10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 March 31, 2023

OR

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

For the transition period from ____________to____________

Commission file number: 001-40492

Femasys Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	11-3713499
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
3950 Johns Creek Court, Suite 100
Suwanee, GA  30024	(770) 500-3910
(Address of principal executive offices, including zip code)	(Registrant’s telephone number, including area code)

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 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, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “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 ☑

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

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $0.001 par value	FEMY	The Nasdaq Capital Market

The Registrant had 13,190,573 shares of common stock, $0.001 par value, outstanding as of May 9, 2023.

	TABLE OF CONENTS
		Page
Part I. Financial Information
Item 1	Financial Statements	5
	Balance Sheets as of March 31, 2023 and December 31, 2022 (unaudited)	5
	Statements of Comprehensive Loss for the Three Months Ended March 31, 2023 and 2022 (unaudited)	7
	Statements of Stockholders’ Equity for the Three Months Ended March 31, 2023 and 2022 (unaudited)	8
	Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (unaudited)	9
	Notes to Financial Statements (unaudited)	10
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4	Controls and Procedures	19
Part II. Other Information
Item 1	Legal Proceedings	19
Item 1A	Risk Factors	19
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3	Defaults Upon Senior Securities	20
Item 4	Mine Safety Disclosures	20
Item 5	Other Information	20
Item 6	Exhibits	20
SIGNATURES		21

2

 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements include, but are not limited to, statements concerning:

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

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

• our ability to enroll subjects in the clinical trials for our product candidates in order to advance the development thereof on a timely basis;

• our ability to obtain additional financing to fund the clinical development of our products and fund operations;

• estimates regarding the total addressable market for our product candidates;

• competitive companies and technologies in our industry;

• our ability to obtain U.S. Food and Drug Administration (FDA) approval for our permanent birth control system, ability to gain FDA grant of a de novo classification request for our intrauterine artificial insemination product, expand sales of our women-specific medical products and develop and commercialize additional products;

• our ability to commercialize or obtain regulatory approvals, grants of de novo classification requests or 510(k) clearance for our product candidates, or the effect of delays in commercializing or obtaining regulatory authorizations;

• our business model and strategic plans for our products, technologies and business, including our implementation thereof;

• commercial success and market acceptance of our product candidates;

• our ability to achieve and maintain adequate levels of coverage or reimbursement for our FemBloc system or any future products we may seek to commercialize;

• our ability to manufacture our products and product candidates in compliance with applicable laws, regulations and requirements and to oversee third-party suppliers, service providers and vendors in the performance of any contracted activities in accordance with applicable laws, regulations and requirements;

• adverse developments affecting the financial services industry;

• the impact of the COVID-19 pandemic on our business, financial condition, results of operations, and prospects;

• our ability to accurately forecast customer demand for our product candidates, and manage our inventory;

• our ability to build, manage and maintain our direct sales and marketing organization, and to market and sell our permanent birth control system, artificial insemination product and women-specific medical product solutions in markets in and outside of the United States;

• our ability to hire and retain our senior management and other highly qualified personnel;

• FDA or other U.S. or foreign regulatory actions affecting us or the healthcare industry generally, including healthcare reform measures in the United States and international markets;

• the timing or likelihood of regulatory filings and approvals or clearances;

• our ability to establish and maintain intellectual property protection for our product candidates and our ability to avoid claims of infringement;

• the volatility of the trading price of our common stock; and

• our expectations about market trends.

3

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of known and unknown risks, uncertainties and assumptions, including those described under the sections in this Quarterly Report on Form 10-Q entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the Securities and Exchange Commission as exhibits hereto completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. The forward-looking statements contained in this Quarterly Report on 10-Q are excluded from the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended.

4

PART I. FINANCIAL INFORMATION

ITEM I. 
Financial Statements

FEMASYS INC.

Balance Sheets

(unaudited)

Assets	March 31, 2023			December 31, 2022
Current assets:
Cash and cash equivalents	$	10,161,338			12,961,936
Accounts receivable, net		123,955			77,470
Inventory, net		500,741			436,723
Other current assets		542,067			655,362
Total current assets		11,328,101			14,131,491
Property and equipment, at cost:
Leasehold improvements		1,195,637			1,195,637
Office equipment		99,344			99,344
Furniture and fixtures		419,303			419,303
Machinery and equipment		2,601,389			2,572,243
Construction in progress		406,588			413,843
		4,722,261			4,700,370
Less accumulated depreciation		(3,344,400	)		(3,217,319	)
Net property and equipment		1,377,861			1,483,051
Long-term assets:
Lease right-of-use assets, net		239,351			319,557
Intangible assets, net of accumulated amortization		1,881			3,294
Other long-term assets		920,812			958,177
Total long-term assets		1,162,044			1,281,028
Total assets	$	13,868,006			16,895,570

(continued)

5

FEMASYS INC.

Balance Sheets

(unaudited)

Liabilities and Stockholders’ Equity	March 31, 2023			December 31, 2022
Current liabilities:
Accounts payable	$	526,764			510,758
Accrued expenses		535,417			456,714
Note payable		—			141,298
Clinical holdback - current portion		45,352			45,206
Lease liabilities – current portion		305,071			373,833
Total current liabilities		1,412,604			1,527,809
Long-term liabilities:
Clinical holdback - long-term portion		98,818			96,658
Lease liabilities – long-term portion		—			28,584
Total long-term liabilities		98,818			125,242
Total liabilities		1,511,422			1,653,051
Commitments and contingencies
Stockholders’ equity:
Common stock, $.0.001 par, 200,000,000 authorized, 11,989,796 shares issued and  11,872,573 outstanding as of March 31,2023; and 11,986,927 shares issued and 11,869,704 outstanding as of December 31, 2022		11,990			11,987
Treasury stock, 117,223 shares		(60,000	)		(60,000	)
Warrants		567,972			567,972
Additional paid-in-capital		108,917,384			108,857,065
Accumulated deficit		(97,080,762	)		(94,134,505	)
Total stockholders’ equity		12,356,584			15,242,519
Total liabilities and stockholders’ equity	$	13,868,006			16,895,570

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

6

FEMASYS INC.

Statements of Comprehensive Loss

(unaudited)

	Three Months Ended March 31,
	2023			2022
Sales	$	293,984			321,405
Cost of sales		105,120			122,675
Gross margin		188,864			198,730
Operating expenses:
Research and development		1,537,439			1,421,063
Sales and marketing		244,896			68,863
General and administrative		1,315,137			1,447,355
Depreciation and amortization		133,066			144,199
Total operating expenses		3,230,538			3,081,480
Loss from operations		(3,041,674	)		(2,882,750	)
Other income (expense):
Interest income		97,089			2,454
Interest expense		(1,672	)		(2,734	)
Other income (expense), net		95,417			(280	)
Net loss	$	(2,946,257	)		(2,883,030	)
Net loss attributable to common stockholders, basic and diluted	$	(2,946,257	)		(2,883,030	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.25	)		(0.24	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,872,255			11,804,165

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

7

FEMASYS INC.

Statements of Stockholders’ Equity

(unaudited)

																	Total
	Common stock				Treasury stock							Additional		Accumulated			stockholders’
	Shares		Amount		Shares		Amount			Warrants		paid-in capital		deficit			Equity
THREE MONTHS ENDED MARCH 31, 2023
Balance at December 31, 2022		11,986,927	$	11,987		117,223	$	(60,000	)	$	567,972	$	108,857,065	$	(94,134,505	)	$	15,242,519
Issuance of common stock in connection with At-The-Market offering, net of issuance costs		2,869		3		—		—			—		3,365		—			3,368
Share-based compensation expense		—		—		—		—			—		56,954		—			56,954
Net loss		—		—		—		—			—		—		(2,946,257	)		(2,946,257	)
Balance at March 31, 2023		11,989,796	$	11,990		117,223	$	(60,000	)	$	567,972	$	108,917,384	$	(97,080,762	)	$	12,356,584
THREE MONTHS ENDED MARCH 31, 2022
Balance at December 31, 2021		11,921,388	$	11,921		117,223	$	(60,000	)	$	702,492	$	108,418,304	$	(82,740,335	)	$	26,332,382
Share-based compensation expense		—		—		—		—			—		44,359		—			44,359
Net loss		—		—		—		—			—		—		(2,883,030	)		(2,883,030	)
Balance at March 31, 2022		11,921,388	$	11,921		117,223	$	(60,000	)	$	702,492	$	108,462,663	$	(85,623,365	)	$	23,493,711

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

8

FEMASYS INC.

Statements of Cash Flows

(unaudited)

	Three Months Ended March 31,
	2023			2022
Cash flows from operating activities:
Net loss	$	(2,946,257	)		(2,883,030	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		131,653			136,769
Amortization		1,413			7,430
Amortization of right-of-use assets		75,635			86,233
Inventory reserve		300			2,700
Share-based compensation expense		56,954			44,359
Changes in operating assets and liabilities:
Accounts receivable		(46,485	)		(86,044	)
Inventory		(64,318	)		(17,438	)
Other assets		150,654			18,553
Accounts payable		3,016			102,855
Accrued expenses		78,703			(38,559	)
Lease liabilites		(91,211	)		(97,851	)
Other liabilities		2,306			(29,998	)
Net cash used in operating activities		(2,647,637	)		(2,754,021	)
Cash flows from investing activities:
Purchases of property and equipment		(8,901	)		(120,368	)
Net cash used in investing activities		(8,901	)		(120,368	)
Cash flows from financing activities:
Proceeds from issuance of common stock		3,373			—
Repayment of note payable		(141,298	)		(135,457	)
Payments under lease obligations		(6,135	)		(5,549	)
Net cash used in financing activities		(144,060	)		(141,006	)
Net change in cash and cash equivalents		(2,800,598	)		(3,015,395	)
Cash and cash equivalents:
Beginning of period		12,961,936			24,783,029
End of period	$	10,161,338			21,767,634
Supplemental cash flow information
Cash paid for:
Interest	$	1,672			2,734
Income taxes	$	—			800
Non-cash investing and financing activities:
Property and equipment costs included in accounts payable	$	12,990			—
Commissions and deferred offering costs relating to proceeds from issuance of common stock	$	109			—
Prepaid insurance financed with promissory notes	$	—			45,666

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

9

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(1) Organization, Nature of Business, and Liquidity

Organization and Nature of Business

Femasys Inc. (the Company or Femasys) was incorporated in Delaware on February 19, 2004 and is headquartered in Suwanee, Georgia. The Company is a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. The Company’s mission is to provide women with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. The Company currently operates as one segment with an initial focus on servicing the reproductive health needs for those seeking permanent birth control or solutions for infertility issues.

Femasys has an expansive intellectual property portfolio which covers both design and utility patents in the U.S. and significant ex-U.S. markets for each product initiative. Femasys has taken concepts internally conceived and protected through development, including domestic and foreign regulatory approvals, and production, through in-house manufacturing. FemBloc® (FemBloc), the Company’s solution for permanent birth control, is based on the Company’s non-surgical platform technology and we recently completed a validation study under an approved Investigational Device Exemption (IDE) from the U.S. Food and Drug Administration (FDA) and plan to use the study data to support which of the two confirmation tests (ultrasound or radiology) should be studied in a new pivotal trial to support a potential future application for PMA for FemBloc. Results of the small study along with the trial design for the pivotal clinical trial was submitted to the FDA in the first quarter of 2023. FemaSeed® (FemaSeed), a solution which enables directed intrauterine insemination to improve on traditional intrauterine insemination (IUI) and provides a lower cost option to in vitro fertilization methods, received approval in April 2021 from the FDA on its IDE and the clinical study was initiated in July 2021. An updated study design received approval in October 2022 from the FDA. FemaSeed is approved for sale in Canada. FemVue® (FemVue), a solution that enables fallopian tube assessment with ultrasound as an alternative to the radiologic approach (hysterosalpingogram) for the diagnosis of infertility, is approved for sale in the U.S., Japan, and Canada. FemChec® (FemChec), allows for fallopian tube evaluation after a FemBloc procedure to confirm occlusion (or procedure success). FemCerv® (FemCerv) is a solution for complete tissue sampling with minimal contamination of the endocervical canal as an alternative to the single biopsy method, and is approved for sale in the U.S. FemCath™ (FemCath), allows for selective evaluation of an individual fallopian tube as an alternative to the traditional intrauterine catheter that is undirected, is approved for sale in the U.S.

Basis of Presentation

The Company has prepared the accompanying financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to these rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and footnotes related thereto for the year ended December 31, 2022 included in our Annual Report on Form 10K filed with the SEC on March 30, 2023 (the Annual Report). ,There have been no material changes to the Company’s significant accounting policies described in Note 2 to the financial statements included in the Annual Report.

In the opinion of management, the unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of its operations and cash flows at the dates for periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting periods. The most significant estimates used in these financial statements include the valuation of stock options, warrants, useful lives of property and equipment and intangible assets.. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Liquidity

As of March 31, 2023, the Company had cash and cash equivalents of $10,161,338. The Company plans to finance its operations and development needs with its existing cash and cash equivalents, additional equity and/or debt financing arrangements, and revenue primarily from the sale of FemVue to support the Company’s research and development activities, largely in connection with FemBloc and FemaSeed. There can be no assurance that the Company will be able to obtain additional financing on terms acceptable to the Company, on a timely basis, or at all. If the Company is not able to obtain sufficient funds on acceptable terms when needed, the Company’s business, results of operations, and financial condition could be materially adversely impacted.

For the three months ended March 31, 2023, the Company generated a net loss of $2,946,257. The Company expects such losses to increase over the next few years as the Company advances FemBloc and FemaSeed through clinical development until FDA approval is received and the products are available to be marketed.

10

FEMASYS INC.

Notes to Financial Statements

(unaudited)

The financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net operating losses in every year since inception and has an accumulated deficit as of March 31, 2023 of $97,080,762 and expects to incur additional losses and negative operating cash flows for at least the next twelve months. The Company’s ability to meet its obligations is dependent upon its ability to generate sufficient cash flows from operations and future financing transactions (see Note 12). Although management expects the Company will continue as a going concern, there is no assurance that management’s plans will be successful since the availability and amount of such funding is not certain. Accordingly, substantial doubt exists about the Company’s ability to continue as a going concern for at least one year from the issuance of these financial statements. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

Recently Issued Accounting Pronouncements – Recently Adopted

On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which the Financial Accounting Standards Board (FASB) issued in June 2016. The new standard changes the accounting for credit losses for financial assets and certain other instruments, including trade receivables and contract assets, that are not measured at fair value through net income. Under legacy standards, we recognize an impairment of receivables when it was probable that a loss had been incurred. Under the new standard, we are required to recognize estimated credit losses expected to occur over the estimated life or remaining contractual life of an asset (which includes losses that may be incurred in future periods) using a broader range of information including reasonable and supportable forecasts about future economic conditions. The guidance is effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years with early adoption permitted. The Company’s adoption of this new guidance did not have a material impact on the Company’s financial statements and footnote disclosures (unaudited).

Recently Issued Accounting Pronouncements – Not Yet Adopted

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s financial statements.

(2) Cash and Cash Equivalents

As of March 31, 2023 and December 31, 2022, money market funds included in cash and cash equivalents on the balance sheets were $60,805 and $12,553,557, respectively, which represent level 1 within the fair value hierarchy where there are quoted prices in active markets for identical assets.

(3) Inventories

Inventory stated at cost, net of reserve, consisted of the following:

	March 31,		December 31,
	2023		2022
Materials	$	283,655		244,498
Work in progress		98,775		100,453
Finished goods		118,311		91,772
Inventory, net	$	500,741		436,723

The FemVue reserve for slow moving, obsolete, or unusable inventories was $2,380 and $2,103 as of March 31, 2023 and December 31, 2022, respectively.

(4) Accrued Expenses

Accrued expenses consisted of the following:

	March 31,		December 31,
	2023		2022
Clinical trial costs	$	315,428		333,440
Compensation costs		111,457		85,191
Franchise taxes		7,100		26,886
Other		101,432		11,197
Accrued expenses	$	535,417		456,714

11

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(5) Clinical Holdback

The following table shows the activity within the clinical holdback liability accounts for the three months ended March 31, 2023:

Balance at December 31, 2022	$	141,864
Clinical holdback retained		2,634
Clinical holdback paid		(328	)
Balance at March 31, 2023	$	144,170
Less: clinical holdback - current portion		(45,352	)
Clinical holdback - long-term portion	$	98,818

(6) Revenue Recognition

Revenue is recognized upon shipment of our goods based upon contractually stated pricing at standard payment terms ranging from 30 to 60 days. All revenue is recognized point in time and no revenue is recognized over time. For the three months ended March 31, 2023 and 2022, there was no revenue recognized from performance obligations satisfied or partially satisfied in prior periods, nor were there any unsatisfied performance obligations as of March 31, 2023 or 2022.

The majority of products sold directly to U.S customers are shipped via common carrier, and the customer pays for shipping and handling and assumes control Free on Board (FOB) shipping point. Products shipped to our international distributors are in accordance with their respective agreements; however, the shipping terms are generally EX-Works, reflecting that control is assumed by the distributor at the shipping point. Returns are only accepted with prior authorization from the Company. Items to be returned must be in original unopened cartons and are subject to a 30% restocking fee. Throughout the periods presented, the Company has not had a history of significant returns.

The following table summarizes our sales, primarily from FemVue, by geographic region as follows:

	Three Months Ended March 31,
Primary geographical markets	2023		2022
U.S.	$	293,984		263,360
International		—		58,045
Total	$	293,984		321,405

(7) Commitments and Contingencies

Legal Claims

Occasionally, the Company may be a party to legal claims or proceedings of which the outcomes are subject to significant uncertainty. In accordance with Accounting Standards Codification (ASC) 450, Contingencies, the Company will assess the likelihood of an adverse judgment for any outstanding claim as well as ranges of probable losses. When it has been determined that a loss is probable and the amount can be reasonably estimated, the Company will record a liability. For both periods presented, there were no material legal contingencies requiring accrual or disclosure.

The Company, as permitted under Delaware law and in accordance with its bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The Company entered into employment agreements with its officers, which provides for indemnification protection in the executive’s capacity as an officer for actions taken within the scope of employment. The maximum amount of potential future indemnification is unlimited; however, the Company has obtained director and officer insurance that limits its exposure. The Company believes the fair value for these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations as of March 31, 2023 and December 31, 2022.

12

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(8) Notes Payable

AFCO Credit Corporation (AFCO)

As of March 31, 2023 and December 31, 2022, the principal balance on the remaining AFCO promissory note was $0 and $141,298, respectively and is included in Notes payable in the accompanying balance sheets. Interest expense in connection with the AFCO promissory notes was $1,319 and $1,796 for the three months ended March 31, 2023 and 2022, respectively.

(9) Stockholders’ Equity

In July 2022, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. (“Piper Sandler” or the “Sales Agent”) and filed a related Prospectus establishing an “at-the-market” facility, pursuant to which the Company may offer and sell shares of common stock having an aggregate offering price of up to $8,800,000 from time to time through the Sales Agent pursuant to the Prospectus. For the three months ended March 31, 2023, 2,869 shares of common stock were sold under the Equity Distribution Agreement.

As of March 31, 2023, the Company had 11,872,573 shares of common stock outstanding, and no dividends have been declared or paid.

(10) Equity Incentive Plans

Stock-Based Awards

(a) Stock Option Plans

Activity under the Company’s stock option plans for the three months ended March 31, 2023 was as follows:

	Number of			Weighted Average
	Options			Exercise Price
Outstanding at December 31, 2022		931,550		$	3.97
Granted		5,000			1.18
Forfeited		(50,055	)		1.87
Outstanding at March 31, 2023		886,495		$	4.07
Vested and exercisable at March 31, 2023		479,296		$	3.30

The 5,000 options granted under our 2021 Stock Option Plan for the three months ended March 31, 2023 was to a nonemployee with a fair value of $0.62 using the Black-Scholes assumptions as follows:

Fair Value of Awards	$	0.62
Grant Price	$	1.18
Expected term (in years)		2.00
Risk‑free interest rate		4.39	%
Dividend yield		—	%
Expected volatility		95.48	%

No options were exercised for the three months ended March 31, 2023 under our stock option plans.

As of March 31, 2023, the total number of shares of common stock reserved for future awards under the 2021 Stock Option Plan was 1,754,980.

(b) Inducement Grants

For the three months ended March 31, 2023, no inducement awards were granted. As of March 31, 2023, 150,000 shares were outstanding with a weighted average exercise price of $2.42, and 25,000 shares were vested and exercisable with a weighted average exercise price of $2.97.

13

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(c) Share-Based Compensation Expense

The following table shows the share-based compensation expense related to vested stock option grants to employees and nonemployees by financial statement line item on the accompanying statement of comprehensive loss:

	Three Months Ended March 31,
	2023			2022
Research and development	$	25,059			29,139
Sales and marketing		(2,544	)		1,126
General and administrative		34,439			14,094
Total share-based compensation expense	$	56,954			44,359

As March 31, 2023, the remaining share-based compensation expense that is expected to be recognized in future periods for employees and nonemployees is $926,280, which includes $463,311 of compensation expense to be recognized upon achieving certain performance conditions. For service-based awards, the $462,969 of unrecognized expense is expected to be recognized over a weighted average period of 2.7 years.

(d) Employee Stock Purchase Plan (ESPP)

For the three months ended March 31, 2023, no shares have been issued under the Company’s ESPP Plan. As of March 31, 2023, the total number of shares of common stock reserved for future awards under the ESPP Plan was 398,561.

(11) Net Loss per Share Attributable to Common Stockholders

The following table sets forth the computation of the basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
Net loss attributable to common stockholders, basic & diluted	$	(2,946,257	)		(2,883,030	)
Weighted average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,872,255			11,804,165
Net loss per share attributable to common stockholders, basic and diluted	$	(0.25	)		(0.24	)

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

	March 31, 2023		March 31, 2022
Options to purchase common stock		1,036,495		1,055,997
Warrants to purchase to common stock		233,460		244,572
Total potential shares		1,269,955		1,300,569

(12) Subsequent Events

Effective April 18, 2023, the Company suspended its “at-the-market” facility with the Sales Agent pursuant to that certain prospectus supplement dated July 12, 2022 and Equity Distribution Agreement, dated July 1, 2022 and terminated the continuous offering under such prospectus. The Company will not make any sales of its Common Stock pursuant to the Equity Distribution Agreement unless and until a new prospectus supplement is filed with the Securities and Exchange Commission; however, the Equity Distribution Agreement remains in full force and effect.

On April 18, 2023, the Company entered into a definitive agreement for the issuance and sale of an aggregate of 3,196,722 of its shares of common stock (or common stock equivalents) at a purchase price of $1.22 per share (or common stock equivalent) in a registered direct offering priced at-the-market under Nasdaq rules. In a concurrent private placement, the Company has also agreed to issue and sell unregistered warrants to purchase up to an aggregate of 3,196,722 shares of common stock. The gross proceeds from this offering was $3,900,000. The net proceeds to the Company from this offering was approximately $3,400,000, after deducing placement agent fees expenses and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes. The offering closed on April 20, 2023.

14

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or the SEC, on March 30, 2023. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “goal,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential” and similar expressions intended to identify forward-looking statements and reflect our beliefs and opinions on the relevant subject. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q. The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date hereof. These statements are based upon information available to us as of the filing date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

Overview

We are a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. Our mission is to provide women with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. We are a woman-founded and led company with an expansive, internally created intellectual property portfolio with over 150 patents globally, in- house chemistry, manufacturing, and controls (CMC) and device manufacturing capabilities and proven ability to develop and commercialize products. Our suite of products and product candidates address what we believe are multi-billion dollar global market segments in which there has been little advancement for many years, helping women avoid pharmaceutical solutions, implants and surgery that can be expensive and expose women to harm. With an initial focus in the area of reproductive health, our two lead product candidates offer solutions for two ends of the spectrum: FemBloc for permanent birth control and FemaSeed as an artificial insemination infertility treatment.

Corporate Update

On April 18, 2023, we announced that Health Canada, the Public Health Agency of Canada, has granted product approval of FemaSeed, the first-ever infertility solution designed to deliver sperm directly to where contraception occurs. FemaSeed is Femasys’ localized artificial insemination option that is designed to be less invasive and more affordable than assisted reproduction, such as in vitro fertilization (IVF) or intracytoplasmic sperm injection (ICSI).

Effective April 18, 2023, we suspended our “at-the-market” facility with the Sales Agent pursuant to a certain prospectus supplement dated July 12, 2022 and Equity Distribution Agreement, dated July 1, 2022 and terminated the continuous offering under such prospectus. The Company will not make any sales of its Common Stock pursuant to the Equity Distribution Agreement unless and until a new prospectus supplement is filed with the Securities and Exchange Commission; however, the Equity Distribution Agreement remains in full force and effect.

On April 18, 2023, we entered into a definitive agreement for the issuance and sale of an aggregate of 3,196,722 of its shares of common stock (or common stock equivalents) at a purchase price of $1.22 per share (or common stock equivalent) in a registered direct offering priced at-the-market under Nasdaq rules. In a concurrent private placement, we also issued and sold unregistered warrants to purchase up to an aggregate of 3,196,722 shares of common stock.  The gross proceeds from this offering was $3,900,000. The net proceeds to us from this offering was approximately $3,400,000, after deducing placement agent fees expenses and estimated offering expenses payable by us. We intend to use the net proceeds from this offering for general corporate purposes. The offering closed on April 20, 2023.

On May 3, 2023, we announced that Health Canada, the Public Health Agency of Canada, has granted product approval of FemCerv, the first endocervical tissue sampler (curette) designed to collect and contain a comprehensive sample to maximize quality and quantity. FemCerv captures a tissue sample in a relatively pain-free manner and has the potential to be an improvement over the existing standard of care to diagnose the presence of cancerous cells in a woman’s cervix.

Clinical Update

FemaSeed – Our Artificial Insemination Solution. In April 2021 we received an IDE approval from FDA that allowed us to initiate a pivotal trial for the FemaSeed device. The first subject was enrolled in July 2021. In October 2022, we announced an updated study design for the pivotal trial, which now focuses on couples experiencing male factor infertility. This update reflects a revised strategy to address this underserved population experiencing infertility with a goal of facilitating accelerated enrollment. Completion of enrollment is now expected in the fourth quarter of 2023 followed by a planned submission of the results from the trial to FDA in support of a future de novo classification request for FemaSeed. Extenuating circumstances at clinical trial sites have resulted in a slowdown in enrollment due to consolidation activities, staffing shortages and the aftermath of the overturn of Roe v Wade. It has been reported that there have been over 25 transactions since the start of 2021 (including 25% of our clinical trial sites) in the infertility market, which is rapidly evolving into large commercial entities. This rapidly changing market dynamics may be disruptive to the practice and affect the conduct of clinical studies as integration occurs. The American Society of Reproductive Medicine (ASRM) issued a statement March 17, 2023 on the abortion policy proposals affecting reproductive medicine. ASRM stated, “At the crux of the issue many of the proposals to ban or otherwise limit access to abortion care fail to protect the use of assisted reproductive technologies, including IVF, and so-called “personhood” measures (defining life as beginning at conception or fertilization) are multiplying across the nation, causing alarm bells to sound for medical practitioners and infertility patients alike. Such proposals could, intentionally or not, limit and even ban the use of IVF and routine, safe, and medically proven procedures, such as the removal of an embryo that fails to implant in a uterus, or the disposal of unused embryos.” This uncertainty and limitations of staff availability may affect subject enrollment in clinical studies being conducted at facilities providing infertility services.

Results of Operations

Comparison of the Three Months Ended March 31, 2023 and 2022

The following table shows our results of operations for the three months ended March 31, 2023 and 2022:

15

	Three Months Ended March 31,
	2023			2022			Change			% Change
Sales	$	293,984			321,405			(27,421	)		-8.5	%
Cost of sales		105,120			122,675			(17,555	)		-14.3	%
Gross margin		188,864			198,730			(9,866	)		-5.0	%
Operating expenses:
Research and development		1,537,439			1,421,063			116,376			8.2	%
Sales and marketing		244,896			68,863			176,033			255.6	%
General and administrative		1,315,137			1,447,355			(132,218	)		-9.1	%
Depreciation and amortization		133,066			144,199			(11,133	)		-7.7	%
Total operating expenses		3,230,538			3,081,480			149,058			4.8	%
Loss from operations		(3,041,674	)		(2,882,750	)		(158,924	)		5.5	%
Other income (expense):
Interest income		97,089			2,454			94,635			3856.4	%
Interest expense		(1,672	)		(2,734	)		1,062			-38.8	%
Other income (expense), net		95,417			(280	)		95,697			-34177.5	%
Net loss	$	(2,946,257	)		(2,883,030	)		(63,227	)		2.2	%

Sales

Sales decreased by $27,421, or 8.5%, to $293,984 for the three months ended March 31, 2023 from $321,405 for the three months ended March 31, 2022. U.S. sales increased by $30,624, or 11.6%, for the three months ended March 31, 2023 as compared to the same period last year; however, there were no international sales for the three months ended March 31, 2023 as compared to $58,045 reported for the same period last year resulting in a net decrease of $27,421 in sales. U.S. units sold increased by 7.1% for the three months ended March 31, 2023 as compared to the same period last year.

Cost of sales and gross margin percentage

Cost of sales decreased by $17,555, or 14.3%, to $105,120 for the three months ended March 31, 2023 from $122,675 for the three months ended March 31, 2022 mainly due to the decrease in sales, sales mix, and certain manufacturing efficiencies.  Gross margin percentage was 64.2% for the three months ended March 31, 2023 as compared to 61.8% for the three months ended March 31, 2022.Gross margins improved due to higher U.S. sales which have lower cost of sales than international sales.

Research and development

The following table summarizes our R&D expenses incurred during the periods presented:

	Three Months Ended March 31,
	2023		2022
Compensation and related personnel costs	$	900,288		764,792
Clinical-related costs		366,360		443,970
Material and development costs		167,161		131,450
Professional and outside consultant costs		91,935		68,664
Other costs		11,695		12,187
Total research and development expenses	$	1,537,439		1,421,063

R&D expenses increased by $116,376 or 8.2%, to $1,537,439 for the three months ended March 31, 2023 from $1,421,063 for the three months ended March 31, 2022. The net increase of $116,376 mainly consists of the $135,496 increase in compensation and related personnel costs primarily due to increasing costs associated with hiring and retaining personnel to support our clinical trial costs.

Sales and marketing

Sales and marketing expenses increased by $176,033 or 255.6%, to $244,896 for the three months ended March 31, 2023 from $68,863 for the three months ended March 31, 2022 largely due to an increase in compensation and related personnel costs due to an increase in headcount and marketing costs to promote our commercial efforts.

General and administrative

General and administrative expenses decreased by $132,218, or 9.1%, to $1,315,137 for the three months ended March 31, 2023 from $1,447,355 for the three months ended March 31, 2022. The decrease was largely due to a decrease in salaries and related personnel costs, a decrease in facility and other overhead costs mainly for directors & officers insurance, and a decrease in legal and certain professional costs.

16

Depreciation and amortization

Depreciation and amortization expenses decreased by $11,133, or 7.7%, to $133,066 for the three months ended March 31, 2023 from $144,199 for the three months ended March 31, 2022 due to reduction of depreciation expense associated with our fixed assets and a reduction in amortization expense associated with our intangible assets.

Other income (expense)

Other income (expense), net increased by $95,697, or 34177.5%, to $95,417 for the three months ended March 31, 2023 from $(280) for the three months ended March 31, 2022 mainly due to an increase in interest income.

Liquidity and Capital Resources

Sources of liquidity

Since our inception through March 31, 2023, our operations have been financed primarily by net proceeds from the sale of our common stock and convertible preferred stock, indebtedness and, to a lesser extent, product revenue. As of March 31, 2023, we had $10,161,338 of cash and cash equivalents and an accumulated deficit of $97,080,762.

On July 1, 2022, we entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. (“Piper Sandler” or the “Sales Agent”) and filed a related Prospectus establishing an “at-the-market” facility, pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $8,800,000 from time to time through the Sales Agent pursuant to the Prospectus. As of March 31, 2023, 54,120 shares of our common stock had been sold under the Equity Distribution Agreement.

On April 18, 2023, we entered into a definitive agreement for the issuance and sale of an aggregate of 3,196,722 of its shares of common stock (or common stock equivalents) at a purchase price of $1.22 per share (or common stock equivalent) in a registered direct offering priced at-the-market under Nasdaq rules. In a concurrent private placement, we have also agreed to issue and sell unregistered warrants to purchase up to an aggregate of 3,196,722 shares of common stock.  The gross proceeds from this offering was $3,900,000. The net proceeds to us from this offering was approximately $3,400,000, after deducing placement agent fees expenses and estimated offering expenses payable by us. We intend to use the net proceeds from this offering for general corporate purposes. The offering closed on April 20, 2023.

Funding requirements

Based on our current operating plan, our current cash and cash equivalents, along with the net proceeds from our recent financing are expected to be sufficient to fund our ongoing operations into the second quarter of 2024. Our estimate as to how long we expect our existing cash and cash equivalents to be able to continue to fund our operations is based on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect. Changing circumstances, some of which may be beyond our control, could cause us to consume capital significantly faster than we currently anticipate. We do not expect liquidity to be sufficient for twelve months from the date of these financial statements. As a result of our current limited financial liquidity, we have concluded that substantial doubt exists about our ability to continue as a going concern.

Our cash and cash equivalents as of March 31, 2023 will not be sufficient to fund all of our product candidates through regulatory approval, and we anticipate needing to raise additional capital to complete the development and commercialization of our product candidates. However, we can give no assurances that we will be able to secure additional sources of funds to support our operations, or if such funds will be available to us, that such additional financing will be sufficient to meet our needs or be on terms acceptable to us. This risk may increase if economic and market conditions deteriorate. If we are unable to obtain additional financing when needed, we may need to terminate, significantly modify, or delay the development of our product candidates, or we may need to obtain funds through collaborations or otherwise on terms that may require us to relinquish rights to our technologies or product candidates that we might otherwise seek to develop or commercialize independently. If we are unable to raise adequate additional capital as and when required in the future, we could be forced to cease development activities and terminate our operations, and you could experience a complete loss of your investment.

Cash Flows

Comparison of the Three Months Ended March 31, 2023 and 2022

The following table summarizes our cash flows for the three months ended March 31, 2023 and 2022:

17

	Three Months Ended March 31,
	2023			2022
Net cash used in operating activities	$	(2,647,637	)		(2,754,021	)
Net cash used in investing activities		(8,901	)		(120,368	)
Net cash used in financing activities		(144,060	)		(141,006	)
Net change in cash and cash equivalents	$	(2,800,598	)		(3,015,395	)

Operating activities

For the three months ended March 31, 2023, cash used in operating activities was $2,647,637, attributable to a net loss of $2,946,257, offset by a net change in our net operating assets and liabilities of $32,666 and non-cash charges of $265,954. Non-cash charges largely consisted of $133,066 in depreciation and amortization, $75,635 in right-of-use amortization, and $56,954 in stock-based compensation.  The change in our net operating assets and liabilities was primarily due to changes of $46,485 in accounts receivable, $64,318 in inventory and $91,211 in lease liabilities, which were offset by changes in accounts payable and accrued expenses of $81,719 and $150,654 in other assets.

For the three months ended March 31, 2022, cash used in operating activities was $2,754,021, attributable to a net loss of $2,883,030, a net change in our net operating assets and liabilities of $148,482 and offset partially by non-cash charges of $277,491. Non-cash charges largely consisted of $144,199 in depreciation and amortization, $86,233 in right-of-use amortization, and $44,359 in stock-based compensation.  The change in our net operating assets and liabilities was primarily due to changes of $86,044 in accounts receivable and $97,851 in lease liabilities, which were offset partially by changes in accounts payable and accrued expenses of $64,296.

Investing activities

For the three months ended March 31, 2023, cash used in investing activities for the purchase of property and equipment was $8,901.

For the three months ended March 31, 2022, cash used in investing activities for the purchase of property and equipment was $120,368.

Financing activities

For the three months ended March 31, 2023, cash used in financing activities was $144,060, attributable to repayments on a note payable of $141,298, payments under lease obligations of $6,135, and offset by proceeds from issuance of common stock of $3,373.

For the three months ended March 31, 2022, cash used in financing activities was $141,006, attributable to repayments on a note payable of $135,457 and payments under lease obligations of $5,549.

Critical Accounting Estimates

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 U.S. generally accepted accounting principles, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions for the reported amounts of assets, liabilities, revenue, expenses and related disclosures. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and any such differences may be material.

While our significant accounting policies are more fully described in Note 2 to our financial statements appearing the Annual Report on Form 10-K for the year ended December 31, 2022 as filed on March 30, 2023, we believe the following discussion addresses our most critical accounting policies, which are those that are most important to our financial condition and results of operations and require our most difficult, subjective and complex judgments.

Revenue recognition

Our policy is to recognize revenue when a customer obtains control of the promised goods under Accounting Standards Codification 606-Revenue from Contracts with Customers (Topic 606), which we adopted effective January 1, 2018. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods, and we have elected to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. We do not have multiple performance obligations in our customer orders, so revenue is recognized upon shipment of our goods based upon contractually stated pricing at standard payment terms ranging from 30 to 60 days. All revenue is recognized point in time and no revenue is recognized over time.

The majority of products sold directly to U.S. customers are shipped via common carrier, and the customer pays for shipping and handling and assumes control Free on Board (FOB) shipping point. Products shipped to our international distributors are in accordance with their respective agreements; however, the shipping terms are generally EX-Works, reflecting that control is assumed by the distributor at the shipping point. Returns are only accepted with prior authorization from the Company. Items to be returned must be in original unopened cartons and are subject to a 30% restocking fee. As of March 31, 2023, we have not had a history of significant returns.

18

Accrued expenses

We accrue expenses for estimated costs of R&D activities conducted by our third-party service providers, which include the conduct of preclinical studies and clinical trials. We record the estimated costs of R&D activities based upon the estimated amount of services provided but not yet invoiced. These costs, at times, may be a significant component of the research and development expenses and the Company makes estimates in determining the accrued expense each period. As actual costs become known, the Company adjusts its accrual. These accrued R&D costs are included in accrued expenses on the balance sheet and within R&D expense on the statement of comprehensive loss.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) accumulated and communicated to our management, including to our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure. Our management, with the participation of our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our management has concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2023.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer (principal financial and accounting officer), does not expect that our disclosure controls and procedures or internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues within a company are detected. The inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

From time to time we may be involved in legal proceedings arising in connection with our business. Based on information currently available, we believe that the amount, or range, of reasonably possible losses in connection with any pending actions against us in excess of established reserves, in the aggregate, is not material to our consolidated financial condition or cash flows. However, losses may be material to our operating results for any particular future period, depending on the level of income for such period.

Item 1A. Risk Factors

You should carefully review and consider the information regarding certain risks and uncertainties facing us that could have a material adverse effect on our business prospects, financial condition, results of operations, liquidity and available capital resources set forth in Part I, Item 1A. Risk Factors, of the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2023.

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

None.

19

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

			Incorporated by Reference
Exhibit			File
	Number Description of Document	Schedule/Form	Number	Exhibit	Filing Date
3.1	First Amendment to the Amended and Restated Bylaws of Femasys Inc.	Form 8-K	001-40492	3.1	March 30, 2023
31.1*	Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), 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 its 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 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 (formatted as inline XBRL and     contained in Exhibit 101)
*Filed herewith

20

SIGNATURES

Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Suwanee, State of Georgia, on this 11 day of May 2023.

FEMASYS INC.

Dated: May 11, 2023	By: /s/ Kathy Lee-Sepsick
	Kathy Lee-Sepsick
	Chief Executive Officer and President
	By: /s/ Dov Elefant
	Dov Elefant
	Chief Financial Officer
	(principal financial and accounting officer)

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kathy Lee-Sepsick, certify that:

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

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

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

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

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

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

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

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

	FEMASYS INC.
Date:  May 11, 2023	By:	/s/ Kathy Lee-Sepsick
		Kathy Lee-Sepsick
		Chief Executive Officer and President
		(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dov Elefant, certify that:

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

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

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

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

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

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

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

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

	FEMASYS INC.
Date:  May 11, 2023	By:	/s/ Dov Elefant
		Dov Elefant
		Chief Financial Officer
		(principal financial and accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Femasys Inc., a Delaware Corporation, (the “Company”) on Form 10-Q for the quarter ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify the following pursuant to Section 18, U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:

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

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

	FEMASYS INC.
Date:  May 11, 2023	By:	/s/ Kathy Lee-Sepsick
		Kathy Lee-Sepsick
		Chief Executive Officer and President
		(principal executive officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Femasys Inc., a Delaware Corporation, (the “Company”) on Form 10-Q for the quarter ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify the following pursuant to Section 18, U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:

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

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

	FEMASYS INC.
Date:  May 11, 2023	By:	/s/ Dov Elefant
		Dov Elefant
		Chief Financial Officer
		(principal financial and accounting officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-40492
Entity Registrant Name	Femasys Inc.
Entity Central Index Key	0001339005
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3713499
Entity Address, Address Line One	3950 Johns Creek Court
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Suwanee
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30024
City Area Code	770
Local Phone Number	500-3910
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Title of 12(b) Security	Common stock, $0.001 par value
Trading Symbol	FEMY
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		13,190,573

XML

Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 10,161,338	$ 12,961,936
Accounts receivable, net	123,955	77,470
Inventory, net	500,741	436,723
Other current assets	542,067	655,362
Total current assets	11,328,101	14,131,491
Property and equipment, at cost:
Leasehold improvements	1,195,637	1,195,637
Office equipment	99,344	99,344
Furniture and fixtures	419,303	419,303
Machinery and equipment	2,601,389	2,572,243
Construction in progress	406,588	413,843
Property and equipment, gross	4,722,261	4,700,370
Less accumulated depreciation	(3,344,400)	(3,217,319)
Net property and equipment	1,377,861	1,483,051
Long-term assets:
Lease right-of-use assets, net	239,351	319,557
Intangible assets, net of accumulated amortization	1,881	3,294
Other long-term assets	920,812	958,177
Total long-term assets	1,162,044	1,281,028
Total assets	13,868,006	16,895,570
Current liabilities:
Accounts payable	526,764	510,758
Accrued expenses	535,417	456,714
Note payable	0	141,298
Clinical holdback - current portion	45,352	45,206
Lease liabilities - current portion	305,071	373,833
Total current liabilities	1,412,604	1,527,809
Long-term liabilities:
Clinical holdback - long-term portion	98,818	96,658
Lease liabilities - long-term portion	0	28,584
Total long-term liabilities	98,818	125,242
Total liabilities	1,511,422	1,653,051
Commitments and contingencies
Stockholders' equity:
Common stock, $.001 par, 200,000,000 authorized, 11,989,796 shares issued and 11,872,573 outstanding as of March 31, 2023; and 11,986,927 shares issued and 11,869,704 outstanding as of December 31, 2022	11,990	11,987
Treasury stock, 117,223 shares	(60,000)	(60,000)
Warrants	567,972	567,972
Additional paid-in-capital	108,917,384	108,857,065
Accumulated deficit	(97,080,762)	(94,134,505)
Total stockholders' equity	12,356,584	15,242,519
Total liabilities and stockholders' equity	$ 13,868,006	$ 16,895,570

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Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	11,989,796	11,986,927
Common stock, outstanding (in shares)	11,872,573	11,869,704
Treasury stock, shares (in shares)	117,223	117,223

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Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statements of Comprehensive Loss [Abstract]
Sales	$ 293,984	$ 321,405
Cost of sales	105,120	122,675
Gross margin	188,864	198,730
Operating expenses:
Research and development	1,537,439	1,421,063
Sales and marketing	244,896	68,863
General and administrative	1,315,137	1,447,355
Depreciation and amortization	133,066	144,199
Total operating expenses	3,230,538	3,081,480
Loss from operations	(3,041,674)	(2,882,750)
Other income (expense):
Interest income	97,089	2,454
Interest expense	(1,672)	(2,734)
Other income (expense), net	95,417	(280)
Net loss	(2,946,257)	(2,883,030)
Net loss attributable to common stockholders, basic	(2,946,257)	(2,883,030)
Net loss attributable to common stockholders, diluted	$ (2,946,257)	$ (2,883,030)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.25)	$ (0.24)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.25)	$ (0.24)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	11,872,255	11,804,165
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	11,872,255	11,804,165

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Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Treasury Stock [Member]	Warrants [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2021	$ 11,921	$ (60,000)	$ 702,492	$ 108,418,304	$ (82,740,335)	$ 26,332,382
Balance (in shares) at Dec. 31, 2021	11,921,388	117,223
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	$ 0	$ 0	0	44,359	0	44,359
Net loss	0	0	0	0	(2,883,030)	(2,883,030)
Balance at Mar. 31, 2022	$ 11,921	$ (60,000)	702,492	108,462,663	(85,623,365)	23,493,711
Balance (in shares) at Mar. 31, 2022	11,921,388	117,223
Balance at Dec. 31, 2022	$ 11,987	$ (60,000)	567,972	108,857,065	(94,134,505)	15,242,519
Balance (in shares) at Dec. 31, 2022	11,986,927	117,223
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with At-The-Market offering, net of issuance costs	$ 3	$ 0	0	3,365	0	3,368
Issuance of common stock in connection with At-The-Market offering, net of issuance costs (in shares)	2,869	0
Share-based compensation expense	$ 0	$ 0	0	56,954	0	56,954
Net loss	0	0	0	0	(2,946,257)	(2,946,257)
Balance at Mar. 31, 2023	$ 11,990	$ (60,000)	$ 567,972	$ 108,917,384	$ (97,080,762)	$ 12,356,584
Balance (in shares) at Mar. 31, 2023	11,989,796	117,223

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Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (2,946,257)	$ (2,883,030)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	131,653	136,769
Amortization	1,413	7,430
Amortization of right-of-use assets	75,635	86,233
Inventory reserve	300	2,700
Share-based compensation expense	56,954	44,359
Changes in operating assets and liabilities:
Accounts receivable	(46,485)	(86,044)
Inventory	(64,318)	(17,438)
Other assets	150,654	18,553
Accounts payable	3,016	102,855
Accrued expenses	78,703	(38,559)
Lease liabilities	(91,211)	(97,851)
Other liabilities	2,306	(29,998)
Net cash used in operating activities	(2,647,637)	(2,754,021)
Cash flows from investing activities:
Purchases of furniture and equipment	(8,901)	(120,368)
Net cash used in investing activities	(8,901)	(120,368)
Cash flows from financing activities:
Proceeds from issuance of common stock	3,373	0
Repayment of notes payable	(141,298)	(135,457)
Payments under lease obligations	(6,135)	(5,549)
Net cash used in financing activities	(144,060)	(141,006)
Net change in cash and cash equivalents	(2,800,598)	(3,015,395)
Cash and cash equivalents:
Beginning of period	12,961,936	24,783,029
End of period	10,161,338	21,767,634
Cash paid for:
Interest	1,672	2,734
Income taxes	0	800
Non-cash investing and financing activities:
Property and equipment costs included in accounts payable	12,990	0
Commissions and deferred offering costs relating to proceeds from issuance of common stock	109	0
Prepaid insurance financed with promissory notes	$ 0	$ 45,666

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Organization, Nature of Business, and Liquidity

3 Months Ended

Mar. 31, 2023

Organization, Nature of Business, and Liquidity [Abstract]

Organization, Nature of Business, and Liquidity

(1) Organization, Nature of Business, and Liquidity

Organization and Nature of Business

Femasys Inc. (the Company or Femasys) was incorporated in Delaware on February 19, 2004 and is headquartered in Suwanee, Georgia. The Company is a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. The Company’s mission is to provide women with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. The Company currently operates as one segment with an initial focus on servicing the reproductive health needs for those seeking permanent birth control or solutions for infertility issues.

Femasys has an expansive intellectual property portfolio which covers both design and utility patents in the U.S. and significant ex-U.S. markets for each product initiative. Femasys has taken concepts internally conceived and protected through development, including domestic and foreign regulatory approvals, and production, through in-house manufacturing. FemBloc® (FemBloc), the Company’s solution for permanent birth control, is based on the Company’s non-surgical platform technology and we recently completed a validation study under an approved Investigational Device Exemption (IDE) from the U.S. Food and Drug Administration (FDA) and plan to use the study data to support which of the two confirmation tests (ultrasound or radiology) should be studied in a new pivotal trial to support a potential future application for PMA for FemBloc. Results of the small study along with the trial design for the pivotal clinical trial was submitted to the FDA in the first quarter of 2023. FemaSeed® (FemaSeed), a solution which enables directed intrauterine insemination to improve on traditional intrauterine insemination (IUI) and provides a lower cost option to in vitro fertilization methods, received approval in April 2021 from the FDA on its IDE and the clinical study was initiated in July 2021. An updated study design received approval in October 2022 from the FDA. FemaSeed is approved for sale in Canada. FemVue® (FemVue), a solution that enables fallopian tube assessment with ultrasound as an alternative to the radiologic approach (hysterosalpingogram) for the diagnosis of infertility, is approved for sale in the U.S., Japan, and Canada. FemChec® (FemChec), allows for fallopian tube evaluation after a FemBloc procedure to confirm occlusion (or procedure success). FemCerv® (FemCerv) is a solution for complete tissue sampling with minimal contamination of the endocervical canal as an alternative to the single biopsy method, and is approved for sale in the U.S. FemCath™ (FemCath), allows for selective evaluation of an individual fallopian tube as an alternative to the traditional intrauterine catheter that is undirected, is approved for sale in the U.S.

Basis of Presentation

The Company has prepared the accompanying financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to these rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and footnotes related thereto for the year ended December 31, 2022 included in our Annual Report on Form 10K filed with the SEC on March 30, 2023 (the Annual Report). ,There have been no material changes to the Company’s significant accounting policies described in Note 2 to the financial statements included in the Annual Report.

In the opinion of management, the unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of its operations and cash flows at the dates for periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting periods. The most significant estimates used in these financial statements include the valuation of stock options, warrants, useful lives of property and equipment and intangible assets.. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Liquidity

As of March 31, 2023, the Company had cash and cash equivalents of $10,161,338. The Company plans to finance its operations and development needs with its existing cash and cash equivalents, additional equity and/or debt financing arrangements, and revenue primarily from the sale of FemVue to support the Company’s research and development activities, largely in connection with FemBloc and FemaSeed. There can be no assurance that the Company will be able to obtain additional financing on terms acceptable to the Company, on a timely basis, or at all. If the Company is not able to obtain sufficient funds on acceptable terms when needed, the Company’s business, results of operations, and financial condition could be materially adversely impacted.

For the three months ended March 31, 2023, the Company generated a net loss of $2,946,257. The Company expects such losses to increase over the next few years as the Company advances FemBloc and FemaSeed through clinical development until FDA approval is received and the products are available to be marketed.

The financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net operating losses in every year since inception and has an accumulated deficit as of March 31, 2023 of $97,080,762 and expects to incur additional losses and negative operating cash flows for at least the next twelve months. The Company’s ability to meet its obligations is dependent upon its ability to generate sufficient cash flows from operations and future financing transactions (see Note 12). Although management expects the Company will continue as a going concern, there is no assurance that management’s plans will be successful since the availability and amount of such funding is not certain. Accordingly, substantial doubt exists about the Company’s ability to continue as a going concern for at least one year from the issuance of these financial statements. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

Recently Issued Accounting Pronouncements – Recently Adopted

On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which the Financial Accounting Standards Board (FASB) issued in June 2016. The new standard changes the accounting for credit losses for financial assets and certain other instruments, including trade receivables and contract assets, that are not measured at fair value through net income. Under legacy standards, we recognize an impairment of receivables when it was probable that a loss had been incurred. Under the new standard, we are required to recognize estimated credit losses expected to occur over the estimated life or remaining contractual life of an asset (which includes losses that may be incurred in future periods) using a broader range of information including reasonable and supportable forecasts about future economic conditions. The guidance is effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years with early adoption permitted. The Company’s adoption of this new guidance did not have a material impact on the Company’s financial statements and footnote disclosures (unaudited).

Recently Issued Accounting Pronouncements – Not Yet Adopted

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s financial statements.

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Cash and Cash Equivalents

3 Months Ended

Mar. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

(2) Cash and Cash Equivalents

As of March 31, 2023 and December 31, 2022, money market funds included in cash and cash equivalents on the balance sheets were $60,805 and $12,553,557, respectively, which represent level 1 within the fair value hierarchy where there are quoted prices in active markets for identical assets.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventories [Abstract]

Inventories

(3) Inventories

Inventory stated at cost, net of reserve, consisted of the following:

	March 31,		December 31,
	2023		2022
Materials	$	283,655		244,498
Work in progress		98,775		100,453
Finished goods		118,311		91,772
Inventory, net	$	500,741		436,723

The FemVue reserve for slow moving, obsolete, or unusable inventories was $2,380 and $2,103 as of March 31, 2023 and December 31, 2022, respectively.

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Accrued Expenses

3 Months Ended

Mar. 31, 2023

Accrued Expenses [Abstract]

Accrued Expenses

(4) Accrued Expenses

Accrued expenses consisted of the following:

	March 31,		December 31,
	2023		2022
Clinical trial costs	$	315,428		333,440
Compensation costs		111,457		85,191
Franchise taxes		7,100		26,886
Other		101,432		11,197
Accrued expenses	$	535,417		456,714

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Clinical Holdback

3 Months Ended

Mar. 31, 2023

Clinical Holdback [Abstract]

Clinical Holdback

(5) Clinical Holdback

The following table shows the activity within the clinical holdback liability accounts for the three months ended March 31, 2023:

Balance at December 31, 2022	$	141,864
Clinical holdback retained		2,634
Clinical holdback paid		(328	)
Balance at March 31, 2023	$	144,170
Less: clinical holdback - current portion		(45,352	)
Clinical holdback - long-term portion	$	98,818

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Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

Revenue Recognition

(6) Revenue Recognition

Revenue is recognized upon shipment of our goods based upon contractually stated pricing at standard payment terms ranging from 30 to 60 days. All revenue is recognized point in time and no revenue is recognized over time. For the three months ended March 31, 2023 and 2022, there was no revenue recognized from performance obligations satisfied or partially satisfied in prior periods, nor were there any unsatisfied performance obligations as of March 31, 2023 or 2022.

The majority of products sold directly to U.S customers are shipped via common carrier, and the customer pays for shipping and handling and assumes control Free on Board (FOB) shipping point. Products shipped to our international distributors are in accordance with their respective agreements; however, the shipping terms are generally EX-Works, reflecting that control is assumed by the distributor at the shipping point. Returns are only accepted with prior authorization from the Company. Items to be returned must be in original unopened cartons and are subject to a 30% restocking fee. Throughout the periods presented, the Company has not had a history of significant returns.

The following table summarizes our sales, primarily from FemVue, by geographic region as follows:

	Three Months Ended March 31,
Primary geographical markets	2023		2022
U.S.	$	293,984		263,360
International		—		58,045
Total	$	293,984		321,405

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

(7) Commitments and Contingencies

Legal Claims

Occasionally, the Company may be a party to legal claims or proceedings of which the outcomes are subject to significant uncertainty. In accordance with Accounting Standards Codification (ASC) 450, Contingencies, the Company will assess the likelihood of an adverse judgment for any outstanding claim as well as ranges of probable losses. When it has been determined that a loss is probable and the amount can be reasonably estimated, the Company will record a liability. For both periods presented, there were no material legal contingencies requiring accrual or disclosure.

The Company, as permitted under Delaware law and in accordance with its bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The Company entered into employment agreements with its officers, which provides for indemnification protection in the executive’s capacity as an officer for actions taken within the scope of employment. The maximum amount of potential future indemnification is unlimited; however, the Company has obtained director and officer insurance that limits its exposure. The Company believes the fair value for these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations as of March 31, 2023 and December 31, 2022.

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Notes Payable

3 Months Ended

Mar. 31, 2023

Notes Payable [Abstract]

Notes Payable

(8) Notes Payable

AFCO Credit Corporation (AFCO)

As of March 31, 2023 and December 31, 2022, the principal balance on the remaining AFCO promissory note was $0 and $141,298, respectively and is included in Notes payable in the accompanying balance sheets. Interest expense in connection with the AFCO promissory notes was $1,319 and $1,796 for the three months ended March 31, 2023 and 2022, respectively.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Stockholders' Equity [Abstract]

Stockholders' Equity

(9) Stockholders’ Equity

In July 2022, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. (“Piper Sandler” or the “Sales Agent”) and filed a related Prospectus establishing an “at-the-market” facility, pursuant to which the Company may offer and sell shares of common stock having an aggregate offering price of up to $8,800,000 from time to time through the Sales Agent pursuant to the Prospectus. For the three months ended March 31, 2023, 2,869 shares of common stock were sold under the Equity Distribution Agreement.

As of March 31, 2023, the Company had 11,872,573 shares of common stock outstanding, and no dividends have been declared or paid.

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Equity Incentive Plans

3 Months Ended

Mar. 31, 2023

Equity Incentive Plans [Abstract]

Equity Incentive Plans

(10) Equity Incentive Plans

Stock-Based Awards

(a) Stock Option Plans

Activity under the Company’s stock option plans for the three months ended March 31, 2023 was as follows:

	Number of			Weighted Average
	Options			Exercise Price
Outstanding at December 31, 2022		931,550		$	3.97
Granted		5,000			1.18
Forfeited		(50,055	)		1.87
Outstanding at March 31, 2023		886,495		$	4.07
Vested and exercisable at March 31, 2023		479,296		$	3.30

The 5,000 options granted under our 2021 Stock Option Plan for the three months ended March 31, 2023 was to a nonemployee with a fair value of $0.62 using the Black-Scholes assumptions as follows:

Fair Value of Awards	$	0.62
Grant Price	$	1.18
Expected term (in years)		2.00
Risk‑free interest rate		4.39	%
Dividend yield		—	%
Expected volatility		95.48	%

No options were exercised for the three months ended March 31, 2023 under our stock option plans.

As of March 31, 2023, the total number of shares of common stock reserved for future awards under the 2021 Stock Option Plan was 1,754,980.

(b) Inducement Grants

For the three months ended March 31, 2023, no inducement awards were granted. As of March 31, 2023, 150,000 shares were outstanding with a weighted average exercise price of $2.42, and 25,000 shares were vested and exercisable with a weighted average exercise price of $2.97.

(c) Share-Based Compensation Expense

The following table shows the share-based compensation expense related to vested stock option grants to employees and nonemployees by financial statement line item on the accompanying statement of comprehensive loss:

	Three Months Ended March 31,
	2023			2022
Research and development	$	25,059			29,139
Sales and marketing		(2,544	)		1,126
General and administrative		34,439			14,094
Total share-based compensation expense	$	56,954			44,359

As March 31, 2023, the remaining share-based compensation expense that is expected to be recognized in future periods for employees and nonemployees is $926,280, which includes $463,311 of compensation expense to be recognized upon achieving certain performance conditions. For service-based awards, the $462,969 of unrecognized expense is expected to be recognized over a weighted average period of 2.7 years.

(d) Employee Stock Purchase Plan (ESPP)

For the three months ended March 31, 2023, no shares have been issued under the Company’s ESPP Plan. As of March 31, 2023, the total number of shares of common stock reserved for future awards under the ESPP Plan was 398,561.

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Net Loss per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2023

Net Loss per Share Attributable to Common Stockholders [Abstract]

Net Loss per Share Attributable to Common Stockholders

(11) Net Loss per Share Attributable to Common Stockholders

The following table sets forth the computation of the basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
Net loss attributable to common stockholders, basic & diluted	$	(2,946,257	)		(2,883,030	)
Weighted average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,872,255			11,804,165
Net loss per share attributable to common stockholders, basic and diluted	$	(0.25	)		(0.24	)

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

	March 31, 2023		March 31, 2022
Options to purchase common stock		1,036,495		1,055,997
Warrants to purchase to common stock		233,460		244,572
Total potential shares		1,269,955		1,300,569

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

(12) Subsequent Events

Effective April 18, 2023, the Company suspended its “at-the-market” facility with the Sales Agent pursuant to that certain prospectus supplement dated July 12, 2022 and Equity Distribution Agreement, dated July 1, 2022 and terminated the continuous offering under such prospectus. The Company will not make any sales of its Common Stock pursuant to the Equity Distribution Agreement unless and until a new prospectus supplement is filed with the Securities and Exchange Commission; however, the Equity Distribution Agreement remains in full force and effect.

On April 18, 2023, the Company entered into a definitive agreement for the issuance and sale of an aggregate of 3,196,722 of its shares of common stock (or common stock equivalents) at a purchase price of $1.22 per share (or common stock equivalent) in a registered direct offering priced at-the-market under Nasdaq rules. In a concurrent private placement, the Company has also agreed to issue and sell unregistered warrants to purchase up to an aggregate of 3,196,722 shares of common stock. The gross proceeds from this offering was $3,900,000. The net proceeds to the Company from this offering was approximately $3,400,000, after deducing placement agent fees expenses and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes. The offering closed on April 20, 2023.

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Organization, Nature of Business, and Liquidity (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Nature of Business, and Liquidity [Abstract]

Organization and Nature of Business

Organization and Nature of Business

Femasys Inc. (the Company or Femasys) was incorporated in Delaware on February 19, 2004 and is headquartered in Suwanee, Georgia. The Company is a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. The Company’s mission is to provide women with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. The Company currently operates as one segment with an initial focus on servicing the reproductive health needs for those seeking permanent birth control or solutions for infertility issues.

Femasys has an expansive intellectual property portfolio which covers both design and utility patents in the U.S. and significant ex-U.S. markets for each product initiative. Femasys has taken concepts internally conceived and protected through development, including domestic and foreign regulatory approvals, and production, through in-house manufacturing. FemBloc® (FemBloc), the Company’s solution for permanent birth control, is based on the Company’s non-surgical platform technology and we recently completed a validation study under an approved Investigational Device Exemption (IDE) from the U.S. Food and Drug Administration (FDA) and plan to use the study data to support which of the two confirmation tests (ultrasound or radiology) should be studied in a new pivotal trial to support a potential future application for PMA for FemBloc. Results of the small study along with the trial design for the pivotal clinical trial was submitted to the FDA in the first quarter of 2023. FemaSeed® (FemaSeed), a solution which enables directed intrauterine insemination to improve on traditional intrauterine insemination (IUI) and provides a lower cost option to in vitro fertilization methods, received approval in April 2021 from the FDA on its IDE and the clinical study was initiated in July 2021. An updated study design received approval in October 2022 from the FDA. FemaSeed is approved for sale in Canada. FemVue® (FemVue), a solution that enables fallopian tube assessment with ultrasound as an alternative to the radiologic approach (hysterosalpingogram) for the diagnosis of infertility, is approved for sale in the U.S., Japan, and Canada. FemChec® (FemChec), allows for fallopian tube evaluation after a FemBloc procedure to confirm occlusion (or procedure success). FemCerv® (FemCerv) is a solution for complete tissue sampling with minimal contamination of the endocervical canal as an alternative to the single biopsy method, and is approved for sale in the U.S. FemCath™ (FemCath), allows for selective evaluation of an individual fallopian tube as an alternative to the traditional intrauterine catheter that is undirected, is approved for sale in the U.S.

Basis of Presentation

Basis of Presentation

The Company has prepared the accompanying financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to these rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and footnotes related thereto for the year ended December 31, 2022 included in our Annual Report on Form 10K filed with the SEC on March 30, 2023 (the Annual Report). ,There have been no material changes to the Company’s significant accounting policies described in Note 2 to the financial statements included in the Annual Report.

In the opinion of management, the unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of its operations and cash flows at the dates for periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting periods. The most significant estimates used in these financial statements include the valuation of stock options, warrants, useful lives of property and equipment and intangible assets.. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Liquidity

Liquidity

As of March 31, 2023, the Company had cash and cash equivalents of $10,161,338. The Company plans to finance its operations and development needs with its existing cash and cash equivalents, additional equity and/or debt financing arrangements, and revenue primarily from the sale of FemVue to support the Company’s research and development activities, largely in connection with FemBloc and FemaSeed. There can be no assurance that the Company will be able to obtain additional financing on terms acceptable to the Company, on a timely basis, or at all. If the Company is not able to obtain sufficient funds on acceptable terms when needed, the Company’s business, results of operations, and financial condition could be materially adversely impacted.

For the three months ended March 31, 2023, the Company generated a net loss of $2,946,257. The Company expects such losses to increase over the next few years as the Company advances FemBloc and FemaSeed through clinical development until FDA approval is received and the products are available to be marketed.

The financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net operating losses in every year since inception and has an accumulated deficit as of March 31, 2023 of $97,080,762 and expects to incur additional losses and negative operating cash flows for at least the next twelve months. The Company’s ability to meet its obligations is dependent upon its ability to generate sufficient cash flows from operations and future financing transactions (see Note 12). Although management expects the Company will continue as a going concern, there is no assurance that management’s plans will be successful since the availability and amount of such funding is not certain. Accordingly, substantial doubt exists about the Company’s ability to continue as a going concern for at least one year from the issuance of these financial statements. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

Recently Issued Accounting Pronouncements Adopted and Not Yet Adopted

Recently Issued Accounting Pronouncements – Recently Adopted

On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which the Financial Accounting Standards Board (FASB) issued in June 2016. The new standard changes the accounting for credit losses for financial assets and certain other instruments, including trade receivables and contract assets, that are not measured at fair value through net income. Under legacy standards, we recognize an impairment of receivables when it was probable that a loss had been incurred. Under the new standard, we are required to recognize estimated credit losses expected to occur over the estimated life or remaining contractual life of an asset (which includes losses that may be incurred in future periods) using a broader range of information including reasonable and supportable forecasts about future economic conditions. The guidance is effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years with early adoption permitted. The Company’s adoption of this new guidance did not have a material impact on the Company’s financial statements and footnote disclosures (unaudited).

Recently Issued Accounting Pronouncements – Not Yet Adopted

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s financial statements.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventories [Abstract]

Inventory Stated at Cost, Net of Reserve

Inventory stated at cost, net of reserve, consisted of the following:

	March 31,		December 31,
	2023		2022
Materials	$	283,655		244,498
Work in progress		98,775		100,453
Finished goods		118,311		91,772
Inventory, net	$	500,741		436,723

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Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Expenses [Abstract]

Accrued Expenses

Accrued expenses consisted of the following:

	March 31,		December 31,
	2023		2022
Clinical trial costs	$	315,428		333,440
Compensation costs		111,457		85,191
Franchise taxes		7,100		26,886
Other		101,432		11,197
Accrued expenses	$	535,417		456,714

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Clinical Holdback (Tables)

3 Months Ended

Mar. 31, 2023

Clinical Holdback [Abstract]

Clinical Holdback Liability

The following table shows the activity within the clinical holdback liability accounts for the three months ended March 31, 2023:

Balance at December 31, 2022	$	141,864
Clinical holdback retained		2,634
Clinical holdback paid		(328	)
Balance at March 31, 2023	$	144,170
Less: clinical holdback - current portion		(45,352	)
Clinical holdback - long-term portion	$	98,818

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

Sales by Geographic Region

The following table summarizes our sales, primarily from FemVue, by geographic region as follows:

	Three Months Ended March 31,
Primary geographical markets	2023		2022
U.S.	$	293,984		263,360
International		—		58,045
Total	$	293,984		321,405

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Equity Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2023

Equity Incentive Plans [Abstract]

Stock Option Plan Activity

Activity under the Company’s stock option plans for the three months ended March 31, 2023 was as follows:

	Number of			Weighted Average
	Options			Exercise Price
Outstanding at December 31, 2022		931,550		$	3.97
Granted		5,000			1.18
Forfeited		(50,055	)		1.87
Outstanding at March 31, 2023		886,495		$	4.07
Vested and exercisable at March 31, 2023		479,296		$	3.30

Estimated Using Assumptions

The 5,000 options granted under our 2021 Stock Option Plan for the three months ended March 31, 2023 was to a nonemployee with a fair value of $0.62 using the Black-Scholes assumptions as follows:

Fair Value of Awards	$	0.62
Grant Price	$	1.18
Expected term (in years)		2.00
Risk‑free interest rate		4.39	%
Dividend yield		—	%
Expected volatility		95.48	%

Share-based Compensation Expense

The following table shows the share-based compensation expense related to vested stock option grants to employees and nonemployees by financial statement line item on the accompanying statement of comprehensive loss:

	Three Months Ended March 31,
	2023			2022
Research and development	$	25,059			29,139
Sales and marketing		(2,544	)		1,126
General and administrative		34,439			14,094
Total share-based compensation expense	$	56,954			44,359

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Net Loss per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Mar. 31, 2023

Net Loss per Share Attributable to Common Stockholders [Abstract]

Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of the basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
Net loss attributable to common stockholders, basic & diluted	$	(2,946,257	)		(2,883,030	)
Weighted average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,872,255			11,804,165
Net loss per share attributable to common stockholders, basic and diluted	$	(0.25	)		(0.24	)

Computations of Diluted Weighted Average Shares Outstanding

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

	March 31, 2023		March 31, 2022
Options to purchase common stock		1,036,495		1,055,997
Warrants to purchase to common stock		233,460		244,572
Total potential shares		1,269,955		1,300,569

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Organization, Nature of Business, and Liquidity (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) Segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Organization and Nature of Business [Abstract]
Number of operating segments | Segment	1
Liquidity [Abstract]
Cash and cash equivalents	$ 10,161,338		$ 12,961,936
Net loss	(2,946,257)	$ (2,883,030)
Accumulated deficit	$ (97,080,762)		$ (94,134,505)

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Cash and Cash Equivalents (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Level 1 [Member] | Money Market Funds [Member]
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalent	$ 60,805	$ 12,553,557

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Inventories (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventories [Abstract]
Materials	$ 283,655	$ 244,498
Work in progress	98,775	100,453
Finished goods	118,311	91,772
Inventory, net	500,741	436,723
Reserve for expired inventory	$ 2,380	$ 2,103

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Accrued Expenses (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Accrued Expenses [Abstract]
Clinical trail costs	$ 315,428	$ 333,440
Compensation costs	111,457	85,191
Franchise taxes	7,100	26,886
Other	101,432	11,197
Accrued expenses	$ 535,417	$ 456,714

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Clinical Holdback (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Clinical Holdback Liability [Roll Forward]
Balance	$ 141,864
Clinical holdback retained	2,634
Clinical holdback paid	(328)
Balance	144,170
Less: clinical holdback - current portion	(45,352)	$ (45,206)
Clinical holdback - long-term portion	$ 98,818	$ 96,658

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Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition [Abstract]
Revenue recognized from performance obligations in prior periods	$ 0	$ 0
Percentage of restocking fee	30.00%
Primary Geographical Markets [Abstract]
Sales	$ 293,984	321,405
FemVue [Member]
Primary Geographical Markets [Abstract]
Sales	293,984	321,405
FemVue [Member] | U.S. [Member]
Primary Geographical Markets [Abstract]
Sales	293,984	263,360
FemVue [Member] | International [Member]
Primary Geographical Markets [Abstract]
Sales	$ 0	$ 58,045
Minimum [Member]
Revenue Recognition [Abstract]
Revenue recognition payment period term	30 days
Maximum [Member]
Revenue Recognition [Abstract]
Revenue recognition payment period term	60 days

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Notes Payable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Notes Payable [Abstract]
Note payable	$ 0		$ 141,298
Promissory Notes [Member] | AFCO Credit Corporation [Member]
Notes Payable [Abstract]
Note payable	0		$ 141,298
Interest expense on loan	$ 1,319	$ 1,796

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Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jul. 12, 2022
Stockholders Equity [Abstract]
Common stock, outstanding (in shares)	11,872,573	11,869,704
Dividends declared or paid	$ 0
Common Stock [Member]
Stockholders Equity [Abstract]
Authorized offering amount of securities			$ 8,800,000
Common stock sold (in shares)	2,869

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Equity Incentive Plans, Stock Option Plan, Activity (Details) - 2021 Stock Option Plan [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Options [Roll Forward]
Beginning balance (in shares) | shares	931,550
Granted (in shares) | shares	5,000
Forfeited (in shares) | shares	(50,055)
Ending balance (in shares) | shares	886,495
Weighted Average Exercise Price [Abstract]
Beginning balance (in dollars per share)	$ 3.97
Granted (in dollars per share)	1.18
Forfeited (in dollars per share)	1.87
Ending balance (in dollars per share)	$ 4.07
Options vested and exercisable [Abstract]
Options vested and exercisable, Number of option vested (in shares) | shares	479,296
Options vested and exercisable, Exercise price (in dollars per share)	$ 3.3
Options exercised (shares) | shares	0
Common stock reserved for issuance (in shares) | shares	1,754,980
Estimated Fair Value Assumptions [Abstract]
Grant Price (in dollars per share)	$ 1.18
Nonemployee [Member]
Weighted Average Exercise Price [Abstract]
Granted (in dollars per share)	1.18
Estimated Fair Value Assumptions [Abstract]
Fair Value of Awards (in dollars per share)	0.62
Grant Price (in dollars per share)	$ 1.18
Expected term (in years)	2 years
Risk free interest rate	4.39%
Dividend yield	0.00%
Expected volatility	95.48%

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Equity Incentive Plans, Inducement Grant (Details) - Inducement Grant [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Inducement Grant [Abstract]
Granted (in shares)	0
Shares outstanding (in shares)	150,000
Weighted average exercise price (in dollars per share) | $ / shares	$ 2.42
Options vested and exercisable, Number of option vested (in shares)	25,000
Options vested and exercisable, Weighted average exercise price (in dollars per shares) | $ / shares	$ 2.97

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Equity Incentive Plans, Share-Based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Expense [Abstract]
Share-based compensation expense	$ 56,954	$ 44,359
Share-based compensation expense expected to be recognized for employees and nonemployees	926,280
Compensation expense to be recognized upon achieving certain performance condition	463,311
Unrecognized expenses	$ 462,969
Weighted-average period over which unrecognized compensation is expected to be recognized	2 years 8 months 12 days
Research and Development [Member]
Share-based Compensation Expense [Abstract]
Share-based compensation expense	$ 25,059	29,139
Sales and Marketing [Member]
Share-based Compensation Expense [Abstract]
Share-based compensation expense	(2,544)	1,126
General and Administrative [Member]
Share-based Compensation Expense [Abstract]
Share-based compensation expense	$ 34,439	$ 14,094

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Equity Incentive Plans, Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Mar. 31, 2023 shares
Employee Stock Purchase Plan [Abstract]
Stock issued (in shares)	0
Common stock reserved for issuance (in shares)	398,561

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Net Loss per Share Attributable to Common Stockholders (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Loss per Share Attributable to Common Stockholders [Abstract]
Net loss attributable to common stockholders, basic	$ (2,946,257)	$ (2,883,030)
Net loss attributable to common stockholders, diluted	$ (2,946,257)	$ (2,883,030)
Weighted average number of shares used in computing net loss per share attributable to common stockholders, basic (in shares)	11,872,255	11,804,165
Weighted average number of shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	11,872,255	11,804,165
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.25)	$ (0.24)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.25)	$ (0.24)
Weighted Average Number of Shares Outstanding [Abstract]
Options to purchase common stock (in shares)	1,036,495	1,055,997
Warrants to purchase to common stock (in shares)	233,460	244,572
Total potential shares (in shares)	1,269,955	1,300,569

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Subsequent Events (Details) - Subsequent Event [Member]	Apr. 18, 2023 USD ($) $ / shares shares
Issuance Sale of Common Stock [Abstract]
Issuance and sale of common stock (in shares) | shares	3,196,722
Purchase price (in dollars per share) | $ / shares	$ 1.22
Warrants issued to purchase common stock (in shares) | shares	3,196,722
Gross proceeds from offering | $	$ 3,900,000
Net proceeds from offering | $	$ 3,400,000