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

Table of Contents

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, 2024

☐ 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: 001-41358

ACLARION, INC.

(Exact name of registrant as specified in its charter)

Delaware		47-3324725
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

8181 Arista Place, Suite 100

Broomfield, Colorado 80021

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (833) 275-2266

Not Applicable

(Former name or former address, if changed since last report)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.00001 per share	ACON	The Nasdaq Stock Market LLC
Warrants, each exercisable for one share of Common stock	ACONW	The Nasdaq Stock Market LLC

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

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

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

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

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

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

As of May 15, 2024, there were 8,203,500 shares of the registrant's common stock, $0.00001 par value per share, outstanding.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology.

Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report on Form 10-Q, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur at all. Forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those indicated (both favorably and unfavorably). These risks and uncertainties include, but are not limited to, those described in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the Form 10-K) dated March 28, 2024, as filed with the Securities and Exchange Commission on March 28, 2024, under Rule 424(b)(4). Caution should be taken not to place undue reliance on any such forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

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 as exhibits completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward- looking statements in this Quarterly Report on Form 10-Q by these cautionary statements.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	4
	Condensed Balance Sheets	4
	Condensed Statements of Operations	5
	Condensed Statements of Changes in Stockholders' Equity	6
	Condensed Statements of Cash Flows	8
	Notes to Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
	Signatures	34

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Aclarion, Inc.

Condensed Balance Sheets


	Mar 31, 2024			Dec 31, 2023
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,132,635		$	1,021,069
Restricted cash		10,000			10,000
Accounts receivable, net		17,213			13,270
Prepaids and other current assets		378,461			245,030
Total current assets		2,538,309			1,289,369

Non-current assets:
Property and equipment, net		1,486			1,782
Intangible assets, net		1,187,467			1,168,623
Total non-current assets		1,188,953			1,170,405

Total assets	$	3,727,262		$	2,459,774

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	195,714		$	760,535
Accrued and other liabilities		288,129			857,722
Note payable, net of discount		670,150			1,125,724
Warrant liability		34,825			289,165
Derivative liability		32,994			121,326
Liability to issue equity		–			33,297
Total current liabilities		1,221,812			3,187,769

Total liabilities		1,221,812			3,187,769

Stockholders' equity
Common stock - $0.00001 par value, 200,000,000 authorized and 7,153,500 and 825,459 shares issued and outstanding (see Note 11)		72			8
Additional paid-in capital		49,186,006			43,553,523
Accumulated deficit		(46,680,628	)		(44,281,526	)
Total stockholders’ equity (deficit)		2,505,450			(727,995	)

Total liabilities and stockholders’ equity	$	3,727,262		$	2,459,774

See accompanying notes to condensed financial statements.

Aclarion, Inc.

Condensed Statements of Operations

(Unaudited)


	Three Months Ended March 31,
	2024			2023
Revenue
Revenue	$	10,114		$	25,470
Cost of revenue		19,476			17,453
Gross profit (loss)		(9,362	)		8,017


Operating expenses:
Sales and marketing		181,056			177,284
Research and development		239,042			204,399
General and administrative		845,847			807,599
Total operating expenses		1,265,945			1,189,281

Income (loss) from operations		(1,275,307	)		(1,181,264	)

Other income (expense):
Interest expense		(335,824	)		(1,380	)
Loss on exchange of debt		(1,066,732	)		–
Loss on extinguishment of debt		(111,928	)		–
Changes in fair value of warrant and derivative liabilities		297,684			–
Other, net		93,005			(816	)
Total other income (expense)		(1,123,795	)		(2,196	)

Income (loss) before income taxes		(2,399,102	)		(1,183,460	)
Income tax provision		–			–
Net income (loss)	$	(2,399,102	)	$	(1,183,460	)

Net income (loss) allocable to common stockholders	$	(2,399,102	)	$	(1,183,460	)
Net income (loss) per share allocable to common stockholders	$	(0.44	)	$	(2.39	)
Weighted average shares of common stock outstanding, basic and diluted		5,442,625			496,159

See accompanying notes to condensed financial statements.

Aclarion, Inc.

Condensed Statements of Changes in Stockholders' Equity (Deficit)

(Unaudited)

For the Three Months Ended March 31, 2023

Series A

Series A-1, A-2,
A-3, A-4

Series B, B-1

Series B-2, B-3

Preferred Stock

Value

Value*

Balance, December 31, 2022

–

Share-based compensation

–

Proceeds from sale of Series A preferred stock

1,000

–

Redemption of Series A Preferred stock

)

(1,000

)

–

Net income (loss)

–

Balance, March 31, 2023

–

For the Three Months Ended March 31, 2024

Balance, December 31, 2023

–

Share-based compensation

–

Issuance of common stock and warrants related to public offering, net issuance costs

–

Issuance of common shares - equity line

–

Public offering and equity line issuance costs

–

Issuance of common shares - debt for equity exchange

–

Issuance of commitment shares - note financing

–

Issuance of common shares related to restricted stock units

–

Cashless exercise of pre-funded warrants

–

Round up convention related to reverse stock split

–

Net income (loss)

–

Balance, March 31, 2024

–

(continued)

Aclarion, Inc.

Condensed Statements of Changes in Stockholders' Equity (Deficit)

(Unaudited)

(continued)


For the Three Months Ended March 31, 2023
					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Value		Capital		Deficit			Total

Balance, December 31, 2022		491,345	$	5	$	41,596,106	$	(39,370,153	)	$	2,225,958
Share-based compensation		–		–		82,531		–			82,531
Proceeds from sale of Series A preferred stock		–		–		–		–			1,000
Redemption of Series A Preferred stock		–		–		–		–			(1,000	)
Net income (loss)		–		–		–		(1,183,460	)		(1,183,460	)
Balance, March 31, 2023		491,345	$	5	$	41,678,637	$	(40,553,613	)	$	1,125,029

For the Three Months Ended March 31, 2024
Balance, December 31, 2023	825,459	$	8	$	43,553,523		$	(44,281,526	)	$	(727,995	)
Share-based compensation	–		–		85,827			–			85,827
Issuance of common stock and warrants related to public offering, net issuance costs	5,175,000		52		2,691,339			–			2,691,391
Issuance of common shares - equity line	452,343		5		1,449,527			–			1,449,532
Public offering and equity line issuance costs	–		–		(399,106	)		–			(399,106	)
Issuance of common shares - debt for equity exchange	644,142		6		1,771,600			–			1,771,606
Issuance of commitment shares - note financing	9,312		–		33,297			–			33,297
Issuance of common shares related to restricted stock units	4,261		–		–			–			–
Cashless exercise of pre-funded warrants	2,915		–		–			–			–
Round up convention related to reverse stock split	40,068		–		–			–			–
Net income (loss)	–		–		–			(2,399,102	)		(2,399,102	)
Balance, March 31, 2024	7,153,500	$	72	$	49,186,006		$	(46,680,628	)	$	2,505,450

See accompanying notes to condensed financial statements.

Aclarion, Inc.

Condensed Statements of Cash Flows

(unaudited)


	Three Months Ended March 31,
	2024			2023
Cash flows from operating activities
Net income (loss)	$	(2,399,102	)	$	(1,183,460	)

Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		45,109			39,368
Share-based compensation		85,827			82,531
Loss on exchange of debt		1,066,732			–
Loss on extinguishment of debt		111,928			–
Amortization of deferred issuance costs		335,352			–
Change in fair value related to warrants and derivative		(297,684	)		–
Change in assets and liabilities
Accounts receivable		(2,616	)		1,416
Prepaids and other current assets		(134,760	)		(705	)
Accounts payable		(640,163	)		82,540
Accrued and other liabilities		(409,180	)		(34,804	)
Net cash (used in) operations		(2,238,557	)		(1,013,113	)

Investing activities
Intangible assets - Patents		(63,657	)		(11,719	)
Net cash (used in) investing activities		(63,657	)		(11,719	)

Financing activities
Issuance of common stock and warrants related to public offering, net deductions		2,691,391			–
Proceeds from equity line		1,449,532			–
Repayment of promissory notes		(300,974	)		–
Equity line cash issuance costs		(259,331	)		–
Public offering cash issuance costs		(143,463	)		–
Bridge fund cash issuance costs		(23,375	)		–
Proceeds from sale of Series A preferred stock		–			1,000
Redemption of Series A Preferred stock		–			(1,000	)
Net cash provided by financing activities		3,413,780			–

Net increase (decrease) in cash and cash equivalents		1,111,566			(1,024,831	)
Cash, cash equivalents and restricted cash, beginning of period		1,031,069			1,482,806
Cash, cash equivalents and restricted cash, end of period	$	2,142,635		$	457,975

Non-cash activities
Issuance of common shares in exchange for debt		1,771,606			–
Public offering accrued issuance costs		112,631			–
Equity line accrued issuance costs		3,413			–
Issuance of bridge fund commitment shares		33,297			–

See accompanying notes to condensed financial statements.

Aclarion, Inc.

Notes to Condensed Financial Statements

(unaudited)

NOTE 1. THE COMPANY AND BASIS OF PRESENTATION

The Company

Aclarion, Inc., formerly Nocimed, Inc., (the “Company” or “Aclarion”) is a healthcare technology company that leverages magnetic resonance spectroscopy (“MRS”), and a proprietary biomarker to optimize clinical treatments. The Company was formed in February 2015, is incorporated in Delaware, and has its principal place of business in Broomfield, Colorado.

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information required by U.S. GAAP for complete financial statements. The interim condensed financial statements reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair representation of the results for the periods presented and should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2023, which include a complete set of footnote disclosures, including our significant accounting policies. The December 31, 2023, condensed balance sheet was derived from the December 31, 2023, audited financial statements. They should be read in conjunction with the financial statements and notes thereto included in our Annual report on Form 10-K, filed with the SEC on March 28, 2024. The results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period.

Risks and Uncertainties

The Company is subject to various risks and uncertainties frequently encountered by companies in the early stages of development. Such risks and uncertainties include, but are not limited to, its limited operating history, competition from other companies, limited access to additional funds, dependence on key personnel, and management of potential rapid growth. To address these risks, the Company must, among other things, develop its customer base; implement and successfully execute its business and marketing strategy; develop follow-on products; provide superior customer service; and attract, retain, and motivate qualified personnel. There can be no guarantee that the Company will be successful in addressing these or other such risks.

2024 Reverse Stock Split

In March 2023 the Company’s stockholders approved a reverse stock split proposal at a ratio in the range of one-for-five to one-for-fifty, with the final ratio to be determined by the Company's board in its discretion without further approval from the Company's stockholders. In January 2024, the Company's board subsequently approved the final reverse stock split ratio of one-for-sixteen (the “2024 Stock Split”), which resulted in a reduction in the number of outstanding shares of common stock, warrants, stock options and restricted share units and a proportionate increase in the value of each share or strike price of the warrants and stock options. The common stock began trading on a reverse split-adjusted basis on the NASDAQ on January 4, 2024.

As a result of the 2024 Stock Split, unless described otherwise, all references to common stock, share data, per share data and related information contained in these financial statements have been retrospectively adjusted to reflect the effect of the stock splits for all periods presented. In addition, any fractional shares that would otherwise be issued as a result of the stock splits were rounded up to the nearest whole share. Further, the number of shares issuable and exercise prices of stock options and warrants have been retrospectively adjusted in these financial statements for all periods presented to reflect the 2024 Stock Split.

The following tables present selected share information reflecting on a retroactive basis the reverse stock splits as of and for the year ended December 31, 2023:


	December 31,
	2023
Common shares issued and outstanding - pre-2024 split, 13,206,229 shares	$	132
Common shares issued and outstanding - post-2024 split, 825,459 shares	$	8
Additional paid-in capital - pre-2024 split	$	43,553,399
Additional paid-in capital - post-2024 split	$	43,553,523


	Year ended December 31,
		2023
Weighted average shares outstanding, basic and diluted - pre-2024 split		8,908,934
Weighted average shares outstanding, basic and diluted - post-2024 split		556,808
Basic and diluted net loss per shares attributable to common stockholders - pre-2024 split	$	(0.55	)
Basic and diluted net loss per shares attributable to common stockholders - post-2024 split	$	(8.82	)

Public Offering

On February 27, 2024, the Company completed a public offering of 5,175,000 units (“Units”) at a price of $0.58 per Unit, for gross proceeds of approximately $3.0 million, before deducting offering expenses. Each Unit was comprised of (i) one share of common stock or, in lieu of common stock, one prefunded warrant to purchase a share of common stock, and (ii) two common warrants, each common warrant to purchase a share of common stock. The prefunded warrants are immediately exercisable at a price of $0.00001 per share of common stock and only expire when such prefunded warrants are fully exercised. The common warrants are immediately exercisable at a price of $0.58 per share of common stock and will expire five years from the date of issuance.

The Company incurred $566,199 of issuance costs; $310,105 deducted from proceeds and $256,094 paid or accrued.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation, amortization, and valuation of warrants, warrant and derivative liabilities, and options to purchase shares of the Company's common stock. These estimates may be adjusted as more current information becomes available, and any adjustment could be significant.

Valuation of Derivative Instruments

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging: Contracts on an Entity’s Own Equity, addresses whether an equity-linked contract qualifies as equity in the entity’s financial statements. Agreements where an entity has insufficient authorized and unissued shares to settle the contract generally are accounted for as a liability and marked to fair value through earnings each reporting period. The Company evaluates its financial instruments to determine if such instruments are liabilities or contain features that qualify as embedded derivatives. For financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then revalued at each reporting date, with changes in the fair value reported as charges or credits to income.

Fair Value of Financial Instruments

ASC 820, Fair Value Measurements, provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

Level 1 - Unadjusted quoted prices in active markets for identical instruments that are accessible by the Company on the measurement date.

Level 2 - Quoted prices in markets that are not active or inputs which are either directly or indirectly observable.

Level 3 - Unobservable inputs for the instrument requiring the development of assumptions by the Company.

The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The carrying values of the Company’s financial instruments including cash equivalents, restricted cash, accounts receivable, and accounts payable are approximately equal to their respective fair values due to the relatively short-term nature of these instruments. The Company’s warrant liabilities and derivative liabilities are estimated using level 3 inputs (see Note 3).

Derivative Financial Instruments

The Company has derivative financial instruments that are not hedges and do not qualify for hedge accounting. Changes in the fair value of these instruments are recorded in other income (expenses), on a net basis in the Consolidated Statements of Operations and Comprehensive Loss.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at March 31, 2024 and December 31, 2023. The Company maintains cash deposits at several financial institutions, which are insured by the FDIC up to $250,000. The Company’s cash balance may at times exceed these limits. On March 31, 2024, and December 31, 2023, the Company had $1,767,372 and $761,800, respectively, in excess of federally insured limits. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. The Company maintains no international bank accounts. As of March 31, 2024, $10,000 of the Company’s cash was restricted as collateral related to the credit card program offered by our bank.

Accounts Receivable, Less Allowance for Doubtful Accounts

The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. The allowance for doubtful accounts was $0 on March 31, 2024, and December 31, 2023.

Revenue Recognition

Revenues are recognized when a contract with a customer exists, and at that point in time when we have delivered a Nociscan report to our customer. Revenue is recognized in the amount that reflects the negotiated consideration expected to be received in exchange for those reports. Following the delivery of the report, the company has no ongoing obligations or services to provide to the customer. Customers pay no other upfront, licensing, or other fees. To date, our reports are not reimbursable under any third-party payment arrangements, The Company invoices its customers based on the billing schedules in its sales arrangements. Payment terms range generally from 30 to 90 days from the date of invoice.

Liquidity, Capital Resources and Going Concern

The Company believes that the net proceeds from the February 2024 initial public offering, and subsequent funding described in Note 14, will be sufficient to fund current operating plans into the third quarter of 2024, approaching our final maturity repayment of our unsecured non-convertible note, which is due in September 2024. The Company has based these estimates, however, on assumptions that may prove to be wrong, and could spend available financial resources much faster than we currently expect. The Company will need to raise additional funds to continue funding our technology development. Management plans to secure such additional funding.

As a result of the Company’s recurring losses from operations and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern.

Refer to Note 14: Subsequent Events, for information regarding recent funding developments.

Share-Based Compensation

The Company accounts for stock-based awards in accordance with provisions of ASC Topic 718, Compensation—Stock Compensation, under which the Company recognizes the grant-date fair value of stock-based awards issued to employees and nonemployee board members as compensation expense on a straight-line basis over the vesting period of the award, while awards containing a performance condition are recognized as expense when the achievement of the performance criteria is achieved. The Company uses the Black-Scholes option pricing model to determine the grant-date fair value of stock options. The Company records expense for forfeitures in the periods they occur.

The exercise or strike price of each option is not less than 100% of the fair market value of the Common Stock subject to the option on the date the option is granted.

The Company issues restricted stock unit awards to non-employee consultants who are providing various services. The awards are valued at the market price on the date of the grant. The awards vest over the contract life and based on achievement of targeted performance milestones.

On occasion, the Company grants common stock to compensate vendors for services rendered.

Deferred Financing Costs

The Company capitalizes certain legal, accounting, and other fees and costs that are directly attributable to in-process equity financings as deferred offering costs until such financings are completed. Upon the completion of an equity financing, these costs are recorded as a reduction of additional paid-in capital of the related offering. Upon the completion of the public offering in February 2024, approximately $566,200 of offering costs related to the public offering were reclassified to additional paid-in capital ($310,105 deducted from proceeds, and $256,094 paid or accrued). Upon the completion of the issuance of shares pursuant to the equity line in the first quarter of 2024, $133,000 of offering costs were reclassified to additional paid-in capital.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay the adoption of new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period to comply with certain new or revised accounting standards that have different effective dates for public and private companies.

NOTE 3: FAIR VALUE MEASUREMENTS

In accordance with ASC 820 (Fair Value Measurements and Disclosures), the Company uses various inputs to measure the outstanding warrants, certain embedded redemption features associated with the senior note to Aclarion, Inc. on a recurring basis to determine the fair value of the liability.


	Fair value measured as of March 31, 2024
	Fair value on March 31, 2024		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrant liability	$	34,825	$	–	$	–	$	34,825
Derivative Liability		32,994		–		–		32,994
Total Fair value	$	67,819	$	–	$	–	$	67,819

There were no transfers between Level 1, 2, and 3 during the three months ended March 31, 2024.

The following table presents changes in Level 3 liabilities measures at fair value for the three months ended March 31, 2024. Both observable and unobservable inputs were used to determine the fair value positions that the Company has classified within the Level 3 category.


	Warrant Liability			Derivative Liability			Total
Balance – December 31, 2023	$	289,165		$	121,326		$	410,491
Exchange and Payoff of Notes Payable		–			(44,988	)		(44,988	)
Change in fair value		(254,340	)		(43,344	)		(297,684	)
Balance – March 31, 2024	$	34,825		$	32,994		$	67,819

The fair value of the embedded derivative liabilities associated with the Senior Notes Payable was estimated using a probability weighted discounted cash flow model to measure the fair value. This involves significant Level 3 inputs and assumptions including an (i) estimated probability and timing of certain financing events and event of default, and (ii) the Company’s risk-adjusted discount rate.

The fair value of the warrants to purchase shares of common stock was estimated using a Monte Carlo simulation using the following assumptions.

Schedule of assumptions
	As of Dec 31, 2023		As of March 31, 2024
	Warrant Liability		Warrant Liability
Strike Price	$	4.32	$	0.58
Contractual term (years)		5.0		5.0
Volatility (annual)		80.0%		80.0%
Risk-free rate		3.89%		4.29%
Floor Financing price	$	0.14	$	0.14

NOTE 4. RECENT ACCOUNTING PRONOUNCEMENTS

To date, there have been no recent accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements.

NOTE 5. REVENUE

Contract Balances

The timing of revenue recognition, billings, and cash collections may result in trade, unbilled receivables, and deferred revenues on the balance sheets. At times, revenue recognition may occur before the billing, resulting in an unbilled receivable, which would represent a contract asset. The contract asset would be a component of accounts receivable and other assets for the current and non-current portions, respectively. In the event the Company receives advances or deposits from customers before revenue is recognized, this would result in a contract liability.

NOTE 6. SUPPLEMENTAL FINANCIAL INFORMATION

Balance Sheets

Prepaids and other current assets:


	March 31, 2024		December 31, 2023
Short term deposits	$	50,000	$	50,000
Deferred offering costs		–		100,588
Prepaid insurance D&O		17,571		34,769
Prepaid insurance, other		10,021		17,884
Prepaid other		300,713		41,635
Other receivables		156		154
	$	378,461	$	245,030

Accounts payable

Schedule of accounts payable
	March 31, 2024		December 31, 2023
Accounts payable	$	189,029	$	758,821
Credit cards payable		6,685		1,714
	$	195,714	$	760,535

Accrued and other liabilities:


	March 31, 2024		December 31, 2023
Accounts payroll	$	–	$	162,887
Accrued bonus		127,875		262,580
Accrued audit and legal expenses		41,595		89,082
Accrued interest		40,679		98,685
Accrued board compensation		46,250		92,500
Other accrued liabilities		31,730		151,988
	$	288,129	$	857,722

NOTE 7. LEASES

The Company had no office lease for the quarter ended March 31, 2024, and the year ended December 31, 2023.

NOTE 8. INTANGIBLE ASSETS

The Company’s intangible assets are as follows:

Schedule of intangible assets
	March 31, 2024			December 31, 2023

Patents and licenses	$	2,330,907		$	2,267,251
Other		5,017			5,017
		2,335,925			2,272,268
Less: accumulated amortization		(1,148,458	)		(1,103,645	)
Intangible assets, net	$	1,187,467		$	1,168,623

Patents and licenses costs are accounted for as intangible assets and amortized over the life of the patent or license agreement and charged to research and development.

Amortization expense related to purchased intangible assets was $44,812 and $38,865 for the three months ended March 31, 2024, and 2023, respectively.

Patents and trademarks are reviewed at least annually for impairment. No impairment was recorded through March 31, 2024, and December 31, 2023, respectively.

Future amortization of intangible assets is as follows:


2024	$	133,786
2025		178,381
2026		178,381
2027		178,381
2028 and beyond		518,538
Total	$	1,187,467

NOTE 9. SHORT TERM NOTES AND CONVERTIBLE DEBT

Convertible Notes:

As of December 31, 2023, there were no Convertible Notes payable and outstanding. There was no convertible note activity in the three months ended March 31, 2024.

Senior Notes Payable

In May 2023, the Company issued $1,437,500 unsecured senior notes that mature on May 16, 2024 (“the Senior Notes Payable”), for cash proceeds of $1,250,000. The Senior Notes Payable contain an original issue discount of 15.0% and accrue interest at an annual rate of 8.0%.

In September 2023, as agreed to during the issuance of the Senior Notes Payable, the Company exercised their right to an additional financing, issuing $862,500 unsecured senior notes that mature on September 1, 2024 ("the Series B Notes Payable) for cash proceeds of $750,000. The Series B Notes Payable contain an original issue discount of 15.0% and accrue interest at an annual rate of 8.0%.

In November 2023, the Company issued $294,118 unsecured senior notes that mature on April 19, 2024 (“the Series C Notes Payable”), for cash proceeds of $250,000. The Senior Notes Payable contain an original issue discount of 15.0% and accrue interest at an annual rate of 8.0%.

The Company incurred issuance costs, recorded as deferred financing costs, of $296,313 relating to due diligence and legal costs associated with the issuance of the notes.

The Company evaluated the embedded redemption and contingent interest features in the notes to determine if such features were required to be bifurcated as an embedded derivative liability. In accordance with ASC 815-40, Derivatives and Hedging Activities, the embedded redemption features and contingent interest feature were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value at each reporting date. The Company fair valued such derivative liabilities and recorded a debt discount at issuance of the notes of $320,561.

The Company issued warrants to purchase 1,232,156 and 744,890 shares of common stock (77,010 and 46,556 shares, respectively, after giving effect to the 2024 Stock Split) to the holders of the Senior Notes Payable and Series C Notes Payable (collectively the “Senior Notes Warrants”) with an exercise price of $0.6262 and $0.2856 per share ($10.02 and $4.58 post-2024 split), respectively. The Company accounted for the warrants in accordance with the guidance contained in ASC 815 “Derivatives and Hedging” whereby under that provision these warrants did not meet the criteria for equity treatment and were recorded as a liability. As such, these warrants are recorded at fair value as of each reporting date with the change in fair value reported within other income in the accompanying consolidated statements of operations as “Change in fair value of warrant liability” until the warrants are exercised, expired or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The fair value of the Senior Notes Warrants at issuance was $736,249 and was recorded as a debt discount. The Company incurred issuance costs of $72,862 relating to the Senior Notes Warrants which was recorded as a day 1 expense due to the liability classification of such warrants.

In connection with the issuance of the Senior Notes Payable and Series C Notes Payable, the Company paid a commitment fee in the form of 339,360 and 148,978 shares (21,210 and 9,311 shares after giving effect to the 2024 Stock Split) of unregistered common stock to the holders, respectively. The aggregate commitment fees had a fair value at issuance of $208,916 and are recorded as a deferred financing cost.

The resulting debt discounts from the derivative liabilities, warrant liabilities and deferred financing costs were presented as a direct deduction from the carrying amount of that debt liability and amortized to interest expense using the effective interest rate method. For the three months ended March, 2024, the Company recognized $335,352 in amortization of debt discounts and deferred financing costs which is recorded in interest expense.

Between January 22 and January 29, 2024, the Company entered into a series of exchange agreements (the “Exchange Agreements”) with the accredited investors to exchange principal and accrued interest on these notes for shares of common stock. Pursuant to the Exchange Agreements, the Company issued an aggregate of 644,142 post-split shares of common stock in exchange for $1,519,779 principal and accrued interest on the notes. Following these exchanges, the remaining outstanding balance of principal and interest on the notes was $1,145,037. This transaction accelerated the recognition of the related note discounts and resulted in a $1,066,732 charge.

On March 6, 2024, the Company paid $300,974 of principal and accrued interest on certain unsecured non-convertible notes. Following this payment, the remaining outstanding balance of principal and interest on the notes was $898,380. This transaction accelerated the recognition of the related note discounts and resulted in a $111,928 charge.

The following table reconciles the aggregate amount for the Senior Notes Payable, Series B Notes Payable, and Series C Notes Payable as well as the unamortized deferred financing costs and debt discounts relating to the derivative liabilities and warrant liabilities.


	March 31, 2024			December 31, 2023
Note Payable	$	862,500		$	2,594,118
Less: Unamortized Discounts and Deferred Financing Costs
Warrants		–			(557,582	)
Derivative		(77,583	)		(235,628	)
Deferred financing costs		(114,767	)		(675,184	)
		(192,350	)		(1,468,394	)
	$	670,150		$	1,125,724

NOTE 10. COMMITMENTS AND CONTINGENCIES

Royalty Agreement

The Company has an exclusive license agreement with the Regents of the University of California to make, use, sell and otherwise distribute products under certain of the Regents of the University of California’s patents anywhere in the world. The Company is obligated to pay a minimum annual royalty of $50,000, and an earned royalty of 4% of net sales. The minimum annual royalty will be applied against the earned royalty due for the calendar year in which the minimum payment was made. The license agreements expire upon expiration of the patents and may be terminated earlier if the Company so elects. The U.S. licensed patents that are currently issued expire between 2026 and 2029, without considering any possible patent term adjustment or extensions and assuming payment of all appropriate maintenance, renewal, annuity, or other governmental fees. The Company recorded royalty costs of $12,500 for the three months ended March 31, 2024, and 2023, respectively, as Cost of Revenue.

Litigation

To date, the Company has not been involved in legal proceedings arising in the ordinary course of its business. If any legal proceeding occurs, the Company will record a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated, although litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows.

NOTE 11. STOCKHOLDERS’ EQUITY

The Company filed an Amended and Restated Certificate of Incorporation on April 21, 2022, as part of the Company’s initial public offering. The Company is authorized to issue two classes of stock to be designated, respectively, “common stock” and “preferred stock.” The total number of shares which the Company is authorized to issue is two hundred twenty million (220,000,000) shares. Two hundred million (200,000,000) shares are authorized to be common stock, having a par value per share of $0.00001. Twenty million (20,000,000) shares are authorized to be preferred stock, having a par value per share of $0.00001. As of March 31, 2024, the Company had 7,153,500 common shares outstanding.

Stockholders’ Vote – Reverse stock split

The Company held a special meeting of stockholders on March 24, 2023. At the special meeting, our stockholders approved one proposal, which was to grant discretionary authority to our board of directors to (i) amend our certificate of incorporation to combine outstanding shares of our common stock into a lesser number of outstanding shares, or a “reverse stock split,” at a specific ratio within a range of one-for-five (1-for-5) to a maximum of a one-for-fifty (1-for-50) split, with the exact ratio to be determined by our board of directors in its sole discretion; and (ii) effect the reverse stock split, if at all, within one year of the date the proposal was approved by stockholders.

In January 2024, the Company's board subsequently approved the final reverse stock split ratio of one-for-sixteen (the “2024 Stock Split”), which resulted in a reduction in the number of outstanding shares of common stock, warrants, stock options and restricted share units and a proportionate increase in the value of each share or strike price of the warrants and stock options. The common stock began trading on a reverse split-adjusted basis on the NASDAQ on January 4, 2024.

Series A Preferred Stock

In February 2023 the Company sold one (1) share of the Company’s newly designated Series A preferred stock to Jeffrey Thramann, the Company’s Executive Chairman, for a purchase price of $1,000. The share of Series A preferred stock had proportional voting rights that were limited to the proposal to approve a reverse stock split of the Company’s common stock. Following the March 24, 2023, special meeting, the Company redeemed the one outstanding share of Series A preferred stock on March 28, 2023, in accordance with its terms. The redemption price was $1,000. No Series A preferred stock remains outstanding.

Warrants

The following table summarizes the Company’s outstanding warrants as of March 31, 2024. The warrants and related strike prices have been adjusted to reflect the 2024 Stock Split.


Issue Date	Strike price	Number outstanding	Expiration
April 21, 2022 (1)	$69.60	155,610	April 21, 2027
April 21, 2022	$87.04	10,825	April 21, 2027
April 21, 2022	$69.60	26,673	April 21, 2027
May 16, 2023 (2)	$0.29	77,010	May 16, 2028
November 21, 2023 (2)	$0.29	46,556	November 21, 2028
November 21, 2023	$0.00001	1,576	November 21, 2028
February 27, 2024	$0.58	10,350,000	February 27, 2029

(1)	These warrants were issued as part of the Company’s initial public offering completed April, 2022, and trade on Nasdaq under the ticker symbol “ACONW.”
(2)	The per share exercise price of these warrants is subject to a “ratchet” adjustment if the Company issues securities at an effective per share price lower than the then effective warrant exercise price. The strike price of $0.29 is current through the equity line activity closed April 26, 2024 (see Note 14: Subsequent Events).

NOTE 12. NET LOSS PER SHARE OF COMMON STOCK

Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number shares of common stock outstanding during the period and shares issuable for vested restricted stock units. Potentially dilutive outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for loss periods presented because including them would have been antidilutive.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows:


	Three Months Ended March 31,
	2024			2023
Numerator:
Net (loss) allocable to common stockholders used to compute basic and diluted loss per common share	$	(2,399,102	)	$	(1,183,460	)
Denominator:
Weighted average shares outstanding used to compute basic and dilutive loss per share		5,426,557			491,345
Weighted average shares issuable for vested restricted stock units		16,069			4,814
		5,442,625			496,159

The following outstanding potentially dilutive securities were excluded from the weighted average calculation of dilutive loss per share attributable to common stockholders because their impact would have been antidilutive for the period presented:


	March 31, 2024		March 31, 2023

Warrants		10,666,674		193,107
Restricted stock units		9,698		40,576
Stock options		169,458		171,176
		10,845,830		404,859

NOTE 13. STOCK BASED COMPENSATION

2022 Aclarion Equity Incentive Plan

On April 21, 2022, in connection with the IPO, the Company’s 2022 Aclarion Equity Incentive Plan, or “2022 Plan”, went into effect. Our board of directors has appointed the compensation committee of our board of directors as the committee under the 2022 Plan with the authority to administer the 2022 Plan. The aggregate number of our shares of common stock that may be issued or used for reference purposes under the 2022 Plan is 2,000,000 shares (125,000 post 2024 Stock Split), with an automatic increase on January 1st of each year, for a period of not more than ten years, commencing on January 1st of the year following the year in which the initial public offering date (April 2022) occurs and ending on (and including) January 1, 2032, in an amount equal to 5% of the total number of shares of Capital Stock outstanding on December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in shares for such year or that the increase in shares for such year will be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding sentence.

As of the year ended December 31, 2023, the aggregate number of our shares of common stock that may be issued or used for reference purposes under the 2022 Plan was 2,470,814 (154,426 post-split). On January 1, 2024, the 2022 Plan had an automatic increase of 660,311 (41,270 post-split) shares which was 5% of the total number of shares of Capital Stock outstanding on December 31, 2023.

Options granted under the 2022 Plan may be incentive stock options or non-statutory stock options, as determined by the administrator at the time of grant of an option. Restricted stock may also be granted under the 2022 Plan. The options vest in accordance with the grant terms and are exercisable for a period of up to 10 years from grant date.

No options were granted in the three months ended March 31, 2024.

Nocimed, Inc. 2015 Stock Plan

The Company maintains the Nocimed, Inc. 2015 Stock Plan, or the “Existing Plan”, under which the Company could grant 152,558 shares (after giving effect to the 2024 Stock Split) or options of the Company to our employees, consultants, and other service providers. The Company suspended the Existing Plan in connection with the April 2022, initial public offering. The Company did not grant any stock options under the Existing Plan for the twelve months ended December 31, 2022. No further awards will be granted under the Existing Plan, but awards granted prior to the suspension date will continue in accordance with their terms and the terms of the Existing Plan.

Determining Fair Value of Stock Options

The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine.

Valuation and Amortization Method —The Company estimates the fair value of its stock options using the Black-Scholes-Merton option-pricing model. This fair value is then amortized over the requisite service periods of the awards.

Expected Term—The Company estimates the expected term of stock option by taking the average of the vesting term and the contractual term of the option, as illustrated by the simplified method.

Expected Volatility—The expected volatility is derived from the Company’s expectations of future market volatility over the expected term of the options.

Risk-Free Interest Rate—The risk-free interest rate is based on the 10-year U.S. Treasury yield curve on the date of grant.

Dividend Yield—The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts.

Stock Award Activity

A summary of option activity under the Company’s incentive plans is as follows:

Schedule of option activity
	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)
Balance at December 31, 2023		169,456	$	31.15		7.5
Options granted		–		–		–
Options exercised		–		–		–
Options forfeited/expired		–		–		–
Balance at March 31, 2024		169,456	$	31.15		7.2

Exercisable at December 31, 2023		147,977	$	30.57		7.4
Exercisable at March 31, 2024		151,474	$	30.69		7.1

The aggregate intrinsic value of options outstanding at March 31, 2024 is $0. The aggregate intrinsic value of vested and exercisable options at March 31, 2024 is $0.

As of March 31, 2024, there was approximately $270,154 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over the next 18 months.

Restricted Stock Units

In the three months ended March 31, 2024, the Company granted RSUs under the 2022 Plan that have a combination of time-based and performance-based vesting, contingent upon continued service with the Company. The Company granted certain consultants an aggregate of RSU’s for 26,506 common shares (after giving effect to the 2024 Stock Split).

Post-split RSU activity under the 2022 Plan was as follows for the three months ended March 31, 2024:

Schedule of RSU activity
	RSU’s Outstanding			Weighted-Average Grant-Date Fair value per Unit
Nonvested as of December 31, 2023		15,749		$	10.72
Granted		–			–
Vested		(2,554	)		11.01
Forfeited		(3,497	)		10.72
Nonvested as of March 31, 2024		9,698		$	10.64

The grant date fair value for a RSU is the market price of the common stock on the date of grant. The total share-based compensation expense related to RSUs recognized during the three months ended March 31, 2024, was $28,128.

As of March 31, 2024, there was approximately $15,340 total unrecognized compensation cost related to non-vested RSUs which is expected to be recognized over the next twelve months.

As of March 31, 2024, the Company is obligated to issue 114,719 shares of common stock associated with vested Restricted Stock Units.

Stock-based Compensation Expense

The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented:


	Three months ended March 31,
	2024		2023

Sales and marketing	$	28,128	$	28,308
Research and development		2,055		3,560
General and administrative		55,644		50,663
	$	85,827	$	82,531

NOTE 14. SUBSEQUENT EVENTS

Nasdaq notice regarding compliance with the $1.00 Minimum Bid Price requirement

On April 8, 2024, Aclarion, Inc. (the “Company”) received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) indicating that the Company is not in compliance with the $1.00 Minimum Bid Price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the “Bid Price Requirement”).

The Notice does not result in the immediate delisting of the Company’s common stock from The Nasdaq Capital Market.

The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price of the Company’s common stock for the 30 consecutive business days for the period ending April 5, 2024, the Company no longer meets this requirement.

The Notice indicated that the Company will be provided 180 calendar days (or until October 7, 2024) in which to regain compliance. If at any time during this 180 calendar day period the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Nasdaq staff (the “Staff”) will provide the Company with a written confirmation of compliance and the matter will be closed.

Alternatively, if the Company fails to regain compliance with Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, the Company may be eligible for an additional 180 calendar day compliance period, provided (i) it meets the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market (except for the Bid Price Requirement) and (ii) it provides written notice to Nasdaq of its intention to cure this deficiency during the second compliance period by effecting a reverse stock split, if necessary. In the event the Company does not regain compliance with Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, and if it appears to the Staff that the Company will not be able to cure the deficiency, or if the Company is not otherwise eligible, the Staff will provide the Company with written notification that its securities are subject to delisting from The Nasdaq Capital Market. At that time, the Company may appeal the delisting determination to a Hearings Panel.

The Company intends to monitor the closing bid price of its common stock and is considering its options to regain compliance with the Bid Price Requirement. The Company’s receipt of the Notice does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission.

White Lion Equity Line Agreement

On October 9, 2023, the Company entered into an equity line common stock purchase agreement (the “Equity Line Purchase Agreement”) and a related registration rights agreement with White Lion Capital, LLC (“White Lion”). Pursuant to the Equity Line Agreement, the Company has the right, but not the obligation to require White Lion to purchase, from time to time, up to $10,000,000 in aggregate gross purchase price of newly issued shares of the Company’s common stock, subject to certain limitations and conditions set forth in the Equity Line Purchase Agreement.

Pursuant to the Equity Line Purchase Agreement, the Company issued to White Lion 1,050,000 newly issued common shares for proceeds of $304,500 on April 26, 2024. Through April 26, 2024, the Company has issued 1,800,000 shares to White Lion for total proceeds of $3,216,981.

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

The following discussion and analysis should be read in conjunction with the unaudited condensed financial statements and related notes included elsewhere in this Quarterly Report and our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 28, 2024. This discussion and analysis and other parts of this Quarterly Report contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives, expectations, intentions and projections. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under Part II, Item 1A, “Risk Factors” and elsewhere in this Quarterly Report. You should carefully read the “Risk Factors” section of this Quarterly Report and of our Annual Report on Form 10-K for the year ended December 31, 2023, which was as filed with the SEC on March 28, 2024, to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the section entitled “Special Note Regarding Forward-Looking Statements.”

Overview

Corporate Information

We currently operate as a Delaware corporation, under the name Aclarion, Inc.

Results of operations

For the Three Months Ended March 31, 2024, and 2023:

The following table summarizes our results of operations for the three months ended March 31, 2024, and 2023.

	Three Months Ended March 31,
	2024			2023			$ Change
Revenue
Revenue	$	10,114		$	25,470		$	(15,346	)
Cost of revenue		19,476			17,453			2,023
Gross profit (loss)		(9,362	)		8,017			(17,379	)

Operating expenses:
Sales and marketing		181,056			177,284			3,772
Research and development		239,042			204,399			34,643
General and administrative		845,847			807,599			38,248
Total operating expenses		1,265,945			1,189,281			76,663

(Loss) from operations		(1,275,307	)		(1,181,264	)		(94,043	)

Other income (expense):
Loss on exchange of debt		(1,066,732	)		–			(1,066,732	)
Loss on extinguishment of debt		(111,928	)		–			(111,928	)
Interest expense		(335,824	)		(1,380	)		(334,445	)
Changes in fair value of warrant and derivative liabilities		297,684			–			297,684
Other, net		93,005			(816	)		93,822
Total other (expense)		(1,123,795	)		(2,196	)		(1,121,598	)

(Loss) before income taxes		(2,399,102	)		(1,183,460	)		(1,215,642	)
Income tax provision
Net income (loss)	$	(2,399,102	)	$	(1,183,460	)	$	(1,215,642	)

Net (loss) allocable to common stockholders	$	(2,399,102	)	$	(1,183,460	)	$	(1,215,642	)
Net (loss) per share allocable to common stockholders	$	(0.44	)	$	(2.39	)	$	1.95
Weighted average shares of common stock outstanding, basic and diluted		5,442,625			496,159			4,946,466

Total revenues. Total revenues for the quarter ended March 31, 2024 were $10,114, which was a decrease of $15,356, or 60%, from $25,470 for the quarter ended March 31, 2023. The decrease in revenues was driven primarily by the conclusion of certain clinical activity at customer sites utilizing NOCISCAN ® reports.

Cost of Revenue. Direct cost of revenue is comprised of hosting and software costs, field support, UCSF royalty cost, partner fees (Radnet), and credit card fees. Total cost of revenue was $19,476 for the quarter ended March 31, 2024, compared to $17,453 for the quarter ended March 31, 2023, an increase of 12%. This increase was primarily due to an increase in hosting and software costs.

Sales and Marketing. Sales and marketing expenses were $181,056 for the quarter ended March 31, 2024, compared to $177,284 for the quarter ended March 31, 2023, a small increase of $3,772, or 2%. Marketing expenses include post-market clinical and reimbursement consulting, salaries, website support, press releases, conferences, travel, and shared-based compensation for Key Opinion Leaders.

Research and Development. Research and development expenses were $239,042 for the quarter ended March 31, 2024, compared to $204,399 for the quarter ended March 31, 2023, an increase of $34,643, or 17%. Required regulatory and quality system work was the primary driver of the increased expense.

General and Administrative. General and administrative expenses were $845,847 for the quarter ended March 31, 2024, an increase of $38,249 or 5%, from $807,599 for the quarter ended March 31, 2023. The increase was primarily due to audit and legal fees, offset in part by lower salary expense and D&O insurance premiums.

Other Income (Expense).

Interest expense was $335,824 for the quarter ended March 31, 2024, an increase of $334,445 from the $1,380 incurred during the quarter ended March 31, 2023. This increase in interest expense was due to the increase in debt taken on by the Company in 2023. In May, September and November 2023 the Company issued $2,594,118 aggregate principal amount of unsecured non-convertible notes to certain accredited investors. (see Note 9 to the condensed financial statements).

The Company incurred losses for the quarter ended March 31, 2024, on two transactions to reduce debt. The first transaction took place between January 22 and January 29, 2024, whereby the Company entered into a series of exchange agreements with investors to issue an aggregate of 644,142 post-split shares of common stock in exchange for $1,519,779 principal and accrued interest on the notes. This transaction accelerated the recognition of the related note discounts and resulted in a $1,066,732 charge. The second transaction was on March 6, 2024, whereby the Company paid $300,974 of principal and accrued interest on the notes. This transaction accelerated the recognition of the related note discounts and resulted in a $111,928 charge.

The Company’s warrant and derivative liabilities are recorded at fair value as of each reporting date (see Note 3 to the condensed financial statements). For the quarter ended March 31, 2024, the Company recorded a favorable adjustment in fair value of $297,684.

Other net income of $93,005 for the quarter ended March 31, 2024, included a favorable discount to accounts payable of $117,985, offset in part by a $25,000 penalty paid to investors related to a failure to timely register certain commitment shares.

Critical accounting policies and use of estimates

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of our financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, costs and expenses and the disclosure of contingent assets and liabilities in our financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates.

While our significant accounting policies are described in more detail in the notes to our financial statements, we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our financial statements.

Revenue Recognition

The Company derives its revenues from one source, the delivery of Nociscan reports to medical professionals. Revenues are recognized when a contract with a customer exists, and the control of the promised services are transferred to our customers. The amount of revenue recognized reflects the consideration we expect to receive in exchange for those services. Substantially all of our revenues are generated from contracts with customers in the United States.

Equity-Based Compensation

Certain of our employees and consultants have received grants of common stock options and RSUs in our company. These awards are accounted for in accordance with guidance prescribed for accounting for equity-based compensation. Based on this guidance and the terms of the awards, the awards are equity classified.

Until our April 2022 initial public offering, we were a private company with no active public market for our common equity. Therefore, we had periodically determined the overall value of our company and the estimated per share fair value of our common equity at their various dates using contemporaneous valuations performed in accordance with the guidance outlined in the American Institute of CPA’s Practice Aid. Since a public trading market for our common stock has been established in connection with the completion of our initial public offering, it will no longer be necessary for us to estimate the fair value of our common stock in connection with our accounting for equity awards we may grant, as the fair value of our common stock will be its public market trading price.

For financial reporting purposes, we performed common stock valuations as a private company with the assistance of a third-party specialist. Subsequent to the initial public offering, the fair value of the Company’s common stock underlying its equity awards is based on the quoted market price of the Company’s common stock on the grant date.

Going Concern

Refer to Note 14: Subsequent Events, for information regarding recent funding developments.

Liquidity and capital resources

Sources of liquidity

To date, we have financed our operations primarily through private placements of preferred shares and debt financing, PPP loans that were forgiven, an equity line, an initial public offering on April 21, 2022, and a secondary public offering on February 27, 2024.

During the three months ended March 31, 2024, the Company completed a public offering of 5,175,000 units (“Units”) at a price of $0.58 per Unit, for gross proceeds of approximately $3.0 million, before deducting offering expenses. Additionally, the Company raised approximately $1.4M of net proceeds from an equity line.

As of March 31, 2024, we had cash, including $10,000 of restricted cash, of $2,142,635. The Company believes that this cash and subsequent funding described in Note 14, will be sufficient to fund current operating plans into the third quarter of 2024, approaching the maturity repayment of our unsecured non-convertible note, which is due in September 2024. The Company has based these estimates, however, on assumptions that may prove to be wrong, and could spend available financial resources much faster than we currently expect. The Company will need to raise additional funds to continue funding our technology development. Management plans to secure such additional funding.

Cash flows

The following table summarizes our sources and uses of cash for each of the periods presented:

	Three months Ended March 31,
	2024			2023

Cash used in operating activities	$	(2,238,557	)	$	(1,013,113	)
Cash used in investing activities		(63,657	)		(11,719	)
Cash provided by financing activities		3,413,780			–
Net increase (decrease) in cash	$	2,142,635		$	(1,024,831	)

Operating activities

During the three months ended March 31, 2024, operating activities used $2,238,557 of cash. The Company significantly reduced accounts payable, primarily legal expenses that had accrued over time, and significantly reduced accrued expenses including payroll, bonuses, board compensation, and audit fees. During the three months ended March 31, 2023, operating activities used $1,013,113 of cash. This use of cash consisted primarily of employee compensation and benefit expense, general liability insurance, contractor compensation, and audit and legal fees.

Investing activities

During the three months ended March 31, 2024, and 2023, investing activities used $63,657 and $11,719 of cash, respectively. These investing activities consisted almost entirely of patent and license maintenance.

Financing activities

During the three months ended March 31, 2024, the Company completed a public offering of 5,175,000 units (“Units”) at a price of $0.58 per Unit, for gross proceeds of approximately $3.0 million, before deducting offering expenses. Each Unit was comprised of (i) one share of common stock or, in lieu of common stock, one prefunded warrant to purchase a share of common stock, and (ii) two common warrants, each common warrant to purchase a share of common stock. The prefunded warrants are immediately exercisable at a price of $0.00001 per share of common stock and only expire when such prefunded warrants are fully exercised. The common warrants are immediately exercisable at a price of $0.58 per share of common stock and will expire five years from the date of issuance.

During the three months ended March 31, 2024, the Company paid $300,973 of principal and accrued interest on certain unsecured non-convertible notes. Following this payment, the remaining outstanding balance of principal and interest on the notes was $898,380.

During the three months ended March 31, 2024, the Company entered into a series of exchange agreements (the “Exchange Agreements”) with the accredited investors to exchange principal and accrued interest on these notes for shares of common stock. Pursuant to the Exchange Agreements, the Company issued an aggregate of 644,142 post-split shares of common stock in exchange for $1,519,779 principal and accrued interest on the notes. Following these exchanges, the remaining outstanding balance of principal and interest on the notes was $1,145,037.

During the three months ended March 31, 2023, the Company sold one (1) share of the Company’s newly designated Series A preferred stock to Jeffrey Thramann, the Company’s Executive Chairman, for a purchase price of $1,000. The share of Series A preferred stock had proportional voting rights that were limited to the proposal to approve a reverse stock split of the Company’s common stock. Following the March 24, 2023, special meeting, the Company redeemed the one outstanding share of Series A preferred stock on March 28, 2023, in accordance with its terms. The redemption price was $1,000. No Series A preferred stock remains outstanding.

Funding requirements

Developing medical technology products is a time-consuming, expensive and uncertain process that takes years to complete, and we may never generate meaningful revenues. Accordingly, we may need to obtain substantial additional funds to achieve our business objectives.

Adequate additional funds may not be available to us on acceptable terms, or at all. To the extent that we raise additional capital through the sale of equity securities, the ownership interest of existing stockholders may be diluted. Any debt or preferred equity financing, if available, may involve agreements that include restrictive covenants that may limit our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends, which could adversely impact our ability to conduct our business, and may require the issuance of warrants, which could potentially dilute existing stockholders’ ownership interests.

If we raise additional funds through licensing agreements and strategic collaborations with third parties, we may have to relinquish valuable rights to our technology, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds, we may be required to delay, limit, reduce and/or terminate development of our product candidates or any future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

Contractual obligations and commitments

The Company does not have any contractual obligations not otherwise on our balance sheet as of March 31, 2024.

Off-balance sheet arrangements

We did not have, during the periods presented, and we do not currently have any off-balance sheet arrangements as defined in the rules and regulations of the SEC.

Recently issued accounting pronouncements

We have reviewed all recently issued standards and have determined that, as disclosed in Note 4 to our condensed financial statements appearing in this quarterly report, there have been no recent accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements.

Emerging growth company and smaller reporting company status

The JOBS Act permits an emerging growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have elected not to “opt out” of this extended transition period and, as a result, we will not adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for public entities. Accordingly, our financial statements may not be comparable to other public companies that do not elect the extended transition period.

We are also a “smaller reporting company” meaning that the market value of our stock held by non-affiliates is less than $700 million and our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

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

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We have adopted and maintain disclosure controls and procedures (as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e) under the Exchange Act), that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods required under the SEC’s rules and forms and that the information is gathered and communicated to our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), to allow for timely decisions regarding required disclosure.

As required by Exchange Act Rule 13a-15, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15 as of the end of the period covered by this report. Based on the foregoing evaluation, our Chief Executive Officer and Chief Financial Officer concluded that due to our limited resources our disclosure controls and procedures are not effective in providing material information required to be included in our periodic SEC filings on a timely basis and to ensure that information required to be disclosed in our periodic SEC filings is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure about our internal control over financial reporting discussed below.

During the three months ended March 31, 2024, the Company worked with an outside firm to establish best practices to improve our required disclosure about our internal control over financial reporting.

Changes in Internal Control over Financial Reporting

Our Chief Executive Officer and Chief Financial Officer concluded that our internal control over financial reporting was not effective as of December 31, 2023 due to material weaknesses related to (1) a limited segregation of duties due to our lack of formal control documentation, limited resources, and the small number of employees, and (2) a lack of adequate accounting resources to properly account for complex accounting transactions. Management determined that these control deficiencies constitute material weaknesses, which could result in material misstatements of significant accounts and disclosures that could result in a material misstatement to our interim or annual financial statements that would not be prevented or detected. In addition, due to limited staffing, we are not always able to detect minor errors or omissions in reporting.

The Company did engage an outside firm in the third quarter of 2023 to provide accounting support and increased segregation of duties. During the three months ended March 31, 2024, the Company continued to work with the outside firm to establish best practices over time that enhance internal control over financial reporting.

Other than the applicable remediation efforts described above, there were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We are not currently a party to any material legal proceedings, the adverse outcome of which, in our management’s opinion, individually or in the aggregate, could have a material adverse effect on the results of our operations or financial position. There are no material proceedings in which any of our directors, officers or affiliates or any registered or beneficial stockholder of more than 5% of our common stock is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors.

In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors disclosed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 28, 2024. There have been no material changes to our risk factors from those included in such Annual Report except as noted below. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

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

Not applicable.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended March 31, 2024, no director or officer of the Company adopted or terminated or otherwise had in effect a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K

Item 6. Exhibits.

The exhibits required by Item 601 of Regulation S-K and Item 15(b) of this Quarterly Report are listed in the Exhibit Index below. The exhibits listed in the Exhibit Index are incorporated by reference herein.

Exhibit Number		Description of Document	Incorporated by reference from Form	Filing Date	Exhibit Number	Filed Herewith

1.1		IPO Underwriting Agreement dated April 21, 2022	8-K	04-27-2022	1.1
1.2		Form of 2024 Placement Agent Agreement	S-1/A	03-23-2024	1.1
3.1		Amended and Restated Certificate of Incorporation of the Company	8-K	04-27-2022	3.1
3.2		Certificate of Amendment dated January 3, 2024 to the Amended and Restated Certificate of Incorporation	8-K	01-04-2024	3.1
3.3		Bylaws of the Company	8-K	04-27-2022	3.2
3.4		Certificate of Designation of Series A Preferred Stock	8-K	02-17-2023	3.1
4.1		Form of Common Stock Certificate	10-Q	06-06-2022	4.1
4.2		Form of IPO Public Warrant	8-K	04-27-2022	4.1
4.3		Form of IPO Representative’s Common Stock Purchase Warrant	8-K	04-27-2022	4.2
4.4		Description of Securities	10-Q	06-06-2022	4.4
4.5		2024 Form of Common Warrant	S-1/A	02-06-2024	4.5
4.6		2024 Form of Prefunded Warrant	S-1/A	02-06-2024	4.6
4.7		2024 Form of Warrant Agency Agreement	S-1/A	02-23-2024	4.7
10.1	#	Employment Agreement of Jeff Thramann	S-1/A	03-23-2022	10.1
10.2	#	Employment Agreement of Brent Ness	S-1/A	03-23-2022	10.2
10.3	#	Employment Agreement of John Lorbiecki	S-1/A	03-23-2022	10.3
10.4	#	Form of Aclarion, Inc. 2022 Equity Incentive Plan	S-1	01-06-2022	10.4
10.5		Senior Secured Bridge Note	S-1/A	03-04-2022	10.5
10.6		License Agreement with UCSF the Regents of the University of California	S-1	01-06-2022	10.6
10.7		Amendment to UC License Agreement	S-1/A	03-04-2022	10.7
10.8	**	NuVasive Amended and Restated Commission Agreement dated February 28, 2020	S-1/A	03-23-2022	10.8
10.9		Amended and Restated Investor Rights Agreement dated July 27, 2017	S-1/A	03-23-2022	10.9
10.10		First Amendment to Amended and Restated Investor Rights Agreement dated February 20, 2020	S-1/A	03-23-2022	10.10
10.11		NuVasive SAFE (Simple Agreement for Future Equity) dated February 28, 2020	S-1/A	03-23-2022	10.11
10.12	**	Right of First Offer Agreement	S-1/A	03-23-2022	10.12
10.13		First Amendment to Right of First Offer Agreement	S-1/A	03-23-2022	10.13
10.14		Second Amendment to Right of First Offer Agreement	S-1/A	03-23-2022	10.14
10.15		Convertible Note and Warrant Purchase Agreement	S-1/A	03-23-2022	10.16
10.16		Warrant Agent Agreement dated April 21, 2022	8-K	04-27-2022	10.1
10.17		Siemens Strategic Collaboration Agreement	S-1	01-06-2022	10.17
10.18	#	Aclarion, Inc. 2022 Equity Incentive Plan – Form of Option Grant Notice and Stock Option Agreement	S-1	01-06-2022	10.20
10.19	#	Aclarion, Inc. 2022 Equity Incentive Plan – Form of RSU Grant Notice and RSU Agreement	S-1	01-06-2022	10.21
10.20	#	Nocimed, Inc. 2015 Stock Plan	S-8	05-26-2022	99.4
10.21	#	Nocimed, Inc. 2015 Stock Plan – Form of Option Grant Notice and Stock Option Agreement	S-8	05-26-2022	99.5
10.22		Securities Purchase Agreement dated February 16, 2023 between Aclarion, Inc. and Jeffrey Thramann	8-K	02-17-2023	10.1
10.23		Form of Securities Purchase Agreement	8-K	05-17-2023	10.1
10.24		Form of Unsecured Non-Convertible Note	8-K	05-17-2023	10.2
10.25		Form of Common Stock Warrant	8-K	05-17-2023	10.3

10.26	Form of Registration Rights Agreement	8-K	05-17-2023	10.4
10.27	Waiver Related to Unsecured Non-Convertible Notes	8-K	08-14-2023	10.1
10.28	White Lion Purchase Agreement	8-K	10-10-2023	10.1
10.29	White Lion Registration Rights Agreement	8-K	10-10-2023	10.2
10.30	2024 Form of Lock-Up Agreement	S-1/A	02-06-2024	10.31
10.31	2024 Form of Securities Purchase Agreement	S-1/A	02/23/2024	10.32
10.32	Form of Securities Purchase Agreement dated November 21, 2023	8-K	11-22-2023	10.1
10.33	Form of Unsecured Non-Convertible Note dated November 21, 2023	8-K	11-22-2023	10.2
10.34	Form of Common Stock Warrant dated November 21, 2023	8-K	11-22-2023	10.3
10.35	Form of Registration Rights Agreement dated November 21, 2023	8-K	11-22-2023	10.4
10.36	Form of Exchange Agreement	8-K	01-23-2024	10.1
31.1	Section 302 Certification by the Corporation’s Chief Executive Officer				X
31.2	Section 302 Certification by the Corporation’s Chief Financial Officer				X
32.1	Section 906 Certification by the Corporation’s Chief Executive Officer				X
32.2	Section 906 Certification by the Corporation’s Chief Financial Officer				X
97.1	Aclarion Clawback Policy	10-K	03-28-2024	97.1

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 Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101).

___________________________

#	Indicates management contract or compensatory plan.
**	Certain portions of the exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is (i) not material and (ii) would likely cause competitive harm to the Company if publicly disclosed.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ACLARION, INC.

	By:	/s/ John Lorbiecki
		John Lorbiecki
		Chief Financial Officer (Principal Financial and Accounting Officer)
Date: May 15, 2024

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULES 13a-14(a) OR 15D-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Brent Ness, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2024 of Aclarion, 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 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.

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.

May 15, 2024

/s/ Brent Ness
Brent Ness
Chief Executive Officer (Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULES 13a-14(a) OR 15D-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, John Lorbiecki, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2024 of Aclarion, 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 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.

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.

May 15, 2024

/s/ John Lorbiecki
John Lorbiecki
Chief Financial Officer (Principal Financial and Accounting Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aclarion, Inc. (the “Company”) on Form 10-Q, for the period ended March 31, 2024 as filed with the Securities and Exchange Commission, I, Brent Ness, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

May 15, 2024

/s/ Brent Ness
Brent Ness
Chief Executive Officer (Principal Executive Officer)

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aclarion, Inc. (the “Company”) on Form 10-Q, for the period ended March 31, 2024 as filed with the Securities and Exchange Commission, I, John Lorbiecki, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

May 15, 2024

/s/ John Lorbiecki
John Lorbiecki
Chief Financial Officer (Principal Financial and Accounting Officer)

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 15, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-41358
Entity Registrant Name	ACLARION, INC.
Entity Central Index Key	0001635077
Entity Tax Identification Number	47-3324725
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	8181 Arista Place
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Broomfield
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80021
City Area Code	833
Local Phone Number	275-2266
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
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,203,500
Common stock, par value $0.00001 per share [Member]
Title of 12(b) Security	Common stock, par value $0.00001 per share
Trading Symbol	ACON
Security Exchange Name	NASDAQ
Warrants, each exercisable for one share of Common Stock [Member]
Title of 12(b) Security	Warrants, each exercisable for one share of Common stock
Trading Symbol	ACONW
Security Exchange Name	NASDAQ

Condensed Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 2,132,635	$ 1,021,069
Restricted cash	10,000	10,000
Accounts receivable, net	17,213	13,270
Prepaids and other current assets	378,461	245,030
Total current assets	2,538,309	1,289,369
Non-current assets:
Property and equipment, net	1,486	1,782
Intangible assets, net	1,187,467	1,168,623
Total non-current assets	1,188,953	1,170,405
Total assets	3,727,262	2,459,774
Current liabilities:
Accounts payable	195,714	760,535
Accrued and other liabilities	288,129	857,722
Note payable, net of discount	670,150	1,125,724
Warrant liability	34,825	289,165
Derivative liability	32,994	121,326
Liability to issue equity	0	33,297
Total current liabilities	1,221,812	3,187,769
Total liabilities	1,221,812	3,187,769
Stockholders' equity
Common stock - $0.00001 par value, 200,000,000 authorized and 7,153,500 and 825,459 shares issued and outstanding (see Note 11)	72	8
Additional paid-in capital	49,186,006	43,553,523
Accumulated deficit	(46,680,628)	(44,281,526)
Total stockholders’ equity (deficit)	2,505,450	(727,995)
Total liabilities and stockholders’ equity	$ 3,727,262	$ 2,459,774

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	7,153,500	825,459
Common stock, shares outstanding	7,153,500	825,459

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue
Revenue	$ 10,114	$ 25,470
Cost of revenue	19,476	17,453
Gross profit (loss)	(9,362)	8,017
Operating expenses:
Sales and marketing	181,056	177,284
Research and development	239,042	204,399
General and administrative	845,847	807,599
Total operating expenses	1,265,945	1,189,281
Income (loss) from operations	(1,275,307)	(1,181,264)
Other income (expense):
Interest expense	(335,824)	(1,380)
Loss on exchange of debt	(1,066,732)	0
Loss on extinguishment of debt	(111,928)	0
Changes in fair value of warrant and derivative liabilities	297,684	0
Other, net	93,005	(816)
Total other income (expense)	(1,123,795)	(2,196)
Income (loss) before income taxes	(2,399,102)	(1,183,460)
Income tax provision	0	0
Net income (loss)	(2,399,102)	(1,183,460)
Net income (loss) allocable to common stockholders	$ (2,399,102)	$ (1,183,460)
Net income (loss) per share allocable to common stockholders, basic	$ (0.44)	$ (2.39)
Net income (loss) per share allocable to common stockholders, diluted	$ (0.44)	$ (2.39)
Weighted average shares of common stock outstanding, basic	5,442,625	496,159
Weighted average shares of common stock outstanding, diluted	5,442,625	496,159

Condensed Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series A 1 A 2 A 3 A 4 [Member]	Preferred Stock Series B B 1 [Member]	Preferred Stock Series B 2 B 3 [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2022					$ 5	$ 41,596,106	$ (39,370,153)	$ 2,225,958
Beginning balance, shares at Dec. 31, 2022	0	0	0	0	491,345
Share-based compensation						82,531		82,531
Proceeds from sale of Series A preferred stock	$ 1,000							1,000
Proceeds from sale of Series A preferred stock, shares	1
Redemption of Series A Preferred stock	$ (1,000)							(1,000)
Redemption of Series A Preferred stock, shares	(1)
Net income (loss)							(1,183,460)	(1,183,460)
Ending balance, value at Mar. 31, 2023					$ 5	41,678,637	(40,553,613)	1,125,029
Ending balance, shares at Mar. 31, 2023	0	0	0	0	491,345
Beginning balance, value at Dec. 31, 2023					$ 8	43,553,523	(44,281,526)	(727,995)
Beginning balance, shares at Dec. 31, 2023	0	0	0	0	825,459
Share-based compensation						85,827		85,827
Issuance of common stock and warrants related to public offering, net issuance costs					$ 52	2,691,339		2,691,391
Issuance of common stock and warrants related to public offering, net issuance costs, shares					5,175,000
Issuance of common shares - equity line					$ 5	1,449,527		1,449,532
Net income (loss)							(2,399,102)	(2,399,102)
Issuance of common shares - equity line of credit, shares
Public offering and equity line issuance costs						(399,106)		(399,106)
Issuance of common shares - debt for equity exchange					$ 6	1,771,600		1,771,606
Issuance of common shares - debt for equity exchange, shares					644,142
Issuance of commitment shares - note financing						33,297		33,297
Issuance of commitment shares - note financing, shares					9,312
Issuance of common shares related to restricted stock units
Issuance of common shares related to restricted stock units, shares					4,261
Cashless exercise of pre-funded warrants
Cashless exercise of pre-funded warrants, shares					2,915
Round up convention related to reverse stock split
Round up convention related to reverse stock split, shares					40,068
Issuance of common shares - equity line, shares					452,343
Ending balance, value at Mar. 31, 2024					$ 72	$ 49,186,006	$ (46,680,628)	$ 2,505,450
Ending balance, shares at Mar. 31, 2024	0	0	0	0	7,153,500

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income (loss)	$ (2,399,102)	$ (1,183,460)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	45,109	39,368
Share-based compensation	85,827	82,531
Loss on exchange of debt	1,066,732	0
Loss on extinguishment of debt	111,928	0
Amortization of deferred issuance costs	335,352	0
Change in fair value related to warrants and derivative	(297,684)	0
Change in assets and liabilities
Accounts receivable	(2,616)	1,416
Prepaids and other current assets	(134,760)	(705)
Accounts payable	(640,163)	82,540
Accrued and other liabilities	(409,180)	(34,804)
Net cash (used in) operations	(2,238,557)	(1,013,113)
Investing activities
Intangible assets - Patents	(63,657)	(11,719)
Net cash (used in) investing activities	(63,657)	(11,719)
Financing activities
Issuance of common stock and warrants related to public offering, net deductions	2,691,391	0
Proceeds from equity line	1,449,532	0
Repayment of promissory notes	(300,974)	0
Equity line cash issuance costs	(259,331)	0
Public offering cash issuance costs	(143,463)	0
Bridge fund cash issuance costs	(23,375)	0
Proceeds from sale of Series A preferred stock	0	1,000
Redemption of Series A Preferred stock	0	(1,000)
Net cash provided by financing activities	3,413,780	0
Net increase (decrease) in cash and cash equivalents	1,111,566	(1,024,831)
Cash, cash equivalents and restricted cash, beginning of period	1,031,069	1,482,806
Cash, cash equivalents and restricted cash, end of period	2,142,635	457,975
Non-cash activities
Issuance of common shares in exchange for debt	1,771,606	0
Public offering accrued issuance costs	112,631	0
Equity line accrued issuance costs	3,413	0
Issuance of bridge fund commitment shares	$ 33,297	$ 0

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (2,399,102)	$ (1,183,460)

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

THE COMPANY AND BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

THE COMPANY AND BASIS OF PRESENTATION

NOTE 1. THE COMPANY AND BASIS OF PRESENTATION

The Company

Basis of Presentation

Risks and Uncertainties

2024 Reverse Stock Split

The following tables present selected share information reflecting on a retroactive basis the reverse stock splits as of and for the year ended December 31, 2023:


	December 31,
	2023
Common shares issued and outstanding - pre-2024 split, 13,206,229 shares	$	132
Common shares issued and outstanding - post-2024 split, 825,459 shares	$	8
Additional paid-in capital - pre-2024 split	$	43,553,399
Additional paid-in capital - post-2024 split	$	43,553,523


	Year ended December 31,
		2023
Weighted average shares outstanding, basic and diluted - pre-2024 split		8,908,934
Weighted average shares outstanding, basic and diluted - post-2024 split		556,808
Basic and diluted net loss per shares attributable to common stockholders - pre-2024 split	$	(0.55	)
Basic and diluted net loss per shares attributable to common stockholders - post-2024 split	$	(8.82	)

Public Offering

The Company incurred $566,199 of issuance costs; $310,105 deducted from proceeds and $256,094 paid or accrued.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Valuation of Derivative Instruments

Fair Value of Financial Instruments

The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

Level 1 - Unadjusted quoted prices in active markets for identical instruments that are accessible by the Company on the measurement date.

Level 2 - Quoted prices in markets that are not active or inputs which are either directly or indirectly observable.

Level 3 - Unobservable inputs for the instrument requiring the development of assumptions by the Company.

Derivative Financial Instruments

Cash and Cash Equivalents

Accounts Receivable, Less Allowance for Doubtful Accounts

Revenue Recognition

Liquidity, Capital Resources and Going Concern

Refer to Note 14: Subsequent Events, for information regarding recent funding developments.

Share-Based Compensation

The exercise or strike price of each option is not less than 100% of the fair market value of the Common Stock subject to the option on the date the option is granted.

On occasion, the Company grants common stock to compensate vendors for services rendered.

Deferred Financing Costs

Emerging Growth Company Status

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 3: FAIR VALUE MEASUREMENTS


	Fair value measured as of March 31, 2024
	Fair value on March 31, 2024		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrant liability	$	34,825	$	–	$	–	$	34,825
Derivative Liability		32,994		–		–		32,994
Total Fair value	$	67,819	$	–	$	–	$	67,819

There were no transfers between Level 1, 2, and 3 during the three months ended March 31, 2024.


	Warrant Liability			Derivative Liability			Total
Balance – December 31, 2023	$	289,165		$	121,326		$	410,491
Exchange and Payoff of Notes Payable		–			(44,988	)		(44,988	)
Change in fair value		(254,340	)		(43,344	)		(297,684	)
Balance – March 31, 2024	$	34,825		$	32,994		$	67,819

The fair value of the warrants to purchase shares of common stock was estimated using a Monte Carlo simulation using the following assumptions.

Schedule of assumptions
	As of Dec 31, 2023		As of March 31, 2024
	Warrant Liability		Warrant Liability
Strike Price	$	4.32	$	0.58
Contractual term (years)		5.0		5.0
Volatility (annual)		80.0%		80.0%
Risk-free rate		3.89%		4.29%
Floor Financing price	$	0.14	$	0.14

RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

NOTE 4. RECENT ACCOUNTING PRONOUNCEMENTS

To date, there have been no recent accounting pronouncements not yet effective that have significance, or potential significance, to our Consolidated Financial Statements.

REVENUE

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 5. REVENUE

Contract Balances

SUPPLEMENTAL FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

NOTE 6. SUPPLEMENTAL FINANCIAL INFORMATION

Balance Sheets

Prepaids and other current assets:


	March 31, 2024		December 31, 2023
Short term deposits	$	50,000	$	50,000
Deferred offering costs		–		100,588
Prepaid insurance D&O		17,571		34,769
Prepaid insurance, other		10,021		17,884
Prepaid other		300,713		41,635
Other receivables		156		154
	$	378,461	$	245,030

Accounts payable

Schedule of accounts payable
	March 31, 2024		December 31, 2023
Accounts payable	$	189,029	$	758,821
Credit cards payable		6,685		1,714
	$	195,714	$	760,535

Accrued and other liabilities:


	March 31, 2024		December 31, 2023
Accounts payroll	$	–	$	162,887
Accrued bonus		127,875		262,580
Accrued audit and legal expenses		41,595		89,082
Accrued interest		40,679		98,685
Accrued board compensation		46,250		92,500
Other accrued liabilities		31,730		151,988
	$	288,129	$	857,722

LEASES

3 Months Ended

Mar. 31, 2024

Leases

LEASES

NOTE 7. LEASES

The Company had no office lease for the quarter ended March 31, 2024, and the year ended December 31, 2023.

INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 8. INTANGIBLE ASSETS

The Company’s intangible assets are as follows:

Schedule of intangible assets
	March 31, 2024			December 31, 2023

Patents and licenses	$	2,330,907		$	2,267,251
Other		5,017			5,017
		2,335,925			2,272,268
Less: accumulated amortization		(1,148,458	)		(1,103,645	)
Intangible assets, net	$	1,187,467		$	1,168,623

Patents and licenses costs are accounted for as intangible assets and amortized over the life of the patent or license agreement and charged to research and development.

Amortization expense related to purchased intangible assets was $44,812 and $38,865 for the three months ended March 31, 2024, and 2023, respectively.

Patents and trademarks are reviewed at least annually for impairment. No impairment was recorded through March 31, 2024, and December 31, 2023, respectively.

Future amortization of intangible assets is as follows:


2024	$	133,786
2025		178,381
2026		178,381
2027		178,381
2028 and beyond		518,538
Total	$	1,187,467

SHORT TERM NOTES AND CONVERTIBLE DEBT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

SHORT TERM NOTES AND CONVERTIBLE DEBT

NOTE 9. SHORT TERM NOTES AND CONVERTIBLE DEBT

Convertible Notes:

As of December 31, 2023, there were no Convertible Notes payable and outstanding. There was no convertible note activity in the three months ended March 31, 2024.

Senior Notes Payable

The Company incurred issuance costs, recorded as deferred financing costs, of $296,313 relating to due diligence and legal costs associated with the issuance of the notes.


	March 31, 2024			December 31, 2023
Note Payable	$	862,500		$	2,594,118
Less: Unamortized Discounts and Deferred Financing Costs
Warrants		–			(557,582	)
Derivative		(77,583	)		(235,628	)
Deferred financing costs		(114,767	)		(675,184	)
		(192,350	)		(1,468,394	)
	$	670,150		$	1,125,724

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10. COMMITMENTS AND CONTINGENCIES

Royalty Agreement

Litigation

STOCKHOLDERS’ EQUITY

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 11. STOCKHOLDERS’ EQUITY

Stockholders’ Vote – Reverse stock split

Series A Preferred Stock

Warrants

The following table summarizes the Company’s outstanding warrants as of March 31, 2024. The warrants and related strike prices have been adjusted to reflect the 2024 Stock Split.


Issue Date	Strike price	Number outstanding	Expiration
April 21, 2022 (1)	$69.60	155,610	April 21, 2027
April 21, 2022	$87.04	10,825	April 21, 2027
April 21, 2022	$69.60	26,673	April 21, 2027
May 16, 2023 (2)	$0.29	77,010	May 16, 2028
November 21, 2023 (2)	$0.29	46,556	November 21, 2028
November 21, 2023	$0.00001	1,576	November 21, 2028
February 27, 2024	$0.58	10,350,000	February 27, 2029

(1)	These warrants were issued as part of the Company’s initial public offering completed April, 2022, and trade on Nasdaq under the ticker symbol “ACONW.”
(2)	The per share exercise price of these warrants is subject to a “ratchet” adjustment if the Company issues securities at an effective per share price lower than the then effective warrant exercise price. The strike price of $0.29 is current through the equity line activity closed April 26, 2024 (see Note 14: Subsequent Events).

NET LOSS PER SHARE OF COMMON STOCK

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

NET LOSS PER SHARE OF COMMON STOCK

NOTE 12. NET LOSS PER SHARE OF COMMON STOCK

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows:


	Three Months Ended March 31,
	2024			2023
Numerator:
Net (loss) allocable to common stockholders used to compute basic and diluted loss per common share	$	(2,399,102	)	$	(1,183,460	)
Denominator:
Weighted average shares outstanding used to compute basic and dilutive loss per share		5,426,557			491,345
Weighted average shares issuable for vested restricted stock units		16,069			4,814
		5,442,625			496,159


	March 31, 2024		March 31, 2023

Warrants		10,666,674		193,107
Restricted stock units		9,698		40,576
Stock options		169,458		171,176
		10,845,830		404,859

STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

NOTE 13. STOCK BASED COMPENSATION

2022 Aclarion Equity Incentive Plan

No options were granted in the three months ended March 31, 2024.

Nocimed, Inc. 2015 Stock Plan

Determining Fair Value of Stock Options

Expected Term—The Company estimates the expected term of stock option by taking the average of the vesting term and the contractual term of the option, as illustrated by the simplified method.

Expected Volatility—The expected volatility is derived from the Company’s expectations of future market volatility over the expected term of the options.

Risk-Free Interest Rate—The risk-free interest rate is based on the 10-year U.S. Treasury yield curve on the date of grant.

Dividend Yield—The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts.

Stock Award Activity

A summary of option activity under the Company’s incentive plans is as follows:

Schedule of option activity
	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)
Balance at December 31, 2023		169,456	$	31.15		7.5
Options granted		–		–		–
Options exercised		–		–		–
Options forfeited/expired		–		–		–
Balance at March 31, 2024		169,456	$	31.15		7.2

Exercisable at December 31, 2023		147,977	$	30.57		7.4
Exercisable at March 31, 2024		151,474	$	30.69		7.1

The aggregate intrinsic value of options outstanding at March 31, 2024 is $0. The aggregate intrinsic value of vested and exercisable options at March 31, 2024 is $0.

As of March 31, 2024, there was approximately $270,154 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over the next 18 months.

Restricted Stock Units

Post-split RSU activity under the 2022 Plan was as follows for the three months ended March 31, 2024:

Schedule of RSU activity
	RSU’s Outstanding			Weighted-Average Grant-Date Fair value per Unit
Nonvested as of December 31, 2023		15,749		$	10.72
Granted		–			–
Vested		(2,554	)		11.01
Forfeited		(3,497	)		10.72
Nonvested as of March 31, 2024		9,698		$	10.64

As of March 31, 2024, there was approximately $15,340 total unrecognized compensation cost related to non-vested RSUs which is expected to be recognized over the next twelve months.

As of March 31, 2024, the Company is obligated to issue 114,719 shares of common stock associated with vested Restricted Stock Units.

Stock-based Compensation Expense

The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented:


	Three months ended March 31,
	2024		2023

Sales and marketing	$	28,128	$	28,308
Research and development		2,055		3,560
General and administrative		55,644		50,663
	$	85,827	$	82,531

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 14. SUBSEQUENT EVENTS

Nasdaq notice regarding compliance with the $1.00 Minimum Bid Price requirement

The Notice does not result in the immediate delisting of the Company’s common stock from The Nasdaq Capital Market.

White Lion Equity Line Agreement

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation, amortization, and valuation of warrants, warrant and derivative liabilities, and options to purchase shares of the Company's common stock. These estimates may be adjusted as more current information becomes available, and any adjustment could be significant.
Valuation of Derivative Instruments	Valuation of Derivative Instruments Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging: Contracts on an Entity’s Own Equity, addresses whether an equity-linked contract qualifies as equity in the entity’s financial statements. Agreements where an entity has insufficient authorized and unissued shares to settle the contract generally are accounted for as a liability and marked to fair value through earnings each reporting period. The Company evaluates its financial instruments to determine if such instruments are liabilities or contain features that qualify as embedded derivatives. For financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then revalued at each reporting date, with changes in the fair value reported as charges or credits to income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments ASC 820, Fair Value Measurements, provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes: Level 1 - Unadjusted quoted prices in active markets for identical instruments that are accessible by the Company on the measurement date. Level 2 - Quoted prices in markets that are not active or inputs which are either directly or indirectly observable. Level 3 - Unobservable inputs for the instrument requiring the development of assumptions by the Company. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of the Company’s financial instruments including cash equivalents, restricted cash, accounts receivable, and accounts payable are approximately equal to their respective fair values due to the relatively short-term nature of these instruments. The Company’s warrant liabilities and derivative liabilities are estimated using level 3 inputs (see Note 3).
Derivative Financial Instruments	Derivative Financial Instruments The Company has derivative financial instruments that are not hedges and do not qualify for hedge accounting. Changes in the fair value of these instruments are recorded in other income (expenses), on a net basis in the Consolidated Statements of Operations and Comprehensive Loss.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at March 31, 2024 and December 31, 2023. The Company maintains cash deposits at several financial institutions, which are insured by the FDIC up to $250,000. The Company’s cash balance may at times exceed these limits. On March 31, 2024, and December 31, 2023, the Company had $1,767,372 and $761,800, respectively, in excess of federally insured limits. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. The Company maintains no international bank accounts. As of March 31, 2024, $10,000 of the Company’s cash was restricted as collateral related to the credit card program offered by our bank.
Accounts Receivable, Less Allowance for Doubtful Accounts	Accounts Receivable, Less Allowance for Doubtful Accounts The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. The allowance for doubtful accounts was $0 on March 31, 2024, and December 31, 2023.
Revenue Recognition	Revenue Recognition Revenues are recognized when a contract with a customer exists, and at that point in time when we have delivered a Nociscan report to our customer. Revenue is recognized in the amount that reflects the negotiated consideration expected to be received in exchange for those reports. Following the delivery of the report, the company has no ongoing obligations or services to provide to the customer. Customers pay no other upfront, licensing, or other fees. To date, our reports are not reimbursable under any third-party payment arrangements, The Company invoices its customers based on the billing schedules in its sales arrangements. Payment terms range generally from 30 to 90 days from the date of invoice.
Liquidity, Capital Resources and Going Concern	Liquidity, Capital Resources and Going Concern The Company believes that the net proceeds from the February 2024 initial public offering, and subsequent funding described in Note 14, will be sufficient to fund current operating plans into the third quarter of 2024, approaching our final maturity repayment of our unsecured non-convertible note, which is due in September 2024. The Company has based these estimates, however, on assumptions that may prove to be wrong, and could spend available financial resources much faster than we currently expect. The Company will need to raise additional funds to continue funding our technology development. Management plans to secure such additional funding. As a result of the Company’s recurring losses from operations and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern. Refer to Note 14: Subsequent Events, for information regarding recent funding developments.
Share-Based Compensation	Share-Based Compensation The Company accounts for stock-based awards in accordance with provisions of ASC Topic 718, Compensation—Stock Compensation, under which the Company recognizes the grant-date fair value of stock-based awards issued to employees and nonemployee board members as compensation expense on a straight-line basis over the vesting period of the award, while awards containing a performance condition are recognized as expense when the achievement of the performance criteria is achieved. The Company uses the Black-Scholes option pricing model to determine the grant-date fair value of stock options. The Company records expense for forfeitures in the periods they occur. The exercise or strike price of each option is not less than 100% of the fair market value of the Common Stock subject to the option on the date the option is granted. The Company issues restricted stock unit awards to non-employee consultants who are providing various services. The awards are valued at the market price on the date of the grant. The awards vest over the contract life and based on achievement of targeted performance milestones. On occasion, the Company grants common stock to compensate vendors for services rendered.
Deferred Financing Costs	Deferred Financing Costs The Company capitalizes certain legal, accounting, and other fees and costs that are directly attributable to in-process equity financings as deferred offering costs until such financings are completed. Upon the completion of an equity financing, these costs are recorded as a reduction of additional paid-in capital of the related offering. Upon the completion of the public offering in February 2024, approximately $566,200 of offering costs related to the public offering were reclassified to additional paid-in capital ($310,105 deducted from proceeds, and $256,094 paid or accrued). Upon the completion of the issuance of shares pursuant to the equity line in the first quarter of 2024, $133,000 of offering costs were reclassified to additional paid-in capital.
Emerging Growth Company Status	Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay the adoption of new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period to comply with certain new or revised accounting standards that have different effective dates for public and private companies.

THE COMPANY AND BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of equity statement information


	December 31,
	2023
Common shares issued and outstanding - pre-2024 split, 13,206,229 shares	$	132
Common shares issued and outstanding - post-2024 split, 825,459 shares	$	8
Additional paid-in capital - pre-2024 split	$	43,553,399
Additional paid-in capital - post-2024 split	$	43,553,523

Schedule of share information reflecting on a retroactive basis the reverse stock splits


	Year ended December 31,
		2023
Weighted average shares outstanding, basic and diluted - pre-2024 split		8,908,934
Weighted average shares outstanding, basic and diluted - post-2024 split		556,808
Basic and diluted net loss per shares attributable to common stockholders - pre-2024 split	$	(0.55	)
Basic and diluted net loss per shares attributable to common stockholders - post-2024 split	$	(8.82	)

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of recurring basis to determine the fair value of the liability


	Fair value measured as of March 31, 2024
	Fair value on March 31, 2024		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrant liability	$	34,825	$	–	$	–	$	34,825
Derivative Liability		32,994		–		–		32,994
Total Fair value	$	67,819	$	–	$	–	$	67,819

Schedule of liabilities measures at fair value


	Warrant Liability			Derivative Liability			Total
Balance – December 31, 2023	$	289,165		$	121,326		$	410,491
Exchange and Payoff of Notes Payable		–			(44,988	)		(44,988	)
Change in fair value		(254,340	)		(43,344	)		(297,684	)
Balance – March 31, 2024	$	34,825		$	32,994		$	67,819

Schedule of assumptions

Schedule of assumptions
	As of Dec 31, 2023		As of March 31, 2024
	Warrant Liability		Warrant Liability
Strike Price	$	4.32	$	0.58
Contractual term (years)		5.0		5.0
Volatility (annual)		80.0%		80.0%
Risk-free rate		3.89%		4.29%
Floor Financing price	$	0.14	$	0.14

SUPPLEMENTAL FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of prepaids and other current assets


	March 31, 2024		December 31, 2023
Short term deposits	$	50,000	$	50,000
Deferred offering costs		–		100,588
Prepaid insurance D&O		17,571		34,769
Prepaid insurance, other		10,021		17,884
Prepaid other		300,713		41,635
Other receivables		156		154
	$	378,461	$	245,030

Schedule of accounts payable

Schedule of accounts payable
	March 31, 2024		December 31, 2023
Accounts payable	$	189,029	$	758,821
Credit cards payable		6,685		1,714
	$	195,714	$	760,535

Schedule of accrued and other liabilities


	March 31, 2024		December 31, 2023
Accounts payroll	$	–	$	162,887
Accrued bonus		127,875		262,580
Accrued audit and legal expenses		41,595		89,082
Accrued interest		40,679		98,685
Accrued board compensation		46,250		92,500
Other accrued liabilities		31,730		151,988
	$	288,129	$	857,722

INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

Schedule of intangible assets
	March 31, 2024			December 31, 2023

Patents and licenses	$	2,330,907		$	2,267,251
Other		5,017			5,017
		2,335,925			2,272,268
Less: accumulated amortization		(1,148,458	)		(1,103,645	)
Intangible assets, net	$	1,187,467		$	1,168,623

Schedule of future amortization of intangible assets


2024	$	133,786
2025		178,381
2026		178,381
2027		178,381
2028 and beyond		518,538
Total	$	1,187,467

SHORT TERM NOTES AND CONVERTIBLE DEBT (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of derivative liabilities and warrant liabilities


	March 31, 2024			December 31, 2023
Note Payable	$	862,500		$	2,594,118
Less: Unamortized Discounts and Deferred Financing Costs
Warrants		–			(557,582	)
Derivative		(77,583	)		(235,628	)
Deferred financing costs		(114,767	)		(675,184	)
		(192,350	)		(1,468,394	)
	$	670,150		$	1,125,724

STOCKHOLDERS’ EQUITY (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of warrants and related strike prices


Issue Date	Strike price	Number outstanding	Expiration
April 21, 2022 (1)	$69.60	155,610	April 21, 2027
April 21, 2022	$87.04	10,825	April 21, 2027
April 21, 2022	$69.60	26,673	April 21, 2027
May 16, 2023 (2)	$0.29	77,010	May 16, 2028
November 21, 2023 (2)	$0.29	46,556	November 21, 2028
November 21, 2023	$0.00001	1,576	November 21, 2028
February 27, 2024	$0.58	10,350,000	February 27, 2029

(1)	These warrants were issued as part of the Company’s initial public offering completed April, 2022, and trade on Nasdaq under the ticker symbol “ACONW.”
(2)	The per share exercise price of these warrants is subject to a “ratchet” adjustment if the Company issues securities at an effective per share price lower than the then effective warrant exercise price. The strike price of $0.29 is current through the equity line activity closed April 26, 2024 (see Note 14: Subsequent Events).

NET LOSS PER SHARE OF COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of reconciliation of basic and diluted net loss per share


	Three Months Ended March 31,
	2024			2023
Numerator:
Net (loss) allocable to common stockholders used to compute basic and diluted loss per common share	$	(2,399,102	)	$	(1,183,460	)
Denominator:
Weighted average shares outstanding used to compute basic and dilutive loss per share		5,426,557			491,345
Weighted average shares issuable for vested restricted stock units		16,069			4,814
		5,442,625			496,159

Schedule of anti-dilutive securities excluded from computation of earnings per share


	March 31, 2024		March 31, 2023

Warrants		10,666,674		193,107
Restricted stock units		9,698		40,576
Stock options		169,458		171,176
		10,845,830		404,859

STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of option activity

Schedule of option activity
	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)
Balance at December 31, 2023		169,456	$	31.15		7.5
Options granted		–		–		–
Options exercised		–		–		–
Options forfeited/expired		–		–		–
Balance at March 31, 2024		169,456	$	31.15		7.2

Exercisable at December 31, 2023		147,977	$	30.57		7.4
Exercisable at March 31, 2024		151,474	$	30.69		7.1

Schedule of RSU activity

Schedule of RSU activity
	RSU’s Outstanding			Weighted-Average Grant-Date Fair value per Unit
Nonvested as of December 31, 2023		15,749		$	10.72
Granted		–			–
Vested		(2,554	)		11.01
Forfeited		(3,497	)		10.72
Nonvested as of March 31, 2024		9,698		$	10.64

Schedule of stock-based compensation expense


	Three months ended March 31,
	2024		2023

Sales and marketing	$	28,128	$	28,308
Research and development		2,055		3,560
General and administrative		55,644		50,663
	$	85,827	$	82,531

THE COMPANY AND BASIS OF PRESENTATION (Details - Balance sheet changes from split) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Offsetting Assets [Line Items]
Common shares issued and outstanding - post-2024 split, 825,459 shares	$ 72	$ 8
Common stock shares issued	7,153,500	825,459
Common stock shares outstanding	7,153,500	825,459
Additional paid-in capital - post-2024 split	$ 49,186,006	$ 43,553,523
Pre 2024 Split [Member]
Offsetting Assets [Line Items]
Common shares issued and outstanding - post-2024 split, 825,459 shares		$ 132
Common stock shares issued		13,206,229
Common stock shares outstanding		13,206,229
Additional paid-in capital - post-2024 split		$ 43,553,399
Post 2024 Split [Member]
Offsetting Assets [Line Items]
Common shares issued and outstanding - post-2024 split, 825,459 shares		$ 8
Common stock shares issued		825,459
Common stock shares outstanding		825,459
Additional paid-in capital - post-2024 split		$ 43,553,523

THE COMPANY AND BASIS OF PRESENTATION (Details- Retroactive basis the reverse stock splits) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Weighted average shares outstanding, basic	5,442,625	496,159
Weighted average shares outstanding, diluted	5,442,625	496,159
Basic net loss per shares attributable to common stockholders	$ (0.44)	$ (2.39)
Diluted net loss per shares attributable to common stockholders	$ (0.44)	$ (2.39)
Pre Split [Member]
Weighted average shares outstanding, basic			8,908,934
Weighted average shares outstanding, diluted			8,908,934
Basic net loss per shares attributable to common stockholders			$ (0.55)
Diluted net loss per shares attributable to common stockholders			$ (0.55)
Post Split [Member]
Weighted average shares outstanding, basic			556,808
Weighted average shares outstanding, diluted			556,808
Basic net loss per shares attributable to common stockholders			$ (8.82)
Diluted net loss per shares attributable to common stockholders			$ (8.82)

THE COMPANY AND BASIS OF PRESENTATION (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
	Feb. 27, 2024	Jan. 31, 2024	Mar. 31, 2024	Mar. 31, 2023
Offsetting Assets [Line Items]
Stock issuance costs			$ 143,463	$ (0)
IPO [Member]
Offsetting Assets [Line Items]
Stock issuance costs	$ 566,199
IPO [Member] \| Units [Member]
Offsetting Assets [Line Items]
Issuance of shares	5,175,000
Share price per unit	$ 0.58
Gross proceeds	$ 3,000,000
Unit description	Each Unit was comprised of (i) one share of common stock or, in lieu of common stock, one prefunded warrant to purchase a share of common stock, and (ii) two common warrants, each common warrant to purchase a share of common stock.
IPO [Member] \| Prefunded Warrant [Member]
Offsetting Assets [Line Items]
Warrant exercise price per share	$ 0.00001
IPO [Member] \| Common Warrants [Member]
Offsetting Assets [Line Items]
Warrant exercise price per share	$ 0.58
2024 Stock Split [Member]
Offsetting Assets [Line Items]
Reverse Stock Split		one-for-sixteen (the “2024 Stock Split”)
Deducted From Proceeds [Member] \| IPO [Member]
Offsetting Assets [Line Items]
Stock issuance costs	$ 310,105
Paid Or Accrued [Member] \| IPO [Member]
Offsetting Assets [Line Items]
Stock issuance costs	$ 256,094

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	1 Months Ended	2 Months Ended
	Mar. 31, 2024	Feb. 29, 2024	Dec. 31, 2023
Subsidiary, Sale of Stock [Line Items]
Cash equivalents	$ 0		$ 0
Cash uninsured amount	1,767,372		761,800
Restricted cash	10,000		10,000
Allowance for doubtful accounts	0		$ 0
IPO [Member] \| Completion Of Public Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Adjustments to Additional Paid in Capital, Other		$ 566,200
IPO [Member] \| Completion Of Issuance Of Shares [Member]
Subsidiary, Sale of Stock [Line Items]
Adjustments to Additional Paid in Capital, Other	$ 133,000

FAIR VALUE MEASUREMENTS (Details- Recurring basis to determine the fair value of the liability)	Mar. 31, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	$ 67,819
Fair Value, Inputs, Level 1 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	67,819
Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	34,825
Warrant Liability [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Warrant Liability [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Warrant Liability [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	34,825
Derivative Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	32,994
Derivative Liability [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Derivative Liability [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	0
Derivative Liability [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total Fair value	$ 32,994

FAIR VALUE MEASUREMENTS (Details - Liabilities measures at fair value)	3 Months Ended
	Mar. 31, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance – December 31, 2023	$ 410,491
Exchange and Payoff of Notes Payable	(44,988)
Change in fair value	(297,684)
Balance – March 31, 2024	67,819
Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance – December 31, 2023	289,165
Exchange and Payoff of Notes Payable	0
Change in fair value	(254,340)
Balance – March 31, 2024	34,825
Derivative Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance – December 31, 2023	121,326
Exchange and Payoff of Notes Payable	(44,988)
Change in fair value	(43,344)
Balance – March 31, 2024	$ 32,994

FAIR VALUE MEASUREMENTS (Details- Fair value of the warrants) - Warrant Liability [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Strike Price	$ 0.58	$ 4.32
Contractual term (years)	5 years	5 years
Volatility (annual)	80.00%	80.00%
Risk-free rate	4.29%	3.89%
Floor Financing price	$ 0.14	$ 0.14

SUPPLEMENTAL FINANCIAL INFORMATION (Details - Prepaids and other current assets) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Prepaids and other current assets	$ 378,461	$ 245,030
Short Term Deposits [Member]
Prepaids and other current assets	50,000	50,000
Deferred Offering Costs [Member]
Prepaids and other current assets	0	100,588
Prepaid Insurance D And O [Member]
Prepaids and other current assets	17,571	34,769
Prepaid Insurance [Member]
Prepaids and other current assets	10,021	17,884
Prepaid Other [Member]
Prepaids and other current assets	300,713	41,635
Other Receivables [Member]
Prepaids and other current assets	$ 156	$ 154

SUPPLEMENTAL FINANCIAL INFORMATION (Details - Accounts payable) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounts payable, current	$ 195,714	$ 760,535
Accounts Payable [Member]
Accounts payable, current	189,029	758,821
Credit Cards Payable [Member]
Accounts payable, current	$ 6,685	$ 1,714

SUPPLEMENTAL FINANCIAL INFORMATION (Details - Accrued and other liabilities) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accrued liabilities and other liabilities	$ 288,129	$ 857,722
Accrued Payroll [Member]
Accrued liabilities and other liabilities	0	162,887
Accrued Bonus [Member]
Accrued liabilities and other liabilities	127,875	262,580
Accrued Audit And Legal Expenses [Member]
Accrued liabilities and other liabilities	41,595	89,082
Accrued Interest [Member]
Accrued liabilities and other liabilities	40,679	98,685
Accrued Board Compensation [Member]
Accrued liabilities and other liabilities	46,250	92,500
Other Accrued Liabilities [Member]
Accrued liabilities and other liabilities	$ 31,730	$ 151,988

LEASES (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
LEASES (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Leases
Office lease	$ 0	$ 0

INTANGIBLE ASSETS (Details - Intangible assets) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	$ 2,335,925	$ 2,272,268
Less: accumulated amortization	(1,148,458)	(1,103,645)
Intangible assets, net	1,187,467	1,168,623
Patents And Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	2,330,907	2,267,251
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	$ 5,017	$ 5,017

INTANGIBLE ASSETS (Details - Future amortization)	Mar. 31, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 133,786
2025	178,381
2026	178,381
2027	178,381
2028 and beyond	518,538
Total	$ 1,187,467

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
INTANGIBLE ASSETS (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 44,812	$ 38,865

SHORT TERM NOTES AND CONVERTIBLE DEBT (Details - Note payable) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Note Payable	$ 862,500	$ 2,594,118
Warrants	0	(557,582)
Derivative	(77,583)	(235,628)
Deferred financing costs	(114,767)	(675,184)
Total notes payable discount	(192,350)	(1,468,394)
Note payable, net of discount	$ 670,150	$ 1,125,724

SHORT TERM NOTES AND CONVERTIBLE DEBT (Details Narrative) - USD ($)			1 Months Ended				3 Months Ended
	Mar. 06, 2024	Jan. 29, 2024	Jan. 31, 2024	Nov. 30, 2023	Sep. 30, 2023	May 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Convertible notes payable outstanding							$ 0		$ 0
Diligence and legal costs				$ 296,313
Issuance of debt discount				320,561
Exchange of principal and accrued interest							1,066,732	$ (0)
Outstanding balance							862,500		$ 2,594,118
Principal and accrued interest paid							(111,928)	$ 0
Unsecured Non Convertible Notes [Member]
Debt Instrument [Line Items]
Principal and accrued interest paid	$ 300,974
Outstanding balance	$ 898,380
Principal and accrued interest paid							111,928
Exchange Agreements [Member] \| Accredited Investors [Member]
Debt Instrument [Line Items]
Number of common shares issued on exchange		644,142
Exchange of principal and accrued interest		$ 1,519,779
Remaining outstanding balance of principal and interest		$ 1,145,037
Exchange of principal and accrued interest			$ 1,066,732
Senior Notes Payable [Member]
Debt Instrument [Line Items]
Debt instrument face amount						$ 1,437,500
Proceeds from secured notes payable						$ 1,250,000
Amortization of Debt Discount (Premium)							$ 335,352
Series B Notes Payable [Member]
Debt Instrument [Line Items]
Issuing unsecured senior notes					$ 862,500
Maturity date					Sep. 01, 2024
Cash proceeds					$ 750,000
Original issue discount, percentage					15.00%
Annual rate percentage					8.00%
Series C Notes Payable [Member]
Debt Instrument [Line Items]
Issuing unsecured senior notes				$ 294,118
Maturity date				Apr. 19, 2024
Cash proceeds				$ 250,000
Original issue discount, percentage				15.00%
Annual rate percentage				8.00%

COMMITMENTS AND CONTINGENCIES (Details Narrative) - Regents Of The University Of California [Member] - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Minimum annual royalty payment	$ 50,000
Royalty expense	$ 12,500	$ 12,500

STOCKHOLDERS' EQUITY (Details - Outstanding warrants)

3 Months Ended

Mar. 31, 2024

$ / shares

Strike Price 69.60 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Apr. 21, 2022

^[1]

Strike price | $ / shares

$ 69.60

^[1]

Number of shares outstanding | shares

155,610

^[1]

Expiration

Apr. 21, 2027

^[1]

Strike Price 87.04 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Apr. 21, 2022

Strike price | $ / shares

$ 87.04

Number of shares outstanding | shares

10,825

Expiration

Apr. 21, 2027

Strike Price 69.60 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Apr. 21, 2022

Strike price | $ / shares

$ 69.60

Number of shares outstanding | shares

26,673

Expiration

Apr. 21, 2027

Strike Price 0.29 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

May 16, 2023

^[2]

Strike price | $ / shares

$ 0.29

^[2]

Number of shares outstanding | shares

77,010

^[2]

Expiration

May 16, 2028

^[2]

Strike Price 0.29 (1) [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Nov. 21, 2023

^[2]

Strike price | $ / shares

$ 0.29

^[2]

Number of shares outstanding | shares

46,556

^[2]

Expiration

Nov. 21, 2028

^[2]

Strike Price 0.00001 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Nov. 21, 2023

Strike price | $ / shares

$ 0.00001

Number of shares outstanding | shares

1,576

Expiration

Nov. 21, 2028

Strike Price 0.58 [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Issue date

Feb. 27, 2024

Strike price | $ / shares

$ 0.58

Number of shares outstanding | shares

10,350,000

Expiration

Feb. 27, 2029

[1]	These warrants were issued as part of the Company’s initial public offering completed April, 2022, and trade on Nasdaq under the ticker symbol “ACONW.”
[2]	The per share exercise price of these warrants is subject to a “ratchet” adjustment if the Company issues securities at an effective per share price lower than the then effective warrant exercise price. The strike price of $0.29 is current through the equity line activity closed April 26, 2024 (see Note 14: Subsequent Events).

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	Mar. 24, 2024	Feb. 28, 2023	Mar. 31, 2024	Dec. 31, 2023
Common stock, shares authorized			200,000,000	200,000,000
Common stock, par value			$ 0.00001	$ 0.00001
Preferred stock, shares authorized			20,000,000
Preferred stock, par value			$ 0.00001
Common stock, shares outstanding			7,153,500	825,459
Redemption price			$ 1,000
Executive Chairman [Member]
Purchase price		$ 1,000
Minimum [Member]
Stockholders equity, reverse stock Split	one-for-five (1-for-5)
Maximum [Member]
Stockholders equity, reverse stock Split	one-for-fifty (1-for-50)

NET LOSS PER SHARE OF COMMON STOCK (Details - Basic and diluted net loss per share) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net (loss) allocable to common stockholders used to compute basic and diluted loss per common share	$ (2,399,102)	$ (1,183,460)
Weighted average shares outstanding used to compute basic and dilutive loss per share	5,426,557	491,345
Weighted average shares issuable for vested restricted stock units	16,069	4,814
Weighted average shares of common stock outstanding, basic	5,442,625	496,159
Weighted average shares of common stock outstanding, diluted	5,442,625	496,159

NET LOSS PER SHARE OF COMMON STOCK (Details - Dilutive securities) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	10,845,830	404,859
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	10,666,674	193,107
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	9,698	40,576
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	169,458	171,176

STOCK BASED COMPENSATION (Details - Option activity) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Number of share options outstanding, Beginning	169,456
Weighted average exercise price, Beginning	$ 31.15
Weighted average remaining contractual life	7 years 2 months 12 days	7 years 6 months
Options granted	0
Weighted average exercise price, Options granted	$ 0
Options exercised	$ 0
Weighted average exercise price, Options exercised	$ 0
Options forfeited or expired	0
Weighted average exercise price, Options forfeited or expired	$ 0
Number of share options outstanding, Ending	169,456	169,456
Weighted average exercise price, Ending	$ 31.15	$ 31.15
Options exercisable	151,474	147,977
Weighted average exercise price, Option exercisable	$ 30.69	$ 30.57
Weighted average remaining contractual life, Options exercisable	7 years 1 month 6 days	7 years 4 months 24 days

STOCK BASED COMPENSATION (Details - RSU activity) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Rsu shares outstanding, Beginning \| shares	15,749
Weighted average grant date fair value per unit, Beginning \| $ / shares	$ 10.72
RSU's granted \| shares	0
RSU's granted, weighted-average grant date fair value per unit \| $ / shares	$ 0
RSU's vested \| shares	(2,554)
RSU's vested, weighted-average grant date fair value per unit \| $ / shares	$ 11.01
RSU's forfeited \| shares	(3,497)
RSU's forfeited, weighted-average grant date fair value per unit \| $ / shares	$ 10.72
Number of Rsu shares outstanding, Ending \| shares	9,698
Weighted average grant date fair value per unit, Ending \| $ / shares	$ 10.64

STOCK BASED COMPENSATION (Details - Share based compensation) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 85,827	$ 82,531
Selling and Marketing Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	28,128	28,308
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,055	3,560
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 55,644	$ 50,663

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
STOCK BASED COMPENSATION (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Apr. 21, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted	0
Intrinsic value options exercised	$ 0
Non Vested Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 270,154
Unrecognized compensation cost, remaining term	18 months
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 15,340
Share-based compensation expense	$ 28,128
Obligated to issue share of common stock	114,719
Options Held [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Intrinsic value options exercised	$ 0
Aclarion Equity Incentive Plan 2022 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of common shares issued		2,470,814	2,000,000

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