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 June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File No. 001-40899 Bone Biologics Corporation (Exact name of registrant as specified in its charter) | | | (State or other juris ...

Core Insights - Bone Biologics Corporation's stock is experiencing an increase, with a trading volume of 17.22 million shares compared to an average of 38.795K shares [1] - The company has filed a patent application for its preclinical NELL-1 protein, aimed at treating bone conditions, particularly in spinal fusion procedures [2] - The patent application is seen as a significant step in the company's mission to provide effective treatments for spine fusion patients [2] Financial Activities - Bone Biologics has priced a public offering of 1.25 million shares along with Series D and Series E warrants, each with an exercise price of $4 per share [3] - The total gross proceeds from this offering are expected to be $5.0 million, with potential additional proceeds of $10 million if the warrants are fully exercised [4] - Proceeds from the offering will be allocated to fund clinical trials, maintain and extend the patent portfolio, and for general corporate purposes [4] Stock Performance - The company recently executed a reverse stock split at a ratio of 1-for-6 [5] - As of the latest publication, Bone Biologics' stock price has risen by 20.31%, reaching $5.01 [5]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) The company reported no revenue, a net loss of $1.02 million, and a significant going concern issue [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $3.16 million, driven by a reduction in cash, while stockholders' equity declined Condensed Consolidated Balance Sheet Data (unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $2,746,555 | $3,325,131 | | Total current assets | $3,162,060 | $3,861,369 | | **Liabilities & Equity** | | | | Total current liabilities | $251,158 | $377,712 | | Total stockholders' equity | $2,910,902 | $3,483,657 | | Total liabilities and stockholders' equity | $3,162,060 | $3,861,369 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company generated no revenue and reported a net loss of $1.02 million, an increase from the prior year Statement of Operations Summary (unaudited) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenues | $0 | $0 | | Research and development | $423,576 | $245,625 | | General and administrative | $614,910 | $657,911 | | Loss from operations | ($1,038,486) | ($903,536) | | Net loss | ($1,017,092) | ($865,970) | | Loss per share - basic and diluted | ($0.32) | ($1.31) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was $0.93 million, with financing activities providing $0.35 million Cash Flow Summary (unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($926,125) | ($1,303,411) | | Net cash provided by financing activities | $347,549 | $1,504,476 | | Net increase (decrease) in cash | ($578,576) | $201,065 | | Cash, end of period | $2,746,555 | $3,227,634 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's product focus, regulatory hurdles, and a critical going concern disclosure - The company is a medical device firm focused on bone regeneration in spinal fusion using the recombinant human protein NELL-1, which requires an FDA-approved PMA application before commercialization[36](index=36&type=chunk) - The company has an accumulated deficit of approximately **$86.0 million** as of March 31, 2025, and has incurred a net loss of $1.0 million for the quarter, **raising substantial doubt about its ability to continue as a going concern**[40](index=40&type=chunk) - As of March 31, 2025, the company had **$2.7 million in cash**, which is expected to fund operations only up to the **fourth quarter of 2025**[41](index=41&type=chunk) - During Q1 2025, the company sold 317,060 shares of common stock through its At The Market (ATM) facility for net proceeds of **$347,549**[76](index=76&type=chunk) - The company is obligated to make milestone payments to UCLA TDG, including **$250,000** upon enrollment in a Pivotal Study, **$500,000** upon Pre-Market Approval, and **$1,000,000** upon First Commercial Sale[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its clinical-stage status, a Nasdaq deficiency notice, and reiterates going concern doubts - On April 7, 2025, the company received a **deficiency notice from Nasdaq** for its common stock closing below the $1.00 minimum bid price for 30 consecutive business days[112](index=112&type=chunk) - To address the Nasdaq deficiency, the company intends to seek stockholder approval for a **reverse stock split** at its annual meeting on May 30, 2025[113](index=113&type=chunk) Results of Operations Comparison | Metric | Three-months ended Mar 31, 2025 | Three-months ended Mar 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Research and development | $423,576 | $245,625 | 72.45% | | General and administrative | $614,910 | $657,911 | (6.54)% | | Net loss | ($1,017,092) | ($865,970) | 17.45% | - The increase in R&D costs is attributed to formulation processes completed with a Contract Development and Manufacturing Organization[116](index=116&type=chunk) - The company reiterates the **going concern warning**, stating that its cash of $2.7 million as of March 31, 2025, is only expected to fund operations into the fourth quarter of 2025[120](index=120&type=chunk)[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company has indicated that this item is not applicable - Not applicable[127](index=127&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal control - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective**[128](index=128&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[129](index=129&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently a party to any material legal proceedings - The company is **not presently a party to any material legal proceedings**[131](index=131&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors.) The company highlights risks from its Nasdaq non-compliance and the proposed reverse stock split - A new material risk is the company's **non-compliance with the Nasdaq minimum bid price rule**, which could result in delisting[133](index=133&type=chunk) - Potential consequences of **delisting** include inability to raise equity capital, loss of partner confidence, price decrease, and loss of institutional investor interest[135](index=135&type=chunk) - The proposed **reverse stock split** may not increase the stock price proportionally, may not be sustained, and could decrease the liquidity of the common stock[134](index=134&type=chunk)[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[139](index=139&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading plans were adopted or terminated, and the annual meeting date was changed - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[139](index=139&type=chunk) - The company's 2025 Annual Meeting will be held on May 30, 2025, a change of more than 30 days from the previous year's anniversary[140](index=140&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files

Part I [Business](index=6&type=section&id=Item%201.%20Business) Bone Biologics is a clinical-stage medical device company focused on bone regeneration for spinal fusion, with its lead product NB1 in a pilot clinical study in Australia - The company is a medical device firm focused on bone regeneration in spinal fusion using the recombinant human protein **NELL-1**, licensed exclusively from UCLA TDG[18](index=18&type=chunk) - The lead product candidate, **NB1** (NELL-1/DBM), is in a pilot clinical study in Australia involving up to **30 subjects** to evaluate its safety and effectiveness in treating degenerative disc disease (DDD), with the first patients treated in **2024**[22](index=22&type=chunk)[23](index=23&type=chunk) - The FDA has classified the NELL-1/DBM product as a device/drug combination that will require a Pre-Market Approval (**PMA**) application for commercialization in the U.S[18](index=18&type=chunk)[39](index=39&type=chunk) Research and Development Expenses | Fiscal Year | R&D Expense ($) | | :--- | :--- | | 2024 | $2,130,385 | | 2023 | $6,907,824 | - The company holds exclusive licenses for **six U.S. patents** from UCLA TDG related to NELL-1, with expiration dates ranging from **2026 to 2033**[59](index=59&type=chunk) - The company has **two full-time employees** and relies heavily on independent organizations, advisors, and consultants for regulatory, clinical, and manufacturing functions[80](index=80&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks related to its financial position, early-stage product development, and heavy reliance on third parties and external funding - The company has a limited operating history, has incurred losses since inception (accumulated deficit of ~**$85.0 million**), and its recurring operating losses raise substantial doubt about its ability to continue as a going concern, with available cash expected to fund operations only up to **Q4 2025**[87](index=87&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - Product candidates are in an **early stage** of development, and the FDA regulatory process is costly, time-consuming, and uncertain, with the company's pilot clinical study in Australia potentially not accepted for a U.S. pivotal trial[96](index=96&type=chunk)[101](index=101&type=chunk) - The company relies on **third parties** for its core technology license (UCLA TDG), raw material supply, and to conduct preclinical and clinical trials, where failure to maintain these relationships could impair development[125](index=125&type=chunk)[126](index=126&type=chunk)[140](index=140&type=chunk) - The company faces **substantial competition** from large, established orthopedic and biotechnology companies with significantly greater resources, which may develop and commercialize products more successfully[179](index=179&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) - The company's ability to protect its **intellectual property** is critical, requiring compliance with its UCLA TDG license agreement and ensuring patents are sufficient to prevent competition[131](index=131&type=chunk)[140](index=140&type=chunk)[152](index=152&type=chunk) - To maintain its Nasdaq listing, the company must meet continued listing standards, including a minimum bid price of **$1.00**, with failure to do so potentially resulting in delisting[210](index=210&type=chunk) [Unresolved Staff Comments](index=52&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved comments from the SEC staff - None[232](index=232&type=chunk) [Cybersecurity](index=52&type=section&id=Item%201C.%20Cybersecurity) The company has implemented policies and processes to manage cybersecurity risks, with oversight from the Board of Directors - The **Board of Directors** oversees the company's cybersecurity risk management process[236](index=236&type=chunk) - The **CEO and CFO** are primarily responsible for assessing and managing material risks from cybersecurity threats[237](index=237&type=chunk) - The company has **not encountered any** cybersecurity challenges that are reasonably likely to materially impair its operations or financial standing[234](index=234&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) The company leases its principal executive office in Burlington, Massachusetts on a month-to-month basis - The company leases its primary office at 2 Burlington Woods Drive, Ste 100, Burlington, MA 01803, on a **month-to-month lease**[238](index=238&type=chunk) [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that would be expected to have a material adverse effect on its business or financial condition - The company is **not presently a party** to any legal proceedings that would have a material adverse effect on its business, results of operations, or financial condition[239](index=239&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[240](index=240&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock and certain warrants are traded on The Nasdaq Capital Market, with 22 registered shareholders as of February 19, 2025 - The company's common stock and certain warrants trade on The **Nasdaq Capital Market** under the symbols "**BBLG**" and "**BBLGW**"[243](index=243&type=chunk) - As of **February 19, 2025**, there were **22 shareholders** of record[244](index=244&type=chunk) - The company has **never declared or paid cash dividends** and does not anticipate doing so in the foreseeable future[245](index=245&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's net loss decreased to $4.1 million in FY2024 from $8.9 million in FY2023, primarily due to reduced R&D expenses, but faces substantial doubt about its going concern ability [Results of Operations](index=56&type=section&id=Results%20of%20Operations) The company reported a net loss of $4.1 million in FY2024, a 54% improvement from FY2023, driven by a 69% decrease in Research and Development expenses Comparison of Operations for the Years Ended December 31 | | 2024 ($) | 2023 ($) | % Change | | :--- | :--- | :--- | :--- | | **Operating Expenses** | | | | | Research and development | $2,130,385 | $6,907,824 | (69.16)% | | General and administrative | $2,088,776 | $2,520,479 | (17.13)% | | **Total operating expenses** | **$4,219,161** | **$9,428,303** | **(55.25)%** | | **Loss from operations** | **($4,219,161)** | **($9,428,303)** | **(55.25)%** | | **Net loss** | **($4,112,420)** | **($8,948,731)** | **(54.04)%** | - Research and development expenses decreased by **$4.8 million** (**69.16%**) in 2024, primarily because significant expenses were incurred in 2023 to produce the NELL-1 protein needed for the initial clinical study[258](index=258&type=chunk) - General and administrative expenses decreased by **$431,703** (**17.13%**) in 2024, mainly due to higher legal expenses related to litigation matters in 2023[259](index=259&type=chunk)[260](index=260&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces significant liquidity challenges with an accumulated deficit of $85.0 million and cash expected to last only until Q4 2025, necessitating future capital raises - The company's financial condition raises substantial doubt about its ability to continue as a going concern, with an accumulated deficit of approximately **$85.0 million** and cash of **$3.3 million** as of December 31, 2024, expected to fund operations into **Q4 2025**[264](index=264&type=chunk)[276](index=276&type=chunk) - In **March 2024**, the company raised net proceeds of **$1.5 million** through a public offering of common stock and warrants[266](index=266&type=chunk) - In **August 2024**, the company raised net proceeds of **$1.8 million** through a warrant inducement transaction[270](index=270&type=chunk) - The company established an At-The-Market (ATM) offering facility in **September 2024**, raising net proceeds of **$1.1 million** during the year[273](index=273&type=chunk) Cash Flow Summary | Cash Flow Activity | Year Ended Dec 31, 2024 ($) | Year Ended Dec 31, 2023 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($4,124,935) | ($9,555,904) | | Net Cash Provided by Financing Activities | $4,423,497 | $5,044,161 | [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company - Not applicable[286](index=286&type=chunk) [Financial Statements and Supplementary Data](index=60&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section indicates that the company's financial statements and supplementary data are included in Part IV, Item 15 of the Annual Report - The required financial statements and supplementary data are included in **Item 15** of this Annual Report[287](index=287&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=60&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[288](index=288&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that the company's disclosure controls and procedures were **effective** as of **December 31, 2024**[289](index=289&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of **December 31, 2024**, based on the criteria set forth by **COSO**[292](index=292&type=chunk) - **No changes** in internal control over financial reporting occurred during the fourth quarter of 2024 that materially affected, or are reasonably likely to materially affect, these controls[293](index=293&type=chunk) [Other Information](index=61&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of 2024, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement - **No director or officer** adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended December 31, 2024[295](index=295&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=61&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[296](index=296&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=62&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's executive team is led by CEO Jeffrey Frelick and CFO Deina Walsh, with a four-member independent Board of Directors overseeing governance - The company's executive officers are **Jeffrey Frelick** (CEO and President) and **Deina H. Walsh** (CFO)[299](index=299&type=chunk) - The Board of Directors has **four members**, all of whom have been determined to be **independent** under Nasdaq listing standards[308](index=308&type=chunk)[309](index=309&type=chunk) - The Board has **three standing committees**: Audit, Compensation, and Nominating and Corporate Governance, with all committee members being **independent**[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) - The company has adopted a **Code of Conduct and Ethics**, an **Insider Trading Policy**, and an **Anti-Hedging Policy**[317](index=317&type=chunk)[318](index=318&type=chunk)[319](index=319&type=chunk) [Executive Compensation](index=66&type=section&id=Item%2011.%20Executive%20Compensation) This section details the compensation for CEO Jeffrey Frelick and CFO Deina Walsh, including base salary, option awards, and non-equity incentive plan compensation FY2024 Summary Compensation Table | Name and Principal Position | Salary ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Total Compensation ($) | | :--- | :--- | :--- | :--- | :--- | | Jeffrey Frelick, CEO and President | $300,000 | $30,788 | $54,109 | $384,897 | | Deina Walsh, CFO | $200,000 | $15,394 | $27,054 | $242,448 | - CEO Jeffrey Frelick's employment agreement includes a **$300,000** annual salary and a target bonus of **50%** of base salary[324](index=324&type=chunk) - CFO Deina Walsh's employment agreement includes a **$200,000** annual salary and a target bonus of **25%** of base salary[326](index=326&type=chunk)[327](index=327&type=chunk) - Non-employee directors receive annual cash retainers (**$25,000** for members, **$35,000** for the Chair) and automatic equity grants (initial and annual stock options)[341](index=341&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=72&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section discloses equity compensation plan information and beneficial ownership, with directors and executive officers owning 6.1% of outstanding common stock Equity Compensation Plan Information (as of December 31, 2024) | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price ($) | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 194,484 | $42.14 | 435,005 | - As of February 19, 2025, all directors and executive officers as a group (6 persons) beneficially owned **213,266** shares, representing **6.1%** of the outstanding common stock[355](index=355&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=74&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company reports no material related person transactions since January 1, 2023, and all four directors are deemed independent under Nasdaq rules - Since January 1, 2023, there have been **no transactions** with related persons that had a direct or indirect material interest[357](index=357&type=chunk) - The Board of Directors has determined that **all four** of its members (Bruce Stroever, Sid Angle, Robert Gagnon, and Phil Meikle) qualify as **independent** under Nasdaq Listing Rules[358](index=358&type=chunk) [Principal Accountant Fees and Services](index=75&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section details the fees billed by Weinberg & Company, P.A., totaling $178,728 in 2024, with all services pre-approved by the Audit Committee Accountant Fees Billed by Weinberg & Company, P.A. | Fee Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Audit Fees | $89,108 | $121,437 | | Audit Related Fees | $89,620 | $19,310 | | Tax fees | $0 | $0 | | All other fees | $0 | $0 | | **Total** | **$178,728** | **$140,747** | - The **Audit Committee pre-approves** all audit and permissible non-audit services provided by the independent registered public accounting firm[360](index=360&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=76&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Form 10-K, including consolidated financial statements and various exhibits - This section contains the list of **financial statements and exhibits** filed with the annual report[368](index=368&type=chunk)[369](index=369&type=chunk) [Form 10-K Summary](index=81&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is noted as "None," indicating no summary is provided - None[376](index=376&type=chunk)[377](index=377&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm](index=85&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued a qualified opinion with a going concern emphasis due to recurring losses and identified the 2024 warrant inducement as a critical audit matter - The auditor's report expresses substantial doubt about the Company's ability to continue as a going concern, citing a net loss of **$4.1 million** and cash used in operations of **$4.1 million** in 2024[390](index=390&type=chunk) - A **critical audit matter** was identified related to the accounting for the **August 2024** warrant inducement, due to the significant management judgments required for its valuation and presentation[395](index=395&type=chunk)[396](index=396&type=chunk) [Consolidated Financial Statements](index=87&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show $3.3 million in cash and a $4.1 million net loss in 2024, reflecting significant financing activities and ongoing going concern risk [Consolidated Balance Sheets](index=87&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, the company reported total assets of $3.9 million, primarily cash, with total stockholders' equity increasing to $3.5 million Consolidated Balance Sheet Data (as of December 31) | | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $3,325,131 | $3,026,569 | | Total Current Assets | $3,861,369 | $3,737,763 | | **Total Assets** | **$3,861,369** | **$3,737,763** | | **Liabilities & Equity** | | | | Total Current Liabilities | $377,712 | $831,402 | | **Total Liabilities** | **$377,712** | **$831,402** | | **Total Stockholders' Equity** | **$3,483,657** | **$2,906,361** | [Consolidated Statements of Operations](index=88&type=section&id=Consolidated%20Statements%20of%20Operations) For FY2024, the company reported no revenue and a net loss of $4.1 million, a significant improvement from the $8.9 million loss in 2023 due to lower R&D expenses Consolidated Statement of Operations Data (For the Year Ended December 31) | | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Revenues | $0 | $0 | | Total operating expenses | $4,219,161 | $9,428,303 | | Loss from operations | ($4,219,161) | ($9,428,303) | | **Net loss** | **($4,112,420)** | **($8,948,731)** | | **Net loss attributable to common stockholders** | **($7,324,924)** | **($8,948,731)** | | **Loss per share – basic and diluted** | **($4.83)** | **($34.01)** | [Consolidated Statements of Cash Flows](index=90&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2024, the company used $4.1 million in operating cash, offset by $4.4 million from financing, resulting in a net cash increase of $0.3 million and a year-end balance of $3.3 million Consolidated Statement of Cash Flows Data (For the Year Ended December 31) | | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($4,124,935) | ($9,555,904) | | Net cash provided by financing activities | $4,423,497 | $5,044,161 | | Net increase (decrease) in cash | $298,562 | ($4,511,743) | | **Cash, end of year** | **$3,325,131** | **$3,026,569** | [Notes to Consolidated Financial Statements](index=91&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes highlight the company's going concern risk, details of R&D expenses, significant 2024 financing activities including a $3.2 million non-cash deemed dividend, and commitments to UCLA - Note 1 (Going Concern): The company has an accumulated deficit of ~**$85.0 million** and expects its current cash of **$3.3 million** to fund operations only up to **Q4 2025**, raising substantial doubt about its ability to continue as a going concern[416](index=416&type=chunk)[418](index=418&type=chunk) - Note 3 (R&D): Research and development costs totaled **$2.1 million** in 2024 and **$6.9 million** in 2023, primarily related to the pilot clinical study for the NB1 bone graft device being conducted in Australia[456](index=456&type=chunk)[457](index=457&type=chunk) - Note 6 (Stockholders' Equity): In **August 2024**, a warrant inducement transaction resulted in the exercise of existing warrants for **$1.9 million** in gross proceeds and was accounted for with a **$3.2 million** non-cash deemed dividend[473](index=473&type=chunk) - Note 10 (Commitments): Under the UCLA TDG license agreement, the company was triggered to pay a **$100,000** milestone fee in **2024** upon treatment of the first patients in its pilot clinical study, with future milestone, royalty, and diligence fee payments contingent on development and sales progress[496](index=496&type=chunk)[499](index=499&type=chunk)

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) The unaudited condensed consolidated financial statements for the nine months ended September 30, 2024, show a $2.6 million net loss and increased cash from financing activities [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets were $4.1 million, liabilities reduced to $0.27 million, and stockholders' equity increased to $3.8 million from financing activities Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Items | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $3,566,426 | $3,026,569 | | Total current assets | $4,065,818 | $3,737,763 | | **Total assets** | **$4,065,818** | **$3,737,763** | | **Liabilities & Equity** | | | | Total current liabilities | $273,402 | $831,402 | | Total liabilities | $273,402 | $831,402 | | Total stockholders' equity | $3,792,416 | $2,906,361 | | **Total liabilities and stockholders' equity** | **$4,065,818** | **$3,737,763** | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2024, the company reported no revenue and a net loss of $2.6 million, a significant improvement driven by reduced R&D expenses Condensed Consolidated Statements of Operations (Unaudited) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Revenues | $0 | $0 | | Research and development | $1,025,814 | $6,460,747 | | General and administrative | $1,638,409 | $1,807,548 | | Loss from operations | $(2,664,223) | $(8,268,295) | | Net loss | $(2,590,705) | $(7,398,846) | | Net loss attributable to common stockholders | $(5,803,209) | $(7,398,846) | | Loss per share – basic and diluted | $(4.85) | $(37.40) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from $2.9 million to $3.8 million as of September 30, 2024, driven by stock and warrant sales, partially offset by a $3.2 million non-cash deemed dividend - Total stockholders' equity increased from **$2.91 million** at December 31, 2023, to **$3.79 million** at September 30, 2024[15](index=15&type=chunk) - Key activities impacting equity in the first nine months of 2024 include a public offering raising net proceeds of **$1.5 million**, a warrant inducement raising net proceeds of **$1.8 million**, and a non-cash deemed dividend of **$3.2 million**[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash used in operations decreased to **$2.8 million**, with financing providing **$3.3 million**, resulting in a **$0.54 million** net cash increase and a **$3.6 million** ending balance Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,771,438) | $(7,537,889) | | Net cash provided by financing activities | $3,311,295 | $4,452,163 | | Net increase (decrease) in cash | $539,857 | $(3,085,726) | | **Cash, end of period** | **$3,566,426** | **$4,452,586** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business, accounting policies, and financial activities, highlighting its 'going concern' status due to an **$83.5 million** accumulated deficit, recent financing efforts, and a **$100,000** milestone payment - The company has an accumulated deficit of approximately **$83.5 million** and expects significant development expenses, raising substantial doubt about its ability to continue as a going concern[24](index=24&type=chunk) - As of September 30, 2024, the company had **$3.6 million** in cash, anticipated to cover operational needs into the second quarter of 2025[26](index=26&type=chunk) - In August 2024, the company executed a warrant inducement, raising net proceeds of **$1.81 million** and recording a non-cash deemed dividend of **$3.21 million**[59](index=59&type=chunk) - During the nine months ended September 30, 2024, the company triggered a **$100,000** milestone payment to UCLA TDG for enrolling the first patient in its pilot clinical study[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial results, highlighting the company's development stage, significant R&D expense reduction, and critical need for future financing due to limited liquidity [Company Overview](index=21&type=section&id=Company%20Overview) The company is a development-stage medical device firm focused on bone regeneration in spinal fusion using NELL-1 technology, having treated its first patient in a pilot clinical study in Australia on June 20, 2024 - The company is a medical device company focused on bone regeneration in spinal fusion using the recombinant human protein NELL-1, licensed exclusively from UCLA TDG[91](index=91&type=chunk) - On June 20, 2024, the first patient was treated in the multicenter, prospective, randomized pilot clinical study of the Company's NB1 bone graft device in Australia[95](index=95&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) The analysis compares operating results, highlighting a significant decrease in R&D expenses by **84.1%** for the nine-month period ended September 30, 2024, due to NELL-1 protein production completion, leading to a reduced net loss Comparison of Operating Results (Nine Months Ended) | Operating Expenses | September 30, 2024 | September 30, 2023 | % Change | | :--- | :--- | :--- | :--- | | Research and development | $1,025,814 | $6,460,747 | (84.12)% | | General and administrative | $1,638,409 | $1,807,548 | (9.36)% | | **Total operating expenses** | **$2,664,223** | **$8,268,295** | **(67.78)%** | | **Net loss** | **$(2,590,705)** | **$(7,398,846)** | **(64.99)%** | - The decrease in R&D costs is attributed to significant expenses incurred in 2023 for the production of the NELL-1 protein necessary for the initial clinical study[113](index=113&type=chunk)[117](index=117&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces substantial doubt about its going concern status due to an **$83.5 million** accumulated deficit, with **$3.6 million** cash expected to fund operations only into Q2 2025, necessitating continued capital raises - The company has an accumulated deficit of approximately **$83.5 million** and estimates operating expenditures for the next twelve months at **$5.4 million**, raising substantial doubt about its ability to continue as a going concern[120](index=120&type=chunk) - Available cash of **$3.57 million** as of September 30, 2024, is anticipated to cover operational needs into the second quarter of 2025[129](index=129&type=chunk) - The company anticipates requiring approximately **$5 million** to complete first-in-man studies and an additional **$24 million** in scientific expenses to achieve FDA approval for a spine interbody fusion indication[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states this item is not applicable, indicating no significant exposure to market risks like interest rate or foreign currency exchange risk - Not applicable[132](index=132&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective[132](index=132&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2024[133](index=133&type=chunk) [PART II – OTHER INFORMATION](index=29&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings.) The company reports no material updates to legal proceedings previously disclosed in its Annual Report on Form 10-K and prior Quarterly Reports - There are no material updates to the matters previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023[133](index=133&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors.) The company states there have been no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes from the risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reports no issuance of unregistered equity securities during the third quarter of 2024 that were not previously reported - During the third quarter of 2024, the company did not issue any shares in reliance on Section 4(a)(2) of the Securities Act which have not previously been reported[135](index=135&type=chunk) [Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reports no defaults upon senior securities - None[135](index=135&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not Applicable[135](index=135&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information.) The company discloses that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2024 - During the three months ended September 30, 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[136](index=136&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the report, including warrant agreements, an 'at the market' offering agreement, and various officer certifications - Exhibits filed include agreements related to the August 2024 warrant inducement, the September 2024 At The Market Offering Agreement, and required CEO/CFO certifications[138](index=138&type=chunk)

PART I – FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Bone Biologics, a development-stage medical device company, reported no revenue, a reduced net loss, and a going concern warning [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet highlights key financial positions including cash, total current assets, liabilities, and accumulated deficit Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $2,332,068 | $3,026,569 | | Total current assets | $3,193,464 | $3,737,763 | | **Liabilities & Equity** | | | | Total current liabilities | $284,507 | $831,402 | | Total stockholders' equity | $2,908,957 | $2,906,361 | | Accumulated deficit | $(82,558,661) | $(80,908,958) | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations details revenues, R&D, G&A expenses, leading to loss from operations and net loss Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $0 | $0 | $0 | $0 | | Research and development | $350,442 | $2,295,251 | $596,067 | $4,885,896 | | General and administrative | $459,223 | $744,617 | $1,117,135 | $1,301,509 | | **Loss from operations** | **$(809,665)** | **$(3,039,868)** | **$(1,713,202)** | **$(6,187,405)** | | **Net Loss** | **$(783,733)** | **$(1,769,238)** | **$(1,649,703)** | **$(5,479,137)** | | **Loss per share** | **$(0.67)** | **$(5.21)** | **$(1.80)** | **$(18.57)** | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This statement outlines changes in stockholders' equity, including impacts from net loss, public offerings, and warrant exercises - For the six months ended June 30, 2024, total stockholders' equity slightly increased from **$2,906,361** to **$2,908,957**. This was driven by proceeds from a public offering and warrant exercises, which were largely offset by the net loss for the period[16](index=16&type=chunk) - In March 2024, the company raised approximately **$1.5 million** (net of offering costs) from the sale of common stock and pre-funded warrants[16](index=16&type=chunk)[56](index=56&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement summarizes cash used in operating activities, provided by financing, and net decrease in cash Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,199,276) | $(4,982,666) | | Net cash provided by financing activities | $1,504,775 | $4,452,163 | | **Net decrease in cash** | **$(694,501)** | **$(530,503)** | | **Cash, end of period** | **$2,332,068** | **$7,007,809** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes include details on reverse stock splits, warrant liabilities, license obligations, and subsequent events - The company executed two reverse stock splits: a **1-for-30** split on June 5, 2023, and a **1-for-8** split on December 20, 2023. All share and per-share amounts have been retroactively restated[30](index=30&type=chunk) - The company has a warrant liability of **$7,655** as of June 30, 2024, which is classified as a liability and re-measured at fair value each reporting period due to certain provisions in the warrants issued in October 2022[42](index=42&type=chunk)[51](index=51&type=chunk) - Under the license agreement with UCLA TDG, the company is obligated to make milestone payments, including **$100,000** upon enrollment of the first subject in a Feasibility Study, which was triggered during the six months ended June 30, 2024[75](index=75&type=chunk)[77](index=77&type=chunk) - Subsequent to the quarter end, on August 2, 2024, the company completed a warrant inducement transaction, generating net proceeds of approximately **$1.7 million**[28](index=28&type=chunk)[80](index=80&type=chunk) - The company is a medical device firm focused on bone regeneration using the NELL-1 protein, licensed exclusively from UCLA TDG. Its product is classified as a device/drug combination product requiring FDA pre-market approval[23](index=23&type=chunk) - The company has incurred an accumulated deficit of approximately **$82.6 million** since inception and has not generated any revenue. These factors, along with a net loss of **$1.6 million** and **$2.2 million** cash used in operations in the first six months of 2024, raise substantial doubt about its ability to continue as a going concern[26](index=26&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes reduced net loss to lower R&D costs; cash expected to fund operations only into Q1 2025 - On June 20, 2024, the company announced the treatment of the first patient in its multicenter, prospective, randomized pilot clinical study of the NB1 bone graft device in Australia. The study will evaluate safety and effectiveness in **30 subjects** undergoing transforaminal lumbar interbody fusion (TLIF)[88](index=88&type=chunk)[89](index=89&type=chunk) Comparison of Operating Expenses (Three Months Ended June 30) | Expense Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Research and development | $350,442 | $2,295,251 | (84.73)% | | General and administrative | $459,223 | $744,617 | (38.33)% | | **Total operating expenses** | **$809,665** | **$3,039,868** | **(73.37)%** | Comparison of Operating Expenses (Six Months Ended June 30) | Expense Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Research and development | $596,067 | $4,885,896 | (87.80)% | | General and administrative | $1,117,135 | $1,301,509 | (14.17)% | | **Total operating expenses** | **$1,713,202** | **$6,187,405** | **(72.31)%** | - The significant decrease in R&D expenses in 2024 is attributed to the high costs incurred in 2023 for the production of the NELL-1 protein required for the initial clinical study[102](index=102&type=chunk)[107](index=107&type=chunk) - The company's cash of **$2.3 million** at June 30, 2024, supplemented by the **$1.7 million** from the August 2024 warrant inducement, is anticipated to cover operational needs only into the first quarter of 2025[116](index=116&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company has indicated that this item is not applicable - Not applicable[119](index=119&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective with no material changes to internal control - Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2024[119](index=119&type=chunk) - No changes occurred in the internal control over financial reporting during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, these controls[120](index=120&type=chunk) PART II – OTHER INFORMATION This section provides updates on legal proceedings, risk factors, equity sales, other information, and exhibits [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) No material updates to legal proceedings previously disclosed in the company's Annual Report on Form 10-K or Q1 2024 Form 10-Q - There are no material updates to previously disclosed legal matters[121](index=121&type=chunk) [Risk Factors](index=29&type=page&id=Item%201A.%20Risk%20Factors) No material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K - Investors are referred to the risk factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2023, as there have been no material changes[122](index=122&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[122](index=122&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2024 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[123](index=123&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer List of Exhibits | Exhibit Number | Description | | :--- | :--- | | 31.1 | CEO Certification (Section 302) | | 31.2 | CFO Certification (Section 302) | | 32.1 | CEO Certification (Section 906) | | 32.2 | CFO Certification (Section 906) | | 101.INS - 101.PRE | Inline XBRL Documents |

Company Overview - Bone Biologics Corporation is focused on developing orthobiologic products for spine fusion markets [1][3] - The company is engaged in regenerative medicine for bone and is working with strategic partners on preclinical research of the Nell-1 protein [3] Upcoming Event - The company's president and CEO, Jeffrey Frelick, and CFO, Deina Walsh, will participate in a "CEO Chat" on June 20, 2024, at the Life Science Investor Forum [1] - The interview will start at 11:00 a.m. Eastern time and will be accessible for investors to view [1][2] - Management will also hold one-on-one meetings with investors on the same day from 11:30 a.m. to 5:00 p.m. Eastern time [1] Investor Engagement - Investors are encouraged to preregister for the event to facilitate participation and receive updates [1] - A chat function will be available for investors to ask questions during the event [1] - The interview will be available for viewing on the company's website for 90 days post-event [2]

PART I – FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) The company reported no revenue, a significantly reduced net loss, and an improved balance sheet, but faces substantial doubt about its ability to continue as a going concern [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to $3.84 million while total liabilities decreased significantly to $164,626 due to a legal settlement Condensed Consolidated Balance Sheet Data (Unaudited) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $3,227,634 | $3,026,569 | | Total current assets | $3,839,574 | $3,737,763 | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $146,186 | $360,662 | | Accrued legal settlement | $0 | $414,989 | | Total liabilities | $164,626 | $831,402 | | Total stockholders' equity | $3,674,948 | $2,906,361 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company's Q1 2024 net loss improved to $0.9 million from $3.7 million year-over-year, driven by a 90.5% decrease in R&D expenses Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Revenues | $0 | $0 | | Research and development expenses | $245,625 | $2,590,645 | | General and administrative expenses | $657,911 | $556,892 | | Loss from operations | ($903,536) | ($3,147,537) | | Net loss | ($865,970) | ($3,709,899) | | Loss per share - basic and diluted | ($1.31) | ($55.20) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was $1.3 million, offset by $1.5 million from financing activities, resulting in a cash balance of $3.23 million Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,303,411) | ($1,349,993) | | Net cash provided by financing activities | $1,504,476 | $0 | | Net increase (decrease) in cash | $201,065 | ($1,349,993) | | Cash, end of period | $3,227,634 | $6,188,319 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's 'Going Concern' issue, with cash reserves of $3.2 million only funding operations through Q3 2024 - The company is a medical device company focused on bone regeneration using the NELL-1 protein, licensed exclusively from UCLA TDG, which requires FDA pre-market approval[25](index=25&type=chunk) - The company has an **accumulated deficit of approximately $81.8 million** and incurred a net loss of **$0.9 million in Q1 2024**, raising substantial doubt about its ability to continue as a going concern[29](index=29&type=chunk) - Cash on hand of **$3.2 million** as of March 31, 2024, is expected to fund operations only through the **third quarter of 2024**, with estimated operating expenditures for the next twelve months at **$6.9 million**[29](index=29&type=chunk)[30](index=30&type=chunk) - The company is obligated to make future milestone payments to UCLA TDG, including **$250,000** upon Pivotal Study enrollment, **$500,000** upon Pre-Market Approval, and **$1,000,000** upon First Commercial Sale[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses reduced R&D expenses, a significant 'going concern' warning, and the need for an estimated $29 million to potentially achieve FDA approval [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2024 operating expenses fell 71.3% due to lower R&D costs, resulting in a net loss improvement to $0.9 million from $3.7 million in Q1 2023 Operating Expenses Comparison (Q1 2024 vs Q1 2023) | Expense Category | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Research and development | $245,625 | $2,590,645 | (90.52)% | | General and administrative | $657,911 | $556,892 | 18.14% | | **Total operating expenses** | **$903,536** | **$3,147,537** | **(71.29)%** | - The **significant decrease in R&D costs** is attributed to high expenses in 2023 for the production of the NELL-1 protein required for the initial clinical study[104](index=104&type=chunk) - The **increase in G&A costs** is mainly attributed to legal expenses related to settling ongoing litigation[105](index=105&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces significant liquidity challenges, with $3.2 million in cash expected to last only through Q3 2024 despite a recent $1.5 million offering - The company has incurred **accumulated losses of $81.8 million** and its ability to continue as a **going concern is in substantial doubt**[108](index=108&type=chunk) - Cash of **$3,227,634** at March 31, 2024, is expected to fund operations through the **third quarter of 2024**[111](index=111&type=chunk) - The company anticipates needing approximately **$5 million** to complete first-in-man studies and an additional **$24 million** to achieve FDA approval[111](index=111&type=chunk) - A public offering on March 6, 2024, provided **net proceeds of $1,504,476**[109](index=109&type=chunk)[112](index=112&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that this item is not applicable - Not applicable[114](index=114&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Based on an evaluation as of March 31, 2024, the Chief Financial Officer and Chief Executive Officer concluded that the company's **disclosure controls and procedures were effective**[115](index=115&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[116](index=116&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company settled a lawsuit for a total of $750,000, paying $414,989 out-of-pocket, leading to the case's dismissal - The company entered into a Settlement Agreement on January 10, 2024, to resolve a lawsuit involving claims of breach of contract and tortious interference[117](index=117&type=chunk) - Under the agreement, the company agreed to a total payment of **$750,000** to the plaintiffs, paying **$414,989** of this amount on February 7, 2024, with the remainder covered by its insurance carrier[117](index=117&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the last Annual Report on Form 10-K - There have been **no material changes** from the risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[118](index=118&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds during the period - None[118](index=118&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the first quarter of 2024 - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2024[119](index=119&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) The report includes exhibits such as warrant forms, purchase agreements, and amended executive employment agreements - Exhibits filed include forms of Warrants, Pre-Funded Warrants, and Placement Agent Warrants from the **March 6, 2024 offering**[121](index=121&type=chunk) - An Amended and Restated Employment Agreement for CEO Jeffrey Frelick and an amendment to the Employment Agreement for CFO Deina Walsh are included as exhibits[121](index=121&type=chunk)

Core Viewpoint - Bone Biologics Corporation has successfully closed a public offering, raising approximately $2.0 million through the sale of 781,251 shares of common stock and accompanying warrants, aimed at funding clinical trials and other corporate purposes [1][2]. Group 1: Offering Details - The public offering consisted of 781,251 shares of common stock priced at $2.56 per share, along with warrants to purchase an equal number of shares at an exercise price of $2.43, which are exercisable immediately and will expire in five years [1][2]. - H.C. Wainwright & Co. served as the exclusive placement agent for this offering [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for funding clinical trials, maintaining and extending the patent portfolio, and for working capital and other general corporate purposes [2]. Group 3: Company Background - Bone Biologics focuses on regenerative medicine for bone, particularly in spinal fusion procedures, and is developing a bone graft substitute product based on preclinical research of the Nell-1 protein [4].

Core Viewpoint - Bone Biologics Corporation has announced a public offering of 781,251 shares of common stock at a price of $2.56 per share, along with warrants to purchase an equal number of shares, aiming to raise approximately $2.0 million for clinical trials and other corporate purposes [1][2]. Group 1: Offering Details - The public offering includes 781,251 shares of common stock and warrants, priced at $2.56 per share, with warrants having an exercise price of $2.43, exercisable immediately and expiring in five years [1][2]. - The expected gross proceeds from the offering are approximately $2.0 million before deducting fees and expenses [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to fund clinical trials, maintain and extend the patent portfolio, and for working capital and other general corporate purposes [2]. Group 3: Company Background - Bone Biologics focuses on regenerative medicine for bone, particularly in spinal fusion procedures, and is developing a bone graft substitute product based on preclinical research of the Nell-1 protein [5].