0001213900-21-041058 | 10-Q | XBRL Viewer

Foreign currency translation adjustments

(3,351)

(5,819)

(43,107)

(9,760)

(61)

(37)

Total other comprehensive income (loss)

(61)

(37)

Comprehensive loss

$ (3,412)

$ (5,809)

$ (43,144)

$ (9,744)

Net loss per share-- basic and diluted (Note 19) (in Dollars per share)

^[1]

$ (0.05)

$ (0.34)

$ (0.71)

$ (0.56)

Weighted average common shares used to compute basic and diluted net loss per share (in Shares)

^[1]

61,165,018

17,357,505

60,919,340

17,357,505

Product revenue

Total revenue

$ 138

$ 9

$ 337

$ 79

Royalty revenue

Total revenue

$ 63

$ 77

[1]	Retroactively restated for the three months ended June 30, 2020 for the Reverse Recapitalization as described in Note 1

Condensed Consolidated Statements Of Stockholders' Equity (Deficit) (Unaudited) - USD ($)
$ in Thousands

Redeemable Convertible Preferred Stock

Preferred Stock [Member]

Common Stock

Additional Paid-In Capital

Accumulated Deficit

Accumulated Other Comprehensive Income

Total

Balances at Dec. 31, 2019

^[1]

$ 72,661

$ 2

$ 1,754

$ (69,571)

$ 41

$ (67,774)

Balances (in Shares) at Dec. 31, 2019

^[1]

27,499,837

17,357,505

^[1]

171

^[1]

Balance (in Shares) at Mar. 31, 2020

^[1]

(3,941)

Balance at Mar. 31, 2020

^[1]

$ 72,661

$ 2

1,925

(73,512)

(71,538)

^[1]

27,499,837

17,357,505

^[1]

174

^[1]

Balance (in Shares) at Jun. 30, 2020

^[1]

(5,819)

Balance at Jun. 30, 2020

^[1]

$ 72,661

$ 2

2,099

(79,331)

(77,173)

^[1]

27,499,837

17,357,505

Balances at Dec. 31, 2020

^[1]

$ 6

153,571

(153,561)

325

341

Balances (in Shares) at Dec. 31, 2020

^[1]

59,526,171

Exercise of stock options

^[1]

Exercise of stock options (in Shares)

^[1]

48,211

^[1]

3,265

^[1]

Balance (in Shares) at Mar. 31, 2021

^[1]

(39,756)

Balance at Mar. 31, 2021

^[1]

$ 6

156,886

(193,317)

349

(36,076)

^[1]

59,574,382

Issuance of common stock upon the private offering

^[1]

9,250

Issuance of common stock upon the private offering (in Shares)

^[1]

960,540

Issuance of common stock upon vesting of restricted stock units

^[1]

Issuance of common stock upon vesting of restricted stock units (in Shares)

^[1]

21,989

Exercise of stock options

^[1]

Exercise of stock options (in Shares)

^[1]

124,680

^[1]

4,255

^[1]

(61)

Balance (in Shares) at Jun. 30, 2021

^[1]

(3,351)

Balance at Jun. 30, 2021

^[1]

$ 6

$ 170,449

$ (196,668)

$ 288

$ (25,925)

^[1]

60,681,591

[1]	Retroactively restated for the Reverse Recapitalization as described in Note 1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (43,107)	$ (9,760)
Depreciation	499	463
Non-cash lease expense	46	66
Change in fair value of preferred stock warrant liability		2,307
Change in fair value of Clene Nanomedicine contingent earn-out	16,970
Change in fair value of Initial Shareholders contingent earn-out	1,729
Change in fair value of derivative		(14)
Change in fair value of common stock warrant liability	(133)
Gain on termination of lease		(51)
Stock-based compensation expense	7,520	345
Gain on extinguishment of notes payable	(647)
Loss on disposal		2
Accretion of debt discount		102
Increase in interest accrued on notes payable	389	118
Changes in operating assets and liabilities:
Inventory	137	(31)
Accounts receivable	(48)
Prepaid expenses and other current assets	(1,528)	(1)
Accounts payable	565	1,044
Accrued liabilities	125	(71)
Deferred revenue from related parties		112
Deferred income tax	(119)
Payments of operating lease obligations	(111)	(33)
Net cash used in operating activities	(17,713)	(5,402)
Cash flows from investing activities:
Purchases of property and equipment	(420)	(194)
Net cash used in investing activities	(420)	(194)
Cash flows from financing activities:
Proceeds from exercise of stock options	108
Proceeds from issuance of convertible notes payable		3,125
Payments of deferred transaction costs	(1,901)
Payments of finance lease obligations	(83)	(109)
Proceeds from the private placement	9,250
Proceeds from the issuance of notes payable	15,000	652
Payments of debt issuance costs	(471)
Payments of notes payable	(5)
Net cash provided by financing activities	21,898	3,668
Effect of foreign exchange rate changes on cash	(33)	29
Net increase (decrease) in cash	3,732	(1,899)
Cash – beginning of period	59,275	8,788
Cash – end of period	63,007	6,889
Supplemental disclosure of non-cash investing and financing activities:
Warrant liability recorded at issuance of notes payable	1,457
Acquisition of right-of-use assets and leasehold improvements through operating lease		820
Lease liability settled through termination of lease		349
Issuance of derivative instrument related to convertible notes		374
Supplemental disclosure:
Cash paid for interest expense	$ 188	$ 21

Nature of the Business

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Nature of the Business

1. Nature of the Business

Clene Inc. (formerly Chelsea Worldwide Inc.) (the “Company,” “we,” “us,” or similar such references) is a biopharmaceutical company focused on the development of clean-surfaced nanocrystal drugs. We have developed an electrocrystal chemistry drug development platform, in which nanocrystals within a suspension are the therapeutic drug. Utilizing technology to create nanocrystal drug suspensions, our platform has produced multiple drug assets, of which our lead assets are currently in development for use in neurological and infectious diseases, among others, such as a study for treatment of COVID-19 coronavirus pandemic. Secondary to our drug development, as part of our identification of potential drug assets, we have also identified certain mineral solutions as dietary supplements. Our dietary supplements may also be commercialized by a related party (see Note 20).

The accompanying condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, Clene Nanomedicine, Inc. (“Clene Nanomedicine”), a subsidiary incorporated in Delaware, Clene Australia Pty Ltd (“Clene Australia”), a subsidiary incorporated in Australia, and dOrbital, Inc., a subsidiary incorporated in Delaware, after elimination of all intercompany accounts and transactions. The wholly-owned subsidiary, Clene Netherlands B.V. (“Clene Netherlands”) was established on April 21, 2021 and has no financial positions or operations to date.

Registration Statements

On February 16, 2021, we filed a registration statement on Form S-1 (file number 333-253173) to register 4,541,481 shares of Clene Inc. common stock (“Common Stock”) underlying outstanding warrants that we have previously issued, among which 2,517,500 and 904,231 warrants were originally issued by Tottenham Acquisition I Limited (“Tottenham” or “TOTA”) and Clene Nanomedicine, respectively, prior to the closing of the Reverse Recapitalization, and 1,119,750 warrants were issued as part of a private placement (the “PIPE”) in connection with the closing of the Reverse Recapitalization. We will receive aggregate proceeds of $30.7 million if all of these warrants are exercised. On April 19, 2021, the registration statement was declared effective by the Securities and Exchange Commission (the “SEC”). In connection with the registration statement on Form S-1, we incurred $0 and $27 thousand of certain offering costs during the three and six months ended June 30, 2021, respectively, recognized as an expense within general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss during the three and six months ended June 30, 2021.

On July 22, 2021, we filed a registration statement on Form S-1 (file number 333-258098) to register 1,140,731 shares of Common Stock underlying outstanding warrants that we have previously issued, among which 1,024,880 were originally issued by Clene Nanomedicine prior to the Reverse Recapitalization in April 2013 and 115,851 were issued pursuant to a loan agreement with Avenue Venture Opportunities Funds, L.P. (see Note 8). We will receive aggregate proceeds of $3.0 million if all of these warrants are exercised. In addition, the registration statement on Form S-1 registered 960,540 shares of Common Stock, issued in a private placement in May 2021, for possible sale by the selling shareholders. We will not receive any proceeds from the sale by the selling shareholders. On August 2, 2021, the registration statement was declared effective by the SEC. In connection with the registration statement on Form S-1, we incurred an immaterial amount of certain offering costs which will be recognized as an expense within general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss during the three and nine months ended September 30, 2021.

Liquidity

We have incurred significant losses and negative cash flows from operations since our inception. We incurred net losses of $3.4 million and $43.1 million for the three and six months ended June 30, 2021, respectively. We incurred net losses of $5.8 million and $9.8 million for the three and six months ended June 30, 2020, respectively. As of June 30, 2021, our cash totaled $63.0 million, and our accumulated deficit was $196.7 million. As of December 31, 2020, our cash totaled $59.3 million, and our accumulated deficit was $153.6 million. We had net cash used in operating activities of $17.7 million and $5.4 million for the six months ended June 30, 2021 and 2020, respectively.

Prior to the Reverse Recapitalization, Clene Nanomedicine’s operations were financed through the issuance of equity instruments and the issuance of convertible promissory notes. Subsequent to the Reverse Recapitalization, we have obtained additional liquidity through a term loan and private placements of equity instruments. We have not generated significant revenues to date and do not anticipate generating any significant revenues unless we successfully complete development and obtain regulatory approval for our drugs or for our COVID-19 study. We expect to incur additional losses in the future to fund our operations and conduct product research and development and we recognize the need to raise additional capital to fully implement our business plan. Additionally, we may attempt to negotiate a collaboration agreement with a third party for development and commercialization of a drug candidate, which may provide upfront and milestone payments to reduce our spending going forward.

We expect to continue investing in product development, sales and marketing and customer support for our products. The long-term continuation of our business plan is dependent upon the generation of sufficient revenues from our products to offset expenses and capital expenditures. In the event that we do not generate sufficient revenues and are unable to obtain funding, we will be forced to delay, reduce, or eliminate some or all of our research and development programs, product portfolio expansion, commercialization efforts, or capital expenditures, which could adversely affect our business prospects, ability to meet long-term liquidity needs, or we may be unable to continue operations.

We expect that the cash on hand as of June 30, 2021 will be sufficient to fund our operations for a period extending beyond twelve months from the date these condensed consolidated financial statements are issued.

Impact of the COVID-19 Coronavirus Pandemic

The COVID-19 pandemic, which began in December 2019 and has spread worldwide, has caused many governments to implement measures to slow the spread of the outbreak. The outbreak and government measures taken in response have had a significant impact, both direct and indirect, on businesses and commerce, as worker shortages have occurred, supply chains have been disrupted, and facilities and production have been suspended. The future progression of the pandemic and its effects on our business and operations remains uncertain. The COVID-19 pandemic may affect our ability to initiate and complete preclinical studies, delay the initiation of future clinical trials, disrupt regulatory activities, or have other adverse effects on our business and operations. In particular, the Company and our clinical research organizations (“CROs”) may face disruptions that may affect our ability to initiate and complete preclinical studies, manufacturing disruptions, and delays at clinical trial sites. The pandemic has already caused significant disruptions in the financial markets, and may continue to cause such disruptions, which could impact our ability to raise additional funds to support our operations. Moreover, the pandemic has significantly impacted economies worldwide and could result in adverse effects on our business and operations.

We are monitoring the potential impact of the COVID-19 pandemic on our business and financial statements. While the COVID-19 pandemic has led to various research restrictions and paused certain of our clinical trials, these impacts have been temporary and to date we have not experienced material business disruptions or incurred impairment losses in the carrying values of our assets as a result of the pandemic and we are not aware of any specific related event or circumstance that would require us to revise the estimates reflected in these condensed consolidated financial statements. The extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations, cash flows, and financial condition, including planned and future clinical trials and research and development costs, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, the actions taken to contain or treat it, and the duration and intensity of the related effects.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

We have prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. The condensed consolidated financial statements have been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our financial position as of June 30, 2021, the results of our operations for the three and six months ended June 30, 2021, our cash flows for the six months ended June 30, 2021 and 2020, and the condensed consolidated statement of stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are unaudited. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period.

Prior period balances for accounts receivable have been reclassified to conform to the current year presentation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited, to the valuation of common stock, stock options, contingent earn-out liabilities, Preferred Stock warrants, and Common Stock warrants.

We base our estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results may differ from those estimates or assumptions. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. Changes in estimates will be recorded in future periods as they develop.

Risks and Uncertainties

The product candidates we develop require approvals from the U.S. Food and Drug Administration or foreign regulatory agencies prior to commercial sales. There can be no assurance that our current and future product candidates will receive the necessary approvals or be commercially successful. If we are denied approval or approval is delayed, it will have a material adverse impact on our business and our condensed consolidated financial statements.

We are subject to risks common to companies in the development stage including, but not limited to, dependency on the need for substantial additional financing to achieve our goals, uncertainty of broad adoption of our approved products, if any, by physicians and patients, significant competition, and untested manufacturing capabilities.

We are subject to certain risks and uncertainties and believe that changes in any of the following areas could have a material adverse effect on future financial position or results of operations: ability to obtain additional financing; regulatory approval and market acceptance of, and reimbursement for, product candidates; performance of third-party CROs and manufacturers upon which we rely; protection of our intellectual property; litigation or claims against us based on intellectual property, patent, product, regulatory, or other factors; and our ability to attract and retain employees necessary to support our growth.

Concentrations of Credit Risk

Financial instruments which potentially subject us to significant concentrations of credit risk consist primarily of cash. Our cash is mainly held in financial institutions. Amounts on deposit may at times exceed federally insured limits. We have not experienced any losses on our deposits of cash and do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

Cash and Cash Equivalents

We consider all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2021 and December 31, 2020, we had no cash equivalents and no restricted cash balances.

Accounts Receivable

Accounts receivable are stated at invoice value less estimated allowances for sales returns and doubtful accounts. We estimate the allowance for sales returns based on historical percentage of returns over a 12-month trailing average of sales. We continually monitor customer payments and maintain a reserve for estimated losses resulting from our customers’ inability to make required payments. We consider factors when estimating the allowance for doubtful accounts such as historical experience, age of the accounts receivable balances, geographic related risks, and economic conditions that may affect a customer’s ability to pay. In cases where there are circumstances that may impair a specific customer’s ability to meet its financial obligations, a specific allowance is recorded against amounts due, thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Historically, there have been no sales returns, no written-off accounts receivable, and no allowance for doubtful accounts reducing the balance of the accounts receivable.

Inventory

Inventory is stated at historic cost on a first-in first-out basis. Our inventory consisted of $27 thousand in raw materials and $27 thousand in finished goods as of June 30, 2021. Our inventory consisted of $0.1 million in raw material and $0.1 million in finished goods as of December 31, 2020.

Debt Discounts, Debt Premiums, and Debt Issuance Costs

When debt is issued and a derivative is required to be bifurcated (e.g., bifurcated conversion option) or another separate freestanding financial instrument (e.g., warrant) is issued, costs and fees incurred are allocated to the instruments issued (or bifurcated) in proportion to the allocation of proceeds. When some portions of the costs and fees relate to a bifurcated derivative or freestanding financial instrument that is being subsequently measured at fair value, those allocated costs are expensed immediately. Debt discounts, debt premiums, and debt issuance costs related to convertible loans are recorded as deductions that net against the principal value of the debt and are amortized to interest expense over the contractual term of the debt using the effective interest method.

Leases

At inception of a contract, we determine if a contract meets the definition of a lease. A lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. We determine if the contract conveys the right to control the use of an identified asset for a period of time. We assess throughout the period of use whether we have both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset, and (2) the right to direct the use of the identified asset. This determination is reassessed if the terms of the contract are changed. Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified asset. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments.

We lease laboratory and office space and certain equipment under non-cancellable operating and finance leases. The carrying value of our right-of-use lease assets is substantially concentrated in our real estate leases, while the volume of lease agreements is primarily concentrated in equipment leases. Our policy is to not record leases with an original term of twelve months or less on the condensed consolidated balance sheets. We recognize lease expense for these short-term leases on a straight-line basis over the lease term.

Certain lease agreements may require us to pay additional amounts for taxes, insurance, maintenance, and other expenses, which are generally referred to as non-lease components. Such variable non-lease components are treated as variable lease payments and recognized in the period in which the obligation for these payments is incurred. Variable lease components and variable non-lease components are not measured as part of the right-of-use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right-of-use asset and liability. Total contract consideration is allocated to the combined fixed lease and non-lease component. This policy election applies consistently to all asset classes under lease agreements.

Leases may contain clauses for renewal at our option. Payments to be made in option periods are recognized as part of the right-of-use lease assets and lease liabilities when it is reasonably certain that the option to extend the lease will be exercised, or is not at our option. We determine whether the reasonably certain threshold is met by considering contract-, asset-, market-, and entity-based factors. In the condensed consolidated statements of operations and comprehensive loss, operating lease expense, which is recognized on a straight-line basis over the lease term, and the amortization of finance lease ROU assets, which are included in property and equipment and depreciated, are included in research and development or general and administrative expenses consistent with the leased assets’ primary use. Accretion on the liabilities for finance leases is included in interest expense.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Property and equipment consist of lab and office equipment and leasehold improvements. Depreciation is calculated using the straight-line method over the estimated economic useful lives of the assets, which are 3-5 years for lab equipment and 3-7 years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated lease term or the estimated useful life of the assets. Costs for capital assets not yet placed into service are capitalized as construction in progress and depreciated or amortized in accordance with the above useful lives once placed into service. Upon retirement or sale, the related cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in the condensed consolidated statements of operations and comprehensive loss. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred.

Convertible Notes

In accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, when we issue notes with conversion features, we evaluate if the conversion features are freestanding or embedded. If the conversion feature is embedded, we do not separate the conversion feature from the host contract for convertible notes that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in-capital. Consequently, we account for a convertible note as a single liability measured at its amortized cost, and we account for a convertible preferred stock as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives.

If the conversion feature is freestanding, or is embedded and meets the requirements to be bifurcated, we account for the conversion feature as a derivative under ASC 815, Derivatives and Hedging (“ASC 815”). We record the derivative instrument at fair value at inception, and subsequently re-measure to fair value at each reporting period and immediately prior to the extinguishment of the derivative instrument, with any changes recorded in the condensed consolidated statements of operations and comprehensive loss.

Debt With Warrants

In accordance with ASC 470-20, Debt with Conversion and Other Options, when we issue debt with warrants, we treat the warrants as a debt discount, recorded as a contra-liability against the debt, and amortize the balance over the life of the underlying debt as amortization of debt discount expense in the condensed consolidated statements of operations and comprehensive loss. The offset to the contra-liability is recorded as additional paid-in capital in the condensed consolidated balance sheets if the warrants are not treated as a derivative or liability under ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). Otherwise, the offset to the contra-liability is recorded as a warrant liability in the condensed consolidated balance sheets and is subject to re-measurement to fair value at each balance sheet date, with any changes in fair value recognized in the condensed consolidated statements of operations and comprehensive loss. We determine the value of the warrants using the Black-Scholes Option Pricing Model (“Black-Scholes”) or the Monte Carlo Method based upon the underlying conversion features of the debt. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the condensed consolidated statements of operations and comprehensive loss.

Contingent Earn-out Liabilities

In connection with the Reverse Recapitalization, certain shareholders are entitled to receive additional shares of Common Stock (the “Contingent Earn-outs”) upon us achieving certain milestones (see Notes 3 and 12). In accordance with ASC 815, the Contingent Earn-outs are not indexed to our own stock and therefore are accounted for as a liability at the Reverse Recapitalization date and subsequently remeasured at each reporting date with changes in fair value recorded as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.

The estimated fair value of the Contingent Earn-outs is determined using a Monte Carlo simulation that simulates the future path of our Common Stock price over the earn-out periods. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones including projected stock price, volatility, and risk-free rate. For potential payments related to a product development milestone, the fair value is determined based on our expectations of achieving such a milestone and the simulated estimated stock price on the expected date of achievement.

The Contingent Earn-outs are categorized as Level 3 fair value measurements (see Fair Value of Financial Instruments accounting policy) because we estimate projections during the earn-out period utilizing unobservable inputs, including various potential pay-out scenarios. Contingent earn-out payments involve certain assumptions requiring significant judgment and actual results may differ from assumed and estimated amounts.

Common Stock Warrants

We account for common stock warrants as either equity-classified instruments or liability-classified instruments based on an assessment of the warrant terms and applicable authoritative guidance in accordance with ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to our Common Stock, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and, for liability-classified warrants, as of each subsequent quarterly period end date while the warrants are outstanding.

Revenue Recognition

Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration to which we are entitled in exchange for the goods or services we transfer to the customer.

Once a contract is determined to be within the scope of ASC 606 at contract inception, we review the contract to determine which performance obligations we must deliver, and which performance obligations are distinct. We recognize as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. We typically satisfy our performance obligations via delivery of dietary supplements to the customer. Payments are due upon receipt for commercial transactions, or a prepayment is collected for online retail sales. Our revenue for the three and six months ended June 30, 2021 and 2020 was comprised of sales of dietary supplements.

We recorded deferred revenue of $0.1 million and $0.1 million as of June 30, 2021 and December 31, 2020 from the dietary supply agreement with the related party (see Note 20). The deferred revenue at December 31, 2020 is expected to be recognized in the third quarter of 2021.

Grant Funding

We may submit applications to receive grant funding from governmental and non-governmental entities. Grant funding received that involves no conditions or continuing performance obligations of the Company is recognized upon receipt. Grant funding with conditions or obligations of the Company is recognized as the conditions or obligations are fulfilled. We have made an accounting policy election to record such unconditional grants, such as the Australian Research and Development Credit, as other income in the condensed consolidated statements of operations and comprehensive loss. Income from grants is recognized in the period during which the related qualifying expenses are incurred, provided that the conditions under which the grants were provided have been met. We recognize the Australian Research and Development Credit in an amount equal to the qualifying expenses incurred in each period multiplied by the applicable reimbursement percentage. During the three and six months ended June 30, 2021, we recognized $0.4 million and $0.7 million, respectively, of Australian Research and Development Credit within other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2020, we recognized $1.3 million and $1.3 million, respectively, of Australian Research and Development Credit within other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2021, and December 31, 2020, we recorded $2.7 million and $2.1 million, respectively, of Australian Research and Development Credit receivable in prepaid expenses and other current assets on the condensed consolidated balance sheets.

Any amount received in advance of fulfilling such conditions or obligations is recorded in accrued liabilities on the condensed consolidated balance sheets if the conditions or obligations are expected to be met within the next twelve months. As of June 30, 2021 and December 31, 2020, we recorded $0.4 million and $0.3 million, respectively, of deferred grant funds received in advance in accrued liabilities.

Grant funding recognized on conditional grants is included as a reduction in research and development expenses in the condensed consolidated statements of operations and comprehensive loss as the conditions are tied to our research and development efforts, and as the arrangement between us and the organizations are not part of our ongoing, major, or central operations. During the three and six months ended June 30, 2021, we recorded a grant of $0.2 million and $0.2 million, respectively, as a reduction of research and development expenses in the condensed consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2020, we recorded a grant of $0.2 million and $0.4 million, respectively, as a reduction of research and development expenses in the condensed consolidated statements of operations and comprehensive loss.

Fair Value of Financial Instruments

Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy:

Level 1 — Inputs based upon quoted market prices for identical assets or liabilities in active markets at the measurement date.

Level 2 — Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Inputs that are management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

We review the fair value hierarchy classification of our applicable assets and liabilities on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting all levels of the fair value hierarchy are reported as transfers in or out of the Level 1, 2, or 3 categories as of the beginning of the quarter during which the reclassifications occur.

Foreign Currency Translation and Transactions

Our functional currency is the United States (“U.S.”) dollar. Our Australian subsidiary determined its functional currency to be the Australian dollar and our Netherlands subsidiary determined its functional currency to be the Euro. We use the U.S. dollar as our reporting currency for the condensed consolidated financial statements. The results of our non-U.S. dollar based functional currency operations are translated to U.S. dollars at the average exchange rates during the period. Our assets and liabilities are translated using the current exchange rate as of the balance sheet date and shareholders’ equity is translated using historical rates.

Adjustments resulting from the translation of the condensed consolidated financial statements of our foreign functional currency subsidiaries into U.S. dollars are excluded from the determination of net loss and are accumulated in a separate component of shareholders’ equity. These foreign currency translation gains and losses are currently the only component of other comprehensive income (loss).

We also incur foreign exchange transaction gains and losses for purchases denominated in foreign currencies. Foreign exchange transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss as incurred.

Comprehensive Loss

Comprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. The only element of other comprehensive income (loss) in any period presented was translation of Australian dollar denominated balances of our Australian subsidiary to U.S. dollars for consolidation.

Net Loss Per Share Attributable to Common Shareholders

We calculated basic and diluted net loss per share attributable to common shareholders in conformity with the two-class method required for companies with participating securities. We considered all series of redeemable convertible Preferred Stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend had been paid on Common Stock. See Note 19, Net Loss Per Share Attributable to Common Shareholders, for further details on our historical participating securities, including warrants to purchase redeemable convertible Preferred Stock and Common Stock.

Under the two-class method, basic net loss per share attributable to common shareholders was calculated by dividing the net loss by the weighted-average number of shares of Common Stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common shareholders was computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible Preferred Stock, stock options to purchase Common Stock, early exercised stock options, and warrants to purchase redeemable convertible Preferred Stock and Common Stock were considered common shares equivalents but had been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect was anti-dilutive. In periods in which we report a net loss attributable to common shareholders, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. We reported a net loss attributable to common shareholders during the three and six months ended June 30, 2021 and 2020.

Segment Information

We have determined that our chief executive officer is the chief operating decision maker (“CODM”). Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the CODM in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business in two operating segments: (1) the development and commercialization of proprietary nanotechnology drug suspensions (“Drugs”), and (2) the development and commercialization of dietary supplements (“Supplements”). Our operating segment profit measure is segment loss from operations, which is calculated as revenue less cost of revenue, research and development, and general and administrative expenses (see Note 21).

Income Taxes

We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the condensed consolidated financial statements or in our tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies.

We account for uncertainty in income taxes recognized in the condensed consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the condensed consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties.

Stock-Based Compensation

We account for stock-based compensation arrangements with employees using a fair value-based method for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). Stock-based compensation expense is recorded in research and development and general and administrative expenses based on the classification of the work performed by the grantees.

Prior to the Reverse Recapitalization, there was not a public market for the shares of Clene Nanomedicine common stock. Our determination of the fair value of stock options on the date of grant utilized the Black-Scholes valuation model and was impacted by its common stock price, as determined by the Board of Directors with input from management, as well as changes in assumptions regarding a number of subjective variables. These variables included, but were not limited to, the expected term that options remained outstanding, the expected common stock price volatility over the term of the option awards, risk-free interest rates, and expected dividends.

The fair value was recognized over the period during which a grantee was required to provide services in exchange for the option award and service-based RSUs, known as the requisite service period (usually the vesting period), on a straight-line basis. For RSUs with market conditions, the fair value is recognized over the period based on the expected milestone achievement dates as the derived service period (usually the vesting period), on a straight-line basis. For RSUs with performance conditions, the grant-date fair value of these awards is the market price on the applicable grant date, and compensation expense will be recognized when the conditions become probable of being satisfied. We will recognize a cumulative true-up adjustment once the conditions become probable of being satisfied as the related service period had been completed in a prior period.

Stock-based compensation expense is recognized at fair value. We elect to account for forfeitures as they occur, rather than estimating expected forfeitures.

After the closing of the Reverse Recapitalization, we determine the fair value of each share of Common Stock underlying stock-based awards based on the closing price of our Common Stock as reported by the Nasdaq Stock Exchange (“Nasdaq”) on the date of grant. The fair value of RSUs with market conditions are determined using a Monte Carlo valuation model.

Research and Development

Research and development costs are charged to expense as incurred. We account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed. Research and development expenses consist of costs incurred for the discovery and development of our product candidates. Research and development costs include, but are not limited to, payroll and personnel expenses including stock-based compensation, clinical trial supplies, fees for clinical trial services, consulting costs, and allocated overhead, including rent, equipment, and utilities.

Clinical Trial Accrual

Our clinical trial accrual process accounts for expenses resulting from obligations under contracts with CROs, consultants, and under clinical site agreements in connection with conducting clinical trials. Clinical trial costs are charged to research and development expense as incurred. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. We reflect the appropriate clinical trial expense in the condensed consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended. In the event advance payments are made to a CRO, the payments will be recorded as a prepaid asset which will be amortized to research and development expense over the period the contracted services are performed. In addition to pass-through costs, we generally incur costs in clinical trials in four distinct groups as follows:

CRO Start-up — These costs include the initial set-up of the clinical trial and usually occur within a few months after the contract has been executed and includes costs which are expensed ratably over the start-up period when such period is identifiable and expensed as incurred when no such period exists. Start-up phase activities include study initiation, site recruitment, regulatory applications, investigator meetings, screening, preparation, pre-study visits, and training.

CRO Site and Study Management — These costs include medical and safety monitoring, patient administration and data management. These costs are usually calculated on a per-patient basis and expensed ratably over the treatment period beginning on the date that the patient enrolls.

CRO Close-Down and Reporting — These costs include analyzing the data obtained and reporting results, which occurs after patients have ceased treatment and the database of information collected is locked. These costs are expensed as incurred over the course of any close-down and reporting period.

Third-Party Contracts — These costs include fees charged by third parties for various support services which are not provided by CROs and include such items as lab fees, data quality review costs, and fees incurred for investigational product monitoring and inventory control. These items are expensed ratably over any identifiable service period with the engaged third-party vendors.

The CRO contracts generally include pass-through fees including, but not limited to, regulatory expenses, investigator fees, travel costs, and other miscellaneous costs, including shipping and printing fees. We determine accrual estimates through reports from and discussion with applicable personnel and outside service providers as to the progress or state of completion of trials or the services completed. We estimate accrued expenses as of each balance sheet date in the condensed consolidated financial statements based on the facts and circumstances known to us at that time.

Recently Adopted Accounting Pronouncements

In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity to simplify accounting for certain financial instruments by removing certain separation models for convertible instruments. Under the amendments in ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in-capital. Consequently, a convertible debt instrument will be accounted as a single liability measured at its amortized cost, and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirements to use the if-converted method for all convertible instruments. The new guidance is effective for fiscal years beginning after December 15, 2023, and should be applied on a full or modified retrospective basis, with early adoption permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods with those fiscal years. We early adopted ASU 2020-06 on January 1, 2021. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate is expected to be discontinued as a result of the Reference Rate Reform. This ASU is intended to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new guidance was effective immediately, and through December 31, 2022. As a result of our election to utilize the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2016-02 is effective for our fiscal years beginning after December 15, 2020, and all interim periods thereafter. Early adoption is permitted. We early adopted this guidance on March 1, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The new guidance provides for the deferral of implementation costs for cloud computing arrangements and expensing those costs over the term of the cloud services arrangement. The new guidance was effective for fiscal years beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. As a smaller reporting company, the guidance is effective for our fiscal years beginning after December 15, 2022. We are currently evaluating the expected impact of the new guidance as a result of this extended deadline of implementation for smaller reporting companies.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. As a smaller reporting company, the guidance is effective for our fiscal years beginning after December 15, 2021. We do not expect that the adoption of this new guidance will have a material impact on our condensed consolidated financial statements.

Reverse Recapitalization with Tottenham and Clene Nanomedicine

6 Months Ended

Jun. 30, 2021

Reverse Recapitalization With Tottenham And Clene Nanomedicine [Abstract]

Reverse Recapitalization with Tottenham and Clene Nanomedicine

3. Reverse Recapitalization with Tottenham and Clene Nanomedicine

On December 30, 2020 (the “Closing Date”), Chelsea Worldwide Inc., our predecessor company, consummated the previously announced business combination (referred to as the “Reverse Recapitalization”) pursuant to a merger agreement, dated as of September 1, 2020 (the “Merger Agreement”), by and among Clene Nanomedicine, Tottenham, Chelsea Worldwide Inc. (“PubCo”), a Delaware corporation and wholly-owned subsidiary of Tottenham, Creative Worldwide Inc. (“Merger Sub”), a Delaware corporation and wholly-owned subsidiary of PubCo, and Fortis Advisors LLC, a Delaware limited liability company as the representative of our shareholders. Prior to the Reincorporation Merger discussed below, Tottenham was incorporated in the British Virgin Islands as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities.

The Reverse Recapitalization was effected in two steps: (i) Tottenham was reincorporated to the state of Delaware by merging with and into PubCo (the “Reincorporation Merger”); (ii) promptly following the Reincorporation Merger, Merger Sub was merged with and into Clene Nanomedicine, resulting in Clene Nanomedicine becoming a wholly-owned subsidiary of PubCo (the “Acquisition Merger”). On the Closing Date, PubCo changed its name from Chelsea Worldwide Inc. to Clene Inc. and listed its shares of Common Stock, par value $0.0001 per share on Nasdaq under the symbol “CLNN.”

Upon the consummation of the Reverse Recapitalization, each Tottenham ordinary share issued and outstanding immediately prior to the effective time of the Reincorporation Merger, which totaled 2,303,495 shares held by the Initial Shareholders and Tottenham public shareholders (excluding certain shares that were canceled pursuant to the Merger Agreement, any redeemed shares, and any dissenting shares), was automatically cancelled and ceased to exist and (i) for each Tottenham ordinary share, we issued to each shareholder one validly-issued share of our Common Stock; (ii) each warrant to purchase one-half (1/2) of one Tottenham Ordinary Share converted into a warrant to purchase one-half (1/2) of one share of our Common Stock; (iii) each right exchangeable into one-tenth (1/10) of one Tottenham ordinary share converted into a right exchangeable for one-tenth (1/10) of one share of our Common Stock; provided, however, that no fractional shares were issued and all fractional shares were rounded down to the nearest whole share. In addition, pursuant to the Merger Agreement, the Initial Shareholders are entitled to receive up to 750,000 shares of Common Stock as earn-out shares upon the achievement of certain milestones described below.

On the Closing Date, each share of Clene Nanomedicine common stock then issued and outstanding was cancelled and the holders thereof in exchange received 54,339,012 shares of Clene Inc. Common Stock, which is equal to 0.1389 newly-issued shares of Clene Inc. Common Stock for each single share of Clene Nanomedicine common stock (the “Exchange Ratio”). Pursuant to the Merger Agreement, 5% of the aggregate amount of the closing payment shares, or 2,716,958 shares were held in escrow to satisfy any indemnification obligation incurred and were released six months after the closing of the Reverse Recapitalization. In addition, each share of Clene Nanomedicine’s preferred stock outstanding immediately prior to the closing of the Reverse Recapitalization was converted into the right to receive our Common Stock based on the same Exchange Ratio. All outstanding warrants exercisable for common stock in Clene Nanomedicine (other than warrants that expired, were exercised or were deemed automatically net exercised immediately prior to the Acquisition Merger) were exchanged for warrants exercisable for our Common Stock with the same terms and conditions except adjusted by the Exchange Ratio. All outstanding stock options of Clene Nanomedicine common stock, totaling 53,286,115 stock options, was cancelled and the holders thereof in exchange received 0.1320 newly issued stock options of our Common Stock for a total of 7,032,591 stock options, which is 95% of the Exchange Ratio. Pursuant to the Merger Agreement, we issued 370,101 RSUs to the option holders which complements the 5% closing payment shares held in escrow for Clene Nanomedicine common shareholders. The modification of the stock options did not result in a material incremental compensation expense upon closing of the Reverse Recapitalization.

In addition, we issued 1,136,961 RSUs to option holders to complement the earn-out payments that would contingently be issued to certain current Clene Nanomedicine’s shareholders upon the achievement of milestones described below.

The proceeds received from the Reverse Recapitalization were $3.7 million, net of offering costs of $5.9 million which excludes the fair value of common shares issued as a payment of related offering costs.

In connection with Tottenham’s initial public offering in August 2018, Tottenham issued to Chardan Capital Markets, LLC (“Chardan”), options to purchase 220,000 units at $11.50 per unit. Each of the units consists of one and one-tenth shares of Tottenham’s ordinary shares and one warrant to purchase one-half of one of Tottenham’s ordinary shares at an exercise price of $11.50 per share (the “Chardan Unit Purchase Option”). In connection with the Reverse Recapitalization, the Chardan Unit Purchase Option was converted into one Company unit purchase option. The warrants included in the Chardan Unit Purchase Option (the “Chardan Unit Purchase Option Warrants”) are exercisable upon the completion of the Reverse Recapitalization and will expire on December 30, 2025, five years after the consummation of the Reverse Recapitalization (see Note 10).

Also, in connection with the Reverse Recapitalization, Clene Nanomedicine entered into a letter agreement with LifeSci Capital LLC (“LifeSci") on July 2, 2020, according to which LifeSci was engaged to act as Clene Nanomedicine’s financial advisor with respect to identifying and soliciting special purpose acquisition companies for the purpose of entering into a merger or similar transaction with Clene Nanomedicine and its shareholders. Under this agreement, Clene Nanomedicine agreed that if it consummated a merger with Tottenham, LifeSci would receive consideration of (i) 3% of the amount by which the total transaction consideration exceeded $350 million, plus (ii) 7% of cash and cash-equivalents received by Clene Nanomedicine from the Tottenham’s trust account. Clene Nanomedicine could elect to pay LifeSci either in cash, equity interests of the surviving company, or a combination of the two. Upon the consummation of the Reverse Recapitalization, 644,164 shares of Common Stock were issued to LifeSci as consideration for its services as pursuant to the letter agreement (see Note 18).

Immediately after giving effect to the Reverse Recapitalization, there were 59,526,171 shares of Common Stock issued and outstanding and warrants to purchase 5,566,363 shares of Common Stock issued and outstanding (see Note 10). Based on the number of shares of Common Stock outstanding on December 30, 2020 (in each case, not giving effect to any shares issuable upon exercise of warrants, options, or earn-out shares), Clene Nanomedicine’s shareholders owned approximately 91% of the Common Stock of the Company, Tottenham shareholders owned approximately 4% of the Common Stock of the Company, and investors from the PIPE owned approximately 4% of the Common Stock of the Company.

During Tottenham’s IPO, Tottenham incurred deferred underwriters’ fees which were payable to Chardan from the amounts held in the trust account upon completion of the Reverse Recapitalization. Upon the closing of the Reverse Recapitalization, we paid $2.1 million to Chardan as settlement of the deferred underwriting fees which amount was included in the total offering costs of the Reverse Recapitalization transaction.

During the year ended December 31, 2020, we recorded $5.9 million of offering costs related to third-party legal, accounting, and other professional services to consummate the Reverse Recapitalization, excluding the fair value of common shares issued as a payment of related offering costs and Chardan underwriting fees discussed above. These offering costs are recorded as a reduction of additional paid-in capital upon the close of the Reverse Recapitalization in our condensed consolidated balance sheets.

The transaction was accounted for as a “reverse recapitalization” in accordance with GAAP. Under this method of accounting, Tottenham was treated as the “acquired” company for financial reporting purposes. This determination was primarily based on the fact that subsequent to the Reverse Recapitalization, Clene Nanomedicine’s shareholders have a majority of the voting power of the combined company, Clene Nanomedicine comprises all of the ongoing operations of the combined entity, Clene Nanomedicine comprises a majority of the governing body of the combined company, and Clene Nanomedicine’s senior management comprises all of the senior management of the combined company. Accordingly, for accounting purposes, this transaction was treated as the equivalent of Clene Nanomedicine issuing shares for the net assets of Tottenham, accompanied by a recapitalization. The shares and net loss per common share, prior to the Reverse Recapitalization, have been retroactively restated as shares reflecting the Exchange Ratio established in the Reverse Recapitalization. The net assets of Tottenham were recorded at historical costs, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization are those of Clene Nanomedicine.

Earn-out Shares

Certain of Clene Nanomedicine’s current shareholders are entitled to receive earn-out shares as follows (the “Clene Nanomedicine Contingent Earn-out”): (i) 3,333,333 shares of Common Stock if (A) the volume-weighted average price (“VWAP”) of the shares of our Common Stock equals or exceeds $15.00 (or any foreign currency equivalent) (the “Milestone 1 Price”) in any twenty trading days within a thirty trading day period within the three years following the closing of the Reverse Recapitalization on any securities exchange or securities market on which the shares of our Common Stock are then traded or (B) the change of control price equals or exceeds the Milestone 1 Price if a change of control transaction occurs within the three years following the closing of the Reverse Recapitalization (the requirements set forth in clause (A) and (B), “Milestone 1”); (ii) 2,500,000 shares of Common Stock if (A) the VWAP of the shares of our Common Stock equals or exceeds $20.00 (or any foreign currency equivalent) (the “Milestone 2 Price”) in any twenty trading days within a thirty trading day period within the five years following the closing of the Reverse Recapitalization on any securities exchange or securities market on which the shares of our Common Stock are then traded or (B) the change of control price equals or exceeds the Milestone 2 Price if a change of control transaction occurs within the five years following the closing of the Reverse Recapitalization (the requirements set forth in clause (A) or (B), “Milestone 2”); and (iii) 2,500,000 shares of Common Stock if Clene Nanomedicine completes a randomized placebo-controlled study for treatment of COVID-19 which results in a statistically significant finding of clinical efficacy within twelve months after the closing of the Reverse Recapitalization (“Milestone 3”). If Milestone 1 is not achieved but Milestone 2 is achieved, the Clene Nanomedicine shareholders will receive a catch-up issuance equal to the shares issued upon satisfaction of Milestone 1. Upon the consummation of the Reverse Recapitalization, the Clene Nanomedicine Contingent Earn-out shares increased by 12,852 as a result of the exercise of stock options during November 2020. Therefore, the total Clene Nanomedicine Contingent Earn-out shares has increased to 8,346,185 shares of Common Stock.

The Initial Shareholders of Tottenham may be entitled to receive earn-out shares as follows (the “Initial Shareholders Contingent Earn-out”): (i) 375,000 shares of Common Stock upon satisfaction of the requirements of Milestone 1; and (ii) another 375,000 shares of the Company’s Common Stock upon satisfaction of the requirements of Milestone 2. If Milestone 1 is not achieved but Milestone 2 is achieved, the Initial Shareholders shall receive a catch-up issuance equal to the shares granted upon satisfaction of the requirements of Milestone 1.

The Clene Nanomedicine Contingent Earn-out and Initial Shareholders Contingent Earn-out (collectively, the “Contingent Earn-outs”) have been classified as liabilities in the condensed consolidated balance sheets and were initially measured at fair value on the date of the Reverse Recapitalization and are subsequently remeasured to fair value at each reporting date (see Note 16).

Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2021

Prepaid Expenses And Other Current Assets [Abstract]

Prepaid expenses and other current assets

4. Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30,		December 31,
(in thousands)	2021		2020
Australia research and development credit receivable	$	2,734	$	2,148
CRO prepayments		579		1,211
Metals to be used in research and development		614		31
Directors & Officers Insurance		936		-
Other		167		112
	$	5,030	$	3,502

Property and Equipment, Net

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

5. Property and Equipment, Net

Property and equipment, net consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30,			December 31,
(in thousands)	2021			2020
Lab equipment	$	3,107		$	3,077
Furniture and fixtures		147			147
Leasehold improvements		3,927			3,889
Construction in progress		821			490
		8,002			7,603
Less accumulated depreciation		(3,859	)		(3,378	)
Total property and equipment, net	$	4,143		$	4,225

Depreciation expense related to property and equipment, net for the three and six months ended June 30, 2021 was approximately $0.2 million and $0.5 million, respectively. Depreciation expense is reported in research and development expense and in general and administrative expense for $0.4 million and $0.1 million, respectively, for the six months ended June 30, 2021; and in research and development expense and in general and administrative expense for $0.2 million and $29 thousand, respectively, for the three months ended June 30, 2021, in the condensed consolidated statements of operations and comprehensive loss.

Depreciation expense related to property and equipment, net for the three and six months ended June 30, 2020 was approximately $0.2 million and $0.5 million, respectively. Depreciation expense is reported in research and development expense and in general and administrative expense for $0.5 million and $13 thousand, respectively, for the six months ended June 30, 2020; and in research and development expense and in general and administrative expense for $0.2 million and $12 thousand, respectively, for the three months ended June 30, 2020, in the condensed consolidated statements of operations and comprehensive loss.

Accrued Liabilities

6 Months Ended

Jun. 30, 2021

Accounts Payable and Accrued Liabilities [Abstract]

Accrued Liabilities

6. Accrued Liabilities

Accrued liabilities consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30,		December 31,
(in thousands)	2021		2020
Accrued professional fees	$	-	$	189
Accrued compensation and benefits		1,533		1,225
Accrued CRO fees		691		788
Deferred grant funds		351		301
Accrued expense reimbursements		33		33
Accrued transaction costs		-		1,354
Other		123		70
	$	2,731	$	3,960

Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

7. Leases

We adopted ASC 842, Leases on January 1, 2019 using the modified retrospective approach.

We also made an accounting policy election not to recognize leases with an initial term of 12 months or less within our condensed consolidated balance sheets and to recognize those lease payments on a straight-line basis in our condensed consolidated statements of operations and comprehensive loss over the lease term.

At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, our incremental borrowing rate is used as the discount rate.

In April 2020, we terminated an existing operating lease for office space. At the time of termination, we removed the remaining right-of-use asset of $0.3 million, lease liability of $0.3 million, and recognized a gain of $0.1 million. Further, in April 2020, we commenced a new operating lease. At the time of commencement, we recorded the right-of-use asset value of $0.4 million, leasehold improvements of $0.4 million, and a lease liability of $0.8 million. The net effect of the change in leases being an increase in right-of-use assets of $0.1 million, an increase in leasehold improvements of $0.5 million, an increase in lease liability of $0.4 million, and a gain on termination of $0.1 million.

We have noncancelable operating lease arrangements primarily for office and lab space. We also have noncancelable finance leases for certain lab equipment. The maturity analysis of finance and operating lease liabilities as of June 30, 2021 are as follows:

(in thousands)	Finance Leases			Operating Leases
2021 (remainder)	$	76			172
2022		135			421
2023		82			433
2024		21			442
2025		-			454
2026		-			466
Thereafter		-			63
Total undiscounted cash flows		314			2,451
Less amount representing interest/discounting		(3	)		(583	)
Present value of future lease payments		311			1,868
Less lease obligations, current portion		(159	)		(210	)
Lease obligations – long term portion	$	152		$	1,658

We expect that, in the normal course of business, the existing leases will be renewed or replaced by similar leases.

Finance Leases

Assets recorded under finance lease obligations and included with property and equipment as of June 30, 2021 and December 31, 2020 are summarized as follows:

	June 30,			December 31,
(in thousands)	2021			2020
Lab equipment	$	920		$	920
Furniture and fixtures		46			46
Work in process		228			228
Total		1,194			1,194
Less accumulated depreciation		(666	)		(593	)
Net	$	528		$	601

As of June 30, 2021, our finance lease obligations had a weighted-average interest rate of 8.4% and had a weighted-average remaining term of 2.5 years. As of December 31, 2020, our finance lease obligations had a weighted-average interest rate of 8.1% and had a weighted-average remaining term of 2.7 years.

Operating Leases

Our balance of right-of-use assets on the face of the balance sheet pertain to operating leases. As of June 30, 2021, our operating lease obligations had a weighted-average discount rate of 9.6% and had a weighted-average remaining term of 6.3 years. As of December 31, 2020, our operating lease obligations had a weighted-average discount rate of 9.6% and a weighted-average remaining term of 6.3 years.

Components of Lease Cost

The components of finance and operating lease costs for the three and six months ended June 30, 2021 and 2020 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Finance lease costs:
Amortization	$	36	$	48	$	73	$	96
Interest on lease liabilities		7		10		15		21
Operating lease costs		70		132		140		213
Short-term lease costs		54		49		116		137
Variable lease costs		20		14		39		48
Total lease costs	$	187	$	253	$	383	$	515

Supplemental Cash Flow Information

(in thousands)	2021			2020
Operating cash flows from operating leases	$	(295	)	$	(338	)
Operating cash flows from finance leases	$	(15	)	$	(21	)
Financing cash flows from finance leases	$	(83	)	$	(109	)

Notes Payable

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Notes Payable

8. Notes Payable

Maryland Loan

In February 2019, we entered into a loan agreement (the “2019 MD Loan”) with the Department of Housing and Community Development, a principal department of the State of Maryland (“Maryland”). Pursuant to the 2019 MD Loan, Maryland agreed to provide a $0.5 million term loan. Amounts outstanding under the 2019 MD Loan bear simple interest at an annual rate of 8.00%. Under the 2019 MD Loan, we agreed to affirmative and negative covenants to which we will remain subject until maturity. These covenants include providing information about the Company and our operations; limitations on our ability to retire, repurchase, or redeem our common or preferred stock, options, and warrants other than per the terms of the securities; and limitations on our ability to pay dividends of cash or property. There are no financial covenants associated with the Loan Agreement. Events of default under the Loan Agreement include failure to make payments when due, insolvency events, failure to comply with covenants, and material adverse effects with respect to the Company. We are not in violation of any affirmative or negative covenants. Repayment of the full balance outstanding is due on February 22, 2034. The 2019 MD Loan establishes “Phantom Shares,” based on 119,906 shares of Common Stock (based on 863,110 Series C Preferred Shares prior to the Reverse Recapitalization), determined at issuance. The Loan Agreement states the repayment amount is to be the greater of the balance of principal and accrued interest or the Phantom Shares value. We determined that the note should be accounted for at fair value. We record the fair value of the debt at the end of each reporting period. In order to value the note, we consider the amount of the simple interest expense that would be due and the value of Phantom Shares. Upon the closing of the Reverse Recapitalization and as of December 31, 2020, the fair value of the 2019 MD Loan is determined based on the closing price of CLNN shares listed on Nasdaq. Income of $0.2 million and expense of $0.3 million was recognized during the three and six months ended June 30, 2021, respectively. Expense of $0.1 million and $0.1 million was recognized during the three and six months ended June 30, 2020, respectively. The fair value of $1.3 million and $1.1 million of principal and accrued interest is included in long-term notes payable as of June 30, 2021 and December 31, 2020, respectively.

Cecil County Loan

In April 2019, we entered into a loan agreement (the “2019 Cecil Loan”) with Cecil County, Maryland (“Cecil”). Pursuant to the 2019 Cecil Loan, Cecil agreed to provide a $0.1 million term loan. Amounts outstanding under the 2019 Cecil Loan bear simple interest at an annual rate of 8.00%. Under the 2019 Cecil Loan, we agreed to affirmative and negative covenants to which we will remain subject until maturity. These covenants include providing information about the Company and our operations; limitations on our ability to retire, repurchase, or redeem our common or preferred stock, options, and warrants other than per the terms of the securities; and limitations on our ability to pay dividends of cash or property. There are no financial covenants associated with the Loan Agreement. Events of default under the Loan Agreement include failure to make payments when due, insolvency events, failure to comply with covenants, and material adverse effects with respect to the Company. We are not in violation of any affirmative or negative covenants. Repayment of the full balance outstanding is due on April 30, 2034. The 2019 Cecil Loan establishes “Phantom Shares,” based on 23,981 shares of Common Stock (based on 172,622 Series C Preferred Shares prior to the Reverse Recapitalization), determined at issuance. The 2019 Cecil Loan states the repayment amount is to be the greater of the balance of principal and accrued interest or the Phantom Share value. We determined that the note should be accounted for at fair value. We record the fair value of the debt at the end of each reporting period. In order to value the note, we consider the amount of the simple interest expense that would be due and the value of Phantom Shares. Upon the closing of the Reverse Recapitalization and as of December 31, 2020, the fair value of the 2019 Cecil Loan is determined based on the closing price of CLNN shares listed on Nasdaq. Income of $36 thousand and expense of $0.1 million was recognized during the three and six months ended June 30, 2021, respectively. Expense of $11 thousand and $13 thousand was recognized during the three and six months ended June 30, 2020, respectively. The fair value of $0.3 million and $0.2 million of principal and accrued interest is included in long-term notes payable as of June 30, 2021 and December 31, 2020, respectively.

PPP Loan

In May 2020, we entered into a note payable in the amount of $0.6 million (the “PPP Note”) under the Paycheck Protection Program of the CARES Act (the “PPP”). As amended, the PPP permits forgiveness of amounts loaned for payments of payroll and other qualifying expenses within 24 weeks of receipt of loaned funds, given that at least 60% of the total loan is used for payroll. Amounts not forgiven have a repayment period of five years. In January 2021, the full $0.6 million balance of the PPP Note was forgiven and has been recorded as a gain on extinguishment of debt during the six months ended June 30, 2021. There was no gain on extinguishment of debt recorded during the three months ended June 30, 2021.

Avenue Loan

In May 2021, we entered into a loan agreement (the “2021 Avenue Loan”) with Avenue Venture Opportunities Funds, L.P. (“Avenue”). The agreement provides for a 42-month term loan of up to $30.0 million. The first tranche is $20.0 million (“Tranche 1”), of which $15.0 million was funded at close. We incurred issuance costs for a total of $0.5 million of which $35 thousand have been expensed immediately. The remaining balance from Tranche 1 of $5.0 million and an additional tranche of $10.0 million (“Tranche 2”) are available at the Company’s request until December 31, 2021 and June 30, 2022, respectively. Funding of the remainder of Tranche 1 and entire Tranche 2 is subject to evidence reasonably satisfactory of receipt of an additional $5.0 million financing through Maryland’s State Incentive Programs and/or other Maryland State programs and mutual agreement of the Company and Avenue. Funding of Tranche 2 is also subject to (i) our achievement of a statistically significant result on the primary endpoint as defined within the statistical analysis plan for each respective study, or the totality of the results for any study warrant advancement into a subsequent clinical efficacy study, as reasonably determined by the Company and Avenue with respect to at least two of the following studies: (i) RESCUE-ALS or HEALEY-ALS; (ii) REPAIR-PD; or (iii) REPAIR- MS (“Performance Milestone 1”); and (ii) our receipt of net proceeds of at least $30 million from the sale and issuance of our equity securities (including any private placement or follow-on offering) between May 2, 2021 and June 30, 2022.

The term loan bears interest of 9.85%. Interest is the higher of the prime rate plus 6.60% or 9.85%. Payments for the loan are interest only for the initial 12 months and can be extended to (i) 12 months (the “First Interest-only Period Extension”) if we achieve Performance Milestone 1 and (ii) up to 36 months if we achieve the First Interest-only Period Extension and draw Tranche 2. The loan will amortize in equal payments of principal from the end of the interest period to the expiration of the 42-month term on December 1, 2024. On the maturity date, an additional payment equal to 4.25% of the funded loans, or $0.6 million, is due in addition to the remaining unpaid principal and accrued interest. The final payment is recorded as a debt premium and is being amortized over the contractual term using the effective interest method. The final payment provision is related to the loan host and is not bifurcated pursuant to ASC 815.

Pursuant to the agreement, we granted to Avenue a warrant for the purchase of 115,851 shares of Common Stock at an exercise price equal to the lower of (i) $8.63 (which is equal to the five-day VWAP per share, determined as of the end of trading on the last trading day prior to execution of the loan agreement), or (ii) the lowest price per share paid by cash investors for our Common Stock issued in the next bona fide round of equity financing prior to March 31, 2022 (the “Next Round Price”) (see Note 10). Upon the funding of Tranche 2, the warrant shall be automatically adjusted to include an additional 72,226 shares of Common Stock, which is equal to 5% of the principal amount of Tranche 2, divided by the lower of (i) the five (5)-day VWAP per share; determined as of the end of trading on the last trading day before the date of issuance of Tranche 2; or (ii) the Next Round Price. We accounted for the Tranche 2 warrants at inception of the 2021 Avenue Loan in accordance with ASC 815 (see Note 1 and Note 10). Avenue also has the right, in its discretion, but not the obligation, at any time from time to time from the first through the third-year anniversary of the agreement, while the loan is outstanding, to convert an amount of up to $5.0 million of the principal amount of the outstanding loan into Common Stock (the “Conversion Feature”) at a price per share equal to 120% of the stock purchase price set forth in the warrant. The Conversion Feature is subject to (i) the closing price of our Common Stock for each of the seven consecutive trading days immediately preceding the conversion being greater than or equal to the conversion price and (ii) the Common Stock issued in connection with any such conversion not exceeding 20% of the total trading volume of our Common Stock for the twenty-two consecutive trading days immediately prior to and including the effective date of such conversion.

Under the 2021 Avenue Loan, we agreed to affirmative and negative covenants to which we will remain subject upon maturity in the absence of prepayments. These covenants include providing information about the Company and our operations; limitation on our ability to retire, repurchase, or redeem our Common Stock, options, and warrants other than per the terms of the securities; and limitations on our ability to pay dividends of cash or property. The financial covenant associated with the loan agreement includes maintaining minimum unrestricted cash and cash equivalents of at least $5.0 million; provided that upon our (i) achievement of Performance Milestone 1, and (ii) receiving of net proceeds of at least $30.0 million from the sale and issuance of our equity securities (including any PIPE or follow-on offering) between May 1, 2021 and June 30, 2022, we shall no longer be subject to financial covenants. We are not in violation of the covenants. The agreement provides for events of default customary for loans of this type, including but not limited to non-payment, breaches or defaults in the performance of covenants, insolvency, and bankruptcy. The 2021 Avenue Loan is collateralized by substantially all of the Company’s assets. The net proceeds from the issuance of the loan were initially allocated to the warrant at an amount equal to their fair value of $1.5 million and the remainder to the loan. The allocation of incurred financing costs of $0.5 million, which together with the fair value of the warrant and the final payment, are recorded as a debt discount and debt premium, respectively, and are being amortized over the contractual term using the effective interest method. During the three and the six months ended June 30, 2021, we recorded interest expense of $0.2 million.

The loan consists of the following:

(in thousands)	June 30, 2021
Face value of the loan	$	15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs		(1,859	)
Total debt, net	$	13,141

Following is a schedule of future payments, net of unamortized debt discounts, if Avenue does not convert up to $5.0 million of the loan into Common Stock between May 21, 2022 through May 21, 2024:

(in thousands)	June 30, 2021
2021 (remainder)	$	-
2022		3,000
2023		6,000
2024		6,000
2025		-
2026		-
Thereafter		-
Subtotal of future principal payments	$	15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs		(1,859	)
Total	$	13,141

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Preferred Stock Warrant Liability [Abstract]

Preferred Stock Warrant Liability

6 Months Ended

Jun. 30, 2021

Preferred Stock Warrant Liability

9. Preferred Stock Warrant Liability

Prior to the Reverse Recapitalization, we issued Series A Preferred Stock Warrants in 2013 pursuant to certain note purchase agreements. The warrants expire ten years from issuance. These warrants are exercisable at a fixed exercise price of $1.97, which is equal to the price per share of the Series A Preferred Stock. As of December 31, 2019, these warrants were exercisable into 1,608,670 shares of the Series A Preferred Stock.

Prior to the Reverse Recapitalization, on April 8, 2013, we issued ten-year warrants to purchase units of our most senior equity equal to 0.25% of our fully diluted equity at the time of exercise pursuant to certain note purchase agreements. As of December 31, 2019, these warrants were exercisable into 271,439 shares of our most senior equity, Series C Preferred Stock, at a fixed exercise price of $1.97 per share. On August 11, 2020, in connection with our issuance of Series D Preferred Stock, these warrants became exercisable into 320,441 shares of our most senior equity, Series D Preferred Stock, at a fixed exercise price of $1.97 per share.

Prior to the Reverse Recapitalization, we classified Preferred Stock warrants as a liability on the condensed consolidated balance sheets because the warrants are freestanding financial instruments that may have required us to transfer assets upon exercise. The liability associated with each of these warrants was initially recorded at fair value upon the issuance date of each warrant and is subsequently remeasured to fair value as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. Upon the closing of the Reverse Recapitalization (see Note 3), and pursuant to the Merger Agreement, all of the outstanding Clene Nanomedicine Preferred Stock was converted into Common Stock and the Clene Nanomedicine Preferred Stock warrants to purchase Clene Nanomedicine Preferred Stock were converted to warrants to purchase Common Stock (see Note 10). Upon conversion, we assessed the features of the warrants and determined that they qualify for classification as permanent equity upon the closing of the Reverse Recapitalization. Accordingly, we remeasured the warrants to fair value one final time upon the close of the Reverse Recapitalization, and recognized a loss of $14.6 million for the year ended December 31, 2020, within other income, (expense), net on the condensed consolidated statements of operations and comprehensive loss. Upon the closing of the Reverse Recapitalization, the warrant liability was reclassified to additional paid-in capital (see Note 17).

As of June 30, 2021 and December 31, 2020, we do not have any Preferred Stock warrants outstanding.

We recognized a change in fair value of the outstanding warrants of $2.4 million during the three months ended June 30, 2020 and $2.3 million during the six months ended June 30, 2020 in the condensed consolidated statements of operations and comprehensive loss.

Common Stock Warrants

6 Months Ended

Jun. 30, 2021

Common Stock Warrants Disclosure [Abstract]

Common Stock Warrants

10. Common Stock Warrants

As of June 30, 2021, outstanding warrants to purchase shares of Common Stock consisted of the following:

Date Exercisable

Number of
Shares Issuable

Exercise Price

Exercisable for

Classification

Expiration

June 2021

1,119,750

⁽¹⁾

0.01

Common Stock

Equity

December 2021

December 2020

2,407,500

⁽²⁾

11.50

Common Stock

Equity

December 2025

December 2020

110,000

⁽³⁾

11.50

Common Stock

Equity

December 2025

December 2020

1,929,111

⁽⁴⁾

1.97

Common Stock

Equity

April 2023

May 2021

115,851

⁽⁵⁾⁽⁶⁾

8.63

Common Stock

Liability

May 2026

Total

5,682,212

As of December 31, 2020, outstanding warrants to purchase shares of Common Stock consisted of the following:

Date Exercisable

Number of
Shares Issuable

Exercise Price

Exercisable for

Classification

Expiration

June 2021

1,119,750

⁽¹⁾

0.01

Common Stock

Equity

December 2021

December 2020

2,407,500

⁽²⁾

11.50

Common Stock

Equity

December 2025

December 2020

110,000

⁽³⁾

11.50

Common Stock

Equity

December 2025

December 2020

1,929,111

⁽⁴⁾

1.97

Common Stock

Equity

April 2023

Total

5,566,361

	(1)	Consists of 1,119,750 shares of Common Stock underlying 1,119,750 PIPE Warrants issued on December 30, 2020, in connection with a private placement (see Note 18). A holder of the PIPE Warrants may not exercise the PIPE Warrant if the holder, together with its affiliates, would beneficially own more than 9.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(2)	Consists of 2,407,500 shares of Common Stock underlying 4,815,000 warrants issued in connection with Tottenham’s initial public offering. The Company may redeem the outstanding warrants, in whole and not in part, at a price of $0.01 per warrant if, and only if, the last sales price of the Company’s Common Stock equals or exceeds $16.50 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(3)	Consists of 110,000 shares of Common Stock underlying 220,000 warrants issued as part of the Chardan Unit Purchase Option (see Note 3). As of June 30, 2021, and December 31, 2020, the Chardan Unit Purchase Option had not been exercised.
	(4)	Consists of 1,929,111 shares of Common Stock underlying 1,929,111 warrants originally issued by Clene Nanomedicine as Series A and Series D Preferred Stock Warrants (see Note 9). As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(5)	Consists of 115,851 shares of Common Stock underlying 115,851 warrants issued pursuant to Tranche 1 of the 2021 Avenue Loan at an exercise price equal to the lower of (i) $8.63 (which is equal to the five-day VWAP per share, determined as of the end of trading on the last trading day prior to execution of the loan agreement), or (ii) the Next Round Price. (see Note 8). As of June 30, 2021, the warrant had not been exercised.
	(6)	Pursuant to the 2021 Avenue Loan, an additional 72,226 shares of Common Stock underlying 72,226 warrants are issuable pursuant to our draw of Tranche 2 between January 1, 2022 and June 30, 2022 (see Note 8). In accordance with ASC 815, we recognized these warrants at the inception of the 2021 Avenue Loan and classified them as a warrant liability (see Note 16). As of June 30, 2021, the warrant is not issued or outstanding.

Convertible Notes

6 Months Ended

Jun. 30, 2021

Convertible Notes Disclosure [Abstract]

Convertible Notes

11. Convertible Notes

2020 Convertible Notes

In February through July 2020, we issued convertible promissory notes (the “2020 Convertible Notes”) in an aggregate principal amount of $6.1 million, bearing interest at an annual rate of 5%. The 2020 Convertible Notes were convertible at the earlier of (i) one year, at which point the notes would be convertible into Series C preferred shares at the Series C preferred share issuance price, and (ii) next equity financing of no less than $10.0 million, at which point the notes would be convertible into shares issued in the next equity financing at 90% of the per share issuance price of the next equity financing. The 2020 Convertible Notes contained embedded features that provide the lenders with multiple settlement alternatives. Certain of these settlement features provided the lenders with a right to a fixed number of our shares upon conversion of the notes. Other settlement features provided the lenders with the right or the obligation to receive cash or a variable number of shares upon the completion of a capital raising transaction, change of control, or default of the Company (the “Redemption Features”). The Redemption Features of the 2020 Convertible Notes met the requirements for separate accounting and were accounted for as a single derivative instrument (the “2020 Derivative Instrument”). Accordingly, the 2020 Derivative Instrument of $0.7 million was recorded at fair value at inception as redeemable convertible preferred stock derivative liability in the condensed consolidated balance sheets (see Note 12).

We recognized interest expense of $34 thousand, including amortization of debt discount of $0.1 million during the three months ended June 30, 2020, in connection with the 2020 Convertible Notes. We recognized interest expense of $42 thousand, including amortization of debt discount of $0.1 million during the six months ended June 30, 2020, in connection with the 2020 Convertible Notes.

On August 11, 2020, in connection with our issuance and sale of Series D Preferred Stock, all of the outstanding principal and accrued interest under the 2020 Convertible Notes, totaling $6.9 million, was automatically converted into 1,497,135 shares of Series D Preferred Stock at a price equal to 90% of $4.60 per share, the per share price paid in cash by investors in the Series D preferred stock financing. Upon the closing of the Reverse Recapitalization (see Note 3), and pursuant to the Merger Agreement, all outstanding Clene Nanomedicine Series D Preferred Stock was converted to Clene Inc. Common Stock.

We accounted for the conversion of the 2020 Convertible Notes as a debt extinguishment and recognized a loss on extinguishment of debt of $0.5 million within other income (expense), net in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2020. As of the date of conversion, the unamortized discount on the 2020 Convertible Notes was $0.5 million. The loss on extinguishment was calculated as the difference between (i) the fair value of the 1,497,135 shares of Series D Preferred Stock issued to settle the 2020 Convertible Notes of $6.9 million and (ii) the carrying value of the 2020 Convertible Notes of $5.7 million, which includes the principal balance of the 2020 Convertible Notes of $6.1 million and accrued but unpaid interest of $0.1 million, net of the unamortized debt discount of $0.5 million, plus the then-current fair value of derivative liability associated with the 2020 Convertible Notes at the time of the extinguishment of $0.7 million.

Convertible Notes Payable

In May 2021, we entered into the 2021 Avenue Loan from which we granted to Avenue the right, in its discretion, but not the obligation, at any time from time to time from May 21, 2022 through May 21, 2024, while the loan is outstanding, to convert an amount of up to $5.0 million of the principal amount of the outstanding loan into shares of Common Stock at a price per share equal to 120% of the stock purchase price set forth in the warrant (see Note 8). The Conversion Feature is subject to (i) the closing price of our Common Stock for each of the seven consecutive trading days immediately preceding the conversion being greater than or equal to the conversion price and (ii) the Common Stock issued in connection with any such conversion not exceeding 20% of the total trading volume of our Common Stock for the twenty-two consecutive trading days immediately prior to and including the effective date of such conversion. The Conversion Feature did not meet the requirements for separate accounting and is not accounted for as a derivative instrument. As of June 30, 2021, the number of shares of Common Stock potentially issuable upon conversion was 482,703.

We classified $5.0 million of the 2021 Avenue Loan as convertible notes payable in the condensed consolidated balance sheets as of June 30, 2021, with unamortized debt discount and issuance costs of $0.6 million.

During the three and six months ended June 30, 2021, we recognized (i) total interest expense of $0.1 million; (ii) coupon interest expense of $0.1 million; and (iii) amortization of debt discount and issuance costs of $23 thousand in connection with the convertible notes payable. During the three and six months ended June 30, 2020, we did not recognize any interest expense or amortization in connection with the convertible notes payable. The effective interest rate was 17.93% for the three and six months ended June 30, 2021.

Derivative Instruments

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

12. Derivative Instruments

Derivative instrument in connection with the 2020 Convertible Notes

One of the redemption features of the 2020 Convertible Notes met the requirements for separate accounting and was accounted for as a derivative instrument. The 2020 Derivative Instrument was recorded at fair value, which was $0.7 million at issuance. In August 2020, in connection with our issuance and sale of Series D Preferred Stock, all of the outstanding principal and accrued interest under the 2020 Convertible Notes was automatically converted into shares of Series D Preferred Stock and the derivative liability was extinguished. Prior to the extinguishment of derivative liability, the 2020 Derivative Instrument was marked to fair value and we recorded the change in the 2020 Derivative Instrument of ($29) thousand in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2020 (see Note 11). For the three and six months ended June 30, 2020, we recorded the change in the 2020 Derivative Instrument of $10 thousand and $14 thousand, respectively, in the condensed consolidated statements of operations and comprehensive loss. Upon the closing of the Reverse Recapitalization (see Note 3), and pursuant to the Merger Agreement, all outstanding Clene Nanomedicine Preferred Stock was converted to Clene Inc. Common Stock.

Derivative instruments in connection with the Contingent Earn-outs

The earn-out shares issued in connection with the Reverse Recapitalization met the requirements for separate accounting and are therefore accounted for as derivative instruments. Accordingly, upon the consummation of the Reverse Recapitalization, we recorded a liability in the condensed consolidated balance sheets and a debit to additional paid-in capital for the earn-out provision associated with the Initial Shareholders Contingent Earn-out and a debit to accumulated deficit for the earn-out provisions associated with the Clene Nanomedicine Contingent Earn-out. The contingent shares to be issued to the Clene Nanomedicine shareholders immediately prior to the Reverse Capitalization were treated as a deemed distribution. The Contingent Earn-outs were subsequently remeasured to fair value at each reporting date as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.

Upon the closing of the Reverse Recapitalization, we recognized the Clene Nanomedicine Contingent Earn-out and Initial Shareholders Contingent Earn-out liabilities at their fair value of $64.7 million and $7.4 million, respectively, in the condensed consolidated balance sheets. As of December 31, 2020, the carrying values of the Clene Nanomedicine Contingent Earn-out and Initial Shareholders Contingent Earn-out were $52.1 million and $5.9 million, respectively. As of June 30, 2021, the carrying values of the Clene Nanomedicine Contingent Earn-out and Initial Shareholders Contingent Earn-out were $69.0 million and $7.6 million, respectively. For the three months ended June 30, 2021, we recognized income of $8.6 million in change in fair value of the Clene Nanomedicine Contingent Earn-out and $1.2 million in change in fair value of the Initial Shareholders Contingent Earn-out as components of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. For the six months ended June 30, 2021, we recognized losses of $17.0 million in change in fair value of the Clene Nanomedicine Contingent Earn-out and $1.7 million in change in fair value of the Initial Shareholders Contingent Earn-out as components of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. To date, none of the milestones have been achieved.

Derivative instrument in connection with the 2021 Avenue Loan

The warrant issued pursuant to Tranche 1 of the 2021 Avenue Loan and the warrant issuable pursuant to the draw of Tranche 2 (see Note 8) met the requirements for separate accounting and is therefore accounted for as derivative instrument. The 2021 Avenue Loan has the following features: (i) prepayment provision, (ii) final payment provision, (iii) event of default redemption provision, and (iv) event of default interest provision. The provisions (i) to (iii) are related to the loan host and are not bifurcated pursuant to ASC 815. For the provision (iv), we have not experienced an event of default in the past and believe the probability of triggering one in the future is remote. Therefore, we determined the value of this feature to be de minimis on the remote probability of occurrence of a triggering event.

Upon the closing of the 2021 Avenue Loan, we recognized the warrant liability as a debt discount based on its fair value of $1.5 million. The debt discount is being amortized over the contractual term using the effective interest method. Our determination of the fair value of the warrant utilized the Black-Scholes option-pricing valuation model. Additionally, a Monte Carlo simulation was used to simulate the exercise price as an input in the Black-Scholes valuation model (see Note 10). For the three and six months ended June 30, 2021, we recognized income of $0.1 million in change in fair value of the warrant as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. To date, the warrant has not been exercised.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

Litigation

From time to time, we may have certain contingent liabilities that arise in the ordinary course of business activities. We accrue a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. We are not aware of any current pending legal matters or claims.

Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

We recorded income tax benefits of $0.1 million and $0.1 million for the net operating losses incurred for the three and six months ended June 30, 2021. We have not recorded income tax benefits for the net operating losses incurred during the three and six months ended June 30, 2020. We have not recorded income tax benefits for research and development tax credits and other deferred tax assets generated, due to its uncertainty of realizing a benefit from those items.

The components of income (loss) before income taxes for the three and six months ended June 30, 2021 and 2020 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2021			2020			2021			2020
United States	$	(2,574	)		(5,968	)		(41,295	)		(9,354	)
Foreign		(849	)		149			(1,956	)		(406	)
Total loss before income taxes	$	(3,423	)	$	(5,819	)	$	(43,251	)	$	(9,760	)

The Company is subject to taxation in the United States, Australia, and various state jurisdictions. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the full valuation allowance on the Company’s U.S. net operating losses and other deferred tax assets.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

6 Months Ended

Jun. 30, 2021

Stock-Based Compensation

15. Stock-Based Compensation

2020 Stock Plan

In December 2020, in connection with the Reverse Recapitalization, the Company’s Board of Directors approved the 2020 Stock Plan (the “2020 Stock Plan”) and reserved 12,000,000 shares of Common Stock for issuance thereunder, all of which may be issued pursuant to incentive stock options or any other type of award under the 2020 Stock Plan. The 2020 Stock Plan became effective immediately upon the closing of the Reverse Recapitalization. The maximum number of shares of Common Stock that may be issued pursuant to the exercise of incentive stock options under the 2020 Stock Plan is 12,000,000. Selected employees, officers, directors, and consultants are eligible to participate in the traditional stock option grants, stock appreciation rights, restricted stock awards, RSUs, other stock awards, and performance awards under the 2020 Stock Plan. The purpose of this 2020 Stock Plan is to enable us to offer competitive equity compensation packages in order to attract and retain the talent necessary for the combined company.

The 2020 Stock Plan is administered by the Company’s Board of Directors. The exercise prices, vesting periods, and other restrictions are determined at the discretion of the Company’s Board of Directors, except that the exercise price per share of options may not be less than 100% of the fair market value of the Common Stock on the date of grant. Stock options awarded under the 2020 Stock Plan expire ten years after the grant date, unless the Company’s Board of Directors sets a shorter term. Stock options and restricted stock granted to employees, officers, members of the Company’s Board of Directors, and consultants generally vest over a four-year period. If an option or other award granted under the 2020 Stock Plan expires, terminates, or is cancelled, the unissued shares subject to that option or award shall again be available under the 2020 Stock Plan. If shares awarded pursuant to the 2020 Stock Plan are forfeited to or repurchased at original cost by the Company, the number of shares forfeited or repurchased at original cost shall again be available under the 2020 Stock Plan.

As of June 30, 2021, the Company’s Board of Directors granted 3,806,257 RSUs and stock options under the 2020 Stock Plan. As of June 30, 2021, 8,193,743 shares remained available for future grant.

As of December 31, 2020, the Company’s Board of Directors granted 1,507,062 RSUs under the 2020 Stock Plan. As of December 31, 2020, 10,492,938 shares remained available for future grant.

2014 Stock Plan

Following the closing of the Reverse Recapitalization, the 2014 Stock Plan is administered by the Company’s Board of Directors. Stock options awarded under the 2014 Stock Plan expire ten years after the grant date. Stock options and restricted stock granted to employees, officers, members of the Company’s Board of Directors, and consultants typically vest over a four-year period.

As a result of the Reverse Recapitalization (see Note 3), stock options outstanding under the 2014 Stock Plan of 53,286,115 were converted into 7,032,591 of stock options of the Company based on the Exchange Ratio determined in accordance with the terms of the Merger Agreement. The exchange of Clene Nanomedicine’s stock options for Clene Inc. stock options was treated as a modification of the awards. The modification of the stock options did not result in a material incremental compensation expense to be recognized at the closing of the Reverse Recapitalization.

During the year ended December 31, 2020, the Company’s Board of Directors granted stock options for 270,555 shares under the 2014 Stock Plan. Effective as of the closing of the Reverse Recapitalization on December 30, 2020, no additional awards may be made under the 2014 Stock Plan and as a result, (i) any shares in respect of stock options that are expired or terminated under the 2014 Stock Plan without having been fully exercised will not be available for future awards; (ii) any shares in respect of restricted stock that are forfeited to, or otherwise repurchased by the Company, will not be available for future awards; and (iii) any shares of Common Stock that are tendered to the Company by a participant to exercise an award will not be available for future awards.

Stock-based compensation expense for the three months ended June 30, 2021 and 2020 was approximately $4.2 million and $0.2 million, respectively, and approximately $7.5 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively. Stock-based compensation is recorded in research and development and general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Research and development		1,608		130		3,003		230
General and administrative	$	2,647		44		4,517		115
Total stock-based compensation	$	4,255	$	174	$	7,520	$	345

Stock Options

The following sets forth the outstanding stock options and related activity for the six months ended June 30, 2021 (in thousands, except share and per share data):

Equity	Number of Options			Original Weighted Average Exercise Price Per Share		Weighted Average Exercise Price Per Share		Weighted Average Remaining Term (Years)		Intrinsic Value
Outstanding - December 31, 2020		7,032,591		$	0.13	$	0.97		5.34	$	62,462
Granted		2,323,442			8.887		8.87		9.83		-
Exercised		(172,891	)		0.62		0.62		-		1,836
Forfeited		(54,579	)		8.26		8.26		-		-
Outstanding - June 30, 2021		9,128,563		$	2.94	$	2.94		6.09	$	75,725
Options vested and exercisable - June 30, 2021		6,012,913		$	0.70	$	0.70		4.55	$	63,381
Stock options vested and expected to vest - June 30, 2021		9,128,563		$	2.94	$	2.94		6.09	$	75,725

As of June 30, 2021 and December 31, 2020, we had approximately $15.2 million and $2.4 million of unrecognized stock-based compensation costs related to non-vested stock options which is expected to be recognized over a weighted-average period of 2.14 and 2.04 years, respectively.

Prior to the consummation of the Reverse Recapitalization, the exercise price of the stock options granted was based on the fair market value of the common shares of the Company as of the grant date as determined by the Board of Directors, with input from management. The Board of Directors determined the fair value of the common stock at the time of grant of the options by considering a number of objective and subjective factors, including third-party valuation reports, valuations of comparable companies, sales of redeemable convertible Preferred Stock, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook.

Stock options are valued using the Black-Scholes valuation model. Since we have limited trading history of our Common Stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within our industry that we consider to be comparable to its own business over a period equivalent to the expected term of the stock option grants. The risk-free interest rate for periods within the contractual life of the stock options is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected dividend is assumed to be zero as we have never paid dividends and have no current plans to do so. The expected term represents the period that stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” we determine the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, we estimate the expected term using historical data on employee exercises and post-vesting employment termination behavior taking into account the contractual life of the award.

During the six months ended June 30, 2021, we granted stock options for 2,323,442 shares under the 2020 Stock Plan. The assumptions used to calculate the value of the stock option awards granted for the six months ended June 30, 2021 are presented as follows:

	Six months ended
	June 30, 2021
Expected stock price volatility		84.8% - 87.7	%
Risk-free interest rate		0.59% - 1.90	%
Expected dividend yield		0.00	%
Expected term		6.00 years

The weighted-average grant-date fair value of options granted during the six months ended June 30, 2021 was $6.44.

Restricted Stock Units

On December 30, 2020, we granted the following shares of restricted stock units under the 2020 Stock Plan:

●

370,101 shares to various employees and non-employee directors, which vest on various dates between June 30, 2021 and January 15, 2022, subject to the employee’s continuous employment through such vesting date. The RSUs convert to shares of Common Stock on a one-for-one basis upon vesting. The award represents 5% of the converted stock options under 2014 Stock Plan as a result of the Reverse Recapitalization and complements the 5% closing payment shares held in escrow for Clene Nanomedicine common shareholders (see Note 3). The grant-date fair value of these awards was $4.0 million based on the closing price of CLNN shares listed on Nasdaq of $10.82 per share on December 30, 2020, the date of the Reverse Recapitalization. As of June 30, 2021, there were 21,989 shares of Common Stock issued upon the vesting of RSUs. As of December 31, 2020 no shares were vested.

●

454,781 shares to various employees and non-employee directors, which were eligible to vest based on certain market conditions, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 1 earn-out share entitlement of Clene Nanomedicine shareholders and vests based on the same market condition (see Note 3). The grant-date fair value of these awards, using a Monte Carlo simulation, was $4.3 million. Based on the outcome of the market condition as of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested.

●

341,090 shares to various employees and non-employee directors, which were eligible to vest based on certain market conditions, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 2 earn-out share entitlement of Clene Nanomedicine. shareholders and vests based on the same market condition (see Note 3). The grant-date fair value of these awards, using a Monte Carlo simulation, was $3.5 million. Based on the outcome of the market condition as of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested.

●

341,090 shares to various employees and non-employee directors, which were eligible to vest based on certain performance conditions tied to the completion of the COVID-19 coronavirus treatment study, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 3 earn-out share entitlement of Clene Nanomedicine shareholders and vests based on the same performance condition (see Note 3). The grant-date fair value of these awards was $3.7 million, based on the closing price of CLNN shares listed on Nasdaq of $10.82 per shares on December 30, 2020, the date of the Reverse Recapitalization. We did not recognize compensation expense because the occurrence of achieving this milestone was not probable. As of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested.

The following table summarizes the RSU activity during the six months ended June 30, 2021:

	Number of RSUs			Weighted- Average Grant Date Fair Value
Outstanding and unvested balance as of December 31, 2020		1,507,062		$	10.30
Converted to shares of Common Stock upon vesting		(21,989	)		10.82
Forfeited		(2,258	)		10.82
Outstanding and unvested balance as of June 30, 2021		1,482,815		$	10.30

The assumptions used to calculate the value of the RSUs granted in 2020 in the Monte Carlo valuation model include projected stock price, volatility, and risk-free rate based on the achievement of certain stock price milestones. Our significant unobservable inputs as of December 31, 2020 were as follows: (i) 85% of expected stock price volatility, (ii) risk-free interest rate of 0.4%, and (iii) expected term of five years. The weighted average grant-date fair value of RSUs granted as of December 31, 2020 was $10.3034.

The stock-based compensation expense associated with the RSUs was $3.0 million and $6.0 million for the three and six months ended June 30, 2021. As of June 30, 2021 and December 31, 2020, total unrecognized compensation cost related to the unvested stock-based awards was $5.4 million and $15.5 million, which is expected to be recognized over a weighted average period of less than 1 month and 6 months, respectively. We did not issue any RSUs during the six months ended June 30, 2020.

Fair Value

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value

16. Fair Value

Cash is carried at fair value. Financial instruments, including accounts receivable, accounts payable, and accrued expenses are carried at cost, which approximates fair value given their short-term nature. The 2021 Avenue Loan is carried at amortized cost, which approximates fair value as its effective interest rate approximates current market rates.

Liabilities with Fair Value Measurements on a Recurring Basis

The following tables present our fair value hierarchy for liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	Fair Value Measurements on a Recurring Basis June 30, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Notes payable	$	1,617	$	-	$	-	$	1,617
Warrant liability		-		-		1,324		1,324
Clene Nanomedicine contingent earn-out		-		-		69,023		69,023
Initial Shareholders contingent earn-out		-		-		7,635		7,635

	Fair Value Measurements on a Recurring Basis December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Notes payable	$	1,296	$	-	$	-	$	1,296
Clene Nanomedicine contingent earn-out		-		-		52,053		52,053
Initial Shareholders contingent earn-out		-		-		5,906		5,906

There were no transfers between levels in the fair value hierarchy as of June 30, 2021 and December 30, 2020.

Valuation of Notes Payable

The carrying value of the notes payable includes certain notes remeasured at fair value on a recurring basis in the balance sheet as of June 30, 2021 and December 31, 2020. In order to value the note, we consider the amount of simple interest expense that would be due and the value of our Common Stock.

As of June 30, 2021, the fair value of our notes payable is determined based on the closing price of $11.24 per share as reported by Nasdaq.

As of December 31, 2020, the fair value of our notes payable is determined based on the closing price of $9.01 per share as reported by Nasdaq.

Valuation of Warrants to Purchase Preferred Stock

Our Preferred Stock warrant liabilities contain unobservable inputs that reflect our own assumptions. Accordingly, the Preferred Stock warrant liabilities were measured at fair value on a recurring basis using unobservable inputs. Prior to the extinguishment of the Preferred Stock warrant liabilities on December 30, 2020, the Preferred Stock warrant liability was valued using a Black-Scholes valuation model.

The Board of Directors determines the fair value of the Preferred Stock by considering a number of objective and subjective factors, including third-party valuations, valuations of comparable companies, sales of redeemable convertible Preferred Stock, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of our capital stock, and general and industry-specific economic outlook. We estimated the volatility of our Preferred Stock based on comparable peer companies’ historical volatility. The risk-free interest rate for periods within the contractual life of the warrants is based on the U.S. Treasury yield curve in effect at the valuation date. We have no plans to declare any future dividends. The determination of the fair value of the Preferred Stock warrant liability could change in future periods based upon changes in the value of our Preferred Stock and other assumptions as presented above. We record any such change in fair value to the change in fair value of Preferred Stock warrant liability expense line in the condensed consolidated statements of operations and comprehensive loss.

Upon the closing of the Reverse Recapitalization (see Note 3), all of the outstanding Clene Nanomedicine Preferred Stock was converted to Clene Inc. Common Stock and the Clene Nanomedicine Preferred Stock warrants were converted to warrants for the purchase of Clene Inc. Common Stock. Accordingly, the Preferred Stock warrant liabilities were extinguished in connection with the conversion of Clene Nanomedicine Preferred Stock on December 30, 2020 (see Note 9).

Valuation of the Warrant Liability

Pursuant to the 2021 Avenue Loan, we issued to Avenue a warrant to purchase 115,851 shares of Common Stock pursuant to Tranche 1 of the 2021 Avenue Loan. In accordance with ASC 815, we recognized an additional warrant to purchase 72,226 shares of Common Stock that will be issued pursuant to the draw of Tranche 2 of the 2021 Avenue Loan (see Note 10). The warrants were recorded at fair value at the closing of the 2021 Avenue Loan on May 21, 2021, and will be remeasured at each reporting period.

The estimated fair value of the warrant liability was determined using a Black-Scholes valuation model, with a Monte Carlo analysis performed in order to simulate the Next Round Price as an input in the Black-Scholes valuation model. The carrying amount of the liability may fluctuate significantly and actual amounts may be materially different from the liabilities’ estimated value. As of June 30, 2021, the warrant was revalued using a similar Black-Scholes valuation model. The unobservable inputs to the model were as follows:

Black-Scholes Valuation Model

	June 30, 2021			December 31, 2020
Expected stock price volatility		90.00	%		N/A
Risk-free interest rate		0.80	%		N/A
Expected dividend yield		0.00	%		N/A
Expected term		4.89 years			N/A

Monte Carlo Simulation

	June 30, 2021			December 31, 2020
Expected stock price volatility		60.00 – 75.00	%		N/A
Risk-free interest rate		0.05 – 0.07	%		N/A
Expected dividend yield		0.00	%		N/A
Expected term		0.25 years			N/A

Valuation of the Contingent Earn-outs

Pursuant to the Merger Agreement, Clene Nanomedicine’s common shareholders immediately prior to the Reverse Recapitalization and Initial Shareholders of Tottenham were entitled to receive additional shares of up to 8,333,333 shares and 750,000 shares of Common Stock, respectively, upon us achieving certain milestones (see Note 3). Upon the consummation of the Reverse Recapitalization, Clene Nanomedicine and the Initial Shareholders are entitled to receive up to 8,346,185 additional shares as a result of the exercise of the stock options in November 2020, and 750,000 shares of Common Stock. The Contingent Earn-outs were recorded at fair value on the closing of the Reverse Recapitalization on December 30, 2020 and will be remeasured at each reporting period. As of June 30, 2021 and December 31, 2020, no milestone has been achieved.

The estimated fair value of the initial Contingent Earn-outs was determined using a Monte Carlo analysis in order to simulate the future path of our stock price over the earn-out periods. The carrying amount of the liabilities may fluctuate significantly and actual amounts paid may be materially different from the liabilities’ estimated value. As of June 30, 2021 and December 31, 2020, the Contingent Earn-outs were revalued using a similar Monte Carlo analysis. The unobservable inputs to the models were as follows:

	June 30, 2021			December 31, 2020
Expected stock price volatility		90.00	%		85.00	%
Risk-free interest rate		0.80	%		0.40	%
Expected dividend yield		0.00	%		0.00	%
Expected term		4.50 years			5.00 years

The following is a summary of changes in the fair value of our financial liabilities related to the notes payable, the derivative instrument, the Preferred Stock warrants, the warrant liability, and the Contingent Earn-outs measured at fair value for the six months ended June 30, 2021 and 2020:

(in thousands)	Notes Payable		Clene Nanomedicine Contingent Earn-out		Initial Shareholders Contingent Earn-out		Warrant Liability
Balance - December 31, 2020	$	1,296	$	52,053	$	5,906	$	-
Initial fair value of instrument		-		-		-		1,457
Change in fair value		321		16,970		1,729		(133	)
Balance - June 30, 2021	$	1,617	$	69,023	$	7,635	$	1,324

(in thousands)	Notes Payable		Derivative Instrument			Preferred Stock Warrants
Balance - December 31, 2019	$	640	$	-		$	3,213
Issuance of convertible promissory notes		-		374			-
Change in fair value		24		(14	)		2,307
Balance - June 30, 2020	$	664	$	360		$	5,520

Redeemable Convertible Preferred Stock Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Redeemable Convertible Preferred Stock

6 Months Ended

Jun. 30, 2021

Redeemable Convertible Preferred Stock

17. Redeemable Convertible Preferred Stock

In connection with the closing of the Reverse Recapitalization, the Preferred Stock converted into 36,893,894 shares of Common Stock on a 1:0.1389 basis (see Note 3). As of June 30, 2021 and December 31, 2020, there were no Preferred Stock outstanding.

The redeemable convertible preferred stock is described in Note 17, Redeemable Convertible Preferred Stock in Part II, Item 8 of our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”) which was filed with the SEC on March 29, 2021. There have been no changes since our 2020 Annual Report.

Common Stock

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Common Stock

18. Common Stock

As of June 30, 2021 and December 31, 2020, our certificate of incorporation, as amended and restated, authorized us to issue 150,000,000 and 100,000,000 shares of Common Stock, respectively, par value $0.0001 per share and 1,000,000 shares of Preferred Stock, par value $0.0001 per share. At our 2021 Annual Meeting of Stockholders on May 18, 2021, our stockholders approved an amendment to the Amended and Restated Certificate of Incorporation to increase the number of authorized shares of Common Stock from 100,000,000 to 150,000,000.

Our common shareholders are entitled to one vote per share and to notice of any shareholders’ meeting. Voting, dividend, and liquidation rights of the holders of Common Stock are subject to the prior rights of holders of all classes of stock and are qualified by the rights, powers, preferences, and privileges of the holders of Preferred Stock. No distributions shall be made with respect to Common Stock until all declared dividends to Preferred Shares have been paid or set aside for payment to the holders of Preferred Stock. Common Stock is not redeemable at the option of the holder.

On the closing of the Reverse Recapitalization, the total outstanding 2,303,495 Tottenham ordinary shares held by the Initial Shareholders and public shareholders were converted into the same number of Common Stock (see Note 3).

On the closing of the Reverse Recapitalization, 644,164 shares of Common Stock were issued to LifeSci as financial advisor to the Reverse Recapitalization (see Note 3).

Prior to the completion of the Reverse Recapitalization on December 30, 2020, the Company entered into a subscription agreement on December 28, 2020, with various investors. Pursuant to the subscription agreements, the Company issued 2,239,500 shares of Common Stock (the “PIPE Shares”) at a price of $10.00 per share with net proceeds of $22.2 million. The purpose of the PIPE was to fund general corporate expenses. In addition, investors in the PIPE offering also received warrants to purchase a number of shares equal to one-half (1/2) of the number of PIPE Shares, totaling 1,119,750 shares of Common Stock, at an exercise price of $0.01 per share for each of the PIPE Shares (the “PIPE Warrants”), subject to a 180-day holding period (see Note 10).

On May 21, 2021, the Company entered into subscription agreements with various investors. Pursuant to the subscription agreements, the Company issued 960,540 shares of Common Stock at a price of $9.63 per share with net proceeds of $9.3 million. The closing of the private placement occurred substantially concurrently with, and was conditioned upon, the closing of a loan agreement with Avenue (see Note 8). The purpose of the private placement was to fund the expansion of manufacturing capabilities in the state of Maryland and to fund general corporate expenses.

As of June 30, 2021 and December 31, 2020, our common shares issued and outstanding were 60,681,591 and 59,526,171, respectively. As of June 30, 2021 and December 31, 2020, there were no preferred shares issued and outstanding (see Note 17).

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Net Loss Per Share Attributable to Common Shareholders

Net Loss Per Share Attributable to Common Shareholders

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

19. Net Loss Per Share Attributable to Common Shareholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common shareholders (in thousands, except share and per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator:
Net loss attributable to common shareholders	$	(3,351	)	$	(5,819	)	$	(43,107	)	$	(9,760	)

Denominator:
Weighted average shares outstanding		61,165,018			17,357,505			60,919,340			17,357,505

Net loss per share attributable to common shareholders, basic and diluted	$	(0.05	)	$	(0.34	)	$	(0.71	)	$	(0.56	)

Included within weighted average common shares outstanding are 1,119,750 common shares issuable upon the exercise of the PIPE Warrants as the warrants are exercisable at any time for nominal consideration, and as such, the shares are considered outstanding for the purpose of calculating basic and diluted net loss per share attributable to common shareholders.

We have not considered the effect of the Chardan Unit Purchase Option that would convert to 242,000 shares of Common Stock and warrants to purchase 110,000 shares of Common Stock, in the calculation of diluted loss per share, since the conversion of the Chardan Unit Purchase Option and the exercise of the Chardan Unit Purchase Option Warrants into Common Stock would be anti-dilutive (see Notes 3 and 10).

The following shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because including them would have been antidilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Series C redeemable convertible preferred stock		-		7,264,519				7,264,519
Series B redeemable convertible preferred stock		-		4,168,815				4,168,815
Series A redeemable convertible preferred stock		-		16,066,503				16,066,503
Series C redeemable convertible preferred stock warrants		-		271,439				271,439
Series A redeemable convertible preferred stock warrants		-		1,608,670				1,608,670
Convertible notes payable		482,703		-		482,703		-
Common stock warrants (see Note 10)		4,452,462		-		4,452,462		-
Options to purchase common stock		9,128,563		7,249,906		9,128,563		7,249,906
Unvested restricted stock units		1,482,815		-		1,482,815		-
Chardan Unit Purchase Option to purchase common stock (see Note 3)		242,000		-		242,000		-
Chardan Unit Purchase Option Warrants (see Notes 3 and 10)		110,000		-		110,000		-
Clene Nanomedicine contingent earn-out shares (see Note 3 and 12)		8,346,185		-		8,346,185		-
Initial Shareholders contingent earn-out shares (see Note 3 and 12)		750,000		-		750,000		-
Total		24,994,728		36,629,852		24,994,728		36,629,852

Related Party Transactions

6 Months Ended

Jun. 30, 2021

Related Party Transactions

20. Related Party Transactions

For the three and six months ended June 30, 2020, we incurred $0.1 million of expenses for compensation for consulting services provided by a member of the Board of Directors. These expenses were not paid in their entirety and as of June 30, 2020, the outstanding balance of $0.1 million was recorded in accounts payable. As of June 30, 2021 and December 30, 2020, there was no outstanding balance due to this related party.

License and Supply Agreements

In August 2018, in conjunction with an investment made in our Series C Preferred Stock and Series C Preferred Stock Warrants by 4Life Research, LLC, an investor, we entered into a supply agreement with the investor. Under the terms of this agreement, we granted the investor an exclusive license to pursue development of dietary supplements using certain of our intellectual property (“IP”). The exclusive rights to the IP is for a term of five years from the commencement of sales of licensed product by the investor, with a deemed commencement date of January 1, 2023 if sales have not yet commenced, and is subject to annual minimum sales. The agreement may be renewed for additional five-year terms. If the investor fails to meet the annual minimum sales requirements, the investor may pay an additional fee to maintain exclusivity or have the investor’s license converted to non-exclusive rights. As part of this agreement, we will provide non-pharmaceutical product to the investor for development efforts and potential future production, and the investor is to pay royalties of 3% of incremental sales, as defined in the agreement.

For the three and six months ended June 30, 2021, we sold $0.1 million and $0.3 million of product, respectively under this agreement. We did not sell any products outside of this agreement. For the three and six months ended June 30, 2021, the investor has made commercial sales of their products under the agreement which we recognized as royalty revenues of $0.1 million and $0.1 million, respectively.

For the six months ended June 30, 2020, we sold $0.1 million of product under this agreement, as well as $2 thousand of product not under this agreement, and received $0.1 million in advance to be applied against future sales of product under this agreement. We recorded this advanced amount as deferred revenue as of June 30, 2020, and we fulfilled the performance obligations to release the deferred revenue in the second half of 2021 as the investor purchased product. The investor did not make sales of their products under the agreement, and as such we did not recognize any royalty revenues for the six months ended June 30, 2020. For the three months ended June 30, 2020, we did not sell any product under this agreement, and there were no balances outstanding due to or from the investor.

Geographic and Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Geographic and Segment Information

21. Geographic and Segment Information

Geographic Information

Our long-lived assets, which were composed of property and equipment, net by location was as follows:

	As of June 30,		As of December 31,
(in thousands)	2021		2020
United States	$	4,041	$	3,997
Australia		102		228
Total property and equipment, net	$	4,143	$	4,225

Segment Information

The operating results of the Drugs and Supplements segments for the three and six months ended June 30, 2021 and 2020 were as follows:

	For the Three Months ended June 30, 2021									For the Six Months ended June 30, 2021
(in thousands)	Drugs			Supplements			Total			Drugs			Supplements			Total
Revenue from external customers	$	-		$	201		$	201		$	-		$	414		$	414
Loss from operations	$	(13,421	)	$	(354	)	$	(13,775	)	$	(25,086	)	$	(384	)	$	(25,470	)

	For the Three Months ended June 30, 2020								For the Six Months ended June 30, 2020
(in thousands)	Drugs			Supplements		Total			Drugs			Supplements		Total
Revenue from external customers	$	-		$	9	$	9		$	-		$	79	$	79
Loss from operations	$	(4,570	)	$	9	$	(4,561	)	$	(8,584	)	$	21	$	(8,563	)

Our long-lived assets, which were composed of property and equipment, net by segment were as follows:

	As of June 30,		As of December 31,
(in thousands)	2021		2020
Drugs	$	3,923	$	3,990
Supplements		220		235
Total property and equipment, net	$	4,143	$	4,225

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Prepaid Expenses And Other Current Assets [Abstract]

Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

22. Subsequent Events

On July 22, 2021, we filed a registration statement on Form S-1 (file number 333-258098) which was declared effective by the SEC on August 2, 2021 (see Note 1). In connection with the registration statement on Form S-1, we incurred an immaterial amount of certain offering costs which will be recognized as an expense within general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss during the three and nine months ended September 30, 2021.

Between July 1, 2021, and July 26, 2021, various investors exercised PIPE Warrants for 752,250 shares of Common Stock at an exercise price of $0.01 per share. The PIPE Warrants were issued prior to the completion of the Reverse Recapitalization on December 30, 2020, and were subject to a 180-day holding period which expired on June 28, 2021. We received cash proceeds of $8.0 thousand.

On July 15, 2021, Chardan exercised the Chardan Unit Purchase Option for 220,000 units, each unit consisting of one and one-tenth shares of Common Stock and one warrant to purchase one-half of one share of Common Stock at an exercise price of $11.50 per share. Chardan elected to perform a cashless or net exercise, which resulted in a net issuance of 54,083 shares of Common Stock and 49,166 warrants to purchase one-half of one share of Common Stock. The Chardan Unit Purchase Option was originally issued in connection with Tottenham’s initial public offering in August 2018. We received no cash proceeds.

Accounting Policies, by Policy (Policies)	6 Months Ended
Accounting Policies, by Policy (Policies)	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	*Basis of Presentation* We have prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. The condensed consolidated financial statements have been prepared on the same basis as our audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our financial position as of June 30, 2021, the results of our operations for the three and six months ended June 30, 2021, our cash flows for the six months ended June 30, 2021 and 2020, and the condensed consolidated statement of stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are unaudited. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. Prior period balances for accounts receivable have been reclassified to conform to the current year presentation.
Use of Estimates	*Use of Estimates* The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited, to the valuation of common stock, stock options, contingent earn-out liabilities, Preferred Stock warrants, and Common Stock warrants. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results may differ from those estimates or assumptions. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. Changes in estimates will be recorded in future periods as they develop.
Risks and Uncertainties	*Risks and Uncertainties* The product candidates we develop require approvals from the U.S. Food and Drug Administration or foreign regulatory agencies prior to commercial sales. There can be no assurance that our current and future product candidates will receive the necessary approvals or be commercially successful. If we are denied approval or approval is delayed, it will have a material adverse impact on our business and our condensed consolidated financial statements. We are subject to risks common to companies in the development stage including, but not limited to, dependency on the need for substantial additional financing to achieve our goals, uncertainty of broad adoption of our approved products, if any, by physicians and patients, significant competition, and untested manufacturing capabilities. We are subject to certain risks and uncertainties and believe that changes in any of the following areas could have a material adverse effect on future financial position or results of operations: ability to obtain additional financing; regulatory approval and market acceptance of, and reimbursement for, product candidates; performance of third-party CROs and manufacturers upon which we rely; protection of our intellectual property; litigation or claims against us based on intellectual property, patent, product, regulatory, or other factors; and our ability to attract and retain employees necessary to support our growth.
Concentrations of Credit Risk	*Concentrations of Credit Risk* Financial instruments which potentially subject us to significant concentrations of credit risk consist primarily of cash. Our cash is mainly held in financial institutions. Amounts on deposit may at times exceed federally insured limits. We have not experienced any losses on our deposits of cash and do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
Cash and Cash Equivalents	*Cash and Cash Equivalents* We consider all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2021 and December 31, 2020, we had no cash equivalents and no restricted cash balances.
Accounts Receivable	*Accounts Receivable* Accounts receivable are stated at invoice value less estimated allowances for sales returns and doubtful accounts. We estimate the allowance for sales returns based on historical percentage of returns over a 12-month trailing average of sales. We continually monitor customer payments and maintain a reserve for estimated losses resulting from our customers’ inability to make required payments. We consider factors when estimating the allowance for doubtful accounts such as historical experience, age of the accounts receivable balances, geographic related risks, and economic conditions that may affect a customer’s ability to pay. In cases where there are circumstances that may impair a specific customer’s ability to meet its financial obligations, a specific allowance is recorded against amounts due, thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Historically, there have been no sales returns, no written-off accounts receivable, and no allowance for doubtful accounts reducing the balance of the accounts receivable.
Inventory	*Inventory* Inventory is stated at historic cost on a first-in first-out basis. Our inventory consisted of $27 thousand in raw materials and $27 thousand in finished goods as of June 30, 2021. Our inventory consisted of $0.1 million in raw material and $0.1 million in finished goods as of December 31, 2020.
Debt Discounts, Debt Premiums, and Debt Issuance Costs	*Debt Discounts, Debt Premiums, and Debt Issuance Costs* When debt is issued and a derivative is required to be bifurcated (e.g., bifurcated conversion option) or another separate freestanding financial instrument (e.g., warrant) is issued, costs and fees incurred are allocated to the instruments issued (or bifurcated) in proportion to the allocation of proceeds. When some portions of the costs and fees relate to a bifurcated derivative or freestanding financial instrument that is being subsequently measured at fair value, those allocated costs are expensed immediately. Debt discounts, debt premiums, and debt issuance costs related to convertible loans are recorded as deductions that net against the principal value of the debt and are amortized to interest expense over the contractual term of the debt using the effective interest method.
Leases	*Leases* At inception of a contract, we determine if a contract meets the definition of a lease. A lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. We determine if the contract conveys the right to control the use of an identified asset for a period of time. We assess throughout the period of use whether we have both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset, and (2) the right to direct the use of the identified asset. This determination is reassessed if the terms of the contract are changed. Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified asset. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments. We lease laboratory and office space and certain equipment under non-cancellable operating and finance leases. The carrying value of our right-of-use lease assets is substantially concentrated in our real estate leases, while the volume of lease agreements is primarily concentrated in equipment leases. Our policy is to not record leases with an original term of twelve months or less on the condensed consolidated balance sheets. We recognize lease expense for these short-term leases on a straight-line basis over the lease term. Certain lease agreements may require us to pay additional amounts for taxes, insurance, maintenance, and other expenses, which are generally referred to as non-lease components. Such variable non-lease components are treated as variable lease payments and recognized in the period in which the obligation for these payments is incurred. Variable lease components and variable non-lease components are not measured as part of the right-of-use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right-of-use asset and liability. Total contract consideration is allocated to the combined fixed lease and non-lease component. This policy election applies consistently to all asset classes under lease agreements. Leases may contain clauses for renewal at our option. Payments to be made in option periods are recognized as part of the right-of-use lease assets and lease liabilities when it is reasonably certain that the option to extend the lease will be exercised, or is not at our option. We determine whether the reasonably certain threshold is met by considering contract-, asset-, market-, and entity-based factors. In the condensed consolidated statements of operations and comprehensive loss, operating lease expense, which is recognized on a straight-line basis over the lease term, and the amortization of finance lease ROU assets, which are included in property and equipment and depreciated, are included in research and development or general and administrative expenses consistent with the leased assets’ primary use. Accretion on the liabilities for finance leases is included in interest expense.
Property and Equipment	*Property and Equipment* Property and equipment are stated at cost less accumulated depreciation. Property and equipment consist of lab and office equipment and leasehold improvements. Depreciation is calculated using the straight-line method over the estimated economic useful lives of the assets, which are 3-5 years for lab equipment and 3-7 years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the estimated lease term or the estimated useful life of the assets. Costs for capital assets not yet placed into service are capitalized as construction in progress and depreciated or amortized in accordance with the above useful lives once placed into service. Upon retirement or sale, the related cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in the condensed consolidated statements of operations and comprehensive loss. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred.
Convertible Notes	*Convertible Notes* In accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, when we issue notes with conversion features, we evaluate if the conversion features are freestanding or embedded. If the conversion feature is embedded, we do not separate the conversion feature from the host contract for convertible notes that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in-capital. Consequently, we account for a convertible note as a single liability measured at its amortized cost, and we account for a convertible preferred stock as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. If the conversion feature is freestanding, or is embedded and meets the requirements to be bifurcated, we account for the conversion feature as a derivative under ASC 815, Derivatives and Hedging (“ASC 815”). We record the derivative instrument at fair value at inception, and subsequently re-measure to fair value at each reporting period and immediately prior to the extinguishment of the derivative instrument, with any changes recorded in the condensed consolidated statements of operations and comprehensive loss.
Debt With Warrants	*Debt With Warrants* In accordance with ASC 470-20, Debt with Conversion and Other Options, when we issue debt with warrants, we treat the warrants as a debt discount, recorded as a contra-liability against the debt, and amortize the balance over the life of the underlying debt as amortization of debt discount expense in the condensed consolidated statements of operations and comprehensive loss. The offset to the contra-liability is recorded as additional paid-in capital in the condensed consolidated balance sheets if the warrants are not treated as a derivative or liability under ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). Otherwise, the offset to the contra-liability is recorded as a warrant liability in the condensed consolidated balance sheets and is subject to re-measurement to fair value at each balance sheet date, with any changes in fair value recognized in the condensed consolidated statements of operations and comprehensive loss. We determine the value of the warrants using the Black-Scholes Option Pricing Model (“Black-Scholes”) or the Monte Carlo Method based upon the underlying conversion features of the debt. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the condensed consolidated statements of operations and comprehensive loss.
Contingent Earn-out	*Contingent Earn-out Liabilities* In connection with the Reverse Recapitalization, certain shareholders are entitled to receive additional shares of Common Stock (the “Contingent Earn-outs”) upon us achieving certain milestones (see Notes 3 and 12). In accordance with ASC 815, the Contingent Earn-outs are not indexed to our own stock and therefore are accounted for as a liability at the Reverse Recapitalization date and subsequently remeasured at each reporting date with changes in fair value recorded as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. The estimated fair value of the Contingent Earn-outs is determined using a Monte Carlo simulation that simulates the future path of our Common Stock price over the earn-out periods. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones including projected stock price, volatility, and risk-free rate. For potential payments related to a product development milestone, the fair value is determined based on our expectations of achieving such a milestone and the simulated estimated stock price on the expected date of achievement. The Contingent Earn-outs are categorized as Level 3 fair value measurements (see Fair Value of Financial Instruments accounting policy) because we estimate projections during the earn-out period utilizing unobservable inputs, including various potential pay-out scenarios. Contingent earn-out payments involve certain assumptions requiring significant judgment and actual results may differ from assumed and estimated amounts.
Common Stock Warrants	*Common Stock Warrants* We account for common stock warrants as either equity-classified instruments or liability-classified instruments based on an assessment of the warrant terms and applicable authoritative guidance in accordance with ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to our Common Stock, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and, for liability-classified warrants, as of each subsequent quarterly period end date while the warrants are outstanding.
Revenue Recognition	*Revenue Recognition* Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration to which we are entitled in exchange for the goods or services we transfer to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, we review the contract to determine which performance obligations we must deliver, and which performance obligations are distinct. We recognize as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. We typically satisfy our performance obligations via delivery of dietary supplements to the customer. Payments are due upon receipt for commercial transactions, or a prepayment is collected for online retail sales. Our revenue for the three and six months ended June 30, 2021 and 2020 was comprised of sales of dietary supplements. We recorded deferred revenue of $0.1 million and $0.1 million as of June 30, 2021 and December 31, 2020 from the dietary supply agreement with the related party (see Note 20). The deferred revenue at December 31, 2020 is expected to be recognized in the third quarter of 2021.
Grant Funding	*Grant Funding* We may submit applications to receive grant funding from governmental and non-governmental entities. Grant funding received that involves no conditions or continuing performance obligations of the Company is recognized upon receipt. Grant funding with conditions or obligations of the Company is recognized as the conditions or obligations are fulfilled. We have made an accounting policy election to record such unconditional grants, such as the Australian Research and Development Credit, as other income in the condensed consolidated statements of operations and comprehensive loss. Income from grants is recognized in the period during which the related qualifying expenses are incurred, provided that the conditions under which the grants were provided have been met. We recognize the Australian Research and Development Credit in an amount equal to the qualifying expenses incurred in each period multiplied by the applicable reimbursement percentage. During the three and six months ended June 30, 2021, we recognized $0.4 million and $0.7 million, respectively, of Australian Research and Development Credit within other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2020, we recognized $1.3 million and $1.3 million, respectively, of Australian Research and Development Credit within other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2021, and December 31, 2020, we recorded $2.7 million and $2.1 million, respectively, of Australian Research and Development Credit receivable in prepaid expenses and other current assets on the condensed consolidated balance sheets. Any amount received in advance of fulfilling such conditions or obligations is recorded in accrued liabilities on the condensed consolidated balance sheets if the conditions or obligations are expected to be met within the next twelve months. As of June 30, 2021 and December 31, 2020, we recorded $0.4 million and $0.3 million, respectively, of deferred grant funds received in advance in accrued liabilities. Grant funding recognized on conditional grants is included as a reduction in research and development expenses in the condensed consolidated statements of operations and comprehensive loss as the conditions are tied to our research and development efforts, and as the arrangement between us and the organizations are not part of our ongoing, major, or central operations. During the three and six months ended June 30, 2021, we recorded a grant of $0.2 million and $0.2 million, respectively, as a reduction of research and development expenses in the condensed consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2020, we recorded a grant of $0.2 million and $0.4 million, respectively, as a reduction of research and development expenses in the condensed consolidated statements of operations and comprehensive loss.
Fair Value of Financial Instruments	*Fair Value of Financial Instruments* Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy: Level 1 — Inputs based upon quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2 — Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Inputs that are management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. We review the fair value hierarchy classification of our applicable assets and liabilities on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting all levels of the fair value hierarchy are reported as transfers in or out of the Level 1, 2, or 3 categories as of the beginning of the quarter during which the reclassifications occur.
Foreign Currency Translation and Transactions	*Foreign Currency Translation and Transactions* Our functional currency is the United States (“U.S.”) dollar. Our Australian subsidiary determined its functional currency to be the Australian dollar and our Netherlands subsidiary determined its functional currency to be the Euro. We use the U.S. dollar as our reporting currency for the condensed consolidated financial statements. The results of our non-U.S. dollar based functional currency operations are translated to U.S. dollars at the average exchange rates during the period. Our assets and liabilities are translated using the current exchange rate as of the balance sheet date and shareholders’ equity is translated using historical rates. Adjustments resulting from the translation of the condensed consolidated financial statements of our foreign functional currency subsidiaries into U.S. dollars are excluded from the determination of net loss and are accumulated in a separate component of shareholders’ equity. These foreign currency translation gains and losses are currently the only component of other comprehensive income (loss). We also incur foreign exchange transaction gains and losses for purchases denominated in foreign currencies. Foreign exchange transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss as incurred.
Comprehensive Loss	*Comprehensive Loss* Comprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. The only element of other comprehensive income (loss) in any period presented was translation of Australian dollar denominated balances of our Australian subsidiary to U.S. dollars for consolidation.
Net Loss Per Share Attributable to Common Shareholders	*Net Loss Per Share Attributable to Common Shareholders* We calculated basic and diluted net loss per share attributable to common shareholders in conformity with the two-class method required for companies with participating securities. We considered all series of redeemable convertible Preferred Stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend had been paid on Common Stock. See Note 19, Net Loss Per Share Attributable to Common Shareholders, for further details on our historical participating securities, including warrants to purchase redeemable convertible Preferred Stock and Common Stock. Under the two-class method, basic net loss per share attributable to common shareholders was calculated by dividing the net loss by the weighted-average number of shares of Common Stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common shareholders was computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible Preferred Stock, stock options to purchase Common Stock, early exercised stock options, and warrants to purchase redeemable convertible Preferred Stock and Common Stock were considered common shares equivalents but had been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect was anti-dilutive. In periods in which we report a net loss attributable to common shareholders, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. We reported a net loss attributable to common shareholders during the three and six months ended June 30, 2021 and 2020.
Segment Information	*Segment Information* We have determined that our chief executive officer is the chief operating decision maker (“CODM”). Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the CODM in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business in two operating segments: (1) the development and commercialization of proprietary nanotechnology drug suspensions (“Drugs”), and (2) the development and commercialization of dietary supplements (“Supplements”). Our operating segment profit measure is segment loss from operations, which is calculated as revenue less cost of revenue, research and development, and general and administrative expenses (see Note 21).
Income Taxes	*Income Taxes* We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the condensed consolidated financial statements or in our tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. We account for uncertainty in income taxes recognized in the condensed consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the condensed consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties.
Stock-Based Compensation	*Stock-Based Compensation* We account for stock-based compensation arrangements with employees using a fair value-based method for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). Stock-based compensation expense is recorded in research and development and general and administrative expenses based on the classification of the work performed by the grantees. Prior to the Reverse Recapitalization, there was not a public market for the shares of Clene Nanomedicine common stock. Our determination of the fair value of stock options on the date of grant utilized the Black-Scholes valuation model and was impacted by its common stock price, as determined by the Board of Directors with input from management, as well as changes in assumptions regarding a number of subjective variables. These variables included, but were not limited to, the expected term that options remained outstanding, the expected common stock price volatility over the term of the option awards, risk-free interest rates, and expected dividends. The fair value was recognized over the period during which a grantee was required to provide services in exchange for the option award and service-based RSUs, known as the requisite service period (usually the vesting period), on a straight-line basis. For RSUs with market conditions, the fair value is recognized over the period based on the expected milestone achievement dates as the derived service period (usually the vesting period), on a straight-line basis. For RSUs with performance conditions, the grant-date fair value of these awards is the market price on the applicable grant date, and compensation expense will be recognized when the conditions become probable of being satisfied. We will recognize a cumulative true-up adjustment once the conditions become probable of being satisfied as the related service period had been completed in a prior period. Stock-based compensation expense is recognized at fair value. We elect to account for forfeitures as they occur, rather than estimating expected forfeitures. After the closing of the Reverse Recapitalization, we determine the fair value of each share of Common Stock underlying stock-based awards based on the closing price of our Common Stock as reported by the Nasdaq Stock Exchange (“Nasdaq”) on the date of grant. The fair value of RSUs with market conditions are determined using a Monte Carlo valuation model.
Research and Development	*Research and Development* Research and development costs are charged to expense as incurred. We account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed. Research and development expenses consist of costs incurred for the discovery and development of our product candidates. Research and development costs include, but are not limited to, payroll and personnel expenses including stock-based compensation, clinical trial supplies, fees for clinical trial services, consulting costs, and allocated overhead, including rent, equipment, and utilities.
Clinical Trial Accrual Policy.	*Clinical Trial Accrual* Our clinical trial accrual process accounts for expenses resulting from obligations under contracts with CROs, consultants, and under clinical site agreements in connection with conducting clinical trials. Clinical trial costs are charged to research and development expense as incurred. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. We reflect the appropriate clinical trial expense in the condensed consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended. In the event advance payments are made to a CRO, the payments will be recorded as a prepaid asset which will be amortized to research and development expense over the period the contracted services are performed. In addition to pass-through costs, we generally incur costs in clinical trials in four distinct groups as follows: CRO Start-up — These costs include the initial set-up of the clinical trial and usually occur within a few months after the contract has been executed and includes costs which are expensed ratably over the start-up period when such period is identifiable and expensed as incurred when no such period exists. Start-up phase activities include study initiation, site recruitment, regulatory applications, investigator meetings, screening, preparation, pre-study visits, and training. CRO Site and Study Management — These costs include medical and safety monitoring, patient administration and data management. These costs are usually calculated on a per-patient basis and expensed ratably over the treatment period beginning on the date that the patient enrolls. CRO Close-Down and Reporting — These costs include analyzing the data obtained and reporting results, which occurs after patients have ceased treatment and the database of information collected is locked. These costs are expensed as incurred over the course of any close-down and reporting period. Third-Party Contracts — These costs include fees charged by third parties for various support services which are not provided by CROs and include such items as lab fees, data quality review costs, and fees incurred for investigational product monitoring and inventory control. These items are expensed ratably over any identifiable service period with the engaged third-party vendors. The CRO contracts generally include pass-through fees including, but not limited to, regulatory expenses, investigator fees, travel costs, and other miscellaneous costs, including shipping and printing fees. We determine accrual estimates through reports from and discussion with applicable personnel and outside service providers as to the progress or state of completion of trials or the services completed. We estimate accrued expenses as of each balance sheet date in the condensed consolidated financial statements based on the facts and circumstances known to us at that time.
Recently Adopted Accounting Pronouncements	*Recently Adopted Accounting Pronouncements* In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity to simplify accounting for certain financial instruments by removing certain separation models for convertible instruments. Under the amendments in ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in-capital. Consequently, a convertible debt instrument will be accounted as a single liability measured at its amortized cost, and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirements to use the if-converted method for all convertible instruments. The new guidance is effective for fiscal years beginning after December 15, 2023, and should be applied on a full or modified retrospective basis, with early adoption permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods with those fiscal years. We early adopted ASU 2020-06 on January 1, 2021. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate is expected to be discontinued as a result of the Reference Rate Reform. This ASU is intended to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new guidance was effective immediately, and through December 31, 2022. As a result of our election to utilize the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2016-02 is effective for our fiscal years beginning after December 15, 2020, and all interim periods thereafter. Early adoption is permitted. We early adopted this guidance on March 1, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The new guidance provides for the deferral of implementation costs for cloud computing arrangements and expensing those costs over the term of the cloud services arrangement. The new guidance was effective for fiscal years beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted	*Recent Accounting Pronouncements Not Yet Adopted* In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. As a smaller reporting company, the guidance is effective for our fiscal years beginning after December 15, 2022. We are currently evaluating the expected impact of the new guidance as a result of this extended deadline of implementation for smaller reporting companies. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. As a smaller reporting company, the guidance is effective for our fiscal years beginning after December 15, 2021. We do not expect that the adoption of this new guidance will have a material impact on our condensed consolidated financial statements.

Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of prepaid expenses and other current assets

	June 30,		December 31,
(in thousands)	2021		2020
Australia research and development credit receivable	$	2,734	$	2,148
CRO prepayments		579		1,211
Metals to be used in research and development		614		31
Directors & Officers Insurance		936		-
Other		167		112
	$	5,030	$	3,502

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

	June 30,			December 31,
(in thousands)	2021			2020
Lab equipment	$	3,107		$	3,077
Furniture and fixtures		147			147
Leasehold improvements		3,927			3,889
Construction in progress		821			490
		8,002			7,603
Less accumulated depreciation		(3,859	)		(3,378	)
Total property and equipment, net	$	4,143		$	4,225

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Accrued Liabilities [Abstract]

Schedule of accrued liabilities

	June 30,		December 31,
(in thousands)	2021		2020
Accrued professional fees	$	-	$	189
Accrued compensation and benefits		1,533		1,225
Accrued CRO fees		691		788
Deferred grant funds		351		301
Accrued expense reimbursements		33		33
Accrued transaction costs		-		1,354
Other		123		70
	$	2,731	$	3,960

Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Schedule of noncancelable operating lease arrangements

(in thousands)	Finance Leases			Operating Leases
2021 (remainder)	$	76			172
2022		135			421
2023		82			433
2024		21			442
2025		-			454
2026		-			466
Thereafter		-			63
Total undiscounted cash flows		314			2,451
Less amount representing interest/discounting		(3	)		(583	)
Present value of future lease payments		311			1,868
Less lease obligations, current portion		(159	)		(210	)
Lease obligations – long term portion	$	152		$	1,658

Schedule of finance lease obligations included in property and equipment

	June 30,			December 31,
(in thousands)	2021			2020
Lab equipment	$	920		$	920
Furniture and fixtures		46			46
Work in process		228			228
Total		1,194			1,194
Less accumulated depreciation		(666	)		(593	)
Net	$	528		$	601

Schedule of finance and operating lease costs

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Finance lease costs:
Amortization	$	36	$	48	$	73	$	96
Interest on lease liabilities		7		10		15		21
Operating lease costs		70		132		140		213
Short-term lease costs		54		49		116		137
Variable lease costs		20		14		39		48
Total lease costs	$	187	$	253	$	383	$	515

Schedule of supplemental cash flow information

(in thousands)	2021			2020
Operating cash flows from operating leases	$	(295	)	$	(338	)
Operating cash flows from finance leases	$	(15	)	$	(21	)
Financing cash flows from finance leases	$	(83	)	$	(109	)

Notes Payable (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Avenue Loan

(in thousands)	June 30, 2021
Face value of the loan	$	15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs		(1,859	)
Total debt, net	$	13,141

Schedule of future payments, net of unamortized debt discounts

(in thousands)	June 30, 2021
2021 (remainder)	$	-
2022		3,000
2023		6,000
2024		6,000
2025		-
2026		-
Thereafter		-
Subtotal of future principal payments	$	15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs		(1,859	)
Total	$	13,141

Common Stock Warrants (Tables)

6 Months Ended

Jun. 30, 2021

Common Stock Warrants Disclosure [Abstract]

Schedule of outstanding warrants to purchase shares of common stock

Date Exercisable

Number of
Shares Issuable

Exercise Price

Exercisable for

Classification

Expiration

June 2021

1,119,750

⁽¹⁾

0.01

Common Stock

Equity

December 2021

December 2020

2,407,500

⁽²⁾

11.50

Common Stock

Equity

December 2025

December 2020

110,000

⁽³⁾

11.50

Common Stock

Equity

December 2025

December 2020

1,929,111

⁽⁴⁾

1.97

Common Stock

Equity

April 2023

May 2021

115,851

⁽⁵⁾⁽⁶⁾

8.63

Common Stock

Liability

May 2026

Total

5,682,212

Date Exercisable

Number of
Shares Issuable

Exercise Price

Exercisable for

Classification

Expiration

June 2021

1,119,750

⁽¹⁾

0.01

Common Stock

Equity

December 2021

December 2020

2,407,500

⁽²⁾

11.50

Common Stock

Equity

December 2025

December 2020

110,000

⁽³⁾

11.50

Common Stock

Equity

December 2025

December 2020

1,929,111

⁽⁴⁾

1.97

Common Stock

Equity

April 2023

Total

5,566,361

	(1)	Consists of 1,119,750 shares of Common Stock underlying 1,119,750 PIPE Warrants issued on December 30, 2020, in connection with a private placement (see Note 18). A holder of the PIPE Warrants may not exercise the PIPE Warrant if the holder, together with its affiliates, would beneficially own more than 9.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(2)	Consists of 2,407,500 shares of Common Stock underlying 4,815,000 warrants issued in connection with Tottenham’s initial public offering. The Company may redeem the outstanding warrants, in whole and not in part, at a price of $0.01 per warrant if, and only if, the last sales price of the Company’s Common Stock equals or exceeds $16.50 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(3)	Consists of 110,000 shares of Common Stock underlying 220,000 warrants issued as part of the Chardan Unit Purchase Option (see Note 3). As of June 30, 2021, and December 31, 2020, the Chardan Unit Purchase Option had not been exercised.
	(4)	Consists of 1,929,111 shares of Common Stock underlying 1,929,111 warrants originally issued by Clene Nanomedicine as Series A and Series D Preferred Stock Warrants (see Note 9). As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
	(5)	Consists of 115,851 shares of Common Stock underlying 115,851 warrants issued pursuant to Tranche 1 of the 2021 Avenue Loan at an exercise price equal to the lower of (i) $8.63 (which is equal to the five-day VWAP per share, determined as of the end of trading on the last trading day prior to execution of the loan agreement), or (ii) the Next Round Price. (see Note 8). As of June 30, 2021, the warrant had not been exercised.
	(6)	Pursuant to the 2021 Avenue Loan, an additional 72,226 shares of Common Stock underlying 72,226 warrants are issuable pursuant to our draw of Tranche 2 between January 1, 2022 and June 30, 2022 (see Note 8). In accordance with ASC 815, we recognized these warrants at the inception of the 2021 Avenue Loan and classified them as a warrant liability (see Note 16). As of June 30, 2021, the warrant is not issued or outstanding.

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of components of income (loss) before income taxes

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2021			2020			2021			2020
United States	$	(2,574	)		(5,968	)		(41,295	)		(9,354	)
Foreign		(849	)		149			(1,956	)		(406	)
Total loss before income taxes	$	(3,423	)	$	(5,819	)	$	(43,251	)	$	(9,760	)

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Research and development		1,608		130		3,003		230
General and administrative	$	2,647		44		4,517		115
Total stock-based compensation	$	4,255	$	174	$	7,520	$	345

Schedule of outstanding common stock options and related activity

Equity	Number of Options			Original Weighted Average Exercise Price Per Share		Weighted Average Exercise Price Per Share		Weighted Average Remaining Term (Years)		Intrinsic Value
Outstanding - December 31, 2020		7,032,591		$	0.13	$	0.97		5.34	$	62,462
Granted		2,323,442			8.887		8.87		9.83		-
Exercised		(172,891	)		0.62		0.62		-		1,836
Forfeited		(54,579	)		8.26		8.26		-		-
Outstanding - June 30, 2021		9,128,563		$	2.94	$	2.94		6.09	$	75,725
Options vested and exercisable - June 30, 2021		6,012,913		$	0.70	$	0.70		4.55	$	63,381
Stock options vested and expected to vest - June 30, 2021		9,128,563		$	2.94	$	2.94		6.09	$	75,725

Schedule of assumptions used to calculate the fair value of stock options

	Six months ended
	June 30, 2021
Expected stock price volatility		84.8% - 87.7	%
Risk-free interest rate		0.59% - 1.90	%
Expected dividend yield		0.00	%
Expected term		6.00 years

Schedule of restricted common stock activity

	Number of RSUs			Weighted- Average Grant Date Fair Value
Outstanding and unvested balance as of December 31, 2020		1,507,062		$	10.30
Converted to shares of Common Stock upon vesting		(21,989	)		10.82
Forfeited		(2,258	)		10.82
Outstanding and unvested balance as of June 30, 2021		1,482,815		$	10.30

Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis

	Fair Value Measurements on a Recurring Basis June 30, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Notes payable	$	1,617	$	-	$	-	$	1,617
Warrant liability		-		-		1,324		1,324
Clene Nanomedicine contingent earn-out		-		-		69,023		69,023
Initial Shareholders contingent earn-out		-		-		7,635		7,635

	Fair Value Measurements on a Recurring Basis December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Notes payable	$	1,296	$	-	$	-	$	1,296
Clene Nanomedicine contingent earn-out		-		-		52,053		52,053
Initial Shareholders contingent earn-out		-		-		5,906		5,906

Schedule of unobservable inputs to the contingent earn-out valuation models

	June 30, 2021			December 31, 2020
Expected stock price volatility		90.00	%		N/A
Risk-free interest rate		0.80	%		N/A
Expected dividend yield		0.00	%		N/A
Expected term		4.89 years			N/A

	June 30, 2021			December 31, 2020
Expected stock price volatility		60.00 – 75.00	%		N/A
Risk-free interest rate		0.05 – 0.07	%		N/A
Expected dividend yield		0.00	%		N/A
Expected term		0.25 years			N/A

	June 30, 2021			December 31, 2020
Expected stock price volatility		90.00	%		85.00	%
Risk-free interest rate		0.80	%		0.40	%
Expected dividend yield		0.00	%		0.00	%
Expected term		4.50 years			5.00 years

Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs

(in thousands)	Notes Payable		Clene Nanomedicine Contingent Earn-out		Initial Shareholders Contingent Earn-out		Warrant Liability
Balance - December 31, 2020	$	1,296	$	52,053	$	5,906	$	-
Initial fair value of instrument		-		-		-		1,457
Change in fair value		321		16,970		1,729		(133	)
Balance - June 30, 2021	$	1,617	$	69,023	$	7,635	$	1,324

(in thousands)	Notes Payable		Derivative Instrument			Preferred Stock Warrants
Balance - December 31, 2019	$	640	$	-		$	3,213
Issuance of convertible promissory notes		-		374			-
Change in fair value		24		(14	)		2,307
Balance - June 30, 2020	$	664	$	360		$	5,520

Net Loss Per Share Attributable to Common Shareholders (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of basic and diluted net loss per share

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator:
Net loss attributable to common shareholders	$	(3,351	)	$	(5,819	)	$	(43,107	)	$	(9,760	)

Denominator:
Weighted average shares outstanding		61,165,018			17,357,505			60,919,340			17,357,505

Net loss per share attributable to common shareholders, basic and diluted	$	(0.05	)	$	(0.34	)	$	(0.71	)	$	(0.56	)

Schedule of dilutive securities excluded from the computation of diluted net loss per share

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Series C redeemable convertible preferred stock		-		7,264,519				7,264,519
Series B redeemable convertible preferred stock		-		4,168,815				4,168,815
Series A redeemable convertible preferred stock		-		16,066,503				16,066,503
Series C redeemable convertible preferred stock warrants		-		271,439				271,439
Series A redeemable convertible preferred stock warrants		-		1,608,670				1,608,670
Convertible notes payable		482,703		-		482,703		-
Common stock warrants (see Note 10)		4,452,462		-		4,452,462		-
Options to purchase common stock		9,128,563		7,249,906		9,128,563		7,249,906
Unvested restricted stock units		1,482,815		-		1,482,815		-
Chardan Unit Purchase Option to purchase common stock (see Note 3)		242,000		-		242,000		-
Chardan Unit Purchase Option Warrants (see Notes 3 and 10)		110,000		-		110,000		-
Clene Nanomedicine contingent earn-out shares (see Note 3 and 12)		8,346,185		-		8,346,185		-
Initial Shareholders contingent earn-out shares (see Note 3 and 12)		750,000		-		750,000		-
Total		24,994,728		36,629,852		24,994,728		36,629,852

Geographic and Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of property and equipment, net by location

	As of June 30,		As of December 31,
(in thousands)	2021		2020
United States	$	4,041	$	3,997
Australia		102		228
Total property and equipment, net	$	4,143	$	4,225

Schedule of drugs and supplements segments

	For the Three Months ended June 30, 2021									For the Six Months ended June 30, 2021
(in thousands)	Drugs			Supplements			Total			Drugs			Supplements			Total
Revenue from external customers	$	-		$	201		$	201		$	-		$	414		$	414
Loss from operations	$	(13,421	)	$	(354	)	$	(13,775	)	$	(25,086	)	$	(384	)	$	(25,470	)

	For the Three Months ended June 30, 2020								For the Six Months ended June 30, 2020
(in thousands)	Drugs			Supplements		Total			Drugs			Supplements		Total
Revenue from external customers	$	-		$	9	$	9		$	-		$	79	$	79
Loss from operations	$	(4,570	)	$	9	$	(4,561	)	$	(8,584	)	$	21	$	(8,563	)

Schedule of property and equipment, net by segment

	As of June 30,		As of December 31,
(in thousands)	2021		2020
Drugs	$	3,923	$	3,990
Supplements		220		235
Total property and equipment, net	$	4,143	$	4,225

Nature of the Business (Details) - USD ($)			1 Months Ended	3 Months Ended		6 Months Ended
Nature of the Business (Details) - USD ($)	May 21, 2021	Feb. 16, 2021	Jul. 22, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 30, 2020
Nature of the Business [Line Items]
Aggregate proceeds if warrants exercised		$ 30,700,000
Offering Cost				$ 0		$ 27,000
Common stock underlying Warrant issued (in Shares)	115,851
Net losses				(3,351,000)	$ (5,819,000)	(43,107,000)	$ (9,760,000)
Cash				63,000,000.0		63,000,000.0		$ 59,300,000
Accumulated deficit				$ (196,668,000)		(196,668,000)		$ (153,561,000)
Net cash (used in) operating activities						$ (17,713,000)	$ (5,402,000)
Subsequent Event [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)			1,140,731
Aggregate proceeds if warrants exercised			$ 3,000,000.0
Common stock underlying warrant outstanding (in Shares)			1,024,880
Clene Inc [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)									5,566,363
Tottenham [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)		2,517,500
Clene Nanomedicine [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)		904,231
PIPE [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)									1,119,750
Warrant [Member] \| Clene Inc [Member]
Nature of the Business [Line Items]
Warrants outstanding (in Shares)		4,541,481
Private Placement [Member]
Nature of the Business [Line Items]
Shares issued (in Shares)	960,540

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Summary of Significant Accounting Policies (Details) [Line Items]
Inventory in raw materials	$ 27.0		$ 27.0		$ 0.1
Inventory Finished Goods	27.0		27.0		0.1
Deferred Revenue	0.1		0.1		0.1
Grant funding recognized on conditional grants	0.2	$ 0.2	0.2	$ 0.4
Research and Development Expense [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Other income and expenses	0.4	1.3	0.7	1.3
Prepaid expenses		$ 2.7		$ 2.7	2.1
Accrued liabilities	$ 0.4		$ 0.4		$ 0.3
Equipment [Member] \| Minimum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Useful lives of asset			3
Equipment [Member] \| Maximum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Useful lives of asset			5 years
Furniture and Fixtures [Member] \| Minimum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Useful lives of asset			3
Furniture and Fixtures [Member] \| Maximum [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Useful lives of asset			7 years

Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details)	1 Months Ended			12 Months Ended
	Dec. 30, 2020 USD ($) $ / shares shares	Jul. 02, 2020	Aug. 01, 2018 $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Jun. 30, 2021 $ / shares shares
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Common stock, par value (in Dollars per share) \| $ / shares				$ 0.0001	$ 0.0001
Common stock, shares issued				59,526,171	60,681,591
Proceeds from reverse recapitalization (in Dollars) \| $	$ 3,700,000
Offering costs (in Dollars) \| $	5,900,000
Common stock, shares outstanding				59,526,171	60,681,591
Deferred underwriting fees (in Dollars) \| $	$ 2,100,000
Underwriting fees (in Dollars) \| $				$ 5,900,000
Clene Inc [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Common stock, par value (in Dollars per share) \| $ / shares	$ 0.0001
Shares cancelled upon reverse recapitalization	2,303,495
Reverse recapitalization exchange ratio	0.1389
Shares held in escrow, percentage	5.00%
Shares held in escrow (in Shares)	2,716,958
Common stock, shares outstanding	59,526,171
Warrants outstanding	5,566,363
Clene Inc [Member] \| Restricted Stock Units (RSUs) [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shares issued	1,136,961
Clene Nanomedicine [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Initial shareholders earn-out shares	750,000
Common stock, shares issued	54,339,012
Shareholder ownership percentage	91.00%
Clene Nanomedicine contingent earn-out shares, description				(i) 3,333,333 shares of Common Stock if (A) the volume-weighted average price (“VWAP”) of the shares of our Common Stock equals or exceeds $15.00 (or any foreign currency equivalent) (the “Milestone 1 Price”) in any twenty trading days within a thirty trading day period within the three years following the closing of the Reverse Recapitalization on any securities exchange or securities market on which the shares of our Common Stock are then traded or (B) the change of control price equals or exceeds the Milestone 1 Price if a change of control transaction occurs within the three years following the closing of the Reverse Recapitalization (the requirements set forth in clause (A) and (B), “Milestone 1”); (ii) 2,500,000 shares of Common Stock if (A) the VWAP of the shares of our Common Stock equals or exceeds $20.00 (or any foreign currency equivalent) (the “Milestone 2 Price”) in any twenty trading days within a thirty trading day period within the five years following the closing of the Reverse Recapitalization on any securities exchange or securities market on which the shares of our Common Stock are then traded or (B) the change of control price equals or exceeds the Milestone 2 Price if a change of control transaction occurs within the five years following the closing of the Reverse Recapitalization (the requirements set forth in clause (A) or (B), “Milestone 2”); and (iii) 2,500,000 shares of Common Stock if Clene Nanomedicine completes a randomized placebo-controlled study for treatment of COVID-19 which results in a statistically significant finding of clinical efficacy within twelve months after the closing of the Reverse Recapitalization (“Milestone 3”). If Milestone 1 is not achieved but Milestone 2 is achieved, the Clene Nanomedicine shareholders will receive a catch-up issuance equal to the shares issued upon satisfaction of Milestone 1. Upon the consummation of the Reverse Recapitalization, the Clene Nanomedicine Contingent Earn-out shares increased by 12,852 as a result of the exercise of stock options during November 2020. Therefore, the total Clene Nanomedicine Contingent Earn-out shares has increased to 8,346,185 shares of Common Stock.
Chardan Capital Markets, LLC [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Sale of units, number of units issued			220,000
Units issued, price per unit (in Dollars per share) \| $ / shares			$ 11.50
Exercise price (in Dollars per share) \| $ / shares			$ 11.50
LifeSci Capital LLC [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Services letter agreement, description		(i) 3% of the amount by which the total transaction consideration exceeded $350 million, plus (ii) 7% of cash and cash-equivalents received by Clene Nanomedicine from the Tottenham’s trust account. Clene Nanomedicine could elect to pay LifeSci either in cash, equity interests of the surviving company, or a combination of the two. Upon the consummation of the Reverse Recapitalization, 644,164 shares of Common Stock were issued to LifeSci as consideration for its services as pursuant to the letter agreement (see Note 18).
Shares issued	644,164
Tottenham [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shareholder ownership percentage				4.00%
Initial shareholders contingent earn-out shares, description				(i) 375,000 shares of Common Stock upon satisfaction of the requirements of Milestone 1; and (ii) another 375,000 shares of the Company’s Common Stock upon satisfaction of the requirements of Milestone 2. If Milestone 1 is not achieved but Milestone 2 is achieved, the Initial Shareholders shall receive a catch-up issuance equal to the shares granted upon satisfaction of the requirements of Milestone 1.
PIPE [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shareholder ownership percentage				4.00%
Exchange Ratio [Member] \| Clene Inc [Member] \| Restricted Stock Units (RSUs) [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shares held in escrow, percentage	5.00%
Common Stock [Member] \| Clene Inc [Member] \| Restricted Stock Units (RSUs) [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shares issued	370,101
Common Stock [Member] \| Clene Inc [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shares Issued, Value, Share-based Payment Arrangement, Forfeited (in Dollars) \| $	$ 53,286,115
Common Stock [Member] \| Exchange Ratio [Member] \| Clene Inc [Member]
Reverse Recapitalization with Tottenham and Clene Nanomedicine (Details) [Line Items]
Shares issued	7,032,591
Exchange ratio percentage	95.00%

Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule of prepaid expenses and other current assets [Abstract]
Australia research and development credit receivable	$ 2,734	$ 2,148
CRO prepayments	579	1,211
Metals to be used in research and development	614	31
Directors & Officers Insurance	936
Other	167	112
Total	$ 5,030	$ 3,502

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Member]
Property and Equipment, Net (Details) [Line Items]
Depreciation expense	$ 200	$ 200	$ 500	$ 500
Research and Development Expense [Member]
Property and Equipment, Net (Details) [Line Items]
Depreciation expense	200	200	400	500
General and Administrative Expense [Member]
Property and Equipment, Net (Details) [Line Items]
Depreciation expense	$ 29	$ 12	$ 100	$ 13

Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule of property and equipment, net [Abstract]
Lab equipment	$ 3,107	$ 3,077
Furniture and fixtures	147	147
Leasehold improvements	3,927	3,889
Construction in progress	821	490
Total property and equipment, gross	8,002	7,603
Less accumulated depreciation	(3,859)	(3,378)
Total property and equipment, net	$ 4,143	$ 4,225

Accrued Liabilities (Details) - Schedule of accrued liabilities - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Schedule of accrued liabilities [Abstract]
Accrued professional fees		$ 189
Accrued compensation and benefits	1,533	1,225
Accrued CRO fees	691	788
Deferred grant funds	351	301
Accrued expense reimbursements	33	33
Accrued transaction costs		1,354
Other	123	70
Accrued liabilities	$ 2,731	$ 3,960

Leases (Details) - USD ($) $ in Millions	1 Months Ended
Leases (Details) - USD ($) $ in Millions	Apr. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Terminated right-of-use asset	$ 0.3
Terminated operating lease liability	0.3
Recognized gain on operating lease	$ 0.1
Description of operating lease	the time of commencement, we recorded the right-of-use asset value of $0.4 million, leasehold improvements of $0.4 million, and a lease liability of $0.8 million. The net effect of the change in leases being an increase in right-of-use assets of $0.1 million, an increase in leasehold improvements of $0.5 million, an increase in lease liability of $0.4 million, and a gain on termination of $0.1 million.
Right of use asset	$ 0.4
Leasehold improvements	0.4
Lease liability	$ 0.8
Finance lease obligations weighted-average interest rate		8.40%	8.10%
Finance lease weighted-average remaining term		2 years 6 months	2 years 8 months 12 days
Operating lease obligations weighted average interest rate		9.60%	9.60%
Operating lease weighted-average remaining term		6 years 3 months 18 days	6 years 3 months 18 days

Leases (Details) - Schedule of noncancelable finance and operating lease liabilities $ in Thousands	Jun. 30, 2021 USD ($)
Finance Leases [Member]
Leases (Details)
2021 (remainder)	$ 76
2022	135
2023	82
2024	21
2025
2026
Thereafter
Total undiscounted cash flows	314
Less amount representing interest/discounting	(3)
Present value of future lease payments	311
Less lease obligations, current portion	(159)
Lease obligations – long term portion	152
Operating Leases [Member]
Leases (Details)
2021 (remainder)	172
2022	421
2023	433
2024	442
2025	454
2026	466
Thereafter	63
Total undiscounted cash flows	2,451
Less amount representing interest/discounting	(583)
Present value of future lease payments	1,868
Less lease obligations, current portion	(210)
Lease obligations – long term portion	$ 1,658

Leases (Details) - Schedule of finance lease obligations included in property and equipment - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases (Details) - Schedule of finance lease obligations included in property and equipment [Line Items]
Total	$ 1,194	$ 1,194
Less accumulated depreciation	(666)	(593)
Net	528	601
Lab equipment [Member]
Leases (Details) - Schedule of finance lease obligations included in property and equipment [Line Items]
Total	920	920
Furniture and fixtures [Member]
Leases (Details) - Schedule of finance lease obligations included in property and equipment [Line Items]
Total	46	46
Work in process [Member]
Leases (Details) - Schedule of finance lease obligations included in property and equipment [Line Items]
Total	$ 228	$ 228

Leases (Details) - Schedule of finance and operating lease costs - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finance lease costs:
Amortization	$ 36	$ 48	$ 73	$ 96
Interest on lease liabilities	7	10	15	21
Operating lease costs	70	132	140	213
Short-term lease costs	54	49	116	137
Variable lease costs	20	14	39	48
Total lease costs	$ 187	$ 253	$ 383	$ 515

Leases (Details) - Schedule of supplemental cash flow information - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020
Schedule of supplemental cash flow information [Abstract]
Operating cash flows from operating leases	$ (295)	$ (338)
Operating cash flows from finance leases	(15)	(21)
Financing cash flows from finance leases	$ (83)	$ (109)

Notes Payable (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended					3 Months Ended		6 Months Ended
	May 31, 2021	Jan. 31, 2021	May 31, 2020	Apr. 30, 2019	Feb. 28, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Notes Payable (Details) [Line Items]
Term loan						$ 13,141		$ 13,141
Interest expense							$ 100
First loan amount						15,000		15,000
Debt issuance costs								471
2019 MD Loan [Member]
Notes Payable (Details) [Line Items]
Term loan					$ 500
Interest rate					8.00%
Outstanding due date					Feb. 22, 2034
Phantom Shares, description					The 2019 MD Loan establishes “Phantom Shares,” based on 119,906 shares of Common Stock (based on 863,110 Series C Preferred Shares prior to the Reverse Recapitalization), determined at issuance.
Amount of income						200
Interest expense								300	$ 100
Fair value of long-term notes payable						1,300		1,300		$ 1,100
2019 Cecil Loan [Member]
Notes Payable (Details) [Line Items]
Term loan				$ 100
Interest rate				8.00%
Outstanding due date				Apr. 30, 2034
Phantom Shares, description				The 2019 Cecil Loan establishes “Phantom Shares,” based on 23,981 shares of Common Stock (based on 172,622 Series C Preferred Shares prior to the Reverse Recapitalization), determined at issuance.
Amount of income						36
Interest expense						100	$ 11	100	$ 13
Fair value of long-term notes payable						300		300		$ 200
PPP Note [Member]
Notes Payable (Details) [Line Items]
Note payable			$ 600
Percentage of loan amount used for payroll expenses			60.00%
Debt extinguishment		$ 600
2021 Avenue Loan [Member]
Notes Payable (Details) [Line Items]
Term loan	$ 30,000
Interest expense						200		$ 200
Accrued debt issuance costs	500
Debt issuance costs	$ 35
Conditions for future funding, description	Funding of the remainder of Tranche 1 and entire Tranche 2 is subject to evidence reasonably satisfactory of receipt of an additional $5.0 million financing through Maryland’s State Incentive Programs and/or other Maryland State programs and mutual agreement of the Company and Avenue. Funding of Tranche 2 is also subject to (i) our achievement of a statistically significant result on the primary endpoint as defined within the statistical analysis plan for each respective study, or the totality of the results for any study warrant advancement into a subsequent clinical efficacy study, as reasonably determined by the Company and Avenue with respect to at least two of the following studies: (i) RESCUE-ALS or HEALEY-ALS; (ii) REPAIR-PD; or (iii) REPAIR- MS (“Performance Milestone 1”); and (ii) our receipt of net proceeds of at least $30 million from the sale and issuance of our equity securities (including any private placement or follow-on offering) between May 2, 2021 and June 30, 2022.
Rate of interest, description								The term loan bears interest of 9.85%. Interest is the higher of the prime rate plus 6.60% or 9.85%.
Additional payment upon maturity, description								On the maturity date, an additional payment equal to 4.25% of the funded loans, or $0.6 million, is due in addition to the remaining unpaid principal and accrued interest.
Warrant to purchase shares (in Shares)	115,851
Common stock at an exercise price (in Dollars per share)	$ 8.63
Tranche 2 Warrant Adjustment description	Upon the funding of Tranche 2, the warrant shall be automatically adjusted to include an additional 72,226 shares of Common Stock, which is equal to 5% of the principal amount of Tranche 2, divided by the lower of (i) the five (5)-day VWAP per share; determined as of the end of trading on the last trading day before the date of issuance of Tranche 2; or (ii) the Next Round Price.
Convertible note payable						5,000		$ 5,000
Conversion percentage of common stock price for convertible note payable, percentage	120.00%
Trading volume limit for conversion of convertible note payable, percentage	20.00%
Threshold for removal of financial covenants, description								The financial covenant associated with the loan agreement includes maintaining minimum unrestricted cash and cash equivalents of at least $5.0 million; provided that upon our (i) achievement of Performance Milestone 1, and (ii) receiving of net proceeds of at least $30.0 million from the sale and issuance of our equity securities (including any PIPE or follow-on offering) between May 1, 2021 and June 30, 2022, we shall no longer be subject to financial covenants.
Minimum cash balance for loan covenant								$ 5,000
Fair value of warrant	$ 1,500
Financing costs	500
Convertible debt						$ 5,000		$ 5,000
2021 Avenue Loan [Member] \| Tranche one [Member]
Notes Payable (Details) [Line Items]
First loan amount	20,000
Funded amount	15,000
Unfunded amount	5,000
2021 Avenue Loan [Member] \| Tranche Two [Member]
Notes Payable (Details) [Line Items]
Second loan amount	$ 10,000

Notes Payable (Details) - Schedule of Avenue Loan $ in Thousands	Jun. 30, 2021 USD ($)
Schedule of Avenue Loan [Abstract]
Face value of the loan	$ 15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs	(1,859)
Total debt, net	$ 13,141

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Notes Payable (Details) - Schedule of future payments, net of unamortized debt discounts $ in Thousands	Jun. 30, 2021 USD ($)
Schedule of future payments, net of unamortized debt discounts [Abstract]
2021 (remainder)
2022	3,000
2023	6,000
2024	6,000
2025
2026
Thereafter
Subtotal of future principal payments	15,000
Unamortized debt discount associated with issuance date warrant fair value and financing costs	(1,859)
Total	$ 13,141

Preferred Stock Warrant Liability (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended	6 Months Ended	12 Months Ended
	Aug. 11, 2020	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Apr. 08, 2013
Preferred Stock Warrant Liability (Details) [Line Items]
Loss in fair value of warrant liability				$ 14.6
Fair value of the outstanding warrants		$ 2.4	$ 2.3
Series A Preferred Stock [Member]
Preferred Stock Warrant Liability (Details) [Line Items]
Warrants expire						10 years
Exercise price					$ 1.97
Shares of warrants exercisable					1,608,670
Series C Preferred Stock [Member]
Preferred Stock Warrant Liability (Details) [Line Items]
Exercise price					$ 1.97
Shares of warrants exercisable					271,439
Percent of fully-diluted equity purchasable upon exercise						0.25%
Series D Preferred Stock [Member]
Preferred Stock Warrant Liability (Details) [Line Items]
Exercise price	$ 1.97
Shares of warrants exercisable	320,441

Common Stock Warrants (Details) - shares	1 Months Ended	6 Months Ended
Common Stock Warrants (Details) - shares	Dec. 30, 2020	Jun. 30, 2021	May 21, 2021
Common Stock Warrants (Details) [Line Items]
Warrants, description		Consists of 2,407,500 shares of Common Stock underlying 4,815,000 warrants issued in connection with Tottenham’s initial public offering. The Company may redeem the outstanding warrants, in whole and not in part, at a price of $0.01 per warrant if, and only if, the last sales price of the Company’s Common Stock equals or exceeds $16.50 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
Avenue Loan [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued		115,851
PIPE warrants issued		115,851
Exercise price of warrants, description		at an exercise price equal to the lower of (i) $8.63 (which is equal to the five-day VWAP per share, determined as of the end of trading on the last trading day prior to execution of the loan agreement), or (ii) the Next Round Price.
2021 Avenue Loan [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued		72,226
PIPE warrants issued		72,226
Common Stock Warrants [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued		1,929,111
PIPE warrants issued		1,929,111
Private Placement [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued			960,540
Private Placement [Member] \| PIPE Warrants [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued	1,119,750
PIPE warrants issued	1,119,750
PIPE warrants ownership limit	9.99%
Chardan Unit Purchase Option [Member]
Common Stock Warrants (Details) [Line Items]
Shares, issued		110,000
PIPE warrants issued		220,000

Common Stock Warrants (Details) - Schedule of outstanding warrants to purchase shares of common stock - $ / shares

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

5,682,212

5,566,361

June 2021 [Member]

^[1]

1,119,750

$ 0.01

Common Stock

Equity

December 2021

December 2020 [Member]

December 2020 One [Member]

^[2]

2,407,500

$ 11.50

Common Stock

Equity

December 2025

December 2020 Two [Member]

^[3]

110,000

$ 11.50

Common Stock

Equity

December 2025

^[4]

1,929,111

$ 1.97

Common Stock

Equity

April 2023

Net loss attributable to common shareholders

^[5],[6]

115,851

$ 8.63

Common Stock

Liability

May 2026

[1]	Consists of 1,119,750 shares of Common Stock underlying 1,119,750 PIPE Warrants issued on December 30, 2020, in connection with a private placement (see Note 18). A holder of the PIPE Warrants may not exercise the PIPE Warrant if the holder, together with its affiliates, would beneficially own more than 9.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
[2]	Consists of 2,407,500 shares of Common Stock underlying 4,815,000 warrants issued in connection with Tottenham’s initial public offering. The Company may redeem the outstanding warrants, in whole and not in part, at a price of $0.01 per warrant if, and only if, the last sales price of the Company’s Common Stock equals or exceeds $16.50 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption. As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
[3]	Consists of 110,000 shares of Common Stock underlying 220,000 warrants issued as part of the Chardan Unit Purchase Option (see Note 3). As of June 30, 2021, and December 31, 2020, the Chardan Unit Purchase Option had not been exercised.
[4]	Consists of 1,929,111 shares of Common Stock underlying 1,929,111 warrants originally issued by Clene Nanomedicine as Series A and Series D Preferred Stock Warrants (see Note 9). As of June 30, 2021, and December 31, 2020, none of the warrants had been exercised.
[5]	Consists of 115,851 shares of Common Stock underlying 115,851 warrants issued pursuant to Tranche 1 of the 2021 Avenue Loan at an exercise price equal to the lower of (i) $8.63 (which is equal to the five-day VWAP per share, determined as of the end of trading on the last trading day prior to execution of the loan agreement), or (ii) the Next Round Price. (see Note 8). As of June 30, 2021, the warrant had not been exercised.
[6]	Pursuant to the 2021 Avenue Loan, an additional 72,226 shares of Common Stock underlying 72,226 warrants are issuable pursuant to our draw of Tranche 2 between January 1, 2022 and June 30, 2022 (see Note 8). In accordance with ASC 815, we recognized these warrants at the inception of the 2021 Avenue Loan and classified them as a warrant liability (see Note 16). As of June 30, 2021, the warrant is not issued or outstanding.

Convertible Notes (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended			12 Months Ended
	Aug. 11, 2020	May 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jul. 31, 2020	Jun. 30, 2020	Dec. 31, 2020
Convertible Notes (Details) [Line Items]
Loss on extinguishment of debt					$ 647
Unamortized discount			$ 1,859		$ 1,859
Common stock potentially issuable upon conversion (in Shares)					482,703
2020 Convertible Notes [Member]
Convertible Notes (Details) [Line Items]
Convertible notes payable						$ 6,100
Annual debt interest						5.00%
Description of convertible notes						The 2020 Convertible Notes were convertible at the earlier of (i) one year, at which point the notes would be convertible into Series C preferred shares at the Series C preferred share issuance price, and (ii) next equity financing of no less than $10.0 million, at which point the notes would be convertible into shares issued in the next equity financing at 90% of the per share issuance price of the next equity financing. The 2020 Convertible Notes contained embedded features that provide the lenders with multiple settlement alternatives. Certain of these settlement features provided the lenders with a right to a fixed number of our shares upon conversion of the notes. Other settlement features provided the lenders with the right or the obligation to receive cash or a variable number of shares upon the completion of a capital raising transaction, change of control, or default of the Company (the “Redemption Features”). The Redemption Features of the 2020 Convertible Notes met the requirements for separate accounting and were accounted for as a single derivative instrument (the “2020 Derivative Instrument”). Accordingly, the 2020 Derivative Instrument of $0.7 million was recorded at fair value at inception as redeemable convertible preferred stock derivative liability in the condensed consolidated balance sheets (see Note 12).
Interest expense				$ 34			42
Amortization of debt discount				$ 100			$ 100
Debt extinguishment	$ 6,900
Convertible shares (in Shares)	1,497,135
Percentage of stock price	90.00%
Convertible per share (in Dollars per share)	$ 4.60
Loss on extinguishment of debt								$ 500
Unamortized discount								$ 500
Description of loss on extinguishment								The loss on extinguishment was calculated as the difference between (i) the fair value of the 1,497,135 shares of Series D Preferred Stock issued to settle the 2020 Convertible Notes of $6.9 million and (ii) the carrying value of the 2020 Convertible Notes of $5.7 million, which includes the principal balance of the 2020 Convertible Notes of $6.1 million and accrued but unpaid interest of $0.1 million, net of the unamortized debt discount of $0.5 million, plus the then-current fair value of derivative liability associated with the 2020 Convertible Notes at the time of the extinguishment of $0.7 million.
2021 Avenue Loan [Member]
Convertible Notes (Details) [Line Items]
Convertible notes payable			5,000		$ 5,000
Interest expense			100		100
Amortization of debt discount			23		23
Convertible notes payable, description		In May 2021, we entered into the 2021 Avenue Loan from which we granted to Avenue the right, in its discretion, but not the obligation, at any time from time to time from May 21, 2022 through May 21, 2024, while the loan is outstanding, to convert an amount of up to $5.0 million of the principal amount of the outstanding loan into shares of Common Stock at a price per share equal to 120% of the stock purchase price set forth in the warrant (see Note 8).
Loan outstanding		$ 5,000
Conversion percentage of common stock price for convertible note payable		120.00%
Unamortized debt discount and issuance costs			600		600
Coupon interest expense			$ 100		$ 100
Effective interest rate					17.93%

Derivative Instruments (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jul. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Issuance of derivative instrument							$ 700
Loss on derivative instruments			$ 10		$ 14	$ (29)
Clene Nanomedicine contingent earn-out	$ 64,700	$ 69,000		$ 69,000		52,100
Initial shareholders contingent earn-out	$ 7,400	7,600		7,600		$ 5,900
Gain (loss) on Clene Nanomedicine contingent earn-out		8,600		(17,000)
Gain (loss) on Initial Shareholders contingent earn-out		$ 1,200		(1,700)
Warrant fair value				1,500
Change in fair value warrants				$ 100

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0.1	$ 0.1

Income Taxes (Details) - Schedule of components of income (loss) before income taxes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule of components of income (loss) before income taxes [Abstract]
United States	$ (2,574)	$ (5,968)	$ (41,295)	$ (9,354)
Foreign	(849)	149	(1,956)	(406)
Total loss before income taxes	$ (3,423)	$ (5,819)	$ (43,251)	$ (9,760)

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Stock-Based Compensation (Details) [Line Items]
Shares granted			2,323,442
Stock-based compensation expense	$ 4,200	$ 200	$ 7,500	$ 300
Unrecognized stock-based compensation			$ 15,200		$ 2,400
Weighted average period			2 years 1 month 20 days		2 years 14 days
Stock-based compensation expense	4,255	$ 174	$ 7,520	$ 345
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Details) [Line Items]
Weighted average grant-date fair value of stock options granted			$ 6.44
Restricted stock units shares,description			On December 30, 2020, we granted the following shares of restricted stock units under the 2020 Stock Plan: ● 370,101 shares to various employees and non-employee directors, which vest on various dates between June 30, 2021 and January 15, 2022, subject to the employee’s continuous employment through such vesting date. The RSUs convert to shares of Common Stock on a one-for-one basis upon vesting. The award represents 5% of the converted stock options under 2014 Stock Plan as a result of the Reverse Recapitalization and complements the 5% closing payment shares held in escrow for Clene Nanomedicine common shareholders (see Note 3). The grant-date fair value of these awards was $4.0 million based on the closing price of CLNN shares listed on Nasdaq of $10.82 per share on December 30, 2020, the date of the Reverse Recapitalization. As of June 30, 2021, there were 21,989 shares of Common Stock issued upon the vesting of RSUs. As of December 31, 2020 no shares were vested. ● 454,781 shares to various employees and non-employee directors, which were eligible to vest based on certain market conditions, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 1 earn-out share entitlement of Clene Nanomedicine shareholders and vests based on the same market condition (see Note 3). The grant-date fair value of these awards, using a Monte Carlo simulation, was $4.3 million. Based on the outcome of the market condition as of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested. ● 341,090 shares to various employees and non-employee directors, which were eligible to vest based on certain market conditions, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 2 earn-out share entitlement of Clene Nanomedicine. shareholders and vests based on the same market condition (see Note 3). The grant-date fair value of these awards, using a Monte Carlo simulation, was $3.5 million. Based on the outcome of the market condition as of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested. ●341,090 shares to various employees and non-employee directors, which were eligible to vest based on certain performance conditions tied to the completion of the COVID-19 coronavirus treatment study, subject to the employee’s continuous employment through such vesting date. The award complements the Milestone 3 earn-out share entitlement of Clene Nanomedicine shareholders and vests based on the same performance condition (see Note 3). The grant-date fair value of these awards was $3.7 million, based on the closing price of CLNN shares listed on Nasdaq of $10.82 per shares on December 30, 2020, the date of the Reverse Recapitalization. We did not recognize compensation expense because the occurrence of achieving this milestone was not probable. As of the June 30, 2021 and December 31, 2020 measurement dates, no shares were vested.
Expected stock price volatility					85.00%
risk-free interest rate					0.40%
Expected term					5 years
Weighted average grant-date fair value of RSUs granted					$ 10.3034
Stock-based compensation expense	3,000		$ 6,000
Unrecognized compensation cost	$ 5,400		$ 5,400		$ 15,500
Weighted average period for recognition of unrecognized compensation cost			1		6 months
2020 Stock Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares granted			2,323,442
2020 Stock Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Details) [Line Items]
Shares granted			3,806,257
Shares for future grants			8,193,743		10,492,938
2014 Stock Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares granted					270,555
2020 Stock Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Shares authorized					12,000,000
Shares available to be issued					12,000,000
Minimum fair market value of option grant, description			The exercise prices, vesting periods, and other restrictions are determined at the discretion of the Company’s Board of Directors, except that the exercise price per share of options may not be less than 100% of the fair market value of the Common Stock on the date of grant.
Shares granted					1,507,062
2014 Stock Plan [Member]
Stock-Based Compensation (Details) [Line Items]
Stock option outstanding (pre-conversion)	53,286,115		53,286,115
Stock option outstanding (post-conversion)			7,032,591

Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
Total stock-based compensation	$ 4,255	$ 174	$ 7,520	$ 345
Research and development [Member]
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
Total stock-based compensation	1,608	130	3,003	230
General and administrative [Member]
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items]
Total stock-based compensation	$ 2,647	$ 44	$ 4,517	$ 115

Stock-Based Compensation (Details) - Schedule of outstanding common stock options and related activity $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares shares
Schedule of outstanding common stock options and related activity [Abstract]
Number of Options, Beginning Balance (in Shares) \| shares	7,032,591
Original Weighted Average Exercise Price Per Share,Beginning Balance	$ 0.13
Weighted Average Exercise Price Per Share, Beginning Balance	$ 0.97
Weighted Average Remaining Term (Years), Beginning Balance	5 years 4 months 2 days
Intrinsic Value, Outstanding, Beginning Balance (in Dollars) \| $	$ 62,462
Number of Options, Granted (in Shares) \| shares	2,323,442
Original Weighted Average Exercise Price Per Share, Granted	$ 8.887
Weighted Average Remaining Term, Granted	$ 8.87
Weighted Average Remaining Term (Years), Granted	9 years 9 months 29 days
Number of Options, Exercised (in Shares) \| shares	(172,891)
Original Weighted Average Exercise Price Per Share, Exercised	$ 0.62
Weighted Average Remaining Term (Years), Exercised	$ 0.62
Intrinsic Value, Exercised (in Dollars) \| $	$ 1,836
Number of Options, Forfeited (in Shares) \| shares	(54,579)
Original Weighted Average Exercise Price Per Share, Forfeited	$ 8.26
Weighted Average Exercise Price Per Share, Forfeited	$ 8.26
Number of Options, Ending Balance (in Shares) \| shares	9,128,563
Original Weighted Average Exercise Price Per Share, Ending Balance	$ 2.94
Weighted Average Exercise Price Per Share, Ending Balance	$ 2.94
Weighted Average Remaining Term (Years), Ending Balance	6 years 1 month 2 days
Intrinsic Value, Outstanding, Ending Balance (in Dollars) \| $	$ 75,725
Number of Options, Options vested and exercisable ending (in Shares) \| shares	6,012,913
Original Weighted Average Exercise Price Per Share, Options vested and exercisable ending	$ 0.70
Weighted Average Exercise Price Per Share, Options vested and exercisable ending	$ 0.70
Weighted Average Remaining Term (Years), Options vested and exercisable ending	4 years 6 months 18 days
Intrinsic Value, Options vested and exercisable ending (in Dollars) \| $	$ 63,381
Number of Options, Stock options vested and expected to vest June 30, 2021 (in Shares) \| shares	9,128,563
Original Weighted Average Exercise Price Per Share, Options vested and exercisable - Stock options vested and expected to vest June 30, 2021Weighted Average Exercise Price Per Share, Stock options vested and expected to vest ending	$ 2.94
Weighted Average Exercise Price Per Share, Stock options vested and expected to vest June 30, 2021Weighted Average Remaining Term, Options vested and exercisable - Stock options vested and expected to vest ending	$ 2.94
Weighted Average Remaining Term (Years), Stock options vested and expected to vest June 30, 2021Intrinsic Value, Options vested and exercisable - Stock options vested and expected to vest ending	6 years 1 month 2 days
Intrinsic Value, Stock options vested and expected to vest June 30, 2021 (in Dollars) \| $	$ 75,725

Stock-Based Compensation (Details) - Schedule of assumptions used to calculate the fair value of stock options - Equity Option [Member]	6 Months Ended
	Jun. 30, 2021
Schedule of assumptions used to calculate the fair value of stock option awards granted [Line Item]
Expected dividend yield	0.00%
Expected term	6 years
Minimum [Member]
Schedule of assumptions used to calculate the fair value of stock option awards granted [Line Item]
Expected stock price volatility	84.80%
Risk-free interest rate	0.59%
Maximum [Member]
Schedule of assumptions used to calculate the fair value of stock option awards granted [Line Item]
Expected stock price volatility	87.70%
Risk-free interest rate	1.90%

Stock-Based Compensation (Details) - Schedule of restricted common stock activity - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Stock-Based Compensation (Details) - Schedule of restricted common stock activity [Line Items]
Beginning balance, Number of RSUs, Unvested balance \| shares	1,507,062
Beginning balance, Weighted Average Grant Date Fair Value, Unvested balance \| $ / shares	$ 10.30
Number of RSUs, Vested \| shares	(21,989)
Weighted Average Grant Date Fair Value, Vested \| $ / shares	$ 10.82
Number of RSUs, Forfeited \| shares	(2,258)
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	$ 10.82
Ending balance, Number of RSUs, Unvested balance \| shares	1,482,815
Ending balance, Weighted Average Grant Date Fair Value, Unvested balance \| $ / shares	$ 10.30

Fair Value (Details) - $ / shares	6 Months Ended	12 Months Ended
Fair Value (Details) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Fair Value (Details) [Line Items]
Notes payable based on closing price	$ 11.24	$ 9.01
Additional arrant to purchase shares	72,226
Series of Individually Immaterial Business Acquisitions [Member]
Fair Value (Details) [Line Items]
Contingent earn-out, description	Pursuant to the Merger Agreement, Clene Nanomedicine’s common shareholders immediately prior to the Reverse Recapitalization and Initial Shareholders of Tottenham were entitled to receive additional shares of up to 8,333,333 shares and 750,000 shares of Common Stock, respectively, upon us achieving certain milestones (see Note 3). Upon the consummation of the Reverse Recapitalization, Clene Nanomedicine and the Initial Shareholders are entitled to receive up to 8,346,185 additional shares as a result of the exercise of the stock options in November 2020, and 750,000 shares of Common Stock
Avenue Loan [Member]
Fair Value (Details) [Line Items]
Warrants to purchase common stock	115,851

Fair Value (Details) - Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value (Details) - Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis [Line Items]
Notes payable	$ 1,617	$ 1,296
Warrant liability	1,324
Clene Nanomedicine contingent earn-out	69,023	52,053
Initial Shareholders contingent earn-out	7,635	5,906
Level 1 [Member]
Fair Value (Details) - Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis [Line Items]
Notes payable	1,617	1,296
Warrant liability
Clene Nanomedicine contingent earn-out
Initial Shareholders contingent earn-out
Level 2 [Member]
Fair Value (Details) - Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis [Line Items]
Notes payable
Warrant liability
Clene Nanomedicine contingent earn-out
Initial Shareholders contingent earn-out
Level 3 [Member]
Fair Value (Details) - Schedule of fair value hierarchy of liabilities measured at fair value on recurring basis [Line Items]
Notes payable
Warrant liability	1,324
Clene Nanomedicine contingent earn-out	69,023	52,053
Initial Shareholders contingent earn-out	$ 7,635	$ 5,906

Fair Value (Details) - Schedule of unobservable inputs to the contingent earn-out valuation models	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Contingent earn-out [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected stock price volatility	90.00%	85.00%
Risk-free interest rate	0.80%	0.40%
Expected dividend yield	0.00%	0.00%
Expected term	4 years 6 months	5 years
Black-Scholes Valuation Model [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected stock price volatility	90.00%
Risk-free interest rate	0.80%
Expected dividend yield	0.00%
Expected term	4 years 10 months 20 days
Monte Carlo Simulation [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected stock price volatility
Risk-free interest rate
Expected dividend yield	0.00%
Expected term	3 months
Monte Carlo Simulation [Member] \| Minimum [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected stock price volatility	60.00%
Risk-free interest rate	0.05%
Monte Carlo Simulation [Member] \| Maximum [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected stock price volatility	75.00%
Risk-free interest rate	0.07%

Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Notes Payable [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance	$ 1,296	$ 640
Ending balance	1,617	664
Initial fair value of instrument
Issuance of convertible promissory notes
Change in fair value	321	24
Clene Nanomedicine Contingent Earn-out [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance	52,053
Ending balance	69,023
Initial fair value of instrument
Change in fair value	16,970
Initial Shareholders Contingent Earn-out [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance	5,906
Ending balance	7,635
Initial fair value of instrument
Change in fair value	1,729
Warrant Liability [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance
Ending balance	1,324
Initial fair value of instrument	1,457
Change in fair value	$ (133)
Derivative Instrument [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance
Ending balance		360
Issuance of convertible promissory notes		374
Change in fair value		(14)
Preferred Stock Warrants [Member]
Fair Value (Details) - Schedule of changes in fair value of financial liabilities related to the notes payable, the derivative instrument, the preferred stock warrants, and the contingent earn-outs [Line Items]
Beginning balance		3,213
Ending balance		5,520
Issuance of convertible promissory notes
Change in fair value		$ 2,307

Redeemable Convertible Preferred Stock (Details)	6 Months Ended
Redeemable Convertible Preferred Stock (Details)	Jun. 30, 2021 shares
Convertible Common Stock [Member]
Redeemable Convertible Preferred Stock (Details) [Line Items]
Aggregate of converted shares	36,893,894

Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended			6 Months Ended	12 Months Ended
	May 21, 2021	Dec. 30, 2020	Dec. 28, 2020	Jun. 30, 2021	Dec. 31, 2020	May 18, 2021
Common Stock (Details) [Line Items]
Common stock, shares authorized				150,000,000	100,000,000
Common share, par value (in Dollars per share)				$ 0.0001	$ 0.0001
Preferred stock, shares authorized				1,000,000
Preferred stock par value (in Dollars per share)				$ 0.0001
Issuance of common stock upon the reverse recapitalization		2,303,495
Issuance of common stock for advisory fees		644,164
Investors purchased shares			2,239,500
Shares price (in Dollars per share)			$ 10.00
Net proceeds (in Dollars)			$ 22.2
Common stock split description					The purpose of the PIPE was to fund general corporate expenses. In addition, investors in the PIPE offering also received warrants to purchase a number of shares equal to one-half (1/2) of the number of PIPE Shares, totaling 1,119,750 shares of Common Stock, at an exercise price of $0.01 per share for each of the PIPE Shares (the “PIPE Warrants”), subject to a 180-day holding period (see Note 10).
Common stock, shares issued				60,681,591	59,526,171
Common stock, shares outstanding				60,681,591	59,526,171
Investors [Member]
Common Stock (Details) [Line Items]
Net proceeds (in Dollars)	$ 9.3
Common Stock Shares Purchased	960,540
Common Stock Price Per Share (in Dollars per share)	$ 9.63
Minimum [Member]
Common Stock (Details) [Line Items]
Common stock, shares authorized						100,000,000
Maximum [Member]
Common Stock (Details) [Line Items]
Common stock, shares authorized						150,000,000
Common Stock [Member]
Common Stock (Details) [Line Items]
Common stock, shares authorized				150,000,000	100,000,000

Net Loss Per Share Attributable to Common Shareholders (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Number of shares issuable on exercise of PIPE warrants			1,119,750
Purchase option to common stock	242,000		242,000
Purchase of warrants	110,000		110,000

Net Loss Per Share Attributable to Common Shareholders (Details) - Schedule of basic and diluted net loss per share - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Numerator:

$ (3,351)

$ (5,819)

$ (43,107)

$ (9,760)

Denominator:

Weighted average shares outstanding

61,165,018

17,357,505

60,919,340

17,357,505

Net loss per share attributable to common shareholders, basic and diluted

^[1]

$ (0.05)

$ (0.34)

$ (0.71)

$ (0.56)

[1]	Retroactively restated for the three months ended June 30, 2020 for the Reverse Recapitalization as described in Note 1

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Net Loss Per Share Attributable to Common Shareholders (Details) - Schedule of dilutive securities excluded from the computation of diluted net loss per share - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule of dilutive securities excluded from the computation of diluted net loss per share [Abstract]
Series C redeemable convertible preferred stock		7,264,519		7,264,519
Series B redeemable convertible preferred stock		4,168,815		4,168,815
Series A redeemable convertible preferred stock		16,066,503		16,066,503
Series C redeemable convertible preferred stock warrants		271,439		271,439
Series A redeemable convertible preferred stock warrants		1,608,670		1,608,670
Convertible notes payable	482,703		482,703
Common stock warrants (see Note 10)	4,452,462		4,452,462
Options to purchase common stock	9,128,563	7,249,906	9,128,563	7,249,906
Unvested restricted stock units	1,482,815		1,482,815
Chardan Unit Purchase Option to purchase common stock (see Note 3)	242,000		242,000
Chardan Unit Purchase Option Warrants (see Notes 3 and 10)	110,000		110,000
Clene Nanomedicine contingent earn-out shares (see Note 3 and 12)	8,346,185		8,346,185
Initial Shareholders contingent earn-out shares (see Note 3 and 12)	750,000		750,000
Total	24,994,728	36,629,852	24,994,728	36,629,852

Related Party Transactions (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Aug. 31, 2018	Jun. 30, 2020
Related Party Transactions [Abstract]
Consulting services expenses		$ 0.1
Outstanding balance recorded in accounts payable		$ 0.1
Related party transaction, description	Under the terms of this agreement, we granted the investor an exclusive license to pursue development of dietary supplements using certain of our intellectual property (“IP”). The exclusive rights to the IP is for a term of five years from the commencement of sales of licensed product by the investor, with a deemed commencement date of January 1, 2023 if sales have not yet commenced, and is subject to annual minimum sales. The agreement may be renewed for additional five-year terms. If the investor fails to meet the annual minimum sales requirements, the investor may pay an additional fee to maintain exclusivity or have the investor’s license converted to non-exclusive rights. As part of this agreement, we will provide non-pharmaceutical product to the investor for development efforts and potential future production, and the investor is to pay royalties of 3% of incremental sales, as defined in the agreement.For the three and six months ended June 30, 2021, we sold $0.1 million and $0.3 million of product, respectively under this agreement. We did not sell any products outside of this agreement. For the three and six months ended June 30, 2021, the investor has made commercial sales of their products under the agreement which we recognized as royalty revenues of $0.1 million and $0.1 million, respectively. For the six months ended June 30, 2020, we sold $0.1 million of product under this agreement, as well as $2 thousand of product not under this agreement, and received $0.1 million in advance to be applied against future sales of product under this agreement.

A description of the related party transaction, including transactions to which no amounts or nominal amounts were ascribed and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements. Examples of common related party transactions are, sales, purchases and transfers of realty and personal property, services received or furnished, loans and leases to and from top management and affiliates.

+ References + Details

Geographic and Segment Information (Details) - Schedule of property and equipment, net by location - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Geographic and Segment Information (Details) - Schedule of property and equipment, net by location [Line Items]
Total property and equipment, net	$ 4,143	$ 4,225
United States [Member]
Geographic and Segment Information (Details) - Schedule of property and equipment, net by location [Line Items]
Total property and equipment, net	4,041	3,997
Australia [Member]
Geographic and Segment Information (Details) - Schedule of property and equipment, net by location [Line Items]
Total property and equipment, net	$ 102	$ 228

Geographic and Segment Information (Details) - Schedule of drugs and supplements segments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenue from external customers	$ 201	$ 9	$ 414	$ 79
Loss from operations	(13,775)	(4,561)	(25,470)	(8,563)
Drugs [Member]
Segment Reporting Information [Line Items]
Revenue from external customers
Loss from operations	(13,421)	(4,570)	(25,086)	(8,584)
Supplements [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	201	9	414	79
Loss from operations	$ (354)	$ 9	$ (384)	$ 21

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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