Accounting Policies, by Policy (Policies) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Summary of Significant Accounting Policies [Abstract] | |
| Basis of Consolidation | Basis of Consolidation.
The consolidated financial statements include the accounts of the Company and
Galectin Therapeutics Security Corp., its wholly-owned subsidiary, which was
incorporated in Delaware on December 23, 2003 and Galectin Sciences LLC (see
Note 13). All intercompany transactions have been eliminated.
|
| Use of Estimates | Use of Estimates.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and judgments that may affect the reported amounts
of assets, liabilities, equity, revenue, expenses and related disclosure of
contingent assets and liabilities. Management’s estimates and judgments include
assumptions used in stock option valuations, accrued liabilities, derivative
valuations, deferred income taxes and various other assumptions that are
believed to be reasonable under the circumstances. Actual results may differ
from those estimates under different assumptions or conditions.
|
| Fair Value Measurements | Fair Value Measurements.
The Company has certain financial assets and liabilities recorded at fair
value. Fair values determined by Level 1 inputs utilize observable data such as
quoted prices in active markets. Fair values determined by Level 2 inputs
utilize data points other than quoted prices in active markets that are
observable either directly or indirectly. Fair values determined by Level 3
inputs utilize unobservable data points in which there is little or no market
data, which require the reporting entity to develop its own assumptions. The
estimated value of accounts payable and accrued expenses approximates their
carrying value due to their short-term nature. See Footnote 6 for Fair Value of
Derivatives related to Convertible Notes Payable at December 31, 2024 and 2023,
which are level 3 liabilities.
|
| Cash and Cash Equivalents | Cash and Cash
Equivalents. The Company considers all highly-liquid
investments with original maturities of 90 days or less at the time of
acquisition to be cash equivalents. The Company had no cash equivalents at
December 31, 2025 or 2024.
|
| Prepaid Expenses and Other Current Assets | Prepaid Expenses and
Other Current Assets. Prepaid expenses and other assets consist
principally of prepaid insurance, deposits related to the NAVIGATE trial and
deferred financing costs (see Note 10).
|
| Property and Equipment | Property and Equipment.
Property and equipment, including leasehold improvements, are stated at cost,
net of accumulated depreciation and amortization, and are depreciated or
amortized using the straight-line method over the estimated useful lives of the
related assets of generally three years for computers and office equipment,
five years for furniture and fixtures and the shorter of the useful life or
life of the lease for leasehold improvements.
|
| Security Deposit | Security Deposit.
At December 31, 2025 and 2024, the Company had a security deposit of $6,000 for
leased office space included in Prepaid Expenses and Other Current Assets.
|
| Long-Lived Assets | Long-Lived Assets.
The Company reviews all long-lived assets for impairment whenever events or
circumstances indicate the carrying amount of such assets may not be
recoverable. Recoverability of assets to be held or used is measured by
comparison of the carrying value of the asset to the future undiscounted net
cash flows expected to be generated by the asset. If such asset is considered
to be impaired, the impairment recognized is measured by the amount by which
the carrying value of the asset exceeds the discounted future cash flows
expected to be generated by the asset. There were no impairments of long-lived
assets at December 31, 2025 or 2024.
|
| Accrued Expenses | Accrued Expenses.
As part of the process of preparing our consolidated financial statements, we
are required to estimate accrued expenses. This process involves identifying
services that third parties have performed on our behalf and estimating the
level of service performed and the associated cost incurred on these services
as of each balance sheet date in our consolidated financial statements.
Examples of estimated accrued expenses include professional service fees, such
as those arising from the services of attorneys and accountants and accrued
payroll expenses. In connection with these service fees, our estimates are most
affected by our understanding of the status and timing of services provided
relative to the actual services incurred by the service providers. In the event
that we do not identify certain costs that have been incurred or we under- or
over-estimate the level of services or costs of such services, our reported
expenses for a reporting period could be understated or overstated. The date on
which certain services commence, the level of services performed on or before a
given date, and the cost of services are often subject to our judgment. We make
these judgments based upon the facts and circumstances known to us in
accordance with accounting principles generally accepted in the U.S.
|
| Warrants | Warrants.
The Company has issued common stock warrants in connection with the execution
of certain equity and debt financings. The fair value of warrants is determined
using the Black-Scholes option-pricing model using assumptions regarding
volatility of our common share price, remaining life of the warrant, and
risk-free interest rates at each period end. There were no warrant liabilities
as of December 31, 2025 or 2024.
|
| Research and Development Expenses | Research and Development
Expenses. Research and development expenses, including personnel costs,
allocated facility costs, lab supplies, outside services, contract laboratory
costs related to manufacturing drug product, clinical trials and preclinical
studies are charged to research and development expense as incurred. The
Company accounts for nonrefundable advance payments for goods and services that
will be used in future research and development activities as expense when the
service has been performed or when the goods have been received. Our current
NAVIGATE clinical trial is being supported by third-party contract research
organizations, or CROs, and other vendors. We accrue expenses for clinical
trial activities performed by CROs based upon the estimated amount of work
completed on each trial. For clinical trial expenses and related expenses
associated with the conduct of clinical trials, the significant factors used in
estimating accruals include the number of patients enrolled, the number of active
clinical sites, and the duration for which the patients have been enrolled in
the trial. We monitor patient enrollment levels and related activities to the
extent possible through internal reviews, review of contractual terms and
correspondence with CROs. We base our estimates on the best information
available at the time. We monitor patient enrollment levels and related
activities to the extent possible through discussions with CRO personnel and
based our estimates of clinical trial costs on the best information available
at the time. However, additional information may become available to us which
will allow us to make a more accurate estimate in future periods. In that
event, we may be required to record adjustments to research and development
expenses in future periods when the actual level of activity becomes more
certain.
|
| Income Taxes | Income Taxes.
The Company accounts for income taxes in accordance with the accounting rules
that requires an asset and liability approach to accounting for income taxes
based upon the future expected values of the related assets and liabilities.
Deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and
liabilities and for tax loss and credit carry forwards and are measured using
the expected tax rates estimated to be in effect when such basis differences
reverse. Valuation allowances are established, if necessary, to reduce the
deferred tax asset to the amount that will, more likely than not, be realized.
|
| Concentration of Credit Risk | Concentration of Credit
Risk. Financial instruments that subject the Company to credit risk
consist of cash and cash equivalents. The Company maintains cash and cash
equivalents and certificates of deposit with well-capitalized financial
institutions. At times, those amounts may exceed federally insured limits. The
Company has not experienced any losses in such accounts and believes it is not
exposed to significant credit risk beyond the normal credit risk associated
with commercial banking relationships. The Company has no other significant
concentrations of credit risk.
|
| Stock-Based Compensation | Stock-Based
Compensation. Stock-based compensation cost is measured at
the grant date based on the fair value of the award and is recognized as
expense over the service period, which generally represents the vesting period.
For awards that have performance-based vesting conditions the Company
recognizes the expense over the estimated period that the awards are expected
to be earned. The Company generally uses the Black-Scholes option-pricing model
to calculate the grant date fair value of stock options. The expense recognized
over the service period is required to include an estimate of the awards that
will be forfeited.
|
| Recent Accounting Standards | Recent Accounting
Pronouncements In December 2023, the FASB
issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax
Disclosures. The amendments in ASU 2023-09 address investor requests for
enhanced income tax information primarily through changes to disclosure
regarding rate reconciliation and income taxes paid both in the United States
and in foreign jurisdictions. This guidance is effective for fiscal years
beginning after December 15, 2024 on a prospective basis, with the option to
apply the standard retrospectively, and early adoption is permitted. The
Company adopted ASU 2023-09 in the year ended December 31, 2025, and reflected
the amendments on a prospective basis.
See note 14. In November 2024, the
FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive
Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of
Income Statement Expenses. The amendments in ASU 2024-03 address investor
requests for more detailed expense information and require additional
disaggregated disclosures in the notes to financial statements for certain
categories of expenses that are included on the face of the income statement.
This guidance is effective for fiscal years beginning after December 15, 2026,
and interim periods within fiscal years beginning after December 15, 2027, with
early adoption permitted. The Company is currently evaluating this guidance to
determine the impact it may have on its consolidated financial statements. In November 2024, the
FASB, issued ASUS 2024-04, Debt- Debt with Conversions and Other Option. ASU
2024-04 is intended to clarify requirements for determining whether certain
settlements of convertible debt instruments, including convertible debt
instruments with cash conversion features or convertible debt instruments that
are not currently convertible, should be accounted for as an induced
conversion. This ASU is effective for all entities for annual reporting periods
beginning after December 15, 2025, and interim reporting periods within those
annual reporting periods, with early adoption permitted. The Company is
currently evaluating the potential impact of this guidance on its disclosures.
|