for the net assets of Petra, accompanied by a recapitalization. The net assets of Petra have been stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination are those of Revelation.

4. Balance Sheet Details

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

	September 30, 2022		December 31, 2021
Prepaid clinical costs	$	—	$	488,614
Prepaid insurance		206,270		—
Other prepaid expenses & current assets		103,358		148,728
Total prepaid expenses & current assets	$	309,628	$	637,342

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Property and Equipment, Net

Property and equipment, net consisted of the following:

	September 30, 2022			December 31, 2021
Lab equipment	$	131,962		$	131,963
Total property and equipment, gross		131,962			131,963
Accumulated depreciation		(35,567	)		(16,782	)
Total property and equipment, net	$	96,395		$	115,181

Depreciation expense was $6,262 and $18,786 for the three and nine months ended September 30, 2022, respectively, and $6,071 and $10,520 for the three and nine months ended September 30, 2021, respectively.

Accrued Expenses

Accrued expenses consisted of the following:

	September 30, 2022		December 31, 2021
Accrued payroll and related expenses	$	678,452	$	756,729
Accrued clinical study expenses		109,483		327,244
Accrued professional fees		40,614		294,130
Accrued clinical development costs		90,000		145,566
Accrued other expenses		4,565		5,000
Premium Finance Agreement - D&O Insurance		73,333		—
Total accrued expenses	$	996,447	$	1,528,669

On July 31, 2022, the Company released 9 employees. As a result, during the three and nine months ended September 30, 2022, $0.4 million of accrued annual corporate bonus expense included in accrual payroll and related expenses as of December 31, 2021 and June 30, 2022 was reversed.

In connection with the Business Combination the Company entered into a payment deferral of legal fees with Loeb & Loeb, LLP, which, deferred the legal fees for six months from the Closing Date of the Business Combination, or July 9, 2022. The agreement stated, if the fees were not paid by July 9, 2022, 300,000 shares of common stock that were issued in January 2022 as collateral to Loeb & Loeb, LLP would be retained in lieu of cash payment, as full payment for the legal fees. As a result, during the three and nine months ended September 30, 2022, $0.7 million of accrued professional fees recorded as of June 30, 2022 were converted to equity.

5. Commitments and Contingencies

Lease Commitments

In February 2021, Revelation Sub entered into an agreement to lease 2,140 square feet of laboratory space located at 11011 Torreyana Road, Suite 102, San Diego, California (the “Original Lease”). The Original Lease had a term of 13 calendar months, plus any partial month at the beginning of the Original Lease (the “Original Lease Term”). Revelation Sub recorded a lease liability and right-of-use lease asset for the Original Lease based on the present value of Original Lease payments over the expected Original Lease Term, discounted using Revelation Sub’s incremental borrowing rate of 7.73%. There was no option to extend the Original Lease and the expiration date was March 31, 2022. In accordance with the Original Lease, Revelation Sub is required to maintain a security deposit of $5,564. Revelation Sub paid a total of $70,313 of rent expense over the life of the Original Lease.

In October 2021, Revelation Sub amended the Original Lease to expire on December 31, 2022, equal to an additional nine calendar months with a base monthly rent equal to the 13th month of the Original Lease (the “First Amendment”). Revelation Sub signed the First Amendment on October 14, 2021. In connection with the Business Combination, the First Amendment was assumed by the Company. The Company will pay $51,578 of rent expense over the life of the First Amendment. The Company has applied the short-term lease exception as the First Amendment is less than twelve months. In addition to rent, the Lease requires the Company to pay certain taxes, insurance and operating costs relating to the leased premises. The Lease contains customary default provisions, representations, warranties and covenants. The Lease is classified as an operating lease.

Rent expense was $17,193 and $49,453 for the three and nine months ended September 30, 2022, respectively. Rent expense was $15,067 and $40,179 for the three and nine months ended September 30, 2021, respectively.

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Future minimum lease payments under the First Amendment of the operating lease as of September 30, 2022 is $17,192 in aggregate during the remainder of fiscal year 2022.

Convertible Note Financing

On January 4, 2022, Revelation Sub entered into a convertible note financing in an amount of up to $2.5 million with a fixed 10% annual interest rate from AXA IM Prime Impact Fund (the “Convertible Note”), the proceeds of which where used by Revelation Sub to purchase shares of Petra common stock from redeeming Petra stockholders who redeem shares of Petra common stock in connection with the Business Combination. On January 6, 2022, Old Revelation purchased 245,019 shares of Petra common stock with the proceeds from the Convertible Note. Repayment of the Convertible Note was made on January 4, 2022 in accordance with the exchange terms of the Convertible Note by which 245,019 shares of Petra’s common stock that had been purchased by Revelation Sub were transferred to AXA.

Total interest incurred under the Convertible Note was $0 and $14,383 during the three and nine months ended September 30, 2022, respectively.

Premium Finance Agreement - D&O Insurance

In order to obtain a public company directors and officers insurance policy (“D&O Insurance”), the Company entered into an agreement with a premium financing lender, where by the lender paid the D&O Insurance premium for the company (“Premium Finance Agreement”). If the Company were to not pay the lender monthly installment payments, the lender would cancel the D&O Insurance and the remaining D&O Insurance premium would be returned to the lender. In addition, if the Company were to cancel the D&O Insurance, the remaining D&O Insurance premium would be returned to the lender.

The Premium Finance Agreement is for $825,000 and accrues interest at a fixed rate of 3.57% per annum payable monthly for a total of $9,856 over the term of the Premium Finance Agreement. Monthly payments of $74,428, are to be paid in nine monthly installments, which commenced on February 10, 2022 with a maturity date of October 10, 2022. Upon entering into the Premium Finance Agreement, an upfront payment of $165,000 was due and paid on February 14, 2022.

Total expense incurred under the Finance Agreement for upfront, monthly and interest payments was $209,535 and $627,511 during the three and nine months ended September 30, 2022, respectively. Total cash paid under the Finance Agreement for upfront, monthly and interest payments was $223,286 and $760,428 during the three and nine months ended September 30, 2022, respectively. Future obligations under the Premium Finance Agreement are expected to be a total of $74,428 in aggregate during the remainder of fiscal year 2022.

Commitments

The Company enters into contracts in the normal course of business with third party service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments.

Contingencies

From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation other than described below.

Legal Proceedings

On February 18, 2022, LifeSci Capital LLC filed an action against the Company in the U.S. District Court for the Southern District of New York seeking damages in the amount of approximately $2.7 million in cash and $2.6 million in equity for unpaid banking and advisory fees. These fees arise under contracts which were entered into prior to the Business Combination and the Company is disputing the amount owed under those contracts and has asserted affirmative defenses including the defense that the amount of the fees sought exceeded the $8.5 million cap on transaction expenses in the Business Combination Agreement. This action remains pending as of the date of this report. $1.5 million of the claim relates to deferred underwriting fees from the Petra initial public offering, which are recorded as a current liability in the financial statements under deferred underwriting commissions. No other liabilities are reflected in the financial statements as the amount of any additional liability can not be determined at this time.

On September 27, 2022, A-IR Clinical Research Ltd. filed a claim against the Company in the High Court of Justice, In the Business and Property Courts of England and Wales, seeking £1.6 million in unpaid invoices, plus interest and costs, relating to the

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Company’s viral challenge study. The Company is disputing the claim because much of the invoices relate to work that wasn’t performed and that it had misrepresented its qualifications to perform the contracted for work.

6. PIPE Investment

On January 23, 2022, the Company entered into a securities purchase agreement with an institutional investor (“the Purchaser”) pursuant to which the Purchaser agreed to purchase, and the Company agreed to issue and sell to the Purchaser in a private placement, 1,293,126 shares of common stock at a gross purchase price of $3.00 per share (the “Shares”) (the “PIPE Investment”), 1,293,541 unregistered pre-funded warrants to purchase common stock (the “Pre-Funded Warrants”) and 2,586,667 unregistered warrants to purchase common stock (the “Common Warrants”). The closing was consummated on January 25, 2022. The net proceeds to the Company was $7.3 million.

Each Pre-Funded Warrant was funded to the amount of $3.00, with $0.00001 per share of common stock payable upon exercise, was immediately exercisable, could have been exercised at any time until exercised in full and is subject to customary adjustments. The Pre-Funded Warrants may not be exercised if the aggregate number of shares of the Company’s common stock beneficially owned by the holder (together with its affiliates) would exceed 9.99% of the Company’s outstanding common stock immediately after exercise. On February 22, 2022, the Company received a notice of cash exercise for the total outstanding Pre-Funded Warrants issued in connection with the PIPE Investment for 1,293,541 shares of common stock at purchase price of $12.94.

Each Common Warrant has an exercise price of $3.29 per share of common stock, is exercisable at any time after the sixth month anniversary of the date of issuance, will expire five and one-half years from the date of issuance and is subject to customary adjustments. The Common Warrants may not be exercised if the aggregate number of shares of the Company’s common stock beneficially owned by the holder (together with its affiliates) would exceed 4.99% of the Company’s outstanding common stock immediately after exercise. However, the holder may increase (upon 61 days’ prior notice from the holder to the Company) or decrease such percentages, provided that in no event such percentage exceeds 9.99%.

Also on January 23, 2022 and in connection with the private placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchaser, pursuant to which the Company agreed to use its best efforts to file a registration statement on Form S-1 (the “Registration Statement”) to register for resale the Shares and any shares of the Company’s common stock issuable upon exercise of the Pre-Funded Warrants and Common Stock Warrants by January 31, 2022, but in no event later than February 4, 2022. The company filed the Registration Statement on January 28, 2022 and it became effective on February 7, 2022.

Roth Capital Partners, LLC (the “Placement Agent”) was engaged by the Company to act as its exclusive placement agent for the private placement. The Company agreed to pay the Placement Agent a cash fee equal to 6.0% of the gross proceeds received by the Company in the private placement, totaling approximately $465,600. In addition, the Company agreed to issue to the Placement Agent warrants to purchase up to 362,134 shares of common stock representing 7.0% of the aggregate number of shares of common stock sold in the private placement (including shares of common stock issuable upon the exercise of any of the Pre-Funded Warrants and Common Warrants) (the “Placement Agent Warrants”). The Placement Agent Warrants have substantially the same terms as the Common Warrants.

Using the Black-Scholes option pricing model, the Common Warrants were valued in the aggregate at $3.6 million and the Placement Agent Warrants were valued in the aggregate at $0.5 million. Both were included in the issuance costs of the private placement (see Note 12).

7. Public Offering

On July 28, 2022, the Company closed a public offering of 8,333,334 shares of its common stock (the “July 2022 Public Offering”), together with warrants to purchase up to 8,333,334 shares of its common stock (the “New Common Stock Warrants”) at an offering price to the public of $0.60 per share and associated warrant. The New Common Stock Warrants have an exercise price of $0.60 per share, are exercisable upon issuance, and will expire five years following the date of issuance. The net proceeds to the Company from the offering were $4.5 million. The shares of common stock, and the shares of common stock underlying the New Common Stock Warrants were registered with the SEC on Form S-1 (File No. 333-266108), and was declared effective by the SEC on July 25, 2022.

Roth Capital Partners, LLC (the “Placement Agent”) was engaged by the Company to act as its exclusive placement agent for the July 2022 Public Offering. The Company agreed to pay the Placement Agent a cash fee equal to 7.0% of the gross proceeds received by the Company in the public offering, totaling $350,000. In addition, the Company agreed to issue to the Placement Agent warrants to purchase up to 583,333 shares of common stock representing 7.0% of the aggregate number of shares of common stock

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sold in the public offering (the “New Placement Agent Warrants”). The Placement Agent Warrants have an exercise price of $0.75 per share and expire five years following the date of issuance.

Using the Black-Scholes option pricing model, the New Common Stock Warrants were valued in the aggregate at $4.5 million and the New Placement Agent Warrants were valued in the aggregate at $0.3 million. Both were included in the issuance costs of the July 2022 Public Offering (see Note 12).

8. Preferred Stock

Prior to the Merger, in August 2020, Revelation Sub authorized the sale and issuance of up to 2,000,000 shares of preferred stock, par value $0.001 per share. At the Closing Date of the Business Combination, all outstanding shares of the Series A Preferred Stock and Series A-1 Preferred Stock were converted into 1,713,965 and 1,865,238, respectively, shares of common stock at an exchange ratio of 2.725 (see Note 3).

The third amended and restated certificate of incorporation of the Company authorizes up to 5,000,000 shares of preferred stock, $0.001 par value per share, which may be issued as designated by the Board of Directors without stockholder approval. As of September 30, 2022 and as of the date of this Report, there was no preferred stock designated nor any such shares issued and outstanding.

Series A Preferred Stock

Prior to the Merger, in December 2020, Revelation Sub sold and issued 628,930 shares of Series A Preferred Stock at $6.36 per share for net proceeds of $3.9 million. All shares of the Series A Preferred Stock were exchanged on the Closing Date for common stock in connection with the Business Combination.

Series A-1 Preferred Stock

Prior to the Merger, in January 2021, Revelation Sub sold and issued 684,450 shares of Series A-1 Preferred Stock at $6.36 per share for net proceeds of $3.9 million. All shares of the Series A-1 Preferred Stock were exchanged on the Closing Date for common stock in connection with the Business Combination.

9. Units

In connection with the Company's IPO, in October of 2020, the Company issued unit's that consists of one share of common stock and one warrant with an exercise price of $11.50 (the “Public Warrants”).

As of September 30, 2022 there were 1,760,285 units outstanding, which trade on the Nasdaq Capital Market under the ticker symbol REVBU. The Company includes each share of common stock and Public Warrant from the unit’s in its calculation of common stock and Public Warrants outstanding, respectively.

10. Common Stock

Prior to the Business Combination, in December 2020, Revelation Sub authorized the sale and issuance of up to 29,977,303 shares of common stock, par value $0.001 per share. During 2020 Revelation Sub entered into multiple common stock purchase agreements that resulted in the issuance of 6,292,140 shares and raised net proceeds of $6.1 million. Issuance costs were $37,000 related to the sale and issuance of common stock.

Business Combination Transaction

At the Closing Date, the Company authorized the sale and issuance of up to 100,000,000 shares of common stock, $0.001 par value per share. Additionally, an aggregate of 9,871,343 shares of common stock, were issued in exchange for the Revelation Sub stock, outstanding as of immediately prior to the Effective Time.

Immediately after giving effect to the Business Combination, there were 12,944,213 shares of common stock outstanding.

On the Closing Date, the Company received net proceeds from the Business Combination of $11.9 million, of which $7.7 million was escrowed pursuant to a Forward Share Purchase Agreement entered into by Petra and $4.2 million was released to Revelation.

Subsequent to Business Combination

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On January 23, 2022, the Company issued 1,293,126 shares of common stock in connection with the PIPE Investment. The Company received net proceeds of $7.3 million.

On January 31, 2022, the Company issued 300,000 shares of common stock as collateral to Loeb & Loeb, LLP as part of a payment deferral of legal fees in connection with the Business Combination.

On February 4, 2022, the Company cancelled 750,000 shares in connection with the exercise of the Forward Share Purchase Agreement and approximately $7.7 million that was in escrow was paid to Meteora.

On February 22, 2022, the Company issued 1,293,541 shares of common stock in connection with the notice of cash exercise for the Pre-Funded Warrants issued in connection with the PIPE Investment with a total purchase price of $12.94.

On February 2, 2022, the Company issued 1,891 shares of common stock in connection with a notice of cash exercise for the Company’s Rollover Warrants with a total purchase price of $5,073.

On July 28, 2022, the Company issued 8,333,334 shares of its common stock in connection with the July 2022 Public Offering. The Company received net proceeds of $4.5 million.

On July 29, 2022, the Company issued 119,965 shares of common stock in connection with vested Rollover RSU awards.

As of September 30, 2022 and December 31, 2021, 23,536,070 and 2,308,877 shares of common stock were issued and outstanding, respectively. As of September 30, 2022, no cash dividends have been declared or paid.

The total shares of common stock reserved for issuance are summarized as follows:

	September 30, 2022		September 30, 2021
Series A Preferred Stock		—		1,713,965
Series A-1 Preferred Stock		—		1,865,238
Public Warrants		10,511,597		—
Common Warrants		2,586,667		—
Placement Agent Warrants		362,134		—
New Common Stock Warrants		8,333,334		—
New Placement Agent Warrants		583,333		—
Rollover Warrants		165,976		167,867
Unvested and unissued Rollover RSU awards		257,047		460,706
Stock options outstanding		352,313		—
Dilutive shares reserved for issuance		23,152,401		4,207,776
Shares available for future stock grants under the 2021 Equity Incentive Plan		942,108		—
Total common stock reserved for issuance		24,094,509		4,207,776

11. Stock-Based Compensation

2020 Equity Incentive Plan and 2021 Equity Incentive Plan

Prior to the Merger, Revelation Sub adopted the Revelation Biosciences, Inc. 2020 Equity Incentive Plan (the “2020 Plan”) on October 1, 2020 for the issuance of stock-based awards. There was a total of 885,693 shares available for stock-based awards under the 2020 Plan of which 460,706 shares had been granted for RSU awards. On the Closing Date of the Business Combination, the outstanding RSU awards from the 2020 Plan were exchanged for Rollover RSU awards and the 2020 Plan was cancelled and there are no additional shares available for grant under the 2020 Plan.

In January 2022, in connection with the Business Combination, the Board of Directors adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and reserved 1,294,421 authorized shares of common stock the Company could issue. The 2021 Plan is administered by the Board of Directors. Vesting periods and other restrictions for grants under the 2021 Plan are determined at the discretion of the Board of Directors. Grants to employees, officers, directors, advisors, and consultants of the Company typically vest over one to four years. In addition, the number of shares of stock available for issuance under the 2021 Plan will be automatically increased each January 1, beginning on January 1, 2022, by 10% of the aggregate number of outstanding shares of our common stock from the first day of the preceding calendar year to the first day of the current calendar year or such lesser number as determined by our board of directors.

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Under the 2021 Plan, stock options and stock appreciation rights are granted at exercise prices determined by the Board of Directors which cannot be less than 100% of the estimated fair market value of the common stock on the grant date. Incentive stock options granted to any stockholders holding 10% or more of the Company's equity cannot be granted with an exercise price of less than 110% of the estimated fair market value of the common stock on the grant date and such options are not exercisable after five years from the grant date.

As of September 30, 2022, there were 942,108 shares available for future grant under the 2021 Plan.

Restricted Stock Units

At the Closing Date of the Business Combination, all Revelation Sub RSU award holders received a Rollover RSU award in exchange for each RSU award of Revelation Sub at an exchange ratio of 2.725 that vest in accordance with the original terms of the award. The Company determined this to be a Type I modification but did not record any incremental stock-based compensation expense since the fair value of the modified awards immediately after the modification was not greater than the fair value of the original awards immediately before the modification.

The Rollover RSU awards have time-based and milestone-based vesting conditions. Under time-based vesting conditions, the Rollover RSU awards vest quarterly over one year for grants to the Board of Directors and quarterly over four years or 25% on the one year anniversary and the remainder vesting monthly thereafter for grants to officers, employees and consultants. The milestone-based vesting conditions vested on the Closing Date of the Business Combination.

As of September 30, 2022 and December 31, 2021, the Company has a total of 257,047 and 460,706 Rollover RSU awards for shares of common stock outstanding, respectively. During the nine months ended September 30, 2022, 119,965 Rollover RSU awards have fully vested and been issued and 83,694 Rollover RSU awards have been forfeited. As of September 30, 2022, 257,047 Rollover RSU awards will vest and be issued over the next 2.4 years. Each Rollover RSU award converts to one share of common stock.

Stock Options

The Company has granted stock options which vest 25% on the one year anniversary of the grant date or the employees hiring date, with the remainder vesting quarterly thereafter for grants to officers and employees. Stock options have a maximum term of 10 years.

On July 29, 2022, in connection with the release of 9 employees, the Board of Directors granted 195,821 stock options for shares of common stock that vest 100% on the date of grant. The stock options have a maximum term of 3 years.

The activity related to stock options, during the nine months ended September 30, 2022 is summarized as follows:

	Shares			Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (Years)
Outstanding at December 31, 2021		—		$	—
Granted		550,273			1.10
Exercised		—			—
Expired and foreited		(197,960	)		1.40
Outstanding at September 30, 2022		352,313		$	0.93		5.3
Exercisable at September 30, 2022		212,513		$	0.63		2.6

For the nine months ended September 30, 2022, the weighted-average Black-Scholes value per stock option was $0.74. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

Volatility	96.5	%
Expected term (years)	5.00
Risk-free interest rate	2.27	%
Expected dividend yield	0.0	%

Expected volatility is based on the historical volatility of shares of the Company’s common stock. In determining the expected term of stock options, the Company uses the “simplified” method. Under this method, the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term. The risk-free interest rate is based on the U.S.

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Treasury yield for a period consistent with the expected term of the stock options in effect at the time of the grants. The dividend yield assumption is based on the expectation of no future dividend payments by the Company. In addition to assumptions used in the Black-Scholes model, the Company reduces stock-based compensation expense based on actual forfeitures in the period that each forfeiture occurs.

Stock-Based Compensation Expense

For the three and nine months ended September 30, 2022 and 2021, the Company recorded stock-based compensation expense for the period indicated as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022		2021
General and administrative:
RSU awards	$	23,928		$	114,527	$	108,040	$	323,095
Stock Options		(10,912	)		—		36,784		—
General and administrative stock-based compensation expense		13,016			114,527		144,824		323,095
Research and development:
RSU awards		6,021			16,793		39,608		41,871
Stock Options		21,638			—		84,323		—
Research and development stock-based compensation expense		27,659			16,793		123,931		41,871
Total stock-based compensation expense	$	40,675		$	131,320	$	268,755	$	364,966

As of September 30, 2022, there was $232,128 and $106,446 of unrecognized stock-based compensation expense related to Rollover RSU awards and stock options, respectively. The unrecognized stock-based compensation expense is estimated to be recognized over a period of 2.4 years and 3.4 years for Rollover RSU’s and stock options, respectively.

12. Warrants

Public Warrants

In connection with the Company's IPO, the Company issued 10,511,597 Public Warrants to purchase a share of common stock at an exercise price of $11.50 per share and expire on January 10, 2027. The Public Warrants trade on the Nasdaq Capital Market under the ticker symbol REVBW.

The Company may redeem the Public Warrants at a price of $0.01 per Public Warrant upon not less than 30 days’ prior written notice of redemption if, and only if, the reported last sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the Public Warrant holders; and if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying the Public Warrants. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

Rollover Warrants

Prior to the Merger, in connection with the issuance of the Series A-1 Preferred Stock through a private placement, Revelation Sub issued warrants to the placement agent to purchase an aggregate of 167,867 shares of common stock at an exercise price of $2.68 per share, valued on the issuance date of the Series A-1 Preferred Stock in the aggregate at $326,675 and included in the issuance costs of the Series A-1 Preferred Stock. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 31, 2027.

At the Closing Date of the Business Combination, all warrant holders received a Rollover Warrant with an exchange ratio of 2.725, which had already vested upon original issuance.

On February 2, 2022, the Company received a notice of cash exercise for the Company’s Rollover Warrants for 1,891 shares of common stock at a purchase price of $5,073. As of September 30, 2022, there were 165,976 Rollover Warrants remaining to be exercised or exchanged.

The fair value of the Rollover Warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

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Volatility	115	%
Expected term (years)	6
Risk-free interest rate	0.85	%
Expected dividend yield	0.0	%

Common Warrants

In connection with the PIPE Investment, the Company issued warrants to the Purchaser to purchase an aggregate of 2,586,667 shares of common stock at an exercise price of $3.29 per share, valued on the PIPE Investment purchase date in the aggregate at $3,634,262 and included in the issuance costs of the PIPE Investment. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

Pre-Funded Warrants

In connection with the PIPE Investment, the Company issued warrants to the Purchaser to purchase an aggregate of 1,293,541 shares of common stock at an exercise price of $0.00001 per share.

On February 22, 2022, the Company received a notice of cash exercise for the Pre-Funded Warrants issued in connection with the PIPE Investment for 1,293,541 shares of common stock at purchase price of $12.94.

Placement Agent Warrants

In connection with the PIPE Investment, the Company issued warrants to the Placement Agent to purchase an aggregate of 362,134 shares of common stock at an exercise price of $3.29 per share, valued on the PIPE Investment purchase date in the aggregate at $508,797 and included in the issuance costs of the PIPE Investment. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

New Common Stock Warrants

In connection with the July 2022 Public Offering, the Company issued warrants to purchase an aggregate of 8,333,334 shares of common stock at an exercise price of $0.60 per share, valued on the public offering purchase date in the aggregate at $4,490,457 and included in the issuance costs of the public offering. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on July 28, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

New Placement Agent Warrants

In connection with the July 2022 Public Offering, the Company issued warrants to the Placement Agent to purchase an aggregate of 583,333 shares of common stock at an exercise price of $0.75 per share, valued on the public offering purchase date in

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the aggregate at $310,137 and included in the issuance costs of the public offering. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on July 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

13. Income Taxes

For the nine months ended September 30, 2022 and 2021, the Company did not recognize a provision for income taxes due to having recorded a full valuation allowance against its deferred tax assets. As of September 30, 2022 and December 31, 2021, the Company established a full valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. As of September 30, 2022 and December 31, 2021, the Company had no unrecognized tax benefits. The Company does not anticipate there will be a significant change in unrecognized tax benefits within the next 12 months.

14. Subsequent Events

In preparing these condensed consolidated financial statements, the Company has evaluated and determined there are no events and transactions for potential recognition or disclosure through November 10, 2022, the date the financial statements were available to be issued.

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

You should read the following discussion of our financial condition and results of operations in conjunction with our financial statements and the notes included elsewhere in the Form 10-Q. The following discussion contains forward-looking statements that involve certain risks and uncertainties. Our actual results could differ materially from those discussed in these statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in the Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2021, particularly under the “Risk Factors” and “Disclosure Regarding Forward-Looking Statements” sections.

Throughout this section, unless otherwise noted, “we,” “our,” “us,” “Revelation” and the “Company” refer to Revelation Biosciences, Inc. and its subsidiary.

Overview

Revelation is a clinical-stage biopharmaceutical company founded in May 2020. We are focused on the development or commercialization of innate immune system therapeutics and diagnostics. Our current product candidates were developed by Revelation to potentially prevent, treat and detect disease. Our therapeutic product candidates are based on our therapeutic platform and consist of REVTx-100, which is being developed for the prevention or treatment of infections including those resulting from surgery, severe burns and antibiotic resistance; REVTx-200, which is being developed as a potential intranasal therapy that will be administered concurrently with a commercially available IM vaccine; REVTx-300, which is being developed as a potential therapy for the treatment of chronic organ disease including CKD and NASH; REVTx-99b, which is being developed for the treatment of food allergies; and REVTx-99a, which was being developed as a broad anti-viral nasal drop solution for the potential prevention or potential treatment of respiratory viral infections until June of 2022. Our diagnostic, REVDx-501 (REVIDTM Rapid Test Kit), is being developed as a rapid point of care or at home diagnostic product that can potentially be used to detect various respiratory viral infections. The results display diagnostic is similar to a home pregnancy test with a simple to read visual readout in less than 15 minutes without the need for specialized instrumentation or complicated sample collection.

Since our inception in May 2020, we have devoted substantially all of our resources to organizing and staffing our Company, business planning, raising capital, and research and development of REVTx-99a/b, REVTx-100, REVTx-200, REVTx-300 and REVDx-501, our product candidates.

We have funded our operations since our inception in May 2020 to September 30, 2022 through the issuance and sale of our capital stock, from which we have raised net proceeds of $29.9 million. Our current cash and cash equivalents balance will not be sufficient to complete all necessary product development or future commercialization efforts. We anticipate that our current cash and cash equivalents balance will not be sufficient to sustain operations within one year after the date that our unaudited financial statements for September 30, 2022 were issued, which raises substantial doubt about our ability to continue as a going concern.

We plan to seek additional funding through public or private equity or debt financings. We may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of our stockholders. If we are unable to obtain funding we could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect our business operations.

We have incurred recurring losses since our inception, including a net loss of $1.2 million and $9.6 million for the three and nine months ended September 30, 2022, respectively, and $3.0 million and $8.1 million for the three and nine months ended September 30, 2021. As of September 30, 2022 we had an accumulated deficit of $24.1 million. We expect to continue to generate operating losses and negative operating cash flows for the foreseeable future if and as we:

•continue the research and development of our product candidates;

•initiate clinical studies for, or preclinical development of, our product candidates;

•further develop and refine the manufacturing processes of our product candidates;

•change or add manufacturers or suppliers of product candidate materials;

•seek regulatory and marketing authorizations for any of our product candidates that successfully complete development;

•acquire or license other product candidates, technologies or biological materials;

•make milestone, royalty or other payments under future license agreements;

•obtain, maintain, protect and enforce our intellectual property portfolio;

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•seek to attract and retain new and existing skilled personnel;

•create additional infrastructure to support our operations as a public company and incur increased legal, accounting, investor relations and other expenses; and

•experience delays or encounter issues with any of the above.

Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical studies and our expenditures on other research and development activities.

We have never generated revenue and do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 or other product candidates, which we expect will not be for at least several years, if ever. Accordingly, until such time as we can generate significant revenue from sales of REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 or other product candidates, if ever, we expect to finance our cash needs through a combination of public or private equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. Our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

Recent Developments

Business Combination

On January 10, 2022, we consummated the previously announced Business Combination, pursuant to the terms of the agreement and plan of merger, dated as of August 29, 2021 with Petra and Merger Sub. Pursuant to the Business Combination Agreement, on the Closing Date, (i) Merger Sub merged with and into Revelation Sub, with Revelation Sub as the surviving company in the Business Combination, and became a wholly-owned subsidiary of Petra and (ii) Petra changed its name to “Revelation Biosciences, Inc.”

Research and Development

Research and development expenses consist primarily of costs incurred for the development of our product candidates, REVTx-99a/b, REVTx-100, REVTx-200, REVTx-300 and REVDx-501. Our research and development expenses consist primarily of external costs related to clinical development, costs related to contract research organizations, costs related to consultants, costs related to acquiring and manufacturing clinical study materials, costs related to contract manufacturing organizations and other vendors, costs related to the preparation of regulatory submissions, costs related to laboratory supplies and services, and personnel costs. Personnel and related costs consist of salaries, employee benefits and stock-based compensation for personnel involved in research and development efforts.

We expense all research and development expenses in the periods in which they are incurred. We accrue for costs incurred as the services are being provided by monitoring the status of specific activities and the invoices received from our external service providers. We adjust our accrual as actual costs become known.

We expect our research and development expenses to increase substantially for the foreseeable future as we continue the development of REVTx-99b, REVTx-100, REVTx-200, REVTx-300 and REVDx-501 and continue to invest in research and development activities. The process of conducting the necessary clinical research and product development to obtain regulatory approval is costly and time consuming, and the successful development of REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 and any future product candidates is highly uncertain. To the extent that our product candidates continue to advance into larger and later stage clinical studies, our expenses will increase substantially and may become more variable.

The actual probability of success for REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 or any future product candidate may be affected by a variety of factors, including the safety and efficacy of our product candidates, investment in the development of REVDx-501, investment in our clinical programs, manufacturing capability and competition with other products. As a result, we are unable to determine the timing of initiation, duration and completion costs of our research and development efforts or when and to what extent we will generate revenue from the commercialization and sale of REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 or any future product candidate.

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General and Administrative

Our general and administrative expenses consist primarily of personnel costs, expenses for outside professional services, including financial advisory, legal, human resource, audit and accounting services and consulting costs. Personnel and related costs consist of salaries, employee benefits and stock-based compensation for personnel involved in executive, finance and other administrative functions. We expect our general and administrative expenses to increase for the foreseeable future as we increase the size of our administrative function to support the growth of our business and support our continued research and development activities. We also anticipate increased expenses as a result of operating as a public company, including increased expenses related to financial advisory services, audit, legal, regulatory, investor relations costs, director and officer insurance premiums associated with maintaining compliance with exchange listing and SEC requirements.

Other Income (Expense), Net

Other income (expense), net primarily consists of foreign currency transaction gains and losses, interest expense for the Promissory Notes Payable and Convertible Note and interest income from our cash balances in savings accounts.

Results of Operations

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

	Three Months Ended September 30,									Nine Months Ended September 30,
	2022			2021			Change			2022			2021			Change
Operating expenses:
Research and development	$	381,566		$	1,532,782		$	(1,151,216	)	$	5,037,429		$	4,249,326		$	788,103
General and administrative		817,898			1,511,165			(693,267	)		4,608,755			3,844,212			764,543
Total operating expenses		1,199,464			3,043,947			(1,844,483	)		9,646,184			8,093,538			1,552,646
Loss from operations		(1,199,464	)		(3,043,947	)		1,844,483			(9,646,184	)		(8,093,538	)		(1,552,646	)
Total other income (expense), net		28,728			(557	)		29,285			24,221			(32,913	)		57,134
Net loss	$	(1,170,736	)	$	(3,044,504	)	$	1,873,768		$	(9,621,963	)	$	(8,126,451	)	$	(1,495,512	)

Research and Development Expenses

The following table summarizes our research and development expenses for the periods presented:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2022		2021		Change			2022		2021		Change
REVTx-99a clinical study expenses	$	8,993	$	680,975	$	(671,982	)	$	3,086,960	$	1,656,846	$	1,430,114
REVTx-99b clinical study expenses		110,389		87,996		22,393			385,886		110,208		275,678
REVTx-99a/b manufacturing expenses		8,665		—		8,665			225,578		—		225,578
REVDx-501 diagnostic development		—		336,521		(336,521	)		27,660		1,059,815		(1,032,155	)
Personnel expenses (including stock-based compensation)		84,315		391,852		(307,537	)		1,078,573		1,158,260		(79,687	)
Other expenses		169,204		35,438		133,766			232,772		264,197		(31,425	)
Total research and development expenses	$	381,566	$	1,532,782	$	(1,151,216	)	$	5,037,429	$	4,249,326	$	788,103

Research and development expenses decreased by $1.2 million, from $1.5 million for the three months ended September 30, 2021 to $0.4 million for the three months ended September 30, 2022. The decrease was primarily due to a decrease of $0.7 million in clinical study expenses related to REVTx-99a, $0.3 million in diagnostic development expenses related to REVDx-501, and $0.3 million in personnel expenses. The decrease in personnel expenses is primarily due to the release of employees in July 2022, including a decrease of $0.1 million due to the reversal of accrued bonus expense and non-cash, share-based compensation expense related to forfeited, unvested equity awards, offset by an increase in severance expense. These decreases were offset by an increase of $0.1 in other expenses as a result of an increase in pre-clinical development costs related to REVTx-200 and REVTx-300, lab supplies, lab facilities costs and consulting expenses that were not specific to REVTx-99a/b or REVDx-501.

Research and development expenses increased by $0.8 million, from $4.2 million for the nine months ended September 30, 2021 to $5.0 million for the nine months ended September 30, 2022. The increase was primarily due to an increase of $1.4 million in clinical study expenses related to REVTx-99a, $0.3 million in clinical study expenses related to REVTx-99b, and $0.2 million in REVTx-99a/b manufacturing expenses. These increases were offset by a decrease of $1.0 million in diagnostic development expenses

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related to REVDx-501 and $0.1 million in personnel expenses. The decrease in personnel expenses is primarily due to the release of employees in July 2022, including a decrease of $0.1 million due to the reversal of accrued bonus expense and non-cash, share-based compensation expense related to forfeited, unvested equity awards, offset by an increase in severance expense.

General and Administrative Expenses

The following table summarizes our general and administrative expenses for the periods presented:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2022		2021		Change			2022		2021		Change
Personnel expenses (including employee stock-based compensation)	$	364,988	$	615,934	$	(250,946	)	$	1,551,447	$	1,880,140	$	(328,693	)
Legal and professional fees (including non-employee stock-based compensation)		138,896		838,651		(699,755	)		1,775,839		1,858,556		(82,717	)
Other expenses		314,014		56,580		257,434			1,281,469		105,516		1,175,953
Total general and administrative expenses.	$	817,898	$	1,511,165	$	(693,267	)	$	4,608,755	$	3,844,212	$	764,543

General and administrative expenses decreased by $0.7 million, from $1.5 million for the three months ended September 30, 2021 to $0.8 million for the three months ended September 30, 2022. The decrease was primarily due to a decrease of $0.7 million in financial advisory fees, legal fees and professional consulting service fees and $0.3 million in personnel expenses. The decrease in personnel expenses is primarily due to the release of employees in July 2022, including a decrease of $0.1 million due to the reversal of accrued bonus expense and non-cash, share-based compensation expense related to forfeited, unvested equity awards, offset by an increase in severance expense. These decreases were offset by an increase of $0.3 million in other expenses as a result of an increase in D&O Insurance.

General and administrative expenses increased by $0.8 million, from $3.8 million for the nine months ended September 30, 2021 to $4.6 million for the nine months ended September 30, 2022. The increase was primarily due to an increase of $1.2 million in other expense as a result of an increase in D&O Insurance. These increases were offset by a decrease of $0.3 million in personnel expenses and $0.1 million in financial advisory fees, legal fees and professional consulting service fees. The decrease in personnel expenses is primarily due to the release of employees in July 2022, including a decrease of $0.1 million due to the reversal of accrued bonus expense and non-cash, share-based compensation expense related to forfeited, unvested equity awards, offset by an increase in severance expense.

Other Income (Expense), Net

Other income (expense), net was $557 for the three months ended September 30, 2021 and $28,728 for the three months ended September 30, 2022, related to interest expense for foreign currency transaction gains and losses and interest income from our cash balances in savings accounts.

Other income (expense), net was $32,913 for the nine months ended September 30, 2021 and $24,221 for the nine months ended September 30, 2022, related to interest expense for the Promissory Notes Payable and Convertible Note, foreign currency transaction gains and losses, and interest income from our cash balances in savings accounts.

Liquidity and Capital Resources

Since our inception to September 30, 2022, we have funded our operations from the issuance and sale of our common stock, preferred stock and warrants, from which we have raised net proceeds of $29.9 million, of which $16.0 million was received during the nine months ended September 30, 2022. As of September 30, 2022, we had available cash and cash equivalents of $6.2 million and an accumulated deficit of $24.1 million.

Our use of cash is to fund operating expenses, which consist primarily of research and development expenditures related to our therapeutic product candidate, REVTx-99b, REVTx-100, REVTx-200, REVTx-300, and the development of our diagnostic product, REVDx-501. We plan to increase our research and development expenses substantially for the foreseeable future as we continue the clinical development of our current and future product candidates. At this time, due to the inherently unpredictable nature of product development, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval, and commercialize our current product candidate, diagnostic product or any future product candidates. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or any future license agreements which we may enter into or whether, or when, if ever, we may achieve profitability. Clinical and preclinical

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development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast the timing and amounts of milestone, royalty and other revenue from licensing activities, which future product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

We expect to continue to generate substantial operating losses for the foreseeable future as we expand our research and development activities. We will continue to fund our operations primarily through utilization of our current financial resources and through additional raises of capital.

To the extent that we raise additional capital through partnerships or licensing arrangements with third parties, we may have to relinquish valuable rights to our product candidates, future revenue streams or research programs or to grant licenses on terms that may not be favorable to us. If we raise additional capital through public or private equity offerings, the ownership interest of our then-existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect our stockholders’ rights. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we are unable to obtain adequate financing when needed, we may have to delay, reduce the scope of or suspend one or more of our clinical studies or preclinical studies, research and development programs or commercialization efforts or grant rights to develop and market our product candidates or diagnostic product even if we would otherwise prefer to develop and market such product candidates or diagnostic product ourselves.

Going Concern

We have incurred recurring losses since our inception, including a net loss of $9.6 million for the nine months ended September 30, 2022. As of September 30, 2022 we had an accumulated deficit of $24.1 million, a stockholders’ equity of $2.2 million and available cash and cash equivalents of $6.2 million. We expect to continue to incur significant operating and net losses, as well as negative cash flows from operations, for the foreseeable future as we continue to complete all necessary product development or future commercialization efforts. We have never generated revenue and do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for REVTx-99b, REVTx-100, REVTx-200, REVTx-300, REVDx-501 or other product candidates, which we expect will not be for at least several years, if ever. We do not anticipate that our current cash and cash equivalents balance will be sufficient to sustain operations within one year after the date that our unaudited financial statements for September 30, 2022 were issued, which raises substantial doubt about our ability to continue as a going concern.

To continue as a going concern, we will need, among other things, to raise additional capital resources. We plan to seek additional funding through public or private equity or debt financings. We may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of our stockholders. If we are unable to obtain funding we could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect our business operations.

The unaudited condensed consolidated financial statements for September 30, 2022, have been prepared on the basis that we will continue as a going concern, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability for us to continue as a going concern.

Cash Flows

The following table summarizes our cash flows for the periods presented:

	Nine Months Ended September 30,
	2022			2021
Net cash used in operating activities	$	(10,271,929	)	$	(8,211,666	)
Net cash used in investing activities		—			(148,116	)
Net cash provided by financing activities.		15,192,646			8,004,865
Net increase (decrease) in cash and cash equivalents	$	4,920,717		$	(354,917	)

Net Cash Used in Operating Activities

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During the nine months ended September 30, 2022, net cash used in operating activities was $10.3 million, which consisted of a net loss of $9.6 million and a net change of $1.0 million in our net operating assets and liabilities, offset by non-cash charges of $0.3 million comprised of stock-based compensation expense, non-cash lease expense and depreciation expense.

During the nine months ended September 30, 2021, net cash used in operating activities was $8.2 million, which consisted of a net loss of $8.1 million and a net change of $0.5 million in our net operating assets and liabilities, offset by non-cash charges of $0.4 million comprised of stock-based compensation expense, non-cash lease expense and depreciation expense.

Net Cash Used in Investing Activities

During the nine months ended September 30, 2022, there was no cash used in investing activities.

During the nine months ended September 30, 2021, net cash used in investing activities consisted of $0.1 million for purchases of lab equipment.

Net Cash Provided by Financing Activities

During the nine months ended September 30, 2022, net cash provided by financing activities was $15.2 million, from net proceeds of $4.2 million received in connection with the Business Combination, after exercise of the Forward Share Purchase Agreement of $7.7 million, net proceeds of $7.3 million received from the PIPE, and net proceeds of approximately $4.5 million received from the July 2022 Public Offering, offset by $0.8 million in repayments of Promissory Notes Payable, including interest expense.

During the nine months ended September 30, 2021, net cash provided by financing activities was $8.0 million, from the sale of our common stock, Series A Preferred Stock and Series A-1 Preferred Stock.

Contractual Obligations and Other Commitments

The following table summarizes our contractual obligations as of September 30, 2022 and the effects of such obligations are expected to have on our liquidity and cash flow in future periods:

	Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years		Total
Operating lease obligations	$	17,192	$	—	$	—	$	—	$	17,192
Premium Finance Agreement - D&O Insurance		74,428								74,428
Total contractual obligations	$	91,620	$	—	$	—	$	—	$	91,620

We have entered into an operating lease for laboratory space in San Diego, California. The table above includes future minimum lease payments under the non-cancelable lease arrangement.

We have entered into a Premium Finance Agreement with a lender that directly paid the Company’s D&O Insurance. The table above includes future minimum payments under the cancelable Premium Finance Agreement.

We enter into contracts in the normal course of business with third party service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments.

Off-Balance Sheet Arrangements

As of September 30, 2022, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

Quantitative and Qualitative Disclosure about Market Risk

We are exposed to market risks in the ordinary course of our business.

Interest Rate Risk

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Our cash and cash equivalents consist primarily of highly liquid investments in money market funds and cash on hand and have an original maturity date of 90 days or less. The fair value of our cash and cash equivalents would not be significantly affected by either an increase or decrease in interest rates due mainly to the short-term nature of these instruments.

Foreign Currency Risk

Our expenses are generally denominated in the currencies in which our operations are located, which is primarily in the United States and Australia. We make payments to vendors for research and development services with payments denominated in foreign currencies including Australian Dollars and British Pounds. We are subject to foreign currency transaction gains or losses on our payments denominated in foreign currencies. To date, foreign currency transaction gains and losses have not been material and we have not had a formal hedging program with respect to foreign currency; however, we may consider doing so in the future. A 10% increase or decrease in currency exchange rates would not have a material effect on our financial results.

Critical Accounting Policies and Significant Judgements and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with the U.S. generally accepted accounting principles (“GAAP”). The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using industry experience and other factors; however, actual results could differ materially from these estimates and could have an adverse effect on our condensed consolidated financial statements. While our significant accounting policies are more fully described in the notes to our condensed consolidated financial statements, we believe that the accounting policies discussed below are most critical to understanding and evaluating our historical and future performance.

Research and Development Expenditures

We record accrued expenses for estimated preclinical and clinical study and research expenses related to the services performed but not yet invoiced pursuant to contracts with research institutions, contract research organizations and clinical manufacturing organizations that conduct and manage preclinical studies, and clinical studies, and research services on our behalf. Payments for these services are based on the terms of individual agreements and payment timing may differ significantly from the period in which the services were performed. Our estimates are based on factors such as the work completed, including the level of patient enrollment. We monitor patient enrollment levels and related activity to the extent reasonably possible and make judgments and estimates in determining the accrued balance in each reporting period. Our estimates of accrued expenses are based on the facts and circumstances known at the time. If we underestimate or overestimate the level of services performed or the costs of these services, our actual expenses could differ from our estimates. As actual costs become known, we adjust our accrued expenses. To date, we have not experienced significant changes in our estimates of clinical study accruals.

Stock-based Compensation

We recognize the compensation expense related to stock options, third-party warrants, and RSU awards granted, based on the estimated fair value of the awards on the date of grant. The fair value of employee stock options and third-party warrants are generally determined using the Black-Scholes option-pricing model using various inputs, including estimates of historic volatility, term, risk-free rate, and future dividends. The grant date fair value of the stock-based awards, which have graded vesting, is recognized using the straight-line method over the requisite service period of each stock-based award, which is generally the vesting period of the respective stock-based awards. The Company recognizes forfeitures as they occur.

As of September 30, 2022, there were 257,047 Rollover RSU awards unvested and unissued and 352,313 stock options outstanding.

Determination of the Fair Value of Common Stock

Prior to the Business Combination, given the absence of a public trading market for our shares of common stock, our board of directors exercises its judgment and considers a number of objective and subjective factors to determine the best estimate of the fair value of our shares of common stock, including timely valuations of our shares of common stock prepared by an unrelated third-party valuation firm, important developments in our operations, sales of common stock and convertible preferred shares, actual operating results and financial performance, the conditions in the biotechnology industry and the economy in general, the stock price

25

performance and volatility of comparable public companies, and the lack of liquidity of our shares of common stock, among other factors. After the Business Combination, the fair value of each share of common stock is based on the closing price of our shares of common stock as reported on the date of grant.

Recent Accounting Pronouncements

See Note 2 to our unaudited condensed consolidated financial statements for more information about recent accounting pronouncements, the timing of their adoption, and our assessment, to the extent we have made one yet, of their potential impact on our financial condition of results of operations.

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 otherwise 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 our principal financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures. Based on that evaluation of our disclosure controls and procedures as of September 30, 2022, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures as of such date are effective at the reasonable assurance level. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (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 are recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during our most recent quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

26

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

On February 18, 2022, LifeSci Capital LLC filed an action against the Company in the U.S. District Court for the Southern District of New York seeking damages in the amount of approximately $2.7 million in cash and $2.6 million in equity for unpaid banking and advisory fees. These fees arise under contracts which were entered into prior to the Business Combination and the Company is disputing the amount owed under those contracts and has asserted affirmative defenses including the defense that the amount of the fees sought exceeded the $8.5 million cap on transaction expenses in the Business Combination Agreement. This action remains pending as of the date of this Report. $1.5 million of the claim relates to deferred underwriting fees from the Petra initial public offering, which are recorded as a current liability in the financial statements under deferred underwriting commissions. No other liabilities are reflected in the financial statements as the amount of any additional liability can not be determined at this time.

On September 27, 2022, A-IR Clinical Research Ltd. filed a claim against the Company in the High Court of Justice, In the Business and Property Courts of England and Wales, seeking £1.6 million in unpaid invoices, plus interest and costs, relating to the Company’s viral challenge study. The Company is disputing the claim because much of the invoices relate to work that wasn’t performed and that it had misrepresented its qualifications to perform the contracted for work.

Item 1A. Risk Factors

Our business is subject to various risks, including those described below and in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.

Although our financial statements have been prepared on a going concern basis, we have a limited operating history and no products approved for commercial sale. We have incurred net losses since our inception, we anticipate that we will continue to incur significant losses for the foreseeable future, and even if we were to generate revenue, we may never achieve or maintain profitability.

We are a clinical stage biopharmaceutical company with a limited operating history may make it difficult to evaluate the success of our business to date and to assess our future viability. We commenced our operations in May 2020, and, to date, our operations have been limited to organizing and staffing our Company, business planning, raising capital, conducting research and development activities, including early clinical study, and providing general and administrative support for these operations. Investment in biopharmaceutical product development and diagnostic device is highly speculative because it entails substantial upfront capital expenditures and significant risk that any potential product candidate and/or diagnostic device will fail to demonstrate adequate effect and/or an acceptable safety profile, gain regulatory approval or become commercially viable. We currently have no products approved for commercial sale, we have not generated any revenue from product sales to date and we continue to incur significant research and development and other expenses related to our ongoing operations. We have limited experience as a Company conducting clinical studies and no experience as a Company commercializing any products.

We are not profitable and have incurred net losses since our inception. As of September 30, 2022, we had an accumulated deficit of $24.1 million. Consequently, predictions about our future success or viability may not be as accurate as they would be if we had a longer operating history or a history of successfully developing and commercializing pharmaceutical products. We have spent, and expect to continue to spend, significant resources to fund research and development of, conduct clinical studies, and seek regulatory approvals for, our Program Products, and any future product candidates. We expect to incur substantial and increasing operating losses over the next several years as our research, development, preclinical testing and clinical study activities increase. As a result, our accumulated deficit will also increase significantly. We may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability to generate revenue. Our prior losses and expected future losses have, had and will continue to have a material adverse effect on our stockholders’ equity and working capital.

Additionally, taking into consideration the net proceeds of approximately $4.4 million received in connection with the public offering completed in July of 2022, we do not anticipate that our current cash and cash equivalents balance will be sufficient to sustain operations within one year after the date that our unaudited financial statements for June 30, 2022 were issued, which raises substantial doubt about our ability to continue as a going concern. In our own required quarterly assessments, we may continue to conclude that there is substantial doubt about our ability to continue as a going concern, and future reports from our independent registered public accounting firm may also contain statements expressing substantial doubt about our ability to continue as a going concern.

If we seek additional financing to fund our business activities in the future and there remains substantial doubt about going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms or at all. Our ability to raise more equity capital will depend in part on our ability to amend our certificate of incorporation to authorize additional shares of Common Stock.

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The net losses we incur may fluctuate significantly from quarter-to-quarter such that a period-to-period comparison of our results of operations may not be a good indication of our future performance.

We have no products approved for marketing in any jurisdiction, our Program Products are in early stages of development. We have never generated any revenue from product sales. Our ability to generate revenue and achieve profitability depends on our ability, alone or with strategic collaboration partners, to successfully complete the development of and obtain the regulatory and marketing approvals necessary to commercialize one or more of our Program Products. We do not anticipate generating revenue from product sales in the next couple of years. Even if we eventually generate product revenue, we may never be profitable and, if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis

We may not be able to raise additional funding on acceptable terms, or at all. Failure to obtain funding on acceptable terms and on a timely basis may require us to curtail, delay or discontinue our product development efforts or other operations. Raising additional funding may cause dilution to our stockholders.

Developing our Program Products is expensive, and we expect our research and development expenses to increase substantially in connection with our ongoing activities, particularly as we advance our Program Products through clinical studies, manufacturing and regulatory approval. We expect to finance future cash needs through public or private equity or debt offerings or product collaborations. We do not have any committed external source of funds. We cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all, and the terms of any financing may adversely affect the interests or rights of our stockholders. Even if we believe that we have sufficient funds for our current or future operating plans, we may seek additional capital if market conditions are favorable or if we have specific strategic considerations. The issuance of additional securities, whether equity or debt, by us, or the possibility of such issuance, may affect the value of your investment.

To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms of such securities may include liquidation or other preferences that adversely affect your rights as a stockholder. Debt financing, if available, may involve covenants restricting our operations or our ability to incur additional debt.

If we do not raise additional capital, we may not be able to expand our operations or otherwise capitalize on our business opportunities, our business and financial condition will be negatively impacted, and we may need to:

•significantly delay, scale back or discontinue research and discovery efforts and the development or commercialization of our Product Programs and future program candidates or cease operations altogether;

•seek strategic alliances for research and development programs when we otherwise would not, or at an earlier stage than we would otherwise desire or on terms less favorable than might otherwise be available; or

•relinquish, or license on unfavorable terms, our rights to technologies or any product candidates that we otherwise would seek to develop or commercialize ourselves.

If Revelation is not able to comply with the applicable continued listing requirements or standards of Nasdaq, Nasdaq could delist our Common Stock.

Revelation’s Common Stock, Public Warrants and Units are listed on the Nasdaq Capital Market under the symbols “REVB,” “REVBW” and “REVBU,” respectively. As of March 31, 2022, we were not in compliance with NASDAQ’s stockholder equity requirement and our stock has traded for significant periods below the Nasdaq $1 minimum bid requirement. We have agreed with Nasdaq on a compliance plan which gives us until November 21, 2022 to regain compliance with the stockholder equity requirement. With the anticipated proceeds of this offering and other actions being undertaken by the Company we will have met the requirements of our compliance plan. Additionally, if our stock price continues to trade below $1 we are at risk of being delisted from Nasdaq. Under Nasdaq rules, if the Company meets the stockholder equity requirement of its compliance plan, it will have an additional six months to meet the $1 minimum bid requirement if it agrees to undertake a reverse stock split in the event the market price does not otherwise meet the minimum bid requirement by such date. If Nasdaq delists the Revelation Common Stock from trading on its exchange for failure to meet the listing standards such as the minimum stockholders equity requirement or minimum bid price, we and our stockholders could face significant material adverse consequences including:

•limited availability of market quotations for our securities;

•reduced liquidity for Revelation’s securities;

•a determination that the Revelation Common Stock is a “penny stock” which will require brokers trading in the Revelation Common Stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for Revelation’s securities;

28

•a limited amount of news and analyst coverage; and

•a decreased ability to issue additional securities or obtain additional financing in the future.

In the event that a reverse stock split is required to maintain the $1 minimum bid requirement for continued listing on Nasdaq, the Company intends to undertake such a stock split. Even if a reverse stock split is effected, there can be no assurance that the market price will increase in proportion to the reverse stock split, or be maintained above the Nasdaq minimum bid requirement. The market price of our Common Stock will continue to be based, in part, on our performance and other factors unrelated to the number of shares outstanding.

Our financial condition will be adversely affected if we are unsuccessful in our defense in our litigation with LifeSci Capital LLC

The investment banking firm for the SPAC into which we merged has brought suit against us for unpaid investment banking fees relating to the merger and deferred underwriting fees, which claims damages of $5.3 million, payable in a combination of cash and shares of common stock. See “Item 1. Legal Proceedings.” While we have defenses which we believe are meritorious, if we were to be unsuccessful in the proceeding it would have a material adverse effect on our financial condition and reduce the available funds to advance our product development.

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

(a)None.

(b)None.

(c)The following table summarizes all of the repurchases of the Company’s equity securities during the nine months ended September 30, 2022:

Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
January 1, 2022 to January 31, 2022	–	–	–	–
February 1, 2022 to February 28, 2022	750,000(1)	$ 10.2031	750,000	–
March 1, 2022 to March 31, 2022	–	–	–	–
April 1, 2022 to April 30, 2022	–	–	–	–
May 1, 2022 to May 31, 2022	–	–	–	–
June 1, 2022 to June 30, 2022	–	–	–	–
July 1, 2022 to July 31, 2022	–	–	–	–
August 1, 2022 to August 31, 2022	–	–	–	–
September 1, 2022 to September 30, 2022	–	–	–	–
Total	750,000	$ 10.2031	750,000	–

1. Shares repurchased as part of the February 4, 2022 exercise of the Forward Share Purchase Agreement dated December 21, 2021, with a total repurchase amount of $7,652,325. The Forward Share Purchase Agreement expired 30 days after the Closing Date of the Business Combination. The shares of common stock repurchased have been retired.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

29

Item 5. Other Information

None.

Item 6. Exhibits

Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).

Exhibit Number	Description
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.
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.
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.
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.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

30

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.

	REVELATION BIOSCIENCES, INC.
Date: November 10, 2022	By:	/s/ James Rolke
		James Rolke
		Chief Executive Officer
		(principal executive officer)
Date: November 10, 2022	By:	/s/ Chester S. Zygmont, III
		Chester S. Zygmont, III
		Chief Financial Officer
		(principal financial and accounting officer)

31

EX-31.1

Exhibit 31.1

REVELATION BIOSCIENCES, INC.

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James Rolke, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Revelation Biosciences, 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)) 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)	Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);
	(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 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.

By:	/s/ James Rolke
	James Rolke
	Chief Executive Officer and Director
	(Principal Executive Officer)
Date:	November 10, 2022

EX-31.2

Exhibit 31.2

REVELATION BIOSCIENCES, INC.

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chester S. Zygmont, III, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Revelation Biosciences, 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)) 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)	(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);
	(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 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.

By:	/s/ Chester S. Zygmont, III
	Chester S. Zygmont, III
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date:	November 10, 2022

EX-32.1

Exhibit 32.1

REVELATION BIOSCIENCES, INC.

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Revelation Biosciences, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

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

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By:	/s/ James Rolke
	James Rolke
	Chief Executive Officer and Director
	(Principal Executive Officer)
Date:	November 10, 2022

EX-32.2

Exhibit 32.2

REVELATION BIOSCIENCES, INC.

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Revelation Biosciences, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

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

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By:	/s/ Chester S. Zygmont, III
	Chester S. Zygmont, III
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date:	November 10, 2022

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Entity Registrant Name	REVELATION BIOSCIENCES, INC.
Trading Symbol	REVB
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		23,536,070
Amendment Flag	false
Entity Central Index Key	0001810560
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39603
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-3898466
Entity Address, Address Line One	4660 La Jolla Village Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92122
City Area Code	650
Local Phone Number	800-3717
Title of 12(b) Security	Common stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 6,195,446	$ 1,274,729
Prepaid expenses and other current assets	309,628	637,342
Total current assets	6,505,074	1,912,071
Property and equipment, net	96,395	115,181
Right-of-use lease asset		14,960
Total assets	6,601,469	2,042,212
Current liabilities:
Accounts payable	466,084	596,261
Accrued expenses	996,447	1,528,669
Lease liability		16,752
Deferred underwriting commissions	2,911,260
Total current liabilities	4,373,791	2,141,682
Total liabilities	4,373,791	2,141,682
Commitments and Contingencies (Note 5)
Stockholders' deficit:
Common Stock, $0.001 par value; 100,000,000 and 11,000,000 shares authorized and 15,082,771 and 2,308,877 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	23,536	2,309
Additional paid-in-capital	26,343,404	6,933,593
Accumulated deficit	(24,139,262)	(14,517,299)
Total stockholders' equity (deficit)	2,227,678	(99,470)
Total liabilities and stockholders' equity (deficit)	6,601,469	2,042,212
Series A Preferred Stock [Member]
Stockholders' deficit:
Preferred stock value	0	3,903,730
Series A-1 Preferred Stock [Member]
Stockholders' deficit:
Preferred stock value	$ 0	$ 3,578,197

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Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in Dollars per share)	$ 0.001
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	11,000,000
Common stock, shares issued	23,536,070	2,308,877
Common stock, shares outstanding	23,536,070	2,308,877
Series A Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	628,930
Preferred stock, shares issued	0	628,930
Preferred stock, shares outstanding	0	628,930
Liquidation preference	$ 0	$ 3,999,995
Series A-1 preferred stock
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	0	1,100,000
Preferred stock, shares issued	0	684,450
Preferred stock, shares outstanding	0	684,450
Liquidation preference	$ 0	$ 4,353,102

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating expenses:
Research and development	$ 381,566	$ 1,532,782	$ 5,037,429	$ 4,249,326
General and administrative	817,898	1,511,165	4,608,755	3,844,212
Total operating expenses	1,199,464	3,043,947	9,646,184	8,093,538
Loss from operations	(1,199,464)	(3,043,947)	(9,646,184)	(8,093,538)
Other income (expense):
Other income (expense)	28,728	(557)	24,221	(32,913)
Total other income (expense), net	28,728	(557)	24,221	(32,913)
Net loss	$ (1,170,736)	$ (3,044,504)	$ (9,621,963)	$ (8,126,451)
Net loss per share, basic	$ (0.06)	$ (0.48)	$ (0.57)	$ (3.83)
Net loss per share, diluted	$ (0.06)	$ (0.48)	$ (0.57)	$ (3.83)
Weighted-average shares used to compute net loss per share, basic	21,055,211	6,291,690	16,805,082	2,120,276
Weighted-average shares used to compute net loss per share, diluted	21,055,211	6,291,690	16,805,082	2,120,276

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Total	July 2022 Public Offering	Preferred Stock Series A preferred stock	Preferred Stock Series A-1 preferred stock	Common Stock	Common Stock July 2022 Public Offering	Additional Paid-in Capital	Additional Paid-in Capital July 2022 Public Offering	Accumulated Deficit
Balance at Dec. 31, 2020	$ 3,411,624		$ 403,733		$ 2,293		$ 5,536,060		$ (2,530,462)
Balance (in Shares) at Dec. 31, 2020			628,930		2,293,154
Issuance of common stock	99,998				$ 16		99,982
Issuance of common stock (Shares)					15,723
Issuance of Series A-1 Preferred Stock, net	3,904,872			$ 3,904,872
Issuance of Series A-1 Preferred Stock, net (Shares)				684,450
Issuance of Warrants in connection with the issuance of the Series A-1Preferred Stock				$ (326,675)			326,675
Payment for Series A Preferred Stock subscribed	3,499,997		$ 3,499,997
Payment for common stock subscribed	499,998						499,998
Stock-based compensation expense	102,325						102,325
Net loss	(2,612,353)								(2,612,353)
Balance at Mar. 31, 2021	8,906,461		$ 3,903,730	$ 3,578,197	$ 2,309		6,565,040		(5,142,815)
Balance (in Shares) at Mar. 31, 2021			628,930	684,450	2,308,877
Balance at Dec. 31, 2020	3,411,624		$ 403,733		$ 2,293		5,536,060		(2,530,462)
Balance (in Shares) at Dec. 31, 2020			628,930		2,293,154
Net loss	(8,126,451)
Balance at Sep. 30, 2021	3,655,004		$ 3,903,730	$ 3,578,197	$ 2,309		6,827,681		(10,656,913)
Balance (in Shares) at Sep. 30, 2021			628,930	684,450	2,308,877
Balance at Mar. 31, 2021	8,906,461		$ 3,903,730	$ 3,578,197	$ 2,309		6,565,040		(5,142,815)
Balance (in Shares) at Mar. 31, 2021			628,930	684,450	2,308,877
Stock-based compensation expense	131,321						131,321
Net loss	(2,469,594)								(2,469,594)
Balance at Jun. 30, 2021	6,568,188		$ 3,903,730	$ 3,578,197	$ 2,309		6,696,361		(7,612,409)
Balance (in Shares) at Jun. 30, 2021			628,930	684,450	2,308,877
Stock-based compensation expense	131,320						131,320
Net loss	(3,044,504)								(3,044,504)
Balance at Sep. 30, 2021	3,655,004		$ 3,903,730	$ 3,578,197	$ 2,309		6,827,681		(10,656,913)
Balance (in Shares) at Sep. 30, 2021			628,930	684,450	2,308,877
Balance at Dec. 31, 2021	(99,470)		$ 3,903,730	$ 3,578,197	$ 2,309		6,933,593		(14,517,299)
Balance (in Shares) at Dec. 31, 2021			628,930	684,450	2,308,877
Conversion of Series A Preferred Stock to Common Stock	(3,903,730)		$ (3,903,730)
Conversion of Series A Preferred Stock to Common Stock Shares			(628,930)
Conversion of Series A1 Preferred Stock to Common Stock	(3,578,197)			$ (3,578,197)
Conversion of Series A-1 Preferred Stock to Common Stock Shares				(684,450)
Issuance of common stock in connection with the Business Combination, net	14,346,254				$ 10,635		14,335,619
Issuance of common stock in connection with the Business Combination, net (in shares)					10,635,336
Equity Issuance for Fees In Connection with Business Combination	300				$ 300
Equity Issuance for fees in connection with Business Combination, Shares					300,000
Proceeds from the PIPE Investment, net	7,262,219				$ 1,293		7,260,926
Proceeds from the PIPE Investment, net (in Shares)					1,293,126
Rollover Warrant Exercise	5,074				$ 2		5,072
Rollover Warrant Exercise (in Shares)					1,891
Repurchase for the Forward Share Purchase Agreement exercise	(7,652,325)				$ (750)		(7,651,575)
Repurchase for the Forward Share Purchase Agreement exercise (in Shares)					(750,000)
Pre-Funded Warrants Exercise	13				$ 1,294		(1,281)
Pre-Funded Warrants Exercise (in Shares)					1,293,541
Stock-based compensation expense	137,892						137,892
Net loss	(6,616,541)								(6,616,541)
Balance at Mar. 31, 2022	(98,511)				$ 15,083		21,020,246		(21,133,840)
Balance (in Shares) at Mar. 31, 2022					15,082,771
Balance at Dec. 31, 2021	(99,470)		$ 3,903,730	$ 3,578,197	$ 2,309		6,933,593		(14,517,299)
Balance (in Shares) at Dec. 31, 2021			628,930	684,450	2,308,877
Repurchase for the Forward Share Purchase Agreement exercise	(7,652,325)
Conversion of Accrued Expenses to Equity in connection with the Business Combination	(749,700)
Net loss	(9,621,963)
Balance at Sep. 30, 2022	2,227,678				$ 23,536		26,343,404		(24,139,262)
Balance (in Shares) at Sep. 30, 2022					23,536,070
Balance at Mar. 31, 2022	(98,511)				$ 15,083		21,020,246		(21,133,840)
Balance (in Shares) at Mar. 31, 2022					15,082,771
Stock-based compensation expense	90,188						90,188
Net loss	(1,834,686)								(1,834,686)
Balance at Jun. 30, 2022	(1,843,009)				$ 15,083		21,110,434		(22,968,526)
Balance (in Shares) at Jun. 30, 2022					15,082,771
Issuance of common stock		$ 4,451,048				$ 8,333		$ 4,442,715
Issuance of common stock (Shares)						8,333,334
RSU awards issued					$ 120		(120)
RSU awards issued, Shares					119,965
Conversion of Accrued Expenses to Equity in connection with the Business Combination	749,700						749,700
Stock-based compensation expense	40,675						40,675
Net loss	(1,170,736)								(1,170,736)
Balance at Sep. 30, 2022	$ 2,227,678				$ 23,536		$ 26,343,404		$ (24,139,262)
Balance (in Shares) at Sep. 30, 2022					23,536,070

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (1,170,736)	$ (6,616,541)	$ (3,044,504)	$ (2,612,353)	$ (9,621,963)	$ (8,126,451)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense					268,755	364,966
Depreciation expense	6,262		6,071		18,786	10,520
Non-cash lease expense					14,960	37,736
Changes in operating assets and liabilities:
Prepaid expenses and other current assets					332,548	(1,436,642)
Accounts payable					(736,246)	165,200
Accrued expenses					(568,937)	807,324
Operating lease liability					(16,752)	(34,319)
Accrued interest on Promissory Notes Payable & Convertible Note					36,920
Net cash used in operating activities					(10,271,929)	(8,211,666)
Cash flows from investing activities:
Purchase of property and equipment						(148,116)
Net cash used in investing activities						(148,116)
Cash flows from financing activities:
Proceeds from the Convertible Note					2,500,000
Repayment of the Convertible Note					(2,500,000)
Proceeds from the Business Combination, net					11,923,499
Proceeds from the PIPE Investment, net					7,262,219
Repurchase for the Forward Share Purchase Agreement exercise		(7,652,325)			(7,652,325)
Repayments of Promissory Notes Payable, including interest					(796,882)
Proceeds from the July 2022 Public Offering, net					4,451,048
Proceeds from issuance of common stock, net						599,996	$ 6,100,000
Net cash provided by financing activities					15,192,646	8,004,865
Net increase (decrease) in cash and cash equivalents					4,920,717	(354,917)
Cash and cash equivalents at beginning of period		$ 1,274,729		$ 4,492,400	1,274,729	4,492,400
Cash and cash equivalents at end of period	6,195,446		$ 4,137,483		6,195,446	4,137,483	$ 4,492,400
Supplemental disclosure of non-cash investing and financing activities:
Current liabilities assumed in the Business Combination					2,149,432
Deferred underwriting commissions assumed in the Business Combination					2,911,260
Equity Issuance for fees in connection with the Business Combination					300
Issuance of Common Warrants in connection with the PIPE Investment					3,634,262
Issuance of Placement Agent Warrants in connection with the PIPE Investment					508,797
Conversion of Accrued Expenses to Equity in connection with the Business Combination	$ 749,700				(749,700)
Issuance of New Common Stock Warrants in connection with the July 2022 Public Offering					4,490,457
Issuance of New Placement Agent Warrants in connection with the July 2022 Public Offering					310,137
Acquisition of right-of-use asset through operating lease obligation						67,344
Issuance of warrants in connection with Series A-1 Preferred Stock						326,675
D&O Insurance [Member]
Supplemental disclosure of non-cash investing and financing activities:
Premium Financing Agreement - D&O Insurance					513,333
Rollover Warrants [Member]
Cash flows from financing activities:
Proceeds from Warrant exercise					5,074
Pre-Funded Warrants [Member]
Cash flows from financing activities:
Proceeds from Warrant exercise					13
Series A Preferred Stock [Member]
Cash flows from financing activities:
Proceeds from issuance of Preferred Stock, net						3,499,997
Supplemental disclosure of non-cash investing and financing activities:
Conversion of Series A Preferred Stock to common stock					3,903,730
Series A-1 Preferred Stock [Member]
Cash flows from financing activities:
Proceeds from issuance of Preferred Stock, net						$ 3,904,872
Supplemental disclosure of non-cash investing and financing activities:
Conversion of Series A Preferred Stock to common stock					$ 3,578,197

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

Revelation Biosciences, Inc. (collectively with its wholly-owned subsidiaries, the “Company” or “Revelation”), formerly known as Petra Acquisition, Inc. (“Petra”), was incorporated in Delaware on November 20, 2019. The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. On January 10, 2022 (the “Closing Date”) the Company consummated its business combination, with Revelation Biosciences Sub, Inc. (“Old Revelation” or “Revelation Sub”), the Company's wholly owned subsidiary (the “Business Combination”). Since the Business Combination, the Company is a clinical-stage biopharmaceutical company and has been focused on the development and commercialization of immunologic therapeutics and diagnostics.

The Business Combination was accounted for as a reverse recapitalization with Revelation Sub as the accounting acquirer and Petra as the acquired company for accounting purposes. Accordingly, all historical financial information presented in the unaudited condensed consolidated financial statements represents the accounts of Revelation Sub as if Revelation Sub is the predecessor to the Company. The common stock and net loss per share, prior to the Merger, have been retroactively restated as common stock and net loss per share reflecting the exchange ratio established in the Business Combination (2.725 shares of common stock for 1 share of Revelation Sub common stock (the “Common Stock Exchange Ratio”)).

Petra’s Common Stock, Public Warrants and Units were historically listed on the Nasdaq Capital Market under the symbols “PAIC,” “PAICW” and “PAICU,” respectively. On January 10, 2022, the Company’s units, common stock and warrants were listed on the Nasdaq Capital Market under the symbols “REVBU”, “REVB” and “REVBW”, respectively, (see Note 3).

The Company has incurred recurring losses since its inception, including a net loss of $9.6 million for the nine months ended September 30, 2022. As of September 30, 2022, the Company had an accumulated deficit of $24.1 million, a stockholders’ equity of $2.2 million and available cash and cash equivalents of $6.2 million. The Company expects to continue to incur significant operating and net losses, as well as negative cash flows from operations, for the foreseeable future as it continues to complete all necessary product development or future commercialization efforts. The Company has never generated revenue and does not expect to generate revenue from product sales unless and until it successfully completes development and obtains regulatory approval for REVTx-99b, REVTx-200, REVTx-300, REVDx-501 or other product candidates, which the Company expects will not be for at least several years, if ever. The Company does not anticipate that its current cash and cash equivalents balance will be sufficient to sustain operations within one year after the date that the Company’s unaudited financial statements for September 30, 2022 were issued, which raises substantial doubt about its ability to continue as a going concern.

To continue as a going concern, the Company will need, among other things, to raise additional capital resources. The Company plans to seek additional funding through public or private equity or debt financings. The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s stockholders. If the Company is unable to obtain funding, it could be required to delay, reduce or eliminate research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect the Company’s business operations.

The unaudited condensed consolidated financial statements for September 30, 2022, have been prepared on the basis that the Company will continue as a going concern, and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability for the Company to continue as a going concern.

The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All inter-company transactions and balances have been eliminated in consolidation. Certain amounts previously reported in the financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not affect net loss, stockholders’ deficit or cash flows.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Unaudited Interim Condensed Consolidated Financial Statements

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements as of December 31, 2021 and for the year ended December 31, 2021 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position. The

financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2022 are unaudited. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2021 included on Form 8-K/A, as filed with the SEC on April 22, 2022. The accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited balance sheet at December 31, 2021 contained in the above referenced Form 8-K/A.

Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. These estimates and assumptions are based on the Company’s best estimates and judgment. The Company regularly evaluates its estimates and assumptions using historical and industry experience and other factors; however, actual results could differ materially from these estimates and could have an adverse effect on the Company’s condensed consolidated financial statements.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company maintains its cash in checking and savings accounts. Income generated from cash held in savings accounts is recorded as interest income. The carrying value of the Company’s savings accounts is included in cash and approximates the fair value.

Fair Value Measurements

The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, subscription receivables, prepaid expenses, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity with the inputs to the valuation of these assets or liabilities as follows:

Level 1 — Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable inputs for similar assets or liabilities. These include quoted prices for identical or 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.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. Bank deposits are held by accredited financial institutions and these deposits may at times be in excess of federally insured limits. The Company limits its credit risk associated with cash and cash equivalents by placing them with financial institutions that it believes are of high quality. The Company has not experienced any losses on its deposits of cash or cash equivalents.

Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is five years. Maintenance and repairs are charged to operating expense as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is included in other income (expense).

Leases

The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. For operating leases with an initial term greater than 12 months, the Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of lease payments over the lease term at the commencement date. Operating lease right-of-use assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms include options to renew or terminate the lease when the Company is reasonably certain that the renewal option will be exercised or when it is reasonably certain that the termination option will not be exercised. For an operating lease, if the interest rate used to determine the present value of future lease payments is not readily determinable, the Company estimates the incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for the development of the Company’s product candidates, REVTx-99a/b, REVTx-200, REVTx-300 and diagnostic product, REVDx-501. Research and development costs are charged to expense as incurred. The Company records accrued expenses for estimated preclinical, clinical study and research expenses related to the services performed but not yet invoiced pursuant to contracts with research institutions, contract research organizations, and clinical manufacturing organizations that conduct and manage preclinical studies, clinical studies, research services, and development services on the Company’s behalf. Payments for these services are based on the terms of individual agreements and payment timing may differ significantly from the period in which the services were performed. Estimates are based on factors such as the work completed, including the level of patient enrollment. The Company monitors patient enrollment levels and related activity to the extent reasonably possible and makes judgments and estimates in determining the accrued balance in each reporting period. The Company’s estimates of accrued expenses are based on the facts and circumstances known at the time. If the Company underestimates or overestimates the level of services performed or the costs of these services, actual expenses could differ from estimates. As actual costs become known, the Company adjusts accrued expenses. To date, the Company has not experienced significant changes in estimates of clinical study and development services accruals.

Patent Costs

Legal costs in connection with approved patents and patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. These costs are recorded in general and administrative expense in the statements of operations.

Stock-based Compensation

The Company recognizes compensation expense related to stock options, third-party warrants, and Restricted Stock Unit (“RSU”) awards granted, based on the estimated fair value of the stock-based awards on the date of grant. The fair value of employee stock options and third-party warrants are generally determined using the Black-Scholes option-pricing model using various inputs, including estimates of historic volatility, term, risk-free rate, and future dividends. The grant date fair value of the stock-based awards, which have graded vesting, is recognized using the straight-line method over the requisite service period of each stock-based award, which is generally the vesting period of the respective stock-based awards. The Company recognizes forfeitures as they occur.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or loss in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Interest and penalties related to unrecognized tax benefits are included within the provision of income tax. To date, there have been no unrecognized tax benefits balances.

Basic and Diluted Net Loss per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potential shares of common stock. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding plus potential shares of common stock.

Convertible preferred stock on an as converted basis, unvested and unissued RSU awards, warrants and stock options outstanding are considered potential shares of common stock and are included in the calculation of diluted net loss per share using the treasury stock method when their effect is dilutive. Potential shares of common stock are excluded from the calculation of diluted net loss per share when their effect is anti-dilutive. As of September 30, 2022 and 2021, there were 23,152,401 and 4,207,776 potential shares of common stock, respectively, (see Note 10), that were excluded from the calculation of diluted net loss per share because their effect was anti-dilutive.

Comprehensive Loss

The Company has no components of comprehensive loss other than net loss. Thus, comprehensive loss is the same as net loss for the periods presented.

Segment Reporting

Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance.

The Company has one operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations for the purposes of allocating resources and evaluating financial performance.

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 issued guidance on the accounting for income taxes that, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within the fiscal years beginning after December 15, 2022. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

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Business Combination

9 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

Business Combination

3. Business Combination

As disclosed in Note 1, the Company consummated the Business Combination, pursuant to the terms of the agreement and plan of merger, dated as of August 29, 2021 (the “Business Combination Agreement”), by and among Petra, Petra Acquisition Merger, Inc., a Delaware corporation and wholly-owned subsidiary of Petra (“Merger Sub”), and Old Revelation. Pursuant to the Business Combination Agreement, on the Closing Date, (i) Merger Sub merged with and into Old Revelation (the “Merger”), with Old Revelation as the surviving company in the Merger, and, after giving effect to such Merger, Old Revelation was renamed Revelation Biosciences Sub, Inc. and became a wholly-owned subsidiary of the Company and (ii) the Company changed its name to “Revelation Biosciences, Inc.”

In accordance with the terms and subject to the conditions of the Business Combination Agreement, at the effective time of the Merger (the “Effective Time”), (i) each share of common stock and preferred stock of Old Revelation outstanding as of immediately prior to the Effective Time was exchanged for shares of common stock, par value $0.001 per share, of Revelation based on the agreed upon Common Stock Exchange Ratio; (ii) each Old Revelation RSU award outstanding as of immediately prior to the Effective Time was assumed by Revelation and was converted into that number of whole rollover RSU awards based on the Common Stock Exchange Ratio (“Rollover RSU”); and (iii) each Old Revelation warrant outstanding as of immediately prior to the Effective Time was assumed by Revelation and was converted into that number of whole rollover warrants based on the Common Stock Exchange Ratio, at an exercise price per share of common stock equal to (x) the exercise price per share of Old Revelation common stock of such Old Revelation warrant divided by (y) the Common Stock Exchange Ratio (“Rollover Warrant”).

At the Closing Date, up to 10,500,000 shares of common stock were to be issued constituting the merger consideration, (i) an aggregate of 9,871,343 shares of common stock, including conversion of all outstanding shares of the Series A Preferred Stock and Series A-1 Preferred Stock of Old Revelation, were issued in exchange for the Old Revelation stock outstanding as of immediately prior to the Effective Time, (ii) 167,867 shares of common stock were reserved for issuance for Rollover Warrants outstanding as of

immediately prior to the Effective Time and (iii) 460,706 shares of common stock were reserved for issuance for Rollover RSU awards outstanding as of immediately prior to the Effective Time.

Immediately after giving effect to the Business Combination, there were 12,944,213 shares of common stock outstanding, and 1,294,421 shares of common stock reserved for future issuance under the 2021 Equity Incentive Plan. The pre-merger stockholders of Petra retained an aggregate of 3,072,870 shares of common stock of Petra, representing 23.7% ownership of the post-Merger company. Therefore, upon consummation of the Business Combination, there was a change in control of Petra, with the former owners of Revelation Sub acquiring control of Petra.

Prior to the Closing Date, on December 21, 2021, Petra entered into certain backstop agreements (the “Backstop Agreements”) with AXA Prime Impact Master Fund (“AXA”) (through a backstop agreement with Old Revelation), LifeSci Venture Partners (“LifeSci”) and other Petra and Old Revelation institutional, and individual investors, including Dr. Tidmarsh, Chairman of Old Revelation and present Chairman of the Company (such additional institutional and individual investors, together with LifeSci and Old Revelation collectively, the “Backstop Subscribers”). Pursuant to the Backstop Agreements, the Backstop Subscribers agreed to purchase, in the aggregate, up to $4.5 million of shares of Petra’s common stock, par value $0.001 per share, in the event that more than $31.5 million was redeemed from the trust account in connection with the Business Combination. On January 6, 2022, pursuant to the Backstop Agreements, the Backstop Subscribers purchased an aggregate of 432,072 shares of Petra Common Stock that had been surrendered for redemption totaling $4.5 million. Petra also entered into a forward share purchase agreement (the “Forward Share Purchase Agreement”) with Meteora Capital Partners and its affiliates (collectively, “Meteora”) pursuant to which Meteora committed, to purchase additional shares of the Company's common stock in open market transactions or from redeeming stockholders so that Meteora held at least 750,000 shares of common stock as of the closing of the Business Combination. The Forward Share Purchase Agreement provides that Meteora may elect to sell and transfer to the Company, on the one month anniversary of the closing of the Business Combination up to 750,000 shares of common stock held by Meteora at the time of closing of the Business Combination at a price of $10.2031 per share.

On the Closing Date, in connection with the Business Combination, stockholders holding 3,480,692 shares of Petra common stock exercised their right to redeem such shares for cash at a price of approximately $10.20 per share for payments in the aggregate of approximately $35.5 million. Additionally, approximately $7.7 million was escrowed pursuant to the Forward Share Purchase Agreement entered into by and between Petra and Meteora and approximately $4.2 million was released to Revelation. On February 4, 2022, Meteora exercised the Forward Share Purchase Agreement entered into by and between the Company. 750,000 shares were repurchased by the Company and approximately $7.7 million that was escrowed was paid to Meteora.

At the closing of the Business Combination, Petra adopted the third amended and restated certificate of incorporation, which became effective upon filing with the Secretary of State of the State of Delaware on the Closing Date.

Subsequent to the Closing Date on February 10, 2022 and February 22, 2022 the Company paid $105,490 and $691,392, respectively, to the three holders of promissory notes made to Petra in connection with the Business Combination (“Promissory Notes Payable”). The Promissory Notes Payable had a total principal of $750,000, and had accrued interest of $46,882 at the time of repayment.

The Business Combination has been accounted for as a reverse recapitalization, in accordance with U.S. GAAP. Under this method of accounting, although Petra issued shares for outstanding equity interests of Old Revelation in the Business Combination, Petra was treated as the “acquired” company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent of Old Revelation issuing stock for the net assets of Petra, accompanied by a recapitalization. The net assets of Petra have been stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination are those of Revelation.

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Balance Sheet Details

9 Months Ended

Sep. 30, 2022

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

4. Balance Sheet Details

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

	September 30, 2022		December 31, 2021
Prepaid clinical costs	$	—	$	488,614
Prepaid insurance		206,270		—
Other prepaid expenses & current assets		103,358		148,728
Total prepaid expenses & current assets	$	309,628	$	637,342

Property and Equipment, Net

Property and equipment, net consisted of the following:

	September 30, 2022			December 31, 2021
Lab equipment	$	131,962		$	131,963
Total property and equipment, gross		131,962			131,963
Accumulated depreciation		(35,567	)		(16,782	)
Total property and equipment, net	$	96,395		$	115,181

Depreciation expense was $6,262 and $18,786 for the three and nine months ended September 30, 2022, respectively, and $6,071 and $10,520 for the three and nine months ended September 30, 2021, respectively.

Accrued Expenses

Accrued expenses consisted of the following:

	September 30, 2022		December 31, 2021
Accrued payroll and related expenses	$	678,452	$	756,729
Accrued clinical study expenses		109,483		327,244
Accrued professional fees		40,614		294,130
Accrued clinical development costs		90,000		145,566
Accrued other expenses		4,565		5,000
Premium Finance Agreement - D&O Insurance		73,333		—
Total accrued expenses	$	996,447	$	1,528,669

On July 31, 2022, the Company released 9 employees. As a result, during the three and nine months ended September 30, 2022, $0.4 million of accrued annual corporate bonus expense included in accrual payroll and related expenses as of December 31, 2021 and June 30, 2022 was reversed.

In connection with the Business Combination the Company entered into a payment deferral of legal fees with Loeb & Loeb, LLP, which, deferred the legal fees for six months from the Closing Date of the Business Combination, or July 9, 2022. The agreement stated, if the fees were not paid by July 9, 2022, 300,000 shares of common stock that were issued in January 2022 as collateral to Loeb & Loeb, LLP would be retained in lieu of cash payment, as full payment for the legal fees. As a result, during the three and nine months ended September 30, 2022, $0.7 million of accrued professional fees recorded as of June 30, 2022 were converted to equity.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. Commitments and Contingencies

Lease Commitments

In February 2021, Revelation Sub entered into an agreement to lease 2,140 square feet of laboratory space located at 11011 Torreyana Road, Suite 102, San Diego, California (the “Original Lease”). The Original Lease had a term of 13 calendar months, plus any partial month at the beginning of the Original Lease (the “Original Lease Term”). Revelation Sub recorded a lease liability and right-of-use lease asset for the Original Lease based on the present value of Original Lease payments over the expected Original Lease Term, discounted using Revelation Sub’s incremental borrowing rate of 7.73%. There was no option to extend the Original Lease and the expiration date was March 31, 2022. In accordance with the Original Lease, Revelation Sub is required to maintain a security deposit of $5,564. Revelation Sub paid a total of $70,313 of rent expense over the life of the Original Lease.

In October 2021, Revelation Sub amended the Original Lease to expire on December 31, 2022, equal to an additional nine calendar months with a base monthly rent equal to the 13th month of the Original Lease (the “First Amendment”). Revelation Sub signed the First Amendment on October 14, 2021. In connection with the Business Combination, the First Amendment was assumed by the Company. The Company will pay $51,578 of rent expense over the life of the First Amendment. The Company has applied the short-term lease exception as the First Amendment is less than twelve months. In addition to rent, the Lease requires the Company to pay certain taxes, insurance and operating costs relating to the leased premises. The Lease contains customary default provisions, representations, warranties and covenants. The Lease is classified as an operating lease.

Rent expense was $17,193 and $49,453 for the three and nine months ended September 30, 2022, respectively. Rent expense was $15,067 and $40,179 for the three and nine months ended September 30, 2021, respectively.

Future minimum lease payments under the First Amendment of the operating lease as of September 30, 2022 is $17,192 in aggregate during the remainder of fiscal year 2022.

Convertible Note Financing

On January 4, 2022, Revelation Sub entered into a convertible note financing in an amount of up to $2.5 million with a fixed 10% annual interest rate from AXA IM Prime Impact Fund (the “Convertible Note”), the proceeds of which where used by Revelation Sub to purchase shares of Petra common stock from redeeming Petra stockholders who redeem shares of Petra common stock in connection with the Business Combination. On January 6, 2022, Old Revelation purchased 245,019 shares of Petra common stock with the proceeds from the Convertible Note. Repayment of the Convertible Note was made on January 4, 2022 in accordance with the exchange terms of the Convertible Note by which 245,019 shares of Petra’s common stock that had been purchased by Revelation Sub were transferred to AXA.

Total interest incurred under the Convertible Note was $0 and $14,383 during the three and nine months ended September 30, 2022, respectively.

Premium Finance Agreement - D&O Insurance

In order to obtain a public company directors and officers insurance policy (“D&O Insurance”), the Company entered into an agreement with a premium financing lender, where by the lender paid the D&O Insurance premium for the company (“Premium Finance Agreement”). If the Company were to not pay the lender monthly installment payments, the lender would cancel the D&O Insurance and the remaining D&O Insurance premium would be returned to the lender. In addition, if the Company were to cancel the D&O Insurance, the remaining D&O Insurance premium would be returned to the lender.

The Premium Finance Agreement is for $825,000 and accrues interest at a fixed rate of 3.57% per annum payable monthly for a total of $9,856 over the term of the Premium Finance Agreement. Monthly payments of $74,428, are to be paid in nine monthly installments, which commenced on February 10, 2022 with a maturity date of October 10, 2022. Upon entering into the Premium Finance Agreement, an upfront payment of $165,000 was due and paid on February 14, 2022.

Total expense incurred under the Finance Agreement for upfront, monthly and interest payments was $209,535 and $627,511 during the three and nine months ended September 30, 2022, respectively. Total cash paid under the Finance Agreement for upfront, monthly and interest payments was $223,286 and $760,428 during the three and nine months ended September 30, 2022, respectively. Future obligations under the Premium Finance Agreement are expected to be a total of $74,428 in aggregate during the remainder of fiscal year 2022.

Commitments

The Company enters into contracts in the normal course of business with third party service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments.

Contingencies

From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation other than described below.

Legal Proceedings

On February 18, 2022, LifeSci Capital LLC filed an action against the Company in the U.S. District Court for the Southern District of New York seeking damages in the amount of approximately $2.7 million in cash and $2.6 million in equity for unpaid banking and advisory fees. These fees arise under contracts which were entered into prior to the Business Combination and the Company is disputing the amount owed under those contracts and has asserted affirmative defenses including the defense that the amount of the fees sought exceeded the $8.5 million cap on transaction expenses in the Business Combination Agreement. This action remains pending as of the date of this report. $1.5 million of the claim relates to deferred underwriting fees from the Petra initial public offering, which are recorded as a current liability in the financial statements under deferred underwriting commissions. No other liabilities are reflected in the financial statements as the amount of any additional liability can not be determined at this time.

On September 27, 2022, A-IR Clinical Research Ltd. filed a claim against the Company in the High Court of Justice, In the Business and Property Courts of England and Wales, seeking £1.6 million in unpaid invoices, plus interest and costs, relating to the

Company’s viral challenge study. The Company is disputing the claim because much of the invoices relate to work that wasn’t performed and that it had misrepresented its qualifications to perform the contracted for work.

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PIPE Investment

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

PIPE Investment

6. PIPE Investment

On January 23, 2022, the Company entered into a securities purchase agreement with an institutional investor (“the Purchaser”) pursuant to which the Purchaser agreed to purchase, and the Company agreed to issue and sell to the Purchaser in a private placement, 1,293,126 shares of common stock at a gross purchase price of $3.00 per share (the “Shares”) (the “PIPE Investment”), 1,293,541 unregistered pre-funded warrants to purchase common stock (the “Pre-Funded Warrants”) and 2,586,667 unregistered warrants to purchase common stock (the “Common Warrants”). The closing was consummated on January 25, 2022. The net proceeds to the Company was $7.3 million.

Each Pre-Funded Warrant was funded to the amount of $3.00, with $0.00001 per share of common stock payable upon exercise, was immediately exercisable, could have been exercised at any time until exercised in full and is subject to customary adjustments. The Pre-Funded Warrants may not be exercised if the aggregate number of shares of the Company’s common stock beneficially owned by the holder (together with its affiliates) would exceed 9.99% of the Company’s outstanding common stock immediately after exercise. On February 22, 2022, the Company received a notice of cash exercise for the total outstanding Pre-Funded Warrants issued in connection with the PIPE Investment for 1,293,541 shares of common stock at purchase price of $12.94.

Each Common Warrant has an exercise price of $3.29 per share of common stock, is exercisable at any time after the sixth month anniversary of the date of issuance, will expire five and one-half years from the date of issuance and is subject to customary adjustments. The Common Warrants may not be exercised if the aggregate number of shares of the Company’s common stock beneficially owned by the holder (together with its affiliates) would exceed 4.99% of the Company’s outstanding common stock immediately after exercise. However, the holder may increase (upon 61 days’ prior notice from the holder to the Company) or decrease such percentages, provided that in no event such percentage exceeds 9.99%.

Also on January 23, 2022 and in connection with the private placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchaser, pursuant to which the Company agreed to use its best efforts to file a registration statement on Form S-1 (the “Registration Statement”) to register for resale the Shares and any shares of the Company’s common stock issuable upon exercise of the Pre-Funded Warrants and Common Stock Warrants by January 31, 2022, but in no event later than February 4, 2022. The company filed the Registration Statement on January 28, 2022 and it became effective on February 7, 2022.

Roth Capital Partners, LLC (the “Placement Agent”) was engaged by the Company to act as its exclusive placement agent for the private placement. The Company agreed to pay the Placement Agent a cash fee equal to 6.0% of the gross proceeds received by the Company in the private placement, totaling approximately $465,600. In addition, the Company agreed to issue to the Placement Agent warrants to purchase up to 362,134 shares of common stock representing 7.0% of the aggregate number of shares of common stock sold in the private placement (including shares of common stock issuable upon the exercise of any of the Pre-Funded Warrants and Common Warrants) (the “Placement Agent Warrants”). The Placement Agent Warrants have substantially the same terms as the Common Warrants.

Using the Black-Scholes option pricing model, the Common Warrants were valued in the aggregate at $3.6 million and the Placement Agent Warrants were valued in the aggregate at $0.5 million. Both were included in the issuance costs of the private placement (see Note 12).

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Public Offering

9 Months Ended

Sep. 30, 2022

Proposed Public Offering [Abstract]

Public Offering

7. Public Offering

On July 28, 2022, the Company closed a public offering of 8,333,334 shares of its common stock (the “July 2022 Public Offering”), together with warrants to purchase up to 8,333,334 shares of its common stock (the “New Common Stock Warrants”) at an offering price to the public of $0.60 per share and associated warrant. The New Common Stock Warrants have an exercise price of $0.60 per share, are exercisable upon issuance, and will expire five years following the date of issuance. The net proceeds to the Company from the offering were $4.5 million. The shares of common stock, and the shares of common stock underlying the New Common Stock Warrants were registered with the SEC on Form S-1 (File No. 333-266108), and was declared effective by the SEC on July 25, 2022.

Roth Capital Partners, LLC (the “Placement Agent”) was engaged by the Company to act as its exclusive placement agent for the July 2022 Public Offering. The Company agreed to pay the Placement Agent a cash fee equal to 7.0% of the gross proceeds received by the Company in the public offering, totaling $350,000. In addition, the Company agreed to issue to the Placement Agent warrants to purchase up to 583,333 shares of common stock representing 7.0% of the aggregate number of shares of common stock

sold in the public offering (the “New Placement Agent Warrants”). The Placement Agent Warrants have an exercise price of $0.75 per share and expire five years following the date of issuance.

Using the Black-Scholes option pricing model, the New Common Stock Warrants were valued in the aggregate at $4.5 million and the New Placement Agent Warrants were valued in the aggregate at $0.3 million. Both were included in the issuance costs of the July 2022 Public Offering (see Note 12).

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Preferred Stock

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Preferred Stock

. Preferred Stock

Prior to the Merger, in August 2020, Revelation Sub authorized the sale and issuance of up to 2,000,000 shares of preferred stock, par value $0.001 per share. At the Closing Date of the Business Combination, all outstanding shares of the Series A Preferred Stock and Series A-1 Preferred Stock were converted into 1,713,965 and 1,865,238, respectively, shares of common stock at an exchange ratio of 2.725 (see Note 3).

The third amended and restated certificate of incorporation of the Company authorizes up to 5,000,000 shares of preferred stock, $0.001 par value per share, which may be issued as designated by the Board of Directors without stockholder approval. As of September 30, 2022 and as of the date of this Report, there was no preferred stock designated nor any such shares issued and outstanding.

Series A Preferred Stock

Prior to the Merger, in December 2020, Revelation Sub sold and issued 628,930 shares of Series A Preferred Stock at $6.36 per share for net proceeds of $3.9 million. All shares of the Series A Preferred Stock were exchanged on the Closing Date for common stock in connection with the Business Combination.

Series A-1 Preferred Stock

Prior to the Merger, in January 2021, Revelation Sub sold and issued 684,450 shares of Series A-1 Preferred Stock at $6.36 per share for net proceeds of $3.9 million. All shares of the Series A-1 Preferred Stock were exchanged on the Closing Date for common stock in connection with the Business Combination.

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Units

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Units

. Units

In connection with the Company's IPO, in October of 2020, the Company issued unit's that consists of one share of common stock and one warrant with an exercise price of $11.50 (the “Public Warrants”).

As of September 30, 2022 there were 1,760,285 units outstanding, which trade on the Nasdaq Capital Market under the ticker symbol REVBU. The Company includes each share of common stock and Public Warrant from the unit’s in its calculation of common stock and Public Warrants outstanding, respectively.

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Common Stock

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Common Stock

. Common Stock

Prior to the Business Combination, in December 2020, Revelation Sub authorized the sale and issuance of up to 29,977,303 shares of common stock, par value $0.001 per share. During 2020 Revelation Sub entered into multiple common stock purchase agreements that resulted in the issuance of 6,292,140 shares and raised net proceeds of $6.1 million. Issuance costs were $37,000 related to the sale and issuance of common stock.

Business Combination Transaction

At the Closing Date, the Company authorized the sale and issuance of up to 100,000,000 shares of common stock, $0.001 par value per share. Additionally, an aggregate of 9,871,343 shares of common stock, were issued in exchange for the Revelation Sub stock, outstanding as of immediately prior to the Effective Time.

Immediately after giving effect to the Business Combination, there were 12,944,213 shares of common stock outstanding.

On the Closing Date, the Company received net proceeds from the Business Combination of $11.9 million, of which $7.7 million was escrowed pursuant to a Forward Share Purchase Agreement entered into by Petra and $4.2 million was released to Revelation.

Subsequent to Business Combination

On January 23, 2022, the Company issued 1,293,126 shares of common stock in connection with the PIPE Investment. The Company received net proceeds of $7.3 million.

On January 31, 2022, the Company issued 300,000 shares of common stock as collateral to Loeb & Loeb, LLP as part of a payment deferral of legal fees in connection with the Business Combination.

On February 4, 2022, the Company cancelled 750,000 shares in connection with the exercise of the Forward Share Purchase Agreement and approximately $7.7 million that was in escrow was paid to Meteora.

On February 22, 2022, the Company issued 1,293,541 shares of common stock in connection with the notice of cash exercise for the Pre-Funded Warrants issued in connection with the PIPE Investment with a total purchase price of $12.94.

On February 2, 2022, the Company issued 1,891 shares of common stock in connection with a notice of cash exercise for the Company’s Rollover Warrants with a total purchase price of $5,073.

On July 28, 2022, the Company issued 8,333,334 shares of its common stock in connection with the July 2022 Public Offering. The Company received net proceeds of $4.5 million.

On July 29, 2022, the Company issued 119,965 shares of common stock in connection with vested Rollover RSU awards.

As of September 30, 2022 and December 31, 2021, 23,536,070 and 2,308,877 shares of common stock were issued and outstanding, respectively. As of September 30, 2022, no cash dividends have been declared or paid.

The total shares of common stock reserved for issuance are summarized as follows:

	September 30, 2022		September 30, 2021
Series A Preferred Stock		—		1,713,965
Series A-1 Preferred Stock		—		1,865,238
Public Warrants		10,511,597		—
Common Warrants		2,586,667		—
Placement Agent Warrants		362,134		—
New Common Stock Warrants		8,333,334		—
New Placement Agent Warrants		583,333		—
Rollover Warrants		165,976		167,867
Unvested and unissued Rollover RSU awards		257,047		460,706
Stock options outstanding		352,313		—
Dilutive shares reserved for issuance		23,152,401		4,207,776
Shares available for future stock grants under the 2021 Equity Incentive Plan		942,108		—
Total common stock reserved for issuance		24,094,509		4,207,776

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

2020 Equity Incentive Plan and 2021 Equity Incentive Plan

Prior to the Merger, Revelation Sub adopted the Revelation Biosciences, Inc. 2020 Equity Incentive Plan (the “2020 Plan”) on October 1, 2020 for the issuance of stock-based awards. There was a total of 885,693 shares available for stock-based awards under the 2020 Plan of which 460,706 shares had been granted for RSU awards. On the Closing Date of the Business Combination, the outstanding RSU awards from the 2020 Plan were exchanged for Rollover RSU awards and the 2020 Plan was cancelled and there are no additional shares available for grant under the 2020 Plan.

In January 2022, in connection with the Business Combination, the Board of Directors adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and reserved 1,294,421 authorized shares of common stock the Company could issue. The 2021 Plan is administered by the Board of Directors. Vesting periods and other restrictions for grants under the 2021 Plan are determined at the discretion of the Board of Directors. Grants to employees, officers, directors, advisors, and consultants of the Company typically vest over one to four years. In addition, the number of shares of stock available for issuance under the 2021 Plan will be automatically increased each January 1, beginning on January 1, 2022, by 10% of the aggregate number of outstanding shares of our common stock from the first day of the preceding calendar year to the first day of the current calendar year or such lesser number as determined by our board of directors.

Under the 2021 Plan, stock options and stock appreciation rights are granted at exercise prices determined by the Board of Directors which cannot be less than 100% of the estimated fair market value of the common stock on the grant date. Incentive stock options granted to any stockholders holding 10% or more of the Company's equity cannot be granted with an exercise price of less than 110% of the estimated fair market value of the common stock on the grant date and such options are not exercisable after five years from the grant date.

As of September 30, 2022, there were 942,108 shares available for future grant under the 2021 Plan.

Restricted Stock Units

At the Closing Date of the Business Combination, all Revelation Sub RSU award holders received a Rollover RSU award in exchange for each RSU award of Revelation Sub at an exchange ratio of 2.725 that vest in accordance with the original terms of the award. The Company determined this to be a Type I modification but did not record any incremental stock-based compensation expense since the fair value of the modified awards immediately after the modification was not greater than the fair value of the original awards immediately before the modification.

The Rollover RSU awards have time-based and milestone-based vesting conditions. Under time-based vesting conditions, the Rollover RSU awards vest quarterly over one year for grants to the Board of Directors and quarterly over four years or 25% on the one year anniversary and the remainder vesting monthly thereafter for grants to officers, employees and consultants. The milestone-based vesting conditions vested on the Closing Date of the Business Combination.

As of September 30, 2022 and December 31, 2021, the Company has a total of 257,047 and 460,706 Rollover RSU awards for shares of common stock outstanding, respectively. During the nine months ended September 30, 2022, 119,965 Rollover RSU awards have fully vested and been issued and 83,694 Rollover RSU awards have been forfeited. As of September 30, 2022, 257,047 Rollover RSU awards will vest and be issued over the next 2.4 years. Each Rollover RSU award converts to one share of common stock.

Stock Options

The Company has granted stock options which vest 25% on the one year anniversary of the grant date or the employees hiring date, with the remainder vesting quarterly thereafter for grants to officers and employees. Stock options have a maximum term of 10 years.

On July 29, 2022, in connection with the release of 9 employees, the Board of Directors granted 195,821 stock options for shares of common stock that vest 100% on the date of grant. The stock options have a maximum term of 3 years.

The activity related to stock options, during the nine months ended September 30, 2022 is summarized as follows:

	Shares			Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (Years)
Outstanding at December 31, 2021		—		$	—
Granted		550,273			1.10
Exercised		—			—
Expired and foreited		(197,960	)		1.40
Outstanding at September 30, 2022		352,313		$	0.93		5.3
Exercisable at September 30, 2022		212,513		$	0.63		2.6

For the nine months ended September 30, 2022, the weighted-average Black-Scholes value per stock option was $0.74. The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

Volatility	96.5	%
Expected term (years)	5.00
Risk-free interest rate	2.27	%
Expected dividend yield	0.0	%

Expected volatility is based on the historical volatility of shares of the Company’s common stock. In determining the expected term of stock options, the Company uses the “simplified” method. Under this method, the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term. The risk-free interest rate is based on the U.S.

Treasury yield for a period consistent with the expected term of the stock options in effect at the time of the grants. The dividend yield assumption is based on the expectation of no future dividend payments by the Company. In addition to assumptions used in the Black-Scholes model, the Company reduces stock-based compensation expense based on actual forfeitures in the period that each forfeiture occurs.

Stock-Based Compensation Expense

For the three and nine months ended September 30, 2022 and 2021, the Company recorded stock-based compensation expense for the period indicated as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022		2021
General and administrative:
RSU awards	$	23,928		$	114,527	$	108,040	$	323,095
Stock Options		(10,912	)		—		36,784		—
General and administrative stock-based compensation expense		13,016			114,527		144,824		323,095
Research and development:
RSU awards		6,021			16,793		39,608		41,871
Stock Options		21,638			—		84,323		—
Research and development stock-based compensation expense		27,659			16,793		123,931		41,871
Total stock-based compensation expense	$	40,675		$	131,320	$	268,755	$	364,966

As of September 30, 2022, there was $232,128 and $106,446 of unrecognized stock-based compensation expense related to Rollover RSU awards and stock options, respectively. The unrecognized stock-based compensation expense is estimated to be recognized over a period of 2.4 years and 3.4 years for Rollover RSU’s and stock options, respectively.

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Warrants

9 Months Ended

Sep. 30, 2022

Warrants and Rights Note Disclosure [Abstract]

Warrants

12. Warrants

Public Warrants

In connection with the Company's IPO, the Company issued 10,511,597 Public Warrants to purchase a share of common stock at an exercise price of $11.50 per share and expire on January 10, 2027. The Public Warrants trade on the Nasdaq Capital Market under the ticker symbol REVBW.

The Company may redeem the Public Warrants at a price of $0.01 per Public Warrant upon not less than 30 days’ prior written notice of redemption if, and only if, the reported last sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the Public Warrant holders; and if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying the Public Warrants. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

Rollover Warrants

Prior to the Merger, in connection with the issuance of the Series A-1 Preferred Stock through a private placement, Revelation Sub issued warrants to the placement agent to purchase an aggregate of 167,867 shares of common stock at an exercise price of $2.68 per share, valued on the issuance date of the Series A-1 Preferred Stock in the aggregate at $326,675 and included in the issuance costs of the Series A-1 Preferred Stock. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 31, 2027.

At the Closing Date of the Business Combination, all warrant holders received a Rollover Warrant with an exchange ratio of 2.725, which had already vested upon original issuance.

On February 2, 2022, the Company received a notice of cash exercise for the Company’s Rollover Warrants for 1,891 shares of common stock at a purchase price of $5,073. As of September 30, 2022, there were 165,976 Rollover Warrants remaining to be exercised or exchanged.

The fair value of the Rollover Warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	115	%
Expected term (years)	6
Risk-free interest rate	0.85	%
Expected dividend yield	0.0	%

Common Warrants

In connection with the PIPE Investment, the Company issued warrants to the Purchaser to purchase an aggregate of 2,586,667 shares of common stock at an exercise price of $3.29 per share, valued on the PIPE Investment purchase date in the aggregate at $3,634,262 and included in the issuance costs of the PIPE Investment. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

Pre-Funded Warrants

In connection with the PIPE Investment, the Company issued warrants to the Purchaser to purchase an aggregate of 1,293,541 shares of common stock at an exercise price of $0.00001 per share.

On February 22, 2022, the Company received a notice of cash exercise for the Pre-Funded Warrants issued in connection with the PIPE Investment for 1,293,541 shares of common stock at purchase price of $12.94.

Placement Agent Warrants

In connection with the PIPE Investment, the Company issued warrants to the Placement Agent to purchase an aggregate of 362,134 shares of common stock at an exercise price of $3.29 per share, valued on the PIPE Investment purchase date in the aggregate at $508,797 and included in the issuance costs of the PIPE Investment. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on January 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

New Common Stock Warrants

In connection with the July 2022 Public Offering, the Company issued warrants to purchase an aggregate of 8,333,334 shares of common stock at an exercise price of $0.60 per share, valued on the public offering purchase date in the aggregate at $4,490,457 and included in the issuance costs of the public offering. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on July 28, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

New Placement Agent Warrants

In connection with the July 2022 Public Offering, the Company issued warrants to the Placement Agent to purchase an aggregate of 583,333 shares of common stock at an exercise price of $0.75 per share, valued on the public offering purchase date in

the aggregate at $310,137 and included in the issuance costs of the public offering. The warrants were exercisable immediately upon issuance, provide for a cash or cashless exercise right and expire on July 25, 2027.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

For the nine months ended September 30, 2022 and 2021, the Company did not recognize a provision for income taxes due to having recorded a full valuation allowance against its deferred tax assets. As of September 30, 2022 and December 31, 2021, the Company established a full valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. As of September 30, 2022 and December 31, 2021, the Company had no unrecognized tax benefits. The Company does not anticipate there will be a significant change in unrecognized tax benefits within the next 12 months.

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Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

In preparing these condensed consolidated financial statements, the Company has evaluated and determined there are no events and transactions for potential recognition or disclosure through November 10, 2022, the date the financial statements were available to be issued.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Unaudited Interim Condensed Consolidated Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements as of December 31, 2021 and for the year ended December 31, 2021 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position. The

financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three and nine months ended September 30, 2022 are unaudited. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2021 included on Form 8-K/A, as filed with the SEC on April 22, 2022. The accompanying condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited balance sheet at December 31, 2021 contained in the above referenced Form 8-K/A.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. These estimates and assumptions are based on the Company’s best estimates and judgment. The Company regularly evaluates its estimates and assumptions using historical and industry experience and other factors; however, actual results could differ materially from these estimates and could have an adverse effect on the Company’s condensed consolidated financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company maintains its cash in checking and savings accounts. Income generated from cash held in savings accounts is recorded as interest income. The carrying value of the Company’s savings accounts is included in cash and approximates the fair value.

Fair Value Measurements

Fair Value Measurements

The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, subscription receivables, prepaid expenses, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity with the inputs to the valuation of these assets or liabilities as follows:

Level 1 — Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable inputs for similar assets or liabilities. These include quoted prices for identical or 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.

Concentration of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. Bank deposits are held by accredited financial institutions and these deposits may at times be in excess of federally insured limits. The Company limits its credit risk associated with cash and cash equivalents by placing them with financial institutions that it believes are of high quality. The Company has not experienced any losses on its deposits of cash or cash equivalents.

Property and Equipment, Net

Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is five years. Maintenance and repairs are charged to operating expense as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any gain or loss is included in other income (expense).

Leases

Leases

The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. For operating leases with an initial term greater than 12 months, the Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of lease payments over the lease term at the commencement date. Operating lease right-of-use assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms include options to renew or terminate the lease when the Company is reasonably certain that the renewal option will be exercised or when it is reasonably certain that the termination option will not be exercised. For an operating lease, if the interest rate used to determine the present value of future lease payments is not readily determinable, the Company estimates the incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Research and Development Expenses

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for the development of the Company’s product candidates, REVTx-99a/b, REVTx-200, REVTx-300 and diagnostic product, REVDx-501. Research and development costs are charged to expense as incurred. The Company records accrued expenses for estimated preclinical, clinical study and research expenses related to the services performed but not yet invoiced pursuant to contracts with research institutions, contract research organizations, and clinical manufacturing organizations that conduct and manage preclinical studies, clinical studies, research services, and development services on the Company’s behalf. Payments for these services are based on the terms of individual agreements and payment timing may differ significantly from the period in which the services were performed. Estimates are based on factors such as the work completed, including the level of patient enrollment. The Company monitors patient enrollment levels and related activity to the extent reasonably possible and makes judgments and estimates in determining the accrued balance in each reporting period. The Company’s estimates of accrued expenses are based on the facts and circumstances known at the time. If the Company underestimates or overestimates the level of services performed or the costs of these services, actual expenses could differ from estimates. As actual costs become known, the Company adjusts accrued expenses. To date, the Company has not experienced significant changes in estimates of clinical study and development services accruals.

Patent Costs

Patent Costs

Legal costs in connection with approved patents and patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. These costs are recorded in general and administrative expense in the statements of operations.

Stock-based Compensation

Stock-based Compensation

The Company recognizes compensation expense related to stock options, third-party warrants, and Restricted Stock Unit (“RSU”) awards granted, based on the estimated fair value of the stock-based awards on the date of grant. The fair value of employee stock options and third-party warrants are generally determined using the Black-Scholes option-pricing model using various inputs, including estimates of historic volatility, term, risk-free rate, and future dividends. The grant date fair value of the stock-based awards, which have graded vesting, is recognized using the straight-line method over the requisite service period of each stock-based award, which is generally the vesting period of the respective stock-based awards. The Company recognizes forfeitures as they occur.

Income Taxes

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or loss in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Interest and penalties related to unrecognized tax benefits are included within the provision of income tax. To date, there have been no unrecognized tax benefits balances.

Basic and Diluted Net Loss per Share

Basic and Diluted Net Loss per Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potential shares of common stock. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding plus potential shares of common stock.

Convertible preferred stock on an as converted basis, unvested and unissued RSU awards, warrants and stock options outstanding are considered potential shares of common stock and are included in the calculation of diluted net loss per share using the treasury stock method when their effect is dilutive. Potential shares of common stock are excluded from the calculation of diluted net loss per share when their effect is anti-dilutive. As of September 30, 2022 and 2021, there were 23,152,401 and 4,207,776 potential shares of common stock, respectively, (see Note 10), that were excluded from the calculation of diluted net loss per share because their effect was anti-dilutive.

Comprehensive Loss

Comprehensive Loss

The Company has no components of comprehensive loss other than net loss. Thus, comprehensive loss is the same as net loss for the periods presented.

Segment Reporting

Segment Reporting

Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance.

The Company has one operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations for the purposes of allocating resources and evaluating financial performance.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 issued guidance on the accounting for income taxes that, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within the fiscal years beginning after December 15, 2022. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

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Balance Sheet Details (Tables)

9 Months Ended

Sep. 30, 2022

Balance Sheet Related Disclosures [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

	September 30, 2022		December 31, 2021
Prepaid clinical costs	$	—	$	488,614
Prepaid insurance		206,270		—
Other prepaid expenses & current assets		103,358		148,728
Total prepaid expenses & current assets	$	309,628	$	637,342

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following:

	September 30, 2022			December 31, 2021
Lab equipment	$	131,962		$	131,963
Total property and equipment, gross		131,962			131,963
Accumulated depreciation		(35,567	)		(16,782	)
Total property and equipment, net	$	96,395		$	115,181

Schedule of Accrued Expenses

Accrued expenses consisted of the following:

	September 30, 2022		December 31, 2021
Accrued payroll and related expenses	$	678,452	$	756,729
Accrued clinical study expenses		109,483		327,244
Accrued professional fees		40,614		294,130
Accrued clinical development costs		90,000		145,566
Accrued other expenses		4,565		5,000
Premium Finance Agreement - D&O Insurance		73,333		—
Total accrued expenses	$	996,447	$	1,528,669

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Common Stock (Tables)

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Summary of Total Shares of Common Stock Reserved for Issuance

The total shares of common stock reserved for issuance are summarized as follows:

	September 30, 2022		September 30, 2021
Series A Preferred Stock		—		1,713,965
Series A-1 Preferred Stock		—		1,865,238
Public Warrants		10,511,597		—
Common Warrants		2,586,667		—
Placement Agent Warrants		362,134		—
New Common Stock Warrants		8,333,334		—
New Placement Agent Warrants		583,333		—
Rollover Warrants		165,976		167,867
Unvested and unissued Rollover RSU awards		257,047		460,706
Stock options outstanding		352,313		—
Dilutive shares reserved for issuance		23,152,401		4,207,776
Shares available for future stock grants under the 2021 Equity Incentive Plan		942,108		—
Total common stock reserved for issuance		24,094,509		4,207,776

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Options Activity

The activity related to stock options, during the nine months ended September 30, 2022 is summarized as follows:

	Shares			Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (Years)
Outstanding at December 31, 2021		—		$	—
Granted		550,273			1.10
Exercised		—			—
Expired and foreited		(197,960	)		1.40
Outstanding at September 30, 2022		352,313		$	0.93		5.3
Exercisable at September 30, 2022		212,513		$	0.63		2.6

Assumptions used in Estimating Fair Value of Stock Options

The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

Volatility	96.5	%
Expected term (years)	5.00
Risk-free interest rate	2.27	%
Expected dividend yield	0.0	%

Summary of Stock-Based Compensation Expense

For the three and nine months ended September 30, 2022 and 2021, the Company recorded stock-based compensation expense for the period indicated as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022		2021
General and administrative:
RSU awards	$	23,928		$	114,527	$	108,040	$	323,095
Stock Options		(10,912	)		—		36,784		—
General and administrative stock-based compensation expense		13,016			114,527		144,824		323,095
Research and development:
RSU awards		6,021			16,793		39,608		41,871
Stock Options		21,638			—		84,323		—
Research and development stock-based compensation expense		27,659			16,793		123,931		41,871
Total stock-based compensation expense	$	40,675		$	131,320	$	268,755	$	364,966

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Warrants (Tables)

9 Months Ended

Sep. 30, 2022

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

Volatility	96.5	%
Expected term (years)	5.00
Risk-free interest rate	2.27	%
Expected dividend yield	0.0	%

Rollover Warrants [Member]

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the Rollover Warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	115	%
Expected term (years)	6
Risk-free interest rate	0.85	%
Expected dividend yield	0.0	%

Common Warrants [Member]

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

Placement Agent Warrants [Member]

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	47	%
Expected term (years)	5
Risk-free interest rate	1.54	%
Expected dividend yield	0.0	%

New Common Stock Warrants [Member]

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

New Placement Agent Warrants [Member]

Class of Warrant or Right [Line Items]

Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following assumptions:

Volatility	144	%
Expected term (years)	5
Risk-free interest rate	2.69	%
Expected dividend yield	0.0	%

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Organization and Basis of Presentation (Details) - USD ($)			3 Months Ended						9 Months Ended
	Jul. 28, 2022	Jan. 10, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Conversion rate (in Dollars per share)		2.725
Net loss			$ 1,170,736	$ 1,834,686	$ 6,616,541	$ 3,044,504	$ 2,469,594	$ 2,612,353	$ 9,621,963	$ 8,126,451
Accumulated deficit			24,139,262						24,139,262		$ 14,517,299
Stockholders' equity			2,227,678	$ (1,843,009)	$ (98,511)	$ 3,655,004	$ 6,568,188	$ 8,906,461	2,227,678	$ 3,655,004	(99,470)	$ 3,411,624
Cash and cash equivalents			$ 6,195,446						$ 6,195,446		$ 1,274,729
Net proceeds received from public offering	$ 4,500,000
Business Combination [Member]
Conversion rate (in Dollars per share)		2.725

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Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) Segment shares	Sep. 30, 2021 shares	Dec. 31, 2021 USD ($)
Accounting Policies [Abstract]
Estimated useful lives	5 years
Unrecognized tax benefits | $	$ 0		$ 0
Potential shares of common stock | shares	23,152,401	4,207,776
Number of operating segment | Segment	1

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Business Combination (Details) - USD ($)							9 Months Ended
	Feb. 22, 2022	Feb. 10, 2022	Feb. 04, 2022	Jan. 10, 2022	Jan. 06, 2022	Dec. 21, 2021	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Common stock aggregate shares				3,072,870
Common stock, par value (in Dollars per share)							$ 0.001	$ 0.001		$ 0.001
Common stock reserved for issuance				167,867			24,094,509		4,207,776
Common stock shares issued				12,944,213
Common stock shares outstanding				1,294,421
Business combination, shares issued				3,480,692
Cash price per share (in Dollars per share)				$ 10.20
Aggregate share value (in Dollars)				$ 35,500,000
Escrowed amount (in Dollars)				7,700,000
Released amount (in Dollars)				$ 4,200,000
Petra Share Repurchase [Member]
Business Acquisition [Line Items]
Conversion rate (in Dollars per share)							$ 10.2031
Business combination, shares issued (in Shares)						750,000	750,000
Petra Common Stock [Member]
Business Acquisition [Line Items]
Aggregate purchase price						$ 4,500,000
Common stock, par value per share (in Dollars per share)						$ 0.001
Common stock, redemption value					$ 4,500,000	$ 31,500,000
Aggregate shares purchased (in Shares)					432,072
Forward Share Purchase agreement [Member]
Business Acquisition [Line Items]
Shares repurchased			750,000
Shares amount repurchased escrowed and returned			$ 7,700,000
Common Stock | Petra [Member]
Business Acquisition [Line Items]
Ownership percentage				23.70%
Restricted Stock Units (RSUs) [Member]
Business Acquisition [Line Items]
Common stock reserved for issuance				460,706
Business Combination [Member]
Business Acquisition [Line Items]
Common stock aggregate shares				9,871,343
Common stock constituting shares				10,500,000
Common stock, par value (in Dollars per share)				$ 0.001
Petra [Member]
Business Acquisition [Line Items]
Goodwill				$ 0
Other intangible assets				$ 0
Aggregate principal amount							$ 750,000
Accrued interest							$ 46,882
Repayments of Notes Payable Including Interest Expenses	$ 691,392	$ 105,490

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Balance Sheet Details - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Prepaid clinical costs		$ 488,614
Prepaid insurance	$ 206,270
Other prepaid expenses & current assets	103,358	148,728
Total prepaid expenses & current assets	$ 309,628	$ 637,342

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Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Lab equipment	$ 131,962	$ 131,963
Total property and equipment, gross	131,962	131,963
Accumulated depreciation	(35,567)	(16,782)
Total property and equipment, net	$ 96,395	$ 115,181

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Balance Sheet Details - Schedule of Accrued Expenses (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Accrued payroll and related expenses	$ 678,452	$ 756,729
Accrued clinical study expenses	109,483	327,244
Accrued professional fees	40,614	294,130
Accrued clinical development costs	90,000	145,566
Accrued other expenses	4,565	5,000
Total accrued expenses	996,447	$ 1,528,669
D&O Insurance [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Premium Finance Agreement - D&O Insurance	$ 73,333

XML

Balance Sheet Details (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Jul. 31, 2022 Employee	Jul. 09, 2022 shares	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($) shares
Balance Sheet Related Disclosures [Abstract]
Depreciation expense	$ 6,262	$ 6,071	$ 18,786	$ 10,520
Number of employees released from accrued expense | Employee					9
Accrued annual corporate bonus expense	$ 400,000		$ 400,000
Accrual payroll and related expenses							$ 400,000	$ 400,000
Common stock, shares issued | shares	23,536,070		23,536,070			300,000		2,308,877
Accrued professional fees							$ 700,000

XML

Commitments and Contingencies (Details)				1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 18, 2022 USD ($)	Jan. 10, 2022 USD ($) Installment	Jan. 06, 2022 shares	Oct. 31, 2021 USD ($)	Feb. 28, 2021 USD ($) ft²	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 27, 2022 USD ($)	Jan. 04, 2022 USD ($) shares	Dec. 31, 2021 USD ($)
Commitments and Contingencies (Details) [Line Items]
Rent expense						$ 17,193	$ 15,067	$ 49,453	$ 40,179
Common stocks transferred | shares											245,019
Interest incurred						0		14,383
Unpaid banking advisory fees (in Dollars)	$ 2,700,000
Unpaid banking advisory fees in form of equity	2,600,000
Transaction expenses	8,500,000
Deferred underwriting fees	$ 1,500,000
Unpaid invoices, plus interest and costs						996,447		996,447		$ 1,600,000		$ 1,528,669
D&O Insurance [Member]
Commitments and Contingencies (Details) [Line Items]
Total expense incurred for upfront, monthly and interest payments						209,535		627,511
Total cash paid for upfront, monthly and interest payments under finance agreement						223,286		760,428
Future minimum annual obligations during remainder of fiscal year 2022						$ 74,428		$ 74,428
Premium Finance Agreement [Member] | D&O Insurance [Member]
Commitments and Contingencies (Details) [Line Items]
Debt instrument face amount		$ 825,000
Fixed annual interest rate		3.57%
Monthly payable amount (in Dollars)		$ 9,856
Monthly payments (in Dollars)		$ 74,428
Number of monthly installments | Installment		9
Debt instrument, frequency of periodic payment		monthly
Debt instrument maturity date		Oct. 10, 2022
Upfront payment due		$ 165,000
Convertible Note [Member]
Commitments and Contingencies (Details) [Line Items]
Fixed annual interest rate					10.00%
Convertible Note [Member] | Maximum [Member]
Commitments and Contingencies (Details) [Line Items]
Debt instrument face amount											$ 2,500,000
Petra Common Stock [Member]
Commitments and Contingencies (Details) [Line Items]
Aggregate shares purchased (in Shares) | shares			432,072
Petra Common Stock [Member] | Convertible Note [Member]
Commitments and Contingencies (Details) [Line Items]
Aggregate shares purchased (in Shares) | shares			245,019
Original Lease [Member]
Commitments and Contingencies (Details) [Line Items]
Area of laboratory space subject to lease | ft²					2,140
Operating lease term					13 months
Operating lease option to extend					There was no option to extend the Original Lease
Operating lease, existence of option to extend					false
Operating lease expiration date					Mar. 31, 2022
Security deposit required to maintain					$ 5,564
Future minimum lease payments					$ 70,313
Operating lease, weighted-average discount rate						7.73%		7.73%
First Amendment [Member]
Commitments and Contingencies (Details) [Line Items]
Operating lease expiration date				Dec. 31, 2022
Future minimum lease payments				$ 51,578		$ 17,192		$ 17,192
First Amendment [Member] | Maximum [Member]
Commitments and Contingencies (Details) [Line Items]
Operating lease term				12 months

XML

PIPE Investment (Details) - USD ($)				3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 22, 2022	Feb. 02, 2022	Jan. 23, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020	Jan. 10, 2022
Subsidiary, Sale of Stock [Line Items]
Common stock reserved for issuance				24,094,509	4,207,776	24,094,509	4,207,776		167,867
Aggregate value (in Dollars)				$ 40,675	$ 131,320	$ 268,755	$ 364,966
Issuance costs								$ 37,000
Pre-Funded Warrants Exercise [Member]
Subsidiary, Sale of Stock [Line Items]
Purchase of shares	1,293,541		1,293,541
Warrant exercise price (in Dollars per share)				$ 0.00001		$ 0.00001
Purchase price (in Dollars per share)	$ 12.94
Common Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock reserved for issuance			2,586,667
Aggregate value (in Dollars)						$ 3,600,000
Warrant exercise price (in Dollars per share)				3.29		$ 3.29
Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Purchase price (in Dollars per share)		$ 5,073
Securities Purchase Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Purchase of shares			1,293,126
Gross purchase price (in Dollars per share)			$ 3.00
Proceeds from PIPE investment, net issuance costs			$ 7,300,000
Percentage of exceeds						9.99%
Securities Purchase Agreement [Member] | Pre-Funded Warrants Exercise [Member]
Subsidiary, Sale of Stock [Line Items]
Gross purchase price (in Dollars per share)						$ 3.00
Warrant exercise price (in Dollars per share)				0.00001		$ 0.00001
Outstanding common stock, percentage						9.99%
Securities Purchase Agreement [Member] | Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Percentage of exceeds						4.99%
Warrant exercise price (in Dollars per share)				$ 3.29		$ 3.29
Placement Agent [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock reserved for issuance				362,134		362,134
Cash fee, percentage						6.00%
Issuance costs						$ 465,600
Common stock, percentage						7.00%
Placement Agent Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Aggregate value (in Dollars)						$ 500,000

XML

Public Offering (Details) - USD ($)	Jul. 28, 2022	Sep. 30, 2022
Public Offering [Line Items]
Issuance of common stock (Shares)	8,333,334
Shares issued, price per share	$ 0.60
Net proceeds received from public offering	$ 4,500,000
Percentage of placement agent cash fee on gross proceeds received	7.00%
Placement agent cash fee amount	$ 350,000
New Placement Agent Warrants [Member]
Public Offering [Line Items]
Warrants to purchase an aggregate shares of common stock		583,333
Warrant exercise price, per share		$ 0.75
New Common Stock Warrant [Member]
Public Offering [Line Items]
Warrants and rights expiration period	5 years
Warrants to purchase an aggregate shares of common stock	8,333,334
Warrant exercise price, per share	$ 0.60
Aggregate value of warrants	$ 4,500,000
Placement Agent Warrants [Member]
Public Offering [Line Items]
Warrants and rights expiration period	5 years
Percentage of shares sold in public offering	7.00%
Warrants to purchase an aggregate shares of common stock	583,333
Warrant exercise price, per share	$ 0.75
Aggregate value of warrants	$ 300,000

XML

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	Jan. 10, 2022	Jan. 31, 2021	Dec. 31, 2020	Sep. 30, 2022	Jul. 28, 2022	Dec. 31, 2021	Aug. 31, 2020
Class of Stock [Line Items]
Preferred stock, par value (in Dollars per share)				$ 0.001			$ 0.001
Conversion rate (in Dollars per share)	2.725
Shares issued, price per share					$ 0.60
Maximum [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized				5,000,000			2,000,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized				0		628,930
Preferred stock, par value (in Dollars per share)				$ 0.001		$ 0.001
Preferred stock converted into shares of common stock	1,713,965
Preferred stock, shares issued			628,930	0		628,930
Shares issued, price per share			$ 6.36
Net proceeds from issuance of preferred stock			$ 3.9
Series A-1 Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized				0		1,100,000
Preferred stock, par value (in Dollars per share)				$ 0.001		$ 0.001
Preferred stock converted into shares of common stock	1,865,238
Conversion rate (in Dollars per share)	2.725
Preferred stock, shares issued		684,450		0		684,450
Shares issued, price per share		$ 6.36
Net proceeds from issuance of preferred stock		$ 3.9

XML

Units (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Jan. 10, 2022	Oct. 31, 2020
Public Offering [Line Items]
Common stock units outstanding		1,294,421
Public warrants outstanding	1,760,285
Initial Public Offering [Member]
Public Offering [Line Items]
Share Price			$ 11.50

XML

Common Stock (Details) - USD ($)								3 Months Ended	9 Months Ended		12 Months Ended
	Jul. 29, 2022	Jul. 28, 2022	Feb. 22, 2022	Feb. 04, 2022	Feb. 02, 2022	Jan. 23, 2022	Jan. 10, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2020	Jul. 09, 2022	Jan. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Sale and issuance of common stock											6,292,140
Common stock, shares authorized								100,000,000	100,000,000		29,977,303			11,000,000
Common stock, par value (in Dollars per share)								$ 0.001	$ 0.001		$ 0.001			$ 0.001
Net proceeds from sale and issuance of common stock										$ 599,996	$ 6,100,000
Issuance costs related to sale and issuance of common stock											$ 37,000
Common stock aggregate shares							3,072,870
Proceeds from business combination							$ 11,900,000
Escrowed amount (in Dollars)							7,700,000
Released amount (in Dollars)							$ 4,200,000
Common stock, shares issued								23,536,070	23,536,070			300,000		2,308,877
Common stock, shares outstanding								23,536,070	23,536,070					2,308,877
Cash dividends declared or paid									$ 0
Rollover RSU Awards [Member]
Class of Stock [Line Items]
Vested Rollover RSU Awards	119,965
July 2022 Public Offering [Member]
Class of Stock [Line Items]
Net proceeds from sale and issuance of common stock		$ 4,500,000
Purchase of shares		8,333,334
Common Stock Issuance [Member]
Class of Stock [Line Items]
Common stock, shares issued													300,000
Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Net proceeds from sale and issuance of common stock						$ 7,300,000
Purchase of shares						1,293,126
Forward Share Purchase agreement [Member]
Class of Stock [Line Items]
Shares repurchased				750,000
Shares amount repurchased escrowed and returned				$ 7,700,000
Common Stock [Member]
Class of Stock [Line Items]
Common stock, shares outstanding								12,944,213	12,944,213
Vested Rollover RSU Awards								119,965
Pre-Funded Warrants Exercise [Member]
Class of Stock [Line Items]
Purchase of shares			1,293,541			1,293,541
Purchase price (in Dollars per share)			$ 12.94
Warrants shares			1,293,541
Purchase price, per share								$ 0.00001	$ 0.00001
Pre-Funded Warrants Exercise [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Purchase price, per share								0.00001	0.00001
Common Warrants [Member]
Class of Stock [Line Items]
Purchase price, per share								$ 3.29	$ 3.29
Warrant [Member]
Class of Stock [Line Items]
Purchase price (in Dollars per share)					$ 5,073
Warrants shares					1,891			165,976	165,976
Warrants, value					$ 5,073
Warrant [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Purchase price, per share								$ 3.29	$ 3.29
Business Combination [Member]
Class of Stock [Line Items]
Common stock, shares authorized							100,000,000
Common stock, par value (in Dollars per share)							$ 0.001
Common stock aggregate shares							9,871,343

XML

Common Stock - Summary of Total Shares of Common Stock Reserved for Issuance (Details) - shares	Sep. 30, 2022	Jan. 10, 2022	Sep. 30, 2021
Class of Stock [Line Items]
Common stock reserved for issuance	24,094,509	167,867	4,207,776
Unvested and Unissued Rollover RSU awards [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	257,047		460,706
Stock Options Outstanding [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	352,313
Dilutive Shares Reserved for Issuance [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	23,152,401		4,207,776
Shares Available for Future Stock Grants under 2021 Equity Plan [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	942,108
Public Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	10,511,597
Common Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	2,586,667
Placement Agent Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	362,134
New Common Stock Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	8,333,334
New Placement Agent Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	583,333
Rollover Warrants [Member]
Class of Stock [Line Items]
Common stock reserved for issuance	165,976		167,867
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Common stock reserved for issuance			1,713,965
Series A-1 Preferred Stock [Member]
Class of Stock [Line Items]
Common stock reserved for issuance			1,865,238

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Stock-Based Compensation (Details)			9 Months Ended	12 Months Ended
	Jul. 29, 2022 Employee shares	Jan. 10, 2022 shares	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 shares	Jan. 31, 2022 shares	Jan. 01, 2022	Oct. 01, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of aggregate number of outstanding shares of common stock						10.00%
Conversion rate (in Dollars per share)		2.725
weighted-average Black-Scholes value per stock option | $ / shares			$ 0.74
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Board of Directors [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price based on estimated fair market value of common stock			100.00%
Incentive Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period			5 years
Incentive Stock Options [Member] | Any Stockholders Holding 10% or More of Equity [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price based on estimated fair market value of common stock			110.00%
Time-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting, description			Under time-based vesting conditions, the Rollover RSU awards vest quarterly over one year for grants to the Board of Directors and quarterly over four years or 25% on the one year anniversary and the remainder vesting monthly thereafter for grants to officers, employees and consultants.
Time-based Restricted Stock Units [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Vesting, description			RSU awards vest quarterly over one year for grants to the Board of Directors
Time-based Restricted Stock Units [Member] | Officers, Employees and Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting, description			quarterly over four years or 25% on the one year anniversary and the remainder vesting monthly thereafter for grants to officers, employees and consultants
Time-based Restricted Stock Units [Member] | Officers, Employees and Consultants [Member] | 25% on One Year Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Time-based Restricted Stock Units [Member] | Officers, Employees and Consultants [Member] | Vesting Quarterly over Four Years [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting, description			vest 25% on the one year anniversary of the grant date or the employees hiring date, with the remainder vesting quarterly thereafter for grants to officers and employees.
Vesting percentage	100.00%
Stock options, maximum term	3 years		10 years
Unrecognized stock-based compensation expense related to stock options | $			$ 106,446
Unrecognized stock-based compensation expense, estimated period for recognition			3 years 4 months 24 days
Options, granted	195,821		550,273
Number of employees | Employee	9
Stock Options [Member] | 25% on One Year Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Rollover Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years 4 months 24 days
Unrecognized stock-based compensation expense related to awards | $			$ 232,128
Unrecognized stock-based compensation expense, estimated period for recognition			2 years 4 months 24 days
Awards outstanding			257,047	460,706
Awards vested, and issued			119,965
Awards, forfeited			83,694
Awards, expected to vest			257,047
2020 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant							885,693
Additional shares available for grant			0
2020 Equity Incentive Plan [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted				460,706
2021 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized					1,294,421
Shares available for future grant			942,108

XML

Stock-Based Compensation - Schedule of Stock Options Activity (Details) - Stock Options [Member] - $ / shares		9 Months Ended
	Jul. 29, 2022	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Granted	195,821	550,273
Expired and foreited		(197,960)
Outstanding at September 30, 2022		352,313
Exercisable at September 30, 2022		212,513
Weighted-average Exercise Price
Granted		$ 1.10
Expired and foreited		1.40
Outstanding at September 30, 2022		0.93
Exercisable at September 30, 2022		$ 0.63
Weighted-average Remaining Contractual Term (Years)
Outstanding at September 30, 2022		5 years 3 months 18 days
Exercisable at September 30, 2022		2 years 7 months 6 days

XML

Stock-Based Compensation - Assumptions used in Estimating Fair Value of Stock Options (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	96.50%
Expected term (years)	5 years
Risk-free interest rate	2.27%
Expected dividend yield	0.00%

XML

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 40,675	$ 131,320	$ 268,755	$ 364,966
General and Administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	13,016	114,527	144,824	323,095
General and Administrative [Member] | Restricted Stock Units [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	23,928	114,527	108,040	323,095
General and Administrative [Member] | Stock Options [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	(10,912)		36,784
Research and Development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	27,659	16,793	123,931	41,871
Research and Development [Member] | Restricted Stock Units [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6,021	$ 16,793	39,608	$ 41,871
Research and Development [Member] | Stock Options [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 21,638		$ 84,323

XML

Warrants (Details) - USD ($)				1 Months Ended	9 Months Ended
	Feb. 22, 2022	Feb. 02, 2022	Jan. 10, 2022	Oct. 31, 2020	Sep. 30, 2022
Class of Warrant or Right [Line Items]
Conversion rate (in Dollars per share)			2.725
Rollover Warrants [Member]
Class of Warrant or Right [Line Items]
Warrant expiration date					Jan. 31, 2027
Conversion rate (in Dollars per share)				2.725
Common Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					2,586,667
Warrant exercise price (in Dollars per share)					$ 3.29
Warrant expiration date					Jan. 25, 2027
Proceeds from issuance of warrants					$ 3,634,262
Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants shares		1,891			165,976
Purchase price (in Dollars per share)		$ 5,073
Placement Agent Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					362,134
Warrant exercise price (in Dollars per share)					$ 3.29
Warrant expiration date					Jan. 25, 2027
Proceeds from issuance of warrants					$ 508,797
Pre-Funded Warrants Exercise [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					1,293,541
Warrant exercise price (in Dollars per share)					$ 0.00001
Warrants shares	1,293,541
Purchase price (in Dollars per share)	$ 12.94
Public Warrants [Member]
Class of Warrant or Right [Line Items]
Purchase price (in Dollars per share)					$ 0.01
Public Warrants [Member] | IPO [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					10,511,597
Warrant exercise price (in Dollars per share)					$ 11.50
Warrant expiration date					Jan. 10, 2027
New Common Stock Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					8,333,334
Warrant exercise price (in Dollars per share)					$ 0.60
Warrant expiration date					Jul. 28, 2027
Proceeds from issuance of warrants					$ 4,490,457
New Placement Agent Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					583,333
Warrant exercise price (in Dollars per share)					$ 0.75
Warrant expiration date					Jul. 25, 2027
Proceeds from issuance of warrants					$ 310,137
Minimum [Member] | Public Warrants [Member]
Class of Warrant or Right [Line Items]
Sale of stock price					$ 18.00
Series A-1 Preferred Stock [Member] | Rollover Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase an aggregate shares of common stock					167,867
Warrant exercise price (in Dollars per share)					$ 2.68
Proceeds from issuance of warrants					$ 326,675

XML

Warrants - Schedule of Fair Value of Warrants Estimated Using Black-Scholes Option Pricing Model (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Rollover Warrants [Member]
Class of Warrant or Right [Line Items]
Volatility	115.00%
Expected term (years)	6 years
Risk free interest rate	0.85%
Expected dividend yield	$ 0.0
Common Warrants [Member]
Class of Warrant or Right [Line Items]
Volatility	47.00%
Expected term (years)	5 years
Risk free interest rate	1.54%
Expected dividend yield	$ 0.0
Placement Agent Warrants [Member]
Class of Warrant or Right [Line Items]
Volatility	47.00%
Expected term (years)	5 years
Risk free interest rate	1.54%
Expected dividend yield	$ 0.0
New Common Stock Warrants [Member]
Class of Warrant or Right [Line Items]
Volatility	144.00%
Expected term (years)	5 years
Risk free interest rate	2.69%
Expected dividend yield	$ 0.0
New Placement Agent Warrants [Member]
Class of Warrant or Right [Line Items]
Volatility	144.00%
Expected term (years)	5 years
Risk free interest rate	2.69%
Expected dividend yield	$ 0.0

XML

Income Taxes (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0		$ 0
Provision for income taxes	$ 0	$ 0