v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

The following tables present liabilities measured and recorded at fair value on the Company’s consolidated balance sheets as of September 30, 2023, and December 31, 2022.

 

   Total   Level 1   Level 2   Level 3 
   September 30, 2023 
   Total   Level 1   Level 2   Level 3 
Liability classified warrants  $30,473   $      -   $      -   $30,473 
Total  $30,473   $-   $-   $30,473 

 

   Total   Level 1   Level 2   Level 3 
   December 31, 2022 
   Total   Level 1   Level 2   Level 3 
Fair value of convertible note  $4,203,579   $      -   $      -   $4,203,579 
Liability classified warrants   310,346    -    -    310,346 
Total  $4,513,925   $-   $-   $4,513,925 

The following tables present assets and liabilities measured and recorded at fair value on the Company’s consolidated balance sheet as of December 31, 2022 and 2021. As of December 31, 2021, all contingent put options, associated with the pre-combination convertible notes, were settled upon conversion of the notes at the closing of the Business Combination.

 SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

   Total   Level 1   Level 2   Level 3 
   December 31, 2022 
   Total   Level 1   Level 2   Level 3 
Fair value of convertible note  $4,203,579   $   -   $   -   $4,203,579 
Liability classified warrants   310,346              310,346 
Total  $4,513,925   $-   $-   $4,513,925 

 

 

Ensysce Biosciences, Inc.

Notes to the Consolidated Financial Statements

 

   Total   Level 1   Level 2   Level 3 
   December 31, 2021 
   Total   Level 1   Level 2   Level 3 
Fair value of convertible note  $16,799,837   $   -   $  -   $16,799,837 
Liability classified warrants   3,303,588    -    -    3,303,588 
Total  $20,103,425   $-   $-   $20,103,425 
SCHEDULE OF CHANGE IN FAIR VALUE OF COMPANY’S LEVEL 3

The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities for the nine months ended September 30, 2023:

 

   Total   Convertible note  

Liability

classified

warrants

 
Fair value, December 31, 2022  $4,513,925   $4,203,579   $310,346 
Conversions   (3,056,892)   (3,056,892)   - 
Cash payments   (415,351)   (415,351)   - 
Cash true-up liability   (584,857)   (584,857)   - 
Change in fair value   (426,352)   (146,479)   (279,873)
Fair value, September 30, 2023  $30,473   $-   $30,473 

The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities for the year ended December 31, 2022:

 SCHEDULE OF CHANGE IN FAIR VALUE OF COMPANY’S LEVEL 3

   For the year ended December 31, 2022 
   Total   Convertible note   Liability classified warrants 
Fair value, December 31, 2021  $20,103,425   $16,799,837   $3,303,588 
Additions, net   12,217,371    8,480,000    3,737,371 
Conversions/payments   (18,929,415)   (18,929,415)   - 
Loss on issuance of convertible notes   3,609,944    3,609,944    - 
Change in fair value   (12,487,400)   (5,756,787)   (6,730,613)
Fair value, December 31, 2022  $4,513,925   $4,203,579   $310,346 
SCHEDULE OF REVENUE RECOGNIZATION UNDER GRANTS

The revenue recognized under the MPAR Grant and OUD Grant:

 

   2023   2022   2023   2022 
   Three Months Ended September 30,   Nine Months Ended September 30, 
   2023   2022   2023   2022 
MPAR  $119,942   $206,290   $1,038,484   $710,761 
TAAP/OUD   315,438    73,061    677,004    379,159 
Total  $435,380   $279,351   $1,715,488   $1,089,920 

The revenue recognized under the MPAR Grant and OUD Grant was as follows:

 SCHEDULE OF REVENUE RECOGNIZATION UNDER GRANTS

   2022   2021 
   Year Ended December 31, 
   2022   2021 
MPAR  $2,006,885   $2,646,579 
TAAP/OUD   516,498    884,620 
Total  $2,523,383   $3,531,199 
SCHEDULE OF EARNINGS PER SHARE RECONCILIATION  

 SCHEDULE OF EARNINGS PER SHARE RECONCILIATION

   2022   2021 
   Year Ended December 31, 
   2022   2021 
Numerator:          
Net income (loss) attributable to common stockholders  $(25,085,496)  $(29,886,851)
           
Denominator:          
Weighted average shares outstanding, basic and diluted   179,925    84,018 
Net loss per share attributable to common stockholders, basic and diluted  $(139.42)  $(355.72)

 
SCHEDULE OF WEIGHTED AVERAGE SHARES OF ANTI-DILUTIVE SECURITIES

The following weighted average shares have been excluded from the calculations of diluted weighted average common shares outstanding because they would have been anti-dilutive:

 

   2023   2022   2023   2022 
   Three Months Ended September 30,   Nine Months Ended September 30, 
   2023   2022   2023   2022 
Stock options   26,354    29,249    26,354    27,378 
RSUs   63    4,261    63    3,317 
Warrants   4,711,236    87,878    2,876,380    87,878 
Convertible notes   -    267,957    -    89,647 
Total   4,737,653    389,345    2,902,797    208,220 

The following weighted average shares have been excluded from the calculations of diluted weighted average common shares outstanding because they would have been anti-dilutive (the Company has utilized the principal balance outstanding and the end of period conversion price for the Convertible Notes for the purposes of the weighted average share calculation below):

 SCHEDULE OF WEIGHTED AVERAGE SHARES OF ANTI-DILUTIVE SECURITIES

   2022   2021 
   Year Ended December 31, 
   2022   2021 
Stock options   26,302    18,742 
RSUs   3,772    - 
Warrants   138,485    42,807 
Convertible Notes   73,326    2,533 
Total   241,885    64,082