Filed pursuant to Rule 424(b)(5)
Registration
No. 333-281999
PROSPECTUS SUPPLEMENT
(to Prospectus dated
September 23, 2024)
ACLARION, INC.
Up to $1,075,000
Common Stock
We have entered into an At-The-Market
Issuance Sales Agreement (the “Sales Agreement”) with Ascendiant Capital Markets, LLC (the “Sales Agent” or “ACM”)
relating to the sale of shares of our common stock, par value $0.00001 per share, offered by this prospectus supplement and the accompanying
prospectus. In accordance with the terms of the Sales Agreement, we may offer and sell shares of our common stock bearing an aggregate
offering price of up to $1,075,000 from time to time through or to ACM, acting as an agent or principal.
Our common stock is quoted
on the Nasdaq Capital Market under the symbol “ACON.” The last reported sale price of our common stock on the Nasdaq Capital
Market on September 23, 2024 was $0.1761 per share. Our warrants offered in connection with our initial public offering (the “IPO
Warrants”) are quoted on the Nasdaq Capital Market under the symbol “ACONW.” The last reported sale price of our IPO
Warrants on the Nasdaq Capital Market on September 23, 2024 was $0.038 per IPO Warrant.
As of the date of this prospectus
supplement, the aggregate market value of our outstanding shares of common stock held by non-affiliates, or public float, was determined
to be $3,247,370 based on 10,044,728 shares of common stock outstanding, of which 10,026,843 are held by non-affiliates, and the closing sale
price of our shares of common stock on the Nasdaq Capital Market of $0.3239 on July 26, 2024, which is within 60 days of the date of this
prospectus supplement. Upon any sale of shares of common stock under this prospectus supplement pursuant to General Instruction I.B.6
of Form S-3, in no event will the aggregate market value of securities sold by us or on our behalf pursuant to General Instruction I.B.6
of Form S-3 during the twelve calendar month period immediately prior to, and including, the date of any such sale exceed one-third of
the aggregate market value of our shares of common stock held by non-affiliates, calculated in accordance with General Instruction I.B.6
of Form S-3. During the prior 12 calendar month period that ends on, and includes, the date of this prospectus supplement (excluding this
offering), we have sold $0 of our securities pursuant to General Instruction I.B.6 of Form S-3.
Sales of our common stock,
if any, under this prospectus supplement will be made in sales deemed to be an “at the market offering” as defined in Rule
415(a)(4) promulgated under the Securities Act of 1933, as amended (the “Securities Act”). ACM is not required to sell any
specific amount of securities but will be acting as our sales agent using commercially reasonable efforts consistent with its normal trading
and sales practices, on mutually agreed terms between ACM and us. There is no arrangement for funds to be received in an escrow, trust
or similar arrangement.
The compensation to ACM for
sales of common stock sold pursuant to the Sales Agreement will be up to 3% of the gross proceeds of any shares of common stock sold under
the Sales Agreement. In connection with the sale of the common stock on our behalf, ACM will be deemed to be an “underwriter”
within the meaning of the Securities Act and the compensation of ACM will be deemed to be underwriting commissions or discounts. We have
also agreed to provide indemnification and contribution to ACM with respect to certain liabilities, including liabilities under the Securities
Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
We have received deficiency
letters from The Nasdaq Stock Market LLC (“Nasdaq”) that we are not in compliance with Nasdaq’s (i) minimum bid price
requirement of at least $1.00 per share (the “Bid Price Requirement”) and (ii) requirement to have at least $2,500,000 in
stockholders’ equity (the “Stockholders’ Equity Requirement”).
On April 8, 2024, we received
a written notice from Nasdaq indicating that we were not in compliance with the Bid Price Requirement set forth in Nasdaq Listing Rule
5550(a)(2) for continued listing on the Nasdaq Capital Market (the “Bid Price Notice”). The Bid Price Notice did not result
in the immediate delisting of our common stock from the Nasdaq Capital Market. The Bid Price Notice indicated that we would be provided
180 calendar days (or until October 7, 2024) in which to regain compliance. If at any time during this 180 calendar day period the bid
price of our common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Nasdaq staff (the “Staff”)
will provide us with written confirmation of compliance and the matter will be closed. In the event we do not regain compliance with Rule
5550(a)(2) prior to the expiration of the initial 180 calendar day period, and if it appears to the Staff that we will not be able to
cure the deficiency, or if we are not otherwise eligible, the Staff will provide us with written notification that our securities are
subject to delisting from the Nasdaq Capital Market. At that time, we may appeal the delisting determination to a Nasdaq hearings panel
(the “Panel”).
At the Company’s special
stockholders’ meeting on September 23, 2024, the Company’s stockholders approved a proposal to grant discretionary authority
to our board of directors to (i) amend our certificate of incorporation to combine outstanding shares of our common stock into a lesser
number of outstanding shares, or a “reverse stock split,” at a specific ratio within a range of one-for-five (1-for-5) to
a maximum of a one-for-fifty (1-for-50) split, with the exact ratio to be determined by our board of directors in its sole discretion;
and (ii) effect the reverse stock split, if at all, within one year of the date the proposal is approved by stockholders. The Company
intends to implement a reverse stock split in the near future in order to assist with the Company’s compliance with Nasdaq’s
Bid Price Requirement.
On August 22, 2024, we received
a written notice from Nasdaq indicating that we were not in compliance with the Stockholders’ Equity Requirement. In our quarterly
report on Form 10-Q for the period ended June 30, 2024, we reported stockholders’ equity of $1,642,177, and, as a result, did not
satisfy Listing Rule 5550(b)(1). Accordingly, the Staff had determined to delist our common stock from Nasdaq. Nasdaq’s letter provided
us until August 29, 2024 to request an appeal of this determination.
We have appealed these matters
to the Panel. The hearing request stays any suspension or delisting action pending the conclusion of the hearing process and the expiration
of any additional extension period granted by the Panel following the hearing. We have an appeal hearing scheduled on October 10, 2024
before the Panel to appeal the delisting notice from the Staff. While the appeal process is pending, the suspension of trading of our
common stock will be stayed. Our common stock will continue to trade on Nasdaq until the hearing process concludes and the Panel issues
a written decision.
We intend to take all reasonable
measures available to regain compliance under the Nasdaq Listing Rules and remain listed on Nasdaq. We are currently evaluating our available
options to resolve the deficiency and regain compliance with the Stockholders’ Equity Requirement.
Our receipt of these letters
from Nasdaq does not affect our business, operations or reporting requirements with the Securities and Exchange Commission.
We are an “emerging
growth company” and a “smaller reporting company” as defined under the federal securities laws and, as such, have elected
to be subject to reduced public company reporting requirements.
Investing in our securities
involves risks. You should review carefully the risks and uncertainties described under the heading “Risk Factors” beginning
on page S-11 of this prospectus supplement and under similar headings in the other documents that are incorporated by reference in this
prospectus supplement and the accompanying prospectus.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
supplement is truthful or complete. Any representation to the contrary is a criminal offense.
ASCENDIANT CAPITAL MARKETS, LLC
The date of this prospectus supplement is September
24, 2024.
PROSPECTUS SUPPLEMENT
TABLE OF CONTENTS
PROSPECTUS
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS SUPPLEMENT
This document consists of
two parts. The first part is this prospectus supplement, including the information incorporated by reference, which describes the specific
terms of this offering and other matters relating to us. The second part is the accompanying prospectus, which provides more general information
about us and the securities we may offer from time to time, some of which may not apply to this offering. This prospectus supplement and
the accompanying prospectus are part of the registration statement on Form S-3 (Registration No. 333-281999) that we filed with the Securities
and Exchange Commission (the “SEC”) using a “shelf” registration process. Under this “shelf” registration
process, we may, from time to time, sell or issue any of the combination of securities described in the accompanying prospectus in one
or more offerings with a maximum aggregate offering price of up to $50,000,000. Each time we sell securities, we provide a prospectus
supplement that contains specific information about the terms of that offering. A prospectus supplement may also add, update, or change
information contained in the accompanying prospectus. You should read both this prospectus supplement and the accompanying prospectus,
together with the documents incorporated by reference and the additional information described under the heading “Where You Can Find More Information” in this prospectus supplement and the accompanying prospectus before making an investment decision.
To the extent there is a conflict
between the information contained in this prospectus supplement and the accompanying prospectus, you should rely on the information in
this prospectus supplement. This prospectus supplement, the accompanying prospectus, and the documents we incorporate by reference herein
and therein include important information about us, this offering and our securities and other information you should know before investing.
If any statement in this prospectus supplement conflicts with any statement in a document that has been incorporated herein by reference,
then you should consider only the statement in the more recent document.
The distribution of this prospectus
supplement and the accompanying prospectus and the offering of our securities in certain jurisdictions may be restricted by law. We are
not, and ACM is not, making an offer of these securities in any jurisdiction where the offer is not permitted. Persons who come into possession
of this prospectus supplement and the accompanying prospectus should inform themselves about and observe any such restrictions. This prospectus
supplement and the accompanying prospectus do not constitute, and may not be used in connection with, an offer or solicitation by anyone
in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is
not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
You should rely only on the
information contained in or incorporated by reference in this prospectus supplement, the accompanying prospectus, and any free writing
prospectus prepared by or on behalf of us or to which we have referred you. We have not, and ACM has not, authorized any person to provide
you with any information or to make any representation other than as contained in this prospectus supplement or in the accompanying prospectus
and the information incorporated by reference herein and therein. We and ACM do not take any responsibility for, and can provide no assurance
as to the reliability of, any information that others may provide you. The information appearing or incorporated by reference in this
prospectus supplement and the accompanying prospectus is accurate only as of the date of this prospectus supplement or the date of the
document in which incorporated information appears unless otherwise noted in such documents. Our business, financial condition, results
of operations and prospects may have changed since those dates. You should assume that the information appearing in this prospectus supplement,
the accompanying prospectus, and the documents incorporated by reference herein and therein is accurate only as of the date of those respective
documents. Our business, financial condition, results of operations and prospects may have changed since those dates. You should carefully
read this entire prospectus supplement and the accompanying prospectus, including the information included and referred to under “Risk Factors” below, the information incorporated by reference in this prospectus supplement and in the accompanying prospectus,
and the financial statements and the other information incorporated by reference in the accompanying prospectus, before making an investment
decision.
Unless the context indicates
otherwise, as used in this prospectus supplement, unless the context otherwise requires, references to “we,” “us,”
“our,” “the Company” and “Aclarion” refer to Aclarion, Inc.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This prospectus supplement
and the accompanying prospectus and the documents incorporated by reference herein and therein may contain forward looking statements
that involve significant risks and uncertainties. All statements other than statements of historical fact contained in this prospectus
supplement and the accompanying prospectus and the documents incorporated by reference herein and therein, including statements regarding
future events, our future financial performance, business strategy, and plans and objectives of management for future operations, are
forward-looking statements. We have attempted to identify forward-looking statements by terminology including “anticipates,”
“believes,” “can,” “continue,” “could,” “estimates,” “expects,”
“intends,” “may,” “plans,” “potential,” “predicts,” “should,”
or “will” or the negative of these terms or other comparable terminology. Although we do not make forward looking statements
unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. These statements are only predictions and
involve known and unknown risks, uncertainties and other factors, including the risks outlined under “Risk Factors” or elsewhere
in this prospectus supplement and the documents incorporated by reference herein, which may cause our or our industry’s actual results,
levels of activity, performance or achievements expressed or implied by these forward-looking statements. Moreover, we operate in a highly
regulated, very competitive, and rapidly changing environment. New risks emerge from time to time and it is not possible for us to predict
all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors,
may cause our actual results to differ materially from those contained in any forward-looking statements.
We have based these forward-looking
statements largely on our current expectations and assumptions about future events and financial trends that we believe may affect our
financial condition, results of operations, business strategy, short term and long term business operations, and financial needs. These
forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from
those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited
to, those discussed in this prospectus supplement, and in particular, the risks discussed below and under the heading “Risk Factors”
and those discussed in other documents we file with the SEC which are incorporated by reference herein. This prospectus supplement and
the accompanying prospectus should be read in conjunction with the consolidated financial statements for the fiscal years ended December 31,
2023 and 2022 and related notes, as well as our annual and quarterly financial statements filed thereafter, each of which are or will
be incorporated by reference herein.
We undertake no obligation
to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. In light of
the significant risks, uncertainties and assumptions that accompany forward-looking statements, the forward-looking events and circumstances
discussed in this prospectus supplement and the accompanying prospectus may not occur and actual results could differ materially and adversely
from those anticipated or implied in the forward-looking statement.
You should not place undue
reliance on any forward-looking statement, each of which applies only as of the date of this prospectus supplement. Except as required
by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this prospectus
supplement to conform our statements to actual results or changed expectations.
Any forward-looking statement
you read in this prospectus supplement or accompanying prospectus or any document incorporated by reference reflects our current views
with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, operating
results, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements because such statements
speak only as to the date when made. We assume no obligation to publicly update or revise these forward-looking statements for any reason,
or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new
information becomes available in the future, except as otherwise required by applicable law. All subsequent forward-looking statements
attributable to us or to any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained
or referred to in this section. You are advised, however, to consult any further disclosures we make on related subjects in our reports
on Forms 10-Q, 8-K and 10-K filed with the SEC. You should understand that it is not possible to predict or identify all risk factors.
Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights
selected information about us and this offering appearing in this prospectus supplement, the accompanying prospectus and the documents
incorporated or deemed incorporated by reference herein and therein. This summary may not contain all of the information that you should
consider before making an investment decision. You should read carefully the more detailed information included or referred to under the
heading “Risk Factors” of this prospectus supplement and the other information included in this prospectus supplement, the
accompanying prospectus, the documents incorporated or deemed incorporated by reference herein and therein, including our Annual Report
on Form 10-K for the year ended December 31, 2023, before deciding to invest in our common stock.
Overview
We are a healthcare technology
company that leverages Magnetic Resonance Spectroscopy (“MRS”), and a proprietary biomarker to optimize clinical treatments.
Our technology addresses the $134.5B U.S. low back and neck pain market, which according to a 2020 JAMA (Journal of the American Medical
Association) article is now the most costly healthcare condition in the United States. We are currently utilizing Artificial Intelligence
(“AI”) to assist in quality control processes that flag spectroscopy data indicative of a poor MRS study. The use of AI in
this application is early in its development cycle and is expected to evolve with further research and development. We are also researching
the application of AI and machine learning platforms to analyze both the raw spectroscopy data and the post-processed signal to evaluate
whether AI platforms can more efficiently and more effectively associate MRS data with clinical outcomes. The use of AI in this application
is aspirational and we intend this type of AI research and development to be an ongoing process applied not only to the various treatment
paths associated with back pain, such as conservative therapies, regenerative and cell therapies and surgical intervention, but also to
potentially expand into other clinical explorations involving the diagnosis of brain, breast and prostate tumors.
We are addressing this market
by initially focusing on improving the outcomes of surgical interventions to treat low back pain and have limited sales to date. In this
initial application, our technology is intended to assist surgeons in determining the optimal surgical procedure for a patient undergoing
surgery for pain isolated to their lumbar spine (the “lumbar spine” is comprised of the five (5) lower vertebrae, L-1 to L-5).
We then intend to add additional applications of our technology targeting the management of large segments of low back pain patients from
the point of initial Magnetic Resonance Imaging (“MRI”) through to episode resolution. We believe this will expand the use
of our technology to low back pain patients undergoing conservative therapies such as physical therapy or biologic and cell therapies
aimed at regenerating the lumbar discs. We plan to expand the application of our technology beyond the lumbar spine to address neck pain
populations in addition to low back pain populations. To expand the application of our technology for use in neck pain populations, we
will need to overcome technical changes associated with securing adequate MRS data from the cervical disc, which is significantly smaller
than the lumbar disc, and there can be no assurance we will be able to overcome these challenges.
The core technology we employ
is MRS. The patient experience when undergoing an MRS exam is exactly like that of a standard MRI, with the exception of an additional
3-5 minutes for each disc undergoing a spectroscopy exam. Whereas a standard MRI produces a signal that is converted into anatomical images,
an MRS produces a signal that is converted into a waveform that identifies the chemical composition of tissues. Just like with standard
MRI’s, the data from spectroscopy is useless without technologies that can process the data. We have developed proprietary signal
processing software that transforms spectroscopy data into clear biomarkers. These biomarkers, which are exclusively licensed from the
Regents of University of California, San Francisco, are the key data inputs for our proprietary algorithms that, when applied, determine
if an intervertebral disc is consistent with pain. Our patent portfolio includes 22 U.S. Patents, 17 Foreign Patents, 6 pending U.S. patent
applications, and 7 pending Foreign patent applications, including patents and patent applications exclusively licensed from Regents of
the University of California.
We believe one of the biggest
issues driving the cost of treating low back and neck pain patients to the top of the list for healthcare spending is that there is no
objective, cost effective and noninvasive diagnostics to reliably identify the source of a patient’s pain. We believe the poor
surgical outcomes for Discogenic Low Back Pain (“DLBP”) are largely due to difficulties in reliably and accurately diagnosing
the specific spinal discs that are causing pain. The current primary diagnostic standard is the MRI, which is useful for showing abnormal
structures and tissue dehydration, but, we believe, cannot reliably identify specific discs that are causing pain. To diagnose specific
discs that are causing pain, a needle-based Provocation Discogram test (“PD Test”) has been developed. PD Tests have been
shown to be highly accurate when performed properly. However, a PD Test is invasive, subjective and unpleasant for the patient as the
patient needs to be awake in order to tell the physician if the pain the physician is purposefully causing in the disc is the same as
the pain the patient feels when they are experiencing a back pain episode. In addition, recent evidence has shown that the action of
inserting a needle into a normal disc during a discogram procedure leads to an increased rate of degeneration in these previously normal
discs. Based on the limitations and concerns of the PD Test, we believe there is a significant need for an objective, accurate, personalized
and noninvasive diagnostic test that can reliably determine if an individual disc is a pain generator. By providing physicians information
about whether a disc has the chemical and structural makeup consistent with pain or not, we believe the treatment plan for each patient
will lead to more efficient and targeted care that, will in turn, result in lower costs and healthier patient outcomes.
We have taken the first steps
to demonstrate the potential use of our technology in helping to improve the outcome of surgical intervention for DLBP patients by publishing
a clinical study (Gornet et al) in the European Spine Journal in April 2019. The study illustrated that when all discs identified as consistent
with pain by our technology were included in a surgical treatment, 97% of the patients met the criteria for “clinical improvement”.
This compared to only 54% of patients meeting the criteria for clinical improvement if a disc that our technology identified as consistent
with pain, was not included in the surgical treatment.
The results of this clinical
study led the CPT committee to approve four Category III codes for our technology in January 2021. The NIH also included our technology
as one of the handful of technologies selected to participate in their $150 million Back Pain Consortium (BACPAC) Research Program, an
NIH translational, patient-centered effort to address the need for effective and personalized therapies for chronic low back pain.
In April 2023, we have advanced
the evidence of our technology with a peer-reviewed journal article detailing the Gornet 2-year outcomes, published in the European Spine
Journal. The 2-year outcomes were durable with 1-year outcomes previously published in 2019. At 2-years follow-up, 85% of patients improved
when disc(s) identified as consistent with pain by our technology were included in a surgical treatment, compared to only 63% of patients
when disc(s) identified as consistent with pain were not treated or disc(s) identified as consistent without pain were treated.
Emerging Growth Company under the JOBS
Act
As a company with less than
$1.235 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” under the Jumpstart Our
Business Startups Act of 2012, or the JOBS Act. As an emerging growth company, we have elected to take advantage of reduced reporting
requirements and are relieved of certain other significant requirements that are otherwise generally applicable to public companies. As
an emerging growth company:
| · | We may present only two years of audited financial statements and only two years of related Management’s
Discussion and Analysis of Financial Condition and Results of Operations; |
| · | We are exempt from the requirement to obtain an attestation and report from our auditors on whether we
maintained effective internal control over financial reporting under the Sarbanes-Oxley Act; |
| · | We are permitted to provide less extensive disclosure about our executive compensation arrangements; and |
| · | We are not required to give our stockholders non-binding advisory votes on executive compensation or golden
parachute arrangements. |
We may take advantage of these
provisions until December 31, 2026 (the last day of the fiscal year following the fifth anniversary of our initial public offering) if
we continue to be an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual
revenue, have more than $700 million in market value of our shares held by non-affiliates or issue more than $1.0 billion of non-convertible
debt over a three-year period. We may choose to take advantage of some but not all of these reduced burdens. We have elected to provide
two years of audited financial statements. Additionally, we have elected to take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards
that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth
company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act. Accordingly, the information contained herein may be different from the information you receive from other public companies that
are not emerging growth companies.
We are also a “smaller
reporting company” meaning that the market value of our stock held by non-affiliates is less than $700 million and our annual revenue
was less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either
(i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million
during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If
we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain
disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose
to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar
to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Corporate Information
We were formed under the
name Nocimed, LLC, a limited liability company in January 2008, under the laws of the State of Delaware. In February 2015, Nocimed, LLC
was converted into Nocimed, Inc. a Delaware corporation. On December 3, 2021, we changed our name to Aclarion, Inc. Our principal executive
offices are located at 8181 Arista Place, Suite 100, Broomfield, Colorado 80021. Our main telephone number is (833) 275-2266. Our internet
website is www.aclarion.com. The information contained in, or that can be accessed through, our website is not incorporated by reference
and is not a part of this prospectus supplement.
THE OFFERING
Common stock offered by us |
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Shares of common stock having an aggregate offering price up to $1,075,000. |
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Common stock to be outstanding after this offering |
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Up to 16,149,214 shares, assuming sales of 6,104,486 shares of our common
stock in this offering at an offering price of $0.1761 per share, which was the last reported sale price of our common stock on the Nasdaq
Capital Market on September 23, 2024. The actual number of shares issued will vary depending on the sales price under this offering. |
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Plan of Distribution |
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“At the market offering” that may be made from time to time through or to ACM, as our sales agent or principal. See “Plan of Distribution” in this prospectus supplement. |
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Use of Proceeds |
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We intend to use the net proceeds from this offering to fund market
development and clinical evidence, product development and quality, and general and administration support, and other general corporate
purposes. See “Use of Proceeds” for further information. |
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Risk Factors |
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Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page S-11 of this prospectus supplement and in our accompanying prospectus and the Annual Report on Form 10-K incorporated by reference herein for a discussion of factors you should consider carefully before deciding to invest in our shares of our common stock. |
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Nasdaq Capital Market Symbols |
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Common Stock “ACON”. IPO Warrants
“ACONW”. |
The number of shares outstanding
after this offering is based on 10,044,728 shares of our common stock outstanding as of September 23, 2024, and excludes as of such date:
| · | 136,123 shares of our common stock issuable upon the exercise of outstanding stock options granted under
our 2015 Stock Plan, |
| · | 33,334 shares of our common stock issuable upon the exercise of outstanding stock options granted under
our 2022 Stock Plan, |
| · | 10,350,000 shares of our common stock issuable upon the exercise of our outstanding
February 2024 public offering warrants, |
| · | 130,093 shares of our common stock reserved for future grant under our 2022 Stock Plan, |
| · | 155,610 shares of common stock issuable upon the exercise of our outstanding IPO Warrants, |
| · | 551,815 shares of common stock issuable upon the exercise of outstanding privately placed warrants, |
| · | 10,825 shares of common stock reserved for issuance upon the exercise of an outstanding IPO underwriter
representative common stock warrant, |
| · | approximately 3,974,580 shares of common stock which may be issued upon conversion of our outstanding Series B Convertible Preferred
Stock at the current conversion price of $0.234, and |
| · | up to $6.8 million worth of common stock that may be sold in the future
by us to White Lion from time to time pursuant to the Equity Line Purchase Agreement. |
RISK FACTORS
An investment in our shares
of common stock involves a high degree of risk. Before investing in our shares of common stock, you should carefully consider the risk
factors set forth below and those described under “Risk Factors” in the documents incorporated by reference herein,
including in our most recent Annual Report on Form 10-K filed with the SEC, together with the other information included in this prospectus
supplement and incorporated by reference herein from our filings with the SEC. If any of such risks or uncertainties occurs, our business,
financial condition, and operating results could be materially and adversely affected. Additional risks and uncertainties not currently
known to us or that we currently deem immaterial also may materially and adversely affect our business operations. As a result, the trading
price of our common stock could decline and you could lose all or a part of your investment.
Risks Related to Our Financial Position and
Need for Additional Capital
Our auditors have expressed substantial
doubt about our ability to continue as a going concern, which may hinder our ability to obtain further financing.
Our past working capital deficiency,
stockholders’ deficit and recurring losses from operations raised substantial doubt about our ability to continue as a going concern.
As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements
for the year ended December 31, 2023, with respect to this uncertainty. As of June 30, 2024, we had cash of approximately $1.2 million.
Subsequent to June 30, 2024, we raised capital using an offering pursuant to Tier 2 of Regulation A promulgated under the Securities Act.
We believe our current cash will fund our operating expenses and capital expenditure requirements into the fourth quarter of 2024. If
we are unable to raise capital when needed or on acceptable terms, we would be forced to delay, reduce, or eliminate our technology development
and commercialization efforts.
We are not currently in compliance
with the minimum bid price requirement and minimum stockholders’ equity rule of the Nasdaq Capital Market and a delisting
could limit the liquidity of our stock, increase its volatility and hinder our ability to raise capital.
We have received deficiency letters from The Nasdaq
Stock Market LLC (“Nasdaq”) that we are not in compliance with Nasdaq’s (i) minimum bid price requirement of at least
$1.00 per share (the “Bid Price Requirement”) and (ii) the requirement to have at least $2,500,000 in stockholders’
equity (the “Stockholders’ Equity Requirement”).
On April 8, 2024, we received a written notice
(the “Bid Price Notice”) from Nasdaq indicating that we were not in compliance with the Bid Price Requirement set forth in
Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market. The Bid Price Notice did not result in the immediate
delisting of our common stock from the Nasdaq Capital Market.
The Notice indicated that we would be provided
180 calendar days (or until October 7, 2024) in which to regain compliance. If at any time during this 180 calendar day period the bid
price of our common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Nasdaq staff (the “Staff”)
will provide us with a written confirmation of compliance and the matter will be closed. In the event we do not regain compliance with
Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, and if it appears to the Staff that we will not be able
to cure the deficiency, or if we are not otherwise eligible, the Staff will provide us with written notification that our securities are
subject to delisting from the Nasdaq Capital Market. At that time, we may appeal the delisting determination to a Nasdaq hearings panel
(the “Panel”).
At the Company’s special
stockholders’ meeting on September 23, 2024, the Company’s stockholders approved a proposal to grant discretionary authority
to our board of directors to (i) amend our certificate of incorporation to combine outstanding shares of our common stock into a lesser
number of outstanding shares, or a “reverse stock split,” at a specific ratio within a range of one-for-five (1-for-5) to
a maximum of a one-for-fifty (1-for-50) split, with the exact ratio to be determined by our board of directors in its sole discretion;
and (ii) effect the reverse stock split, if at all, within one year of the date the proposal is approved by stockholders. The Company
intends to implement a reverse stock split in the near future in order to assist with the Company’s compliance with Nasdaq’s
Bid Price Requirement.
On August 22, 2024, we received a letter from
Nasdaq indicating that we were not in compliance with the Stockholders’ Equity Requirement. In our quarterly report on Form 10-Q
for the period ended June 30, 2024, we reported stockholders’ equity of $1,642,177, and, as a result, did not satisfy Listing Rule
5550(b)(1). Accordingly, the Staff had determined to delist our common stock from Nasdaq. Nasdaq’s letter provided us until August
29, 2024 to request an appeal of this determination.
We have appealed these matters to the Panel. The
hearing request stays any suspension or delisting action pending the conclusion of the hearing process and the expiration of any additional
extension period granted by the Panel following the hearing. We have an appeal hearing scheduled on October 10, 2024, before the Panel
to appeal the delisting notice from the Staff. While the appeal process is pending, the suspension of trading of our common stock will
be stayed. Our common stock will continue to trade on Nasdaq until the hearing process concludes and the Panel issues a written decision.
We intend to take all reasonable measures available
to regain compliance under the Nasdaq Listing Rules and remain listed on Nasdaq. We are currently evaluating our available options to
resolve the deficiency and regain compliance with the Stockholders’ Equity Requirement.
If our common stock is delisted by Nasdaq, our
common stock may be eligible for quotation on an over-the-counter quotation system or on the pink sheets. Upon any such delisting, our
common stock would become subject to the regulations of the SEC relating to the market for penny stocks. A penny stock is any equity security
not traded on a national securities exchange that has a market price of less than $5.00 per share. The regulations applicable to penny
stocks may severely affect the market liquidity for our common stock and could limit the ability of stockholders to sell securities in
the secondary market. In such a case, an investor may find it more difficult to dispose of or obtain accurate quotations as to the market
value of our common stock, and there can be no assurance that our common stock will be eligible for trading or quotation on any alternative
exchanges or markets.
Delisting from Nasdaq could adversely affect our
ability to raise additional financing through public or private sales of equity securities, would significantly affect the ability of
investors to trade our securities and would negatively affect the value and liquidity of our common stock. Delisting could also have other
negative results, including the potential loss of confidence by employees, the loss of institutional investor interest and fewer business
development opportunities.
Risks Related to this Offering
You may experience immediate and substantial
dilution in the net tangible book value per share of the common stock you purchase.
Since the price per share of our common stock being offered may be
higher than the net tangible book value per share of our common stock prior to this offering, you will suffer immediate dilution in the
net tangible book value of the shares of common stock you purchase in this offering. As of June 30, 2024, our historical net tangible
book value was approximately $0.4 million, or $0.049 per share. Assuming that an aggregate of 6,104,486 shares are sold at a price of $0.1761
per share, the last reported sale price of our common stock on the Nasdaq Capital Market on September 23, 2024, for aggregate gross proceeds
of approximately $1,075,000 in this offering, and after deducting commissions and estimated aggregate offering expenses payable by us,
you will suffer immediate dilution of $0.002 per share, representing the difference between our pro forma as adjusted net tangible book
value per share as of June 30, 2024 and the assumed offering price.
Please see the section entitled “Dilution” on page S-14 of this prospectus supplement for a more detailed illustration
of the dilution you would incur if you participate in this offering.
We will have broad discretion in using the
proceeds of this offering, and we may not effectively spend the proceeds.
We will use the net proceeds
of this offering to fund market development and clinical evidence, product development and quality, and general and administration support, and other general corporate purposes. We have not allocated any specific portion of the net proceeds to any
particular purpose, and our management will have the discretion to allocate the proceeds as it determines and could use them for purposes
other than those contemplated at the time of the offering. We will have significant flexibility and broad discretion in applying the
net proceeds of this offering, and we may not apply these proceeds effectively, and you will not have the opportunity as part of your
investment decision to assess whether our management is using the proceeds appropriately. The failure by our management to apply these
funds effectively could result in financial losses that could have a material adverse effect on our business and cause the price of our
common stock to decline. Pending their use, we may invest the net proceeds in short-term, investment-grade, interest-bearing securities.
These investments may not yield a favorable return to our stockholders. Please see the section entitled “Use
of Proceeds” on page S-12 of this prospectus supplement for further information.
The actual number of shares we will issue
under the Sales Agreement, at any one time or in total, is uncertain.
Subject to certain limitations
in the Sales Agreement and compliance with applicable law, we have the discretion to deliver instructions to ACM to sell shares of our
common stock at any time throughout the term of the Sales Agreement. The number of shares that are sold through ACM after our instruction
will fluctuate based on a number of factors, including the market price of our common stock during the sales period, the limits we set
with ACM in any instruction to sell shares, and the demand for our common stock during the sales period. Because the price per share of
each share sold will fluctuate during this offering, it is not currently possible to predict the number of shares that will be sold or
the gross proceeds to be raised in connection with those sales.
The common stock offered hereby will be sold in “at the
market offerings,” and investors who buy shares at different times will likely pay different prices.
Investors who purchase shares
in this offering at different times will likely pay different prices, and so may experience different levels of dilution and different
outcomes in their investment results. We will have discretion, subject to market demand, to vary the timing, prices, and numbers of shares
sold in this offering. Investors may experience a decline in the value of the shares they purchase in this offering as a result of sales
made at prices lower than the prices they paid.
A substantial number of shares may be sold
in the market following this offering, which may depress the market price for our common stock.
Sales of a substantial number
of shares of our common stock in the public market following this offering could cause the market price of our common stock to decline.
A substantial majority of the outstanding shares of our common stock are, and all of the shares sold in this offering upon issuance will
be, freely tradable without restriction or further registration under the Securities Act, unless these shares are owned or purchased by
“affiliates” as that term is defined in Rule 144 under the Securities Act. In addition, we have also registered the shares
of common stock that we may issue under our equity incentive plans. As a result, these shares can be freely sold in the public market
upon issuance, subject to restrictions under securities laws.
Our share price may be subject to substantial
volatility, and stockholders may lose all or a substantial part of their investment.
Our shares currently trade
on Nasdaq. Trading volume historically has been low and sporadic. As a result, the market price for our shares may not necessarily be
a reliable indicator of our fair market value. The price at which our shares trade may fluctuate or decline substantially as a result
of a variety of factors, some of which are beyond our control or are related in complex ways, including:
| · | Actual or anticipated fluctuations in our financial condition and results of operations; |
| · | Variance in our financial performance from expectations of securities analysts or investors; |
| · | Changes in the coverage decisions, reimbursement or pricing of our technology; |
| · | Changes in our projected operating and financial results; |
| · | Changes in laws or regulations applicable to our technology; |
| · | Announcements by us or our competitors of significant business developments, acquisitions, or new offerings; |
| · | Publicity associated with issues related to our technology; |
| · | Our involvement in regulatory investigations or litigation; |
| · | Future sales of our common stock or other securities, by us or our stockholders, as well as the anticipation
of lock-up releases; |
| · | Changes in senior management or key personnel; |
| · | The trading volume of our common stock; |
| · | Changes in the anticipated future size and growth rate of our market; |
| · | General economic, regulatory, and market conditions, including economic recessions or slowdowns; |
| · | Changes in the structure of healthcare payment systems; and |
| · | Developments or disputes concerning our intellectual property or other proprietary rights. |
Broad market and industry
fluctuations, as well as general economic, political, regulatory, and market conditions, may negatively impact the market price of our
common stock. In addition, given the relatively small expected public float of shares of our common stock on the Nasdaq Capital Market,
the trading market for our shares may be subject to increased volatility. In the past, securities class action litigation has often been
brought against a company following a decline in the market price of its securities. This risk is especially relevant for us, because
medical device companies have experienced significant stock price volatility in recent years. If we face such litigation, it could result
in substantial costs and a diversion of management’s attention and resources, which could harm our reputation and our business.
We do not currently intend to pay dividends
on our common stock, and, consequently, investors’ ability to achieve a return on their investment will depend on appreciation in
the price of our common stock.
We have never declared or
paid cash dividends on our capital stock. We currently intend to retain future earnings, if any, to finance the expansion of our business.
As a result, we do not anticipate paying any cash dividends in the foreseeable future. Our payment of any future dividends will be at
the discretion of our Board of Directors after taking into account various factors, including but not limited to our financial condition,
operating results, cash needs, growth plans and the terms of any credit agreements that we may be a party to at the time. Accordingly,
investors seeking cash dividends should not purchase our shares. There is no guarantee that our common stock will appreciate or even maintain
the price at which investors have purchased it.
USE OF PROCEEDS
We may issue and sell shares
of our common stock having aggregate sales proceeds of up to $1,075,000 from time to time. Because there is no minimum offering
amount required as a condition to close this offering, the actual total public offering amount, commissions and proceeds to us, if any,
are not determinable at this time.
We intend to use the net proceeds
from this offering to fund market development and clinical evidence, product development and quality, and general and administration support, and other general corporate purposes.
The foregoing represents our
current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management,
however, will have significant flexibility and discretion to apply the net proceeds of this offering. If an unforeseen event occurs or
business conditions change, we may use the proceeds of this offering differently than as described in this prospectus supplement. Unforeseen
events or changed business conditions may result in application of the proceeds of this offering in a manner other than as described in
this prospectus supplement.
To the extent that the net
proceeds we receive from this offering are not immediately applied for the above purposes, we plan to invest the net proceeds in bank
deposits.
DIVIDEND POLICY
We have never paid or declared
any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our common stock in the foreseeable future.
We intend to retain all available funds and any future earnings to fund the development and expansion of our business. Any future determination
to pay dividends will be at the discretion of our board of directors and will depend upon a number of factors, including our results of
operations, financial condition, future prospects, contractual restrictions, restrictions imposed by applicable law and other factors
our board of directors deems relevant. Our future ability to pay cash dividends on our stock may also be limited by the terms of any future
debt or preferred securities or future credit facility.
DILUTION
If you invest in our shares
of common stock in this offering, your ownership interest will be diluted to the extent of the difference between the public offering
price per share of our common stock in this offering and the as adjusted net tangible book value per share of our common stock immediately
after the closing of this offering.
As of June 30, 2024, our historical
net tangible book value was $0.4 million, or $0.049 per share of common stock. Our historical net tangible book value per share is equal
to our total tangible assets, less total liabilities, divided by the number of outstanding shares of common stock as of June 30, 2024.
After giving effect to the
issuance of (i) 1,825,000 shares of common stock under that certain Subscription Agreement, dated August 27, 2024, with certain accredited
investors and (ii) the exchange of $930,052 of outstanding debt for shares of newly issued Series B Convertible Preferred Stock on August
14, 2024, our pro forma net tangible book value as of June 30, 2024, would have been approximately $1.9 million, or $0.19 per share of
common stock.
After giving effect to the
assumed sale of shares of our common stock in the aggregate amount of $1,075,000 in this offering at an assumed offering price of $0.1761
per share, the last reported sale price of our common stock on the Nasdaq Capital Market on September 23, 2024, and after deducting commissions
and estimated offering expenses payable by us, our as adjusted net tangible book value as of June 30, 2024 would have been $2.8 million,
or $0.174 per share of common stock. This amount represents an immediate increase in as adjusted net tangible book value of $0.125 per
share to our existing stockholders and an immediate dilution of $0.002 per share to investors participating in this offering. We determine
dilution per share to investors participating in this offering by subtracting as adjusted net tangible book value per share after this
offering from the assumed public offering price per share paid by investors participating in this offering.
Public offering price per share |
|
$ |
0.176 |
|
Net tangible book value per share as of June 30, 2024 |
|
$ |
0.049 |
|
Increase in net tangible book value per share attributable to the Pro Forma Adjustments |
|
$ |
0.137 |
|
Pro forma net tangible book value per share |
|
$ |
0.186 |
|
Increase (decrease) in net tangible book value per share attributable to this offering |
|
$ |
(0.012 |
) |
Pro forma net tangible book value per share after giving effect to this offering |
|
$ |
0.174 |
|
Net dilution per share to new investors in this offering |
|
$ |
0.002 |
|
To the extent that outstanding
options, restricted stock units or warrants are exercised or shares of preferred stock are converted, or any additional options, restricted
stock units, warrants or other equity awards are granted and exercised or become vested or other issuances of shares of our common stock
are made, you will experience further dilution. In addition, we may choose to raise additional capital due to market conditions or strategic
considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital
is raised through the sale of common stock or securities exercisable, convertible or exchangeable into common stock, such issuance could
result in further dilution to our stockholders.
The above discussion and table
are based on 8,210,671 shares of our common stock outstanding as of June 30, 2024, and excludes the following items (which are calculated
as of September 23, 2024):
| · | 136,123 shares of our common stock issuable upon the exercise of outstanding stock options granted under
our 2015 Stock Plan, |
| · | 33,334 shares of our common stock issuable upon the exercise of outstanding stock options granted under
our 2022 Stock Plan, |
| · | 10,350,000 shares of our common stock issuable upon the issuable upon the exercise of our outstanding
February 2024 public offering warrants, |
| · | 130,093 shares of our common stock reserved for future grant under our 2022 Stock Plan, |
| · | 155,610 shares of common stock issuable upon the exercise of our outstanding IPO Warrants, |
| · | 551,815 shares of common stock issuable upon the exercise of outstanding privately placed warrants, |
| · | 10,825 shares of common stock reserved for issuance upon the exercise of an outstanding IPO underwriter
representative common stock warrant, |
| · | approximately 3,974,580 shares of common stock which may be issued upon conversion of our outstanding
Series B Convertible Preferred Stock at the current conversion price of $0.234, and |
| · | up to $6.8 million worth of common stock that may be sold in the future
by us to White Lion from time to time pursuant to the Equity Line Purchase Agreement. |
DESCRIPTION OF CAPITAL STOCK
The following description
is intended as a summary of our certificate of incorporation (which we refer to as our “charter”) and our bylaws, each of
which is filed as an exhibit to the registration statement of which this prospectus supplement forms a part, and to the applicable provisions
of the Delaware General Corporation Law. Because the following is only a summary, it does not contain all of the information that may
be important to you. For a complete description, you should refer to our charter and bylaws.
We have two classes of securities
registered under Section 12 of the Exchange Act. Our shares of common stock are listed on The Nasdaq Stock Market under the trading symbol
“ACON.” Our IPO Warrants are listed on the Nasdaq Stock Market under the trading symbol “ACONW.”
Authorized Capital Stock
Our authorized capital stock consists of 200,000,000
shares of common stock, par value $0.00001 per share, and 20,000,000 shares of preferred stock, par value $0.00001 per share.
Common Stock
The holders of our common stock are entitled to
one vote for each share held on all matters submitted to a vote of the stockholders. The holders of our common stock do not have any cumulative
voting rights. Holders of our common stock are entitled to receive ratably any dividends declared by our board of directors out of funds
legally available for that purpose, subject to any preferential dividend rights of any outstanding preferred stock. Our common stock has
no preemptive rights, conversion rights or other subscription rights or redemption or sinking fund provisions.
In the event of our liquidation, dissolution or
winding up, holders of our common stock will be entitled to share ratably in all assets remaining after payment of all debts and other
liabilities and any liquidation preference of any outstanding preferred stock. Each outstanding share of common stock is duly and validly
issued, fully paid and non-assessable.
Preferred Stock
Our board will have the authority, without further
action by our stockholders, to issue up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences,
privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting
rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of,
such series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely affect
the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon our
liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control
of our company or other corporate action.
We issued 930 shares of newly issued Series B
convertible preferred stock on August 14, 2024. The Series B Preferred Stock is convertible into common stock at an initial conversion
price of $0.234 per share of common stock.
Anti-Takeover Effects of Delaware Law and Provisions
of Our Charter and Our Bylaws
Certain provisions of the DGCL and of our charter
and our bylaws could have the effect of delaying, deferring or preventing another party from acquiring control of us and encouraging persons
considering unsolicited tender offers or other unilateral takeover proposals to negotiate with our board of directors rather than pursue
non-negotiated takeover attempts. These provisions include the items described below.
Delaware Anti-Takeover
Statute
We are subject to the
provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business
combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes
an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination
between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:
| · | before the stockholder became interested, our Board approved either the business combination or the transaction
which resulted in the stockholder becoming an interested stockholder; |
| · | upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder,
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced,
excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee
stock plans, in some instances, but not the outstanding voting stock owned by the interested stockholder; or |
| · | at or after the time the stockholder became interested, the business combination was approved by our Board
and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting
stock which is not owned by the interested stockholder. |
Section 203 defines
a business combination to include:
| · | any merger or consolidation involving the corporation and the interested stockholder; |
| · | any sale, transfer, lease, pledge, exchange, mortgage or other disposition involving the interested stockholder
of 10% or more of the assets of the corporation; |
| · | subject to exceptions, any transaction that results in the issuance or transfer by the corporation of
any stock of the corporation to the interested stockholder; or |
| · | the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or
other financial benefits provided by or through the corporation. |
In general, Section 203
defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation
and any entity or person affiliated with or controlling or controlled by the entity or person.
Board Composition
and Filling Vacancies
Our charter provides
that stockholders may remove directors only for cause and only by the affirmative vote of the holders of at least two-thirds of our outstanding
common stock. Our charter and bylaws authorize only our board of directors to fill vacant directorships, including newly created seats.
In addition, the number of directors constituting our board of directors may only be set by a resolution adopted by a majority vote of
our entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then
gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change
the composition of our board of directors but promotes continuity of management.
No Written Consent
of Stockholders
Our charter and bylaws
provide that all stockholder actions are required to be taken by a vote of the stockholders at an annual or special meeting, and that
stockholders may not take any action by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take
stockholder actions and would prevent the amendment of our bylaws or removal of directors by our stockholders without holding a meeting
of stockholders.
Meetings of Stockholders
Our charter and bylaws
provide that only a majority of the members of our Board then in office, our Executive Chairman or our Chief Executive Officer may call
special meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon
at a special meeting of stockholders.
Advance Notice Requirements
Our bylaws provide advance
notice procedures for stockholders seeking to bring matters before our annual meeting of stockholders or to nominate candidates for election
as directors at our annual meeting of stockholders. Our bylaws also specify certain requirements regarding the form and content of a stockholder’s
notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making
nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions
might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate
of directors or otherwise attempting to obtain control of our company.
Amendment to Our Charter
and Bylaws
The DGCL, provides, generally,
that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate
of incorporation or bylaws, unless a corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater
percentage. Our bylaws may be amended or repealed by a majority vote of our board of directors or the affirmative vote of the holders
of at least two-thirds of the votes that all our stockholders would be entitled to cast in an annual election of directors. In addition,
the affirmative vote of the holders of at least two-thirds of the votes that all our stockholders would be entitled to cast in an election
of directors is required to amend or repeal or to adopt certain provisions of our charter.
Undesignated Preferred
Stock
Our charter provides for 20,000,000 authorized shares of preferred
stock. The existence of authorized but unissued shares of preferred stock may enable our board to discourage an attempt to obtain control
of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations,
our board of directors were to determine that a takeover proposal is not in the best interests of our stockholders, our board could cause
shares of convertible preferred stock to be issued without stockholder approval in one or more private offerings or other transactions
that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. In this regard, our
charter grants our board broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The
issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares
of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have
the effect of delaying, deterring or preventing a change in control of us.
Choice of Forum
Our charter provides
that the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings: any derivative
action or proceeding brought on behalf of the Company, any action asserting a claim of breach of a fiduciary duty owed by any director,
officer or other employee of the Company to the Company or the Company’s stockholders, any action asserting a claim against the
Company arising pursuant to any provision of the DGCL or the Company’s certificate of incorporation or bylaws, or any action asserting
a claim against the Company governed by the internal affairs doctrine. Our charter also provides that unless the Company consents in writing
to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for
the resolution of any complaint asserting a cause of action arising under the Securities Act. Despite the fact that the certificate of
incorporation provides for this exclusive forum provision to be applicable to the fullest extent permitted by applicable law, Section
27 of the Exchange Act, creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the
Exchange Act or the rules and regulations thereunder and Section 22 of the Securities Act, creates concurrent jurisdiction for federal
and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder.
As a result, this provision of the Company’s certificate of incorporation would not apply to claims brought to enforce a duty or
liability created by the Exchange Act, or any other claim for which the federal courts have exclusive jurisdiction. However, there is
uncertainty as to whether a Delaware court would enforce the exclusive federal forum provisions for Securities Act claims and that investors
cannot waive compliance with the federal securities laws and rules and regulations thereunder.
Unless the Company consents
in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive
forum for the resolution of any complaint asserting a cause of action arising under the Securities Act.
Nasdaq-Listed IPO
Warrants
The Company has 155,610 IPO
Warrants outstanding. Each IPO Warrant represents the right to purchase one share of common stock at an exercise price of $4.35 (pre-split),
or $69.60 (after giving effect to our January 3, 2024 reverse stock split). The IPO Warrants are exercisable beginning April 21, 2022,
will terminate on the 5th anniversary date the IPO Warrants are first exercisable. The exercise price and number of shares for which each
IPO Warrant may be exercised is subject to adjustment in the event of stock dividends, stock splits, reorganizations or similar events
affecting our common stock.
Holders of the IPO Warrants
may exercise their IPO Warrants to purchase shares of our common stock on or before the termination date by delivering an exercise notice,
appropriately completed and duly signed. Payment of the exercise price for the number of shares for which the IPO Warrants is being exercised
must be made within two trading days following such exercise. In the event that the registration statement relating to the IPO Warrant
shares (the “IPO Warrant Shares”) is not effective, a holder of IPO Warrants may only exercise its IPO Warrants for a net
number of IPO Warrant Shares pursuant to the cashless exercise procedures specified in the IPO Warrants. IPO Warrants may be exercised
in whole or in part, and any portion of an IPO Warrant not exercised prior to the termination date shall be and become void and of no
value. The absence of an effective registration statement or applicable exemption from registration does not alleviate our obligation
to deliver common stock issuable upon exercise of an IPO Warrant.
Upon the holder’s
exercise of an IPO Warrant, we will issue the shares of common stock issuable upon exercise of the IPO Warrant within three trading days
of our receipt of notice of exercise, subject to timely payment of the aggregate exercise price therefor.
The shares of common
stock issuable on exercise of the IPO Warrants will be, when issued in accordance with the IPO Warrants, duly and validly authorized,
issued and fully paid and non-assessable. We will authorize and reserve at least that number of shares of common stock equal to the number
of shares of common stock issuable upon exercise of all outstanding warrants.
If, at any time an IPO
Warrant is outstanding, we consummate any fundamental transaction, as described in the IPO Warrants and generally including any consolidation
or merger into another corporation, the consummation of a transaction whereby another entity acquires more than 50% of our outstanding
common stock, or the sale of all or substantially all of our assets, or other transaction in which our common stock is converted into
or exchanged for other securities or other consideration, the holder of any IPO Warrants will thereafter receive upon exercise of the
IPO Warrants, the securities or other consideration to which a holder of the number of shares of common stock then deliverable upon the
exercise or conversion of such IPO Warrants would have been entitled upon such consolidation or merger or other transaction.
The IPO Warrants are
not exercisable by their holder to the extent (but only to the extent) that such holder or any of its affiliates would beneficially own
in excess of 4.99% of our common stock.
Amendments and waivers
of the terms of the IPO Warrants require the written consent of the holder of such IPO Warrants and us. The IPO Warrants were issued in
book-entry form under a warrant agent agreement between V-Stock Transfer Company, Inc. as warrant agent, and us, and shall initially be
represented by one or more book-entry certificates deposited with The Depository Trust Company, or DTC, and registered in the name of
Cede & Co., a nominee of DTC, or as otherwise directed by DTC.
You should review a copy of the warrant agent
agreement and the form of the IPO Warrants, each of which are included as exhibits to the registration statement of which this prospectus
supplement is a part.
Transfer Agent, Registrar, Warrant Agent
The transfer agent and
registrar for our common stock and the warrant agent for our IPO Warrants is VStock Transfer LLC, 18 Lafayette Place, Woodmere, NY 11598.
As of September 23,
2024, there were 10,044,728 shares of our common stock outstanding, 930 shares of our Series B Convertible Preferred Stock, and
approximately 137 stockholders of record.
Other Outstanding Warrants
As of September 23, 2024, after giving effect
to our January 3, 2024 reverse stock split, we had 10,901,815 other outstanding common stock warrants (in addition to our IPO Warrants
described above). The terms of these warrants are (i) 123,566 warrants with a per share exercise price of $0.29 and expiring 2028, (ii)
26,673 warrants with a per share exercise price of $69.60 and expiring 2027, (iii) 1,576 warrants with a per share exercise price of $0.0002
and expiring 2028, (iv) 400,000 warrants with a per share exercise price of $0.29 and expiring 2029, and (v) 10,350,000 warrants issued
as part of a February 2024 public offering, with a per share exercise price of $0.58 and expiring 2029.
The per share exercise price of the warrants described
in clause (i) and (ii) above is subject to a “full ratchet” adjustment if the Company issues securities at an effective per
share price lower than the then effective warrant exercise price.
These warrants have a net exercise provision under
which its holder may, in lieu of payment of the exercise price in cash, surrender the warrant and receive a net amount of shares based
on the fair market value of the underlying shares at the time of exercise of the warrant after deduction of a number of shares equal in
value to the aggregate exercise price. The warrants contain provisions for the adjustment of the exercise price and the number of shares
issuable upon the exercise of the warrant in the event of certain stock dividends, stock splits, reorganizations, reclassifications and
consolidations.
In connection with our April 2022 IPO, we issued a warrant (the “IPO
Representative’s Warrant”), which enables our IPO underwriter to purchase up to an aggregate of 10,825 post-split shares of
Common Stock, at an exercise price equal to $87.04 per share. The IPO Representative’s Warrant may be exercised beginning on October
26, 2022, until April 26, 2027.
PLAN
OF DISTRIBUTION
We have entered into the Sales
Agreement with ACM, under which we may issue and sell over a period of time, and from time to time, shares of our common stock having
an aggregate offering price of up to $10.0 million through the Sales Agent acting as sales agent or directly to the Sales Agent acting
as principal. This prospectus supplement relates to our ability to issue and sell over a period of time, and from time to time, shares
of our common stock to or through the Sales Agent pursuant to the Sales Agreement. Sales of the shares to which this prospectus supplement
and the accompanying prospectus relate, if any, may be made in transactions that are deemed to be “at-the-market” offerings
as defined in Rule 415 under the Securities Act, including sales made directly on or through the Nasdaq Capital Market (“Nasdaq”),
the trading market for our common stock, or any other trading market in the Unites States for our common stock, sales made to or through
a market maker other than on an exchange, directly to the Sales Agent as principal for its account in negotiated transactions at market
prices prevailing at the time of sale or at prices related to such prevailing market prices, in privately negotiated transactions, in
block trades, or through a combination of any such methods of sale. To the extent required by Regulation M, the Sales Agent acting as
our sales agent will not engage in any transactions that stabilize our common stock while the offering is ongoing under this prospectus
supplement.
Upon written instructions
from us, the Sales Agent will offer the shares of our common stock, subject to the terms and conditions of the Sales Agreement, on a daily
basis or as otherwise agreed upon by us and the Sales Agent. We will designate the maximum amount of shares of our common stock to be
sold through the Sales Agent on a daily basis or otherwise determine such maximum amount together with the Sales Agent, subject to certain
limitations set forth by the SEC. Subject to the terms and conditions of the Sales Agreement, the Sales Agent will use commercially reasonable
efforts to sell on our behalf all of the shares of our common stock so designated or determined. We may instruct the Sales Agent not to
sell shares of our common stock if the sales cannot be effected at or above the price designated by us in any such instruction. The Sales
Agent may also sell our common stock in negotiated transactions with our prior approval. We or the Sales Agent may suspend the offering
of shares of our common stock being made under the Sales Agreement upon proper notice to the other party.
For their services as sales
agent in connection with the sale of shares of our common stock that may be offered hereby, we will pay the Sales Agent an aggregate fee
of 3.0% of the gross sales price per share for any shares sold through it acting as our sales agent. The remaining sales proceeds, after
deducting any expenses payable by us and any transaction fees imposed by any governmental, regulatory or self-regulatory organization
in connection with the sales, will equal our net proceeds for the sale of such shares. We have agreed to reimburse the Sales Agent for
certain of its expenses in an amount not to exceed $30,000, and, thereafter, reasonable fees and expenses of the Sales Agent’s incurred
in conjunction of performing legal services related to the Sales Agreement for the Company.
The Sales Agent will provide
written confirmation to us no later than the opening of the trading day immediately following the day in which shares of common stock
are sold by it on our behalf under the Sales Agreement. Each confirmation will include the number of shares sold on that day, the compensation
payable by us to the Sales Agent and the proceeds to us net of such compensation.
Settlement for sales of our
common stock will occur, unless the parties agree otherwise, on the second business day following the date on which any sales were made
in return for payment of the proceeds to us net of compensation paid by us to the Sales Agent. There is no arrangement for funds to be
received in an escrow, trust or similar arrangement.
Unless otherwise required,
we will report at least quarterly the number of shares of common stock sold through the Sales Agent under the Sales Agreement, the net
proceeds to us and the compensation paid by us to the Sales Agent in connection with the sales of common stock.
In connection with the sale
of common stock on our behalf, the Sales Agent will be deemed to be an “underwriter” within the meaning of the Securities
Act, and the compensation paid to it will be deemed to be underwriting commissions or discounts. We have agreed, under the Sales Agreement,
to provide indemnification and contribution to the Sales Agent against certain civil liabilities, including liabilities under the Securities
Act.
In the ordinary course of
its business, the Sales Agent and/or its affiliates may perform investment banking, broker-dealer, financial advisory or other services
for us for which it may receive separate fees.
We estimate that the total
expenses from this offering payable by us, excluding compensation payable to the Sales Agent under the Sales Agreement, will be approximately
$100,000. Additionally, pursuant to the terms of the Sales Agreement, we agreed to reimburse the Sales Agent for the reasonable fees and
expenses of its legal counsel incurred in connection with quarterly and annual bring-downs required under the Sales Agreement in an amount
not to exceed $2,500 in the aggregate for each such bring-down.
The offering of common stock
pursuant to the Sales Agreement will terminate upon the earlier of (1) the sale of shares of our common stock with an aggregate offering
price of $10.0 million subject to the Sales Agreement, (2) September 24, 2026 and (3) the termination of the Sales Agreement, pursuant
to its terms, by either the Sales Agent or us.
The Company and the Sales
Agent may in the future agree to add one or more additional sales agents to the offering, in which case the Company will file a further
prospectus supplement providing the name of such additional sales agents and any other required information.
This summary of the material
provisions of the sales agreement does not purport to be a complete statement of its terms and conditions.
INCORPORATION OF CERTAIN
DOCUMENTS BY REFERENCE
We are incorporating by reference
into this prospectus supplement and the accompanying prospectus the documents listed below that we have filed with the SEC, which means
we can disclose important information to you by referring you to those documents. The information incorporated by reference is considered
to be a part of this prospectus supplement and the accompanying prospectus. We incorporate by reference:
| · | Our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 28,
2024; |
| | |
| · | Our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, as filed with
the SEC on May 15, 2024 and August 14, 2024, respectively; |
| | |
| · | Our
Current Reports on Form 8-K as filed with the SEC on January
4, 2024, January 23, 2024, January
29, 2024, February 27, 2024, April
12, 2024, June 18, 2024, June
26, 2024, August 13, 2024, August
16, 2024, August 23, 2024, August
29, 2024 and September 23, 2024; |
| | |
| · | the description of our common stock, which is contained in the Registration Statement on Form 8-A,
as filed with the SEC on April 20, 2022, as updated by the description of our Common Stock contained in Exhibit 4.4 to our Annual Report
on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 28, 2024. |
In addition, we also incorporate
by reference into this prospectus supplement and the accompanying prospectus all documents (other than current reports furnished under
Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on that form which are related to those items) that are filed by us with the SEC
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act before the termination of the offering of our common stock to which
this prospectus supplement and the accompanying prospectus relate, except for any document or portion of such document deemed to be “furnished”
and not filed in accordance with SEC rules.
The information relating to
us contained in this prospectus supplement and the accompanying prospectus does not purport to be comprehensive and should be read together
with the information contained in the documents incorporated or deemed to be incorporated by reference into this prospectus supplement
and the accompanying prospectus.
We will provide to each person,
including any beneficial owner, to whom a prospectus supplement and accompanying prospectus is delivered, without charge, upon written
or oral request, a copy of any or all of the documents that are incorporated by reference into this prospectus supplement and the accompanying
prospectus but not delivered with the prospectus supplement and accompanying prospectus, including exhibits that are specifically incorporated
by reference into such documents. You may request a copy of these filings without charge by contacting John Lorbiecki, c/o Aclarion, Inc.,
at 8181 Arista Place, Suite 100, Broomfield, Colorado 80021 or by telephone at (833) 275-2266.
Information that we file later
with the SEC and that is incorporated by reference in this prospectus supplement will automatically update and supersede information contained
in this prospectus supplement and the accompanying prospectus as if that information were included in this prospectus supplement and the
accompanying prospectus. That information will become part of this prospectus supplement and the accompanying prospectus from the date
the information is filed with the SEC.
WHERE YOU CAN FIND
MORE INFORMATION
We are subject to the informational
requirements of the Exchange Act and, accordingly, file periodic reports, proxy statements and other information with the SEC. You can
obtain these reports, proxy statements and other information that we file electronically with the SEC on the SEC’s website at www.sec.gov.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports that are
filed or furnished pursuant to Section 13 of the Exchange Act are available on our website at www.aclarion.com, as soon as reasonably
practicable after they are electronically filed with the SEC. The information on our website is not part of this prospectus supplement
or the accompanying prospectus, except to the extent filed with the SEC and specifically incorporated into this prospectus supplement
or the accompanying prospectus by reference.
This prospectus supplement
and the accompanying prospectus form part of a registration statement that we filed with the SEC under the Securities Act. This prospectus
supplement does not contain all of the information presented in the registration statement and its exhibits in accordance with SEC rules.
Our descriptions in this prospectus supplement of the provisions of documents filed as exhibits to the registration statement or otherwise
filed with the SEC are only summaries of the terms of those documents and are not intended to be comprehensive. For a complete description
of the content of the documents, you should obtain copies of the full document.
LEGAL MATTERS
The validity of the securities
offered hereby will be passed upon for us by Carroll Legal LLC, Denver, Colorado. Clyde Snow & Sessions, P.C., Salt Lake City, Utah,
is acting as counsel for ACM in connection with this offering.
EXPERTS
Haynie & Company, independent
registered public accounting firm, has audited the financial statements of the Company as of December 31, 2023 and for the year ended
December 31, 2023, as set forth in their report thereon appearing in Aclarion, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2023, and incorporated by reference herein. Such financial statements are incorporated by reference herein in reliance upon
such report, which includes an explanatory paragraph on Aclarion, Inc.’s ability to continue as a going concern, given on their
authority as experts in accounting and auditing.
CohnReznick LLP, independent
registered public accounting firm, has audited the restated financial statements of the Company as of December 31, 2022 and for the year
ended December 31, 2022, as set forth in their report included herein. The report of CohnReznick LLP contains an explanatory paragraph
about the ability of the Company to continue as a going concern. The restated financial statements of the Company are included in this
prospectus supplement and elsewhere in this registration statement in reliance of CohnReznick LLP’s report, given on their authority
as experts in accounting and auditing.
PROSPECTUS
ACLARION, INC.
$50,000,000
COMMON STOCK
PREFERRED STOCK
WARRANTS
SUBSCRIPTION RIGHTS
DEBT SECURITIES
UNITS
We may offer and sell from
time to time, in one or more series, any one of the following securities of our company, for total gross proceeds of up to $50,000,000:
| · | common stock; |
| | |
| · | preferred stock; |
| | |
| · | warrants to purchase common stock, preferred stock, debt securities, other securities or any combination
of those securities; |
| | |
| · | subscription rights to purchase common stock, preferred stock, debt securities, other securities or any
combination of those securities; |
| | |
| · | secured or unsecured debt securities consisting of notes, debentures or other evidences of indebtedness
which may be senior debt securities, senior subordinated debt securities or subordinated debt securities, each of which may be convertible
into equity securities; or |
| | |
| · | units comprised of, or other combinations of, the foregoing securities. |
We may offer and sell these
securities separately or together, in one or more series or classes and in amounts, at prices and on terms described in one or more offerings.
We may offer securities through underwriting syndicates managed or co-managed by one or more underwriters or dealers, through agents or
directly to purchasers. The prospectus supplement for each offering of securities will describe in detail the plan of distribution for
that offering. For general information about the distribution of securities offered, please see “Plan of Distribution” in
this prospectus.
Each time our securities
are offered, we will provide a prospectus supplement containing more specific information about the particular offering and attach it
to this prospectus. The prospectus supplements may also add, update or change information contained in this prospectus.
This prospectus may not
be used to offer or sell securities without a prospectus supplement which includes a description of the method and terms of this offering.
Our common stock is quoted
on the Nasdaq Capital Market under the symbol “ACON.” The last reported sale price of our common stock on the Nasdaq Capital
Market on September 18, 2024 was $0.1760 per share. The aggregate market value of our outstanding common stock held by non-affiliates
is $3,268.45 based on 10,044,728 shares of outstanding common stock, of which 18,885 shares are held by non-affiliates, and a per share
price of $0.3256, which was the closing sale price of our common stock as quoted on the Nasdaq Capital Market on July 23, 2024.
Our IPO warrants are quoted
on the Nasdaq Capital Market under the symbol “ACONW.” The last reported sale price of our IPO warrants on the Nasdaq Capital
Market on September 18, 2024 was $0.04 per warrant.
Pursuant to General Instruction
I.B.6 of Form S-3, in no event will we sell securities pursuant to this prospectus with a value of more than one-third of the aggregate
market value of our common stock held by non-affiliates in any twelve-month period, so long as the aggregate market value of our common
stock held by non-affiliates is less than $75,000,000. In the event that subsequent to the date of this prospectus, the aggregate market
value of our outstanding common stock held by non-affiliates equals or exceeds $75,000,000, then the one-third limitation on sales shall
not apply to additional sales made pursuant to this prospectus unless we again become subject to General Instruction I.B.6. We have not
offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the twelve calendar months prior to and including the
date of this prospectus.
We have received deficiency
letters from The Nasdaq Stock Market LLC (“Nasdaq”) that we are not in compliance with Nasdaq’s (i) minimum bid price
requirement of at least $1.00 per share (the “Bid Price Requirement”) and (ii) requirement to have at least $2,500,000 in
stockholders’ equity (the “Stockholders’ Equity Requirement”).
On April 8, 2024, we
received a written notice from Nasdaq indicating that we were not in compliance with the Bid Price Requirement set forth in Nasdaq Listing
Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the “Bid Price Notice”). The Bid Price Notice did not
result in the immediate delisting of our common stock from the Nasdaq Capital Market. The Bid Price Notice indicated that we would be
provided 180 calendar days (or until October 7, 2024) in which to regain compliance. If at any time during this 180 calendar day period
the bid price of our common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Nasdaq staff
(the “Staff”) will provide us with written confirmation of compliance and the matter will be closed. In the event we do not
regain compliance with Rule 5550(a)(2) prior to the expiration of the initial 180 calendar day period, and if it appears to the Staff
that we will not be able to cure the deficiency, or if we are not otherwise eligible, the Staff will provide us with written notification
that our securities are subject to delisting from the Nasdaq Capital Market. At that time, we may appeal the delisting determination
to a Nasdaq hearings panel (the “Panel”).
On August 22, 2024, we
received a written notice from Nasdaq indicating that we were not in compliance with the Stockholders’ Equity Requirement. In our
quarterly report on Form 10-Q for the period ended June 30, 2024, we reported stockholders’ equity of $1,642,177, and, as a result,
did not satisfy Listing Rule 5550(b)(1). Accordingly, the Staff had determined to delist our common stock from Nasdaq. Nasdaq’s
letter provided us until August 29, 2024 to request an appeal of this determination.
We have appealed these
matters to the Panel. The hearing request stays any suspension or delisting action pending the conclusion of the hearing process and
the expiration of any additional extension period granted by the Panel following the hearing. We have an appeal hearing scheduled on
October 10, 2024 before the Panel to appeal the delisting notice from the Staff. While the appeal process is pending, the suspension
of trading of our common stock will be stayed. Our common stock will continue to trade on Nasdaq until the hearing process concludes
and the Panel issues a written decision.
We intend to take all
reasonable measures available to regain compliance under the Nasdaq Listing Rules and remain listed on Nasdaq. We are currently evaluating
our available options to resolve the deficiency and regain compliance with the Stockholders’ Equity Requirement.
Our receipt of these
letters from Nasdaq does not affect our business, operations or reporting requirements with the Securities and Exchange Commission.
If we decide to seek a listing
of any preferred stock, purchase contracts, warrants, subscriptions rights, depositary shares, debt securities or units offered by this
prospectus, the related prospectus supplement will disclose the exchange or market on which the securities will be listed, if any, or
where we have made an application for listing, if any.
Investing in our securities
is highly speculative and involves a significant degree of risk. See “Risk Factors” beginning on page
5 and the risk factors in our most recent Annual Report on Form 10-K, which is incorporated by reference herein, as well as in any other
recently filed quarterly or current reports and, if any, in the relevant prospectus supplement. We urge you to carefully read this prospectus
and the accompanying prospectus supplement, together with the documents we incorporate by reference, describing the terms of these securities
before investing.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy
or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is September
23, 2024.
TABLE OF CONTENTS
Page
About
This Prospectus
This prospectus is part of
a registration statement on Form S-3 that we filed with the Securities and Exchange Commission, or SEC, utilizing a “shelf”
registration process. Under this shelf registration process, we may offer and sell, either individually or in combination, in one or more
offerings, any of the securities described in this prospectus, for total gross proceeds of up to $50,000,000. This prospectus provides
you with a general description of the securities we may offer. Each time we offer securities under this prospectus, we will provide a
prospectus supplement to this prospectus that will contain more specific information about the terms of that offering. We may also authorize
one or more free writing prospectuses to be provided to you that may contain material information relating to these offerings. The prospectus
supplement and any related free writing prospectus that we may authorize to be provided to you may also add, update or change any of the
information contained in this prospectus or in the documents that we have incorporated by reference into this prospectus.
We urge you to read carefully
this prospectus, any applicable prospectus supplement and any free writing prospectuses we have authorized for use in connection with
a specific offering, together with the information incorporated herein by reference as described under the heading “Incorporation of Documents by Reference,” before investing in any of the securities being offered. You should rely only on the information contained
in, or incorporated by reference into, this prospectus and any applicable prospectus supplement, along with the information contained
in any free writing prospectuses we have authorized for use in connection with a specific offering. We have not authorized anyone to provide
you with different or additional information. This prospectus is an offer to sell only the securities offered hereby, but only under circumstances
and in jurisdictions where it is lawful to do so.
The information appearing
in this prospectus, any applicable prospectus supplement or any related free writing prospectus is accurate only as of the date on the
front of the document and any information we have incorporated by reference is accurate only as of the date of the document incorporated
by reference, regardless of the time of delivery of this prospectus, any applicable prospectus supplement or any related free writing
prospectus, or any sale of a security. Our business, financial condition, results of operations and prospects may have changed since those
dates.
This prospectus contains
summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents for
complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred
to herein have been filed, will be filed or will be incorporated by reference as exhibits to the registration statement of which this
prospectus is a part, and you may obtain copies of those documents as described below under the section entitled “Where You Can Find Additional Information.”
This prospectus contains,
or incorporates by reference, trademarks, tradenames, service marks and service names of Aclarion, Inc.
Cautionary
Note Regarding Forward Looking Statements
This prospectus and any accompanying
prospectus or prospectus supplement and the documents incorporated by reference herein and therein may contain forward looking statements
that involve significant risks and uncertainties. All statements other than statements of historical fact contained in this prospectus
and any accompanying prospectus supplement and the documents incorporated by reference herein, including statements regarding future events,
our future financial performance, business strategy, and plans and objectives of management for future operations, are forward-looking
statements. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,”
“can,” “continue,” “could,” “estimates,” “expects,” “intends,”
“may,” “plans,” “potential,” “predicts,” “should,” or “will” or
the negative of these terms or other comparable terminology. Although we do not make forward looking statements unless we believe we have
a reasonable basis for doing so, we cannot guarantee their accuracy. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks outlined under “Risk Factors” or elsewhere in this prospectus
and the documents incorporated by reference herein, which may cause our or our industry’s actual results, levels of activity, performance
or achievements expressed or implied by these forward-looking statements. Moreover, we operate in a highly regulated, very competitive,
and rapidly changing environment. New risks emerge from time to time and it is not possible for us to predict all risk factors, nor can
we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual
results to differ materially from those contained in any forward-looking statements.
We have based these forward-looking
statements largely on our current expectations and assumptions about future events and financial trends that we believe may affect our
financial condition, results of operations, business strategy, short term and long term business operations, and financial needs. These
forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from
those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited
to, those discussed in this prospectus, and in particular, the risks discussed below and under the heading “Risk Factors”
and those discussed in other documents we file with the SEC which are incorporated by reference herein. This prospectus, and any accompanying
prospectus or prospectus supplement, should be read in conjunction with the consolidated financial statements for the fiscal years ended
December 31, 2023 and 2022 and related notes, which are incorporated by reference herein.
We undertake no obligation
to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. In light of
the significant risks, uncertainties and assumptions that accompany forward-looking statements, the forward-looking events and circumstances
discussed in this prospectus and any accompanying prospectus or prospectus supplement may not occur and actual results could differ materially
and adversely from those anticipated or implied in the forward-looking statement.
You should not place undue
reliance on any forward-looking statement, each of which applies only as of the date of this prospectus, or any accompanying prospectus
or any prospectus supplement. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking
statements after the date of this prospectus to conform our statements to actual results or changed expectations.
Any forward-looking statement
you read in this prospectus, any accompanying prospectus, or any prospectus supplement or any document incorporated by reference reflects
our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our
operations, operating results, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements
because such statements speak only as to the date when made. We assume no obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future, except as otherwise required by applicable law. You are advised,
however, to consult any further disclosures we make on related subjects in our reports on Forms 10-Q, 8-K and 10-K filed with the SEC.
You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any such
list to be a complete set of all potential risks or uncertainties.
Prospectus
Summary
This summary highlights
selected information contained elsewhere in this prospectus. This summary does not contain all the information that you should consider
before investing in our Company. You should carefully read the entire prospectus, including all documents incorporated by reference herein.
In particular, attention should be directed to our “Risk Factors” and the financial statements and related notes thereto contained
herein or otherwise incorporated by reference hereto, before making an investment decision.
As used herein, and any
amendment or supplement hereto, unless otherwise indicated, “we,” “us,” “our,” the “Company,”
or “Aclarion” means Aclarion, Inc.
Overview
We are a healthcare technology
company that leverages Magnetic Resonance Spectroscopy (“MRS”), and a proprietary biomarker to optimize clinical treatments.
Our technology addresses the $134.5B U.S. low back and neck pain market, which according to a 2020 JAMA (Journal of the American Medical
Association) article is now the most costly healthcare condition in the United States. We are currently utilizing Artificial Intelligence
(“AI”) to assist in quality control processes that flag spectroscopy data indicative of a poor MRS study. The use of AI in
this application is early in its development cycle and is expected to evolve with further research and development. We are also researching
the application of AI and machine learning platforms to analyze both the raw spectroscopy data and the post-processed signal to evaluate
whether AI platforms can more efficiently and more effectively associate MRS data with clinical outcomes. The use of AI in this application
is aspirational and we intend this type of AI research and development to be an ongoing process applied not only to the various treatment
paths associated with back pain, such as conservative therapies, regenerative and cell therapies and surgical intervention, but also to
potentially expand into other clinical explorations involving the diagnosis of brain, breast and prostate tumors.
We are addressing this market
by initially focusing on improving the outcomes of surgical interventions to treat low back pain and have limited sales to date. In this
initial application, our technology is intended to assist surgeons in determining the optimal surgical procedure for a patient undergoing
surgery for pain isolated to their lumbar spine (the “lumbar spine” is comprised of the five (5) lower vertebrae, L-1 to L-5).
We then intend to add additional applications of our technology targeting the management of large segments of low back pain patients from
the point of initial Magnetic Resonance Imaging (“MRI”) through to episode resolution. We believe this will expand the use
of our technology to low back pain patients undergoing conservative therapies such as physical therapy or biologic and cell therapies
aimed at regenerating the lumbar discs. We plan to expand the application of our technology beyond the lumbar spine to address neck pain
populations in addition to low back pain populations. To expand the application of our technology for use in neck pain populations, we
will need to overcome technical changes associated with securing adequate MRS data from the cervical disc, which is significantly smaller
than the lumbar disc, and there can be no assurance we will be able to overcome these challenges.
The core technology we employ
is MRS. The patient experience when undergoing an MRS exam is exactly like that of a standard MRI, with the exception of an additional
3-5 minutes for each disc undergoing a spectroscopy exam. Whereas a standard MRI produces a signal that is converted into anatomical images,
an MRS produces a signal that is converted into a waveform that identifies the chemical composition of tissues. Just like with standard
MRI’s, the data from spectroscopy is useless without technologies that can process the data. We have developed proprietary signal
processing software that transforms spectroscopy data into clear biomarkers. These biomarkers, which are exclusively licensed from the
Regents of University of California, San Francisco (“UCSF”), are the key data inputs for our proprietary algorithms that,
when applied, determine if an intervertebral disc is consistent with pain. Our patent portfolio includes 22 U.S. Patents, 17 Foreign Patents,
6 pending U.S. patent applications, and 7 pending Foreign patent applications, including patents and patent applications exclusively licensed
from Regents of the University of California.
We believe one of the biggest
issues driving the cost of treating low back and neck pain patients to the top of the list for healthcare spending is that there is no
objective, cost effective and noninvasive diagnostics to reliably identify the source of a patient’s pain. We believe the poor surgical
outcomes for Discogenic Low Back Pain (“DLBP”) are largely due to difficulties in reliably and accurately diagnosing the specific
spinal discs that are causing pain. The current primary diagnostic standard is the MRI, which is useful for showing abnormal structures
and tissue dehydration, but, we believe, cannot reliably identify specific discs that are causing pain. To diagnose specific discs that
are causing pain, a needle-based Provocation Discogram test (“PD Test”) has been developed. PD Tests have been shown to be
highly accurate when performed properly. However, a PD Test is invasive, subjective and unpleasant for the patient as the patient needs
to be awake in order to tell the physician if the pain the physician is purposefully causing in the disc is the same as the pain the patient
feels when they are experiencing a back pain episode. In addition, recent evidence has shown that the action of inserting a needle into
a normal disc during a discogram procedure leads to an increased rate of degeneration in these previously normal discs. Based on the limitations
and concerns of the PD Test, we believe there is a significant need for an objective, accurate, personalized and noninvasive diagnostic
test that can reliably determine if an individual disc is a pain generator. By providing physicians information about whether a disc has
the chemical and structural makeup consistent with pain or not, we believe the treatment plan for each patient will lead to more efficient
and targeted care that, will in turn, result in lower costs and healthier patient outcomes.
We have taken the first steps
to demonstrate the potential use of our technology in helping to improve the outcome of surgical intervention for DLBP patients by publishing
a clinical study (Gornet et al) in the European Spine Journal in April 2019. The study illustrated that when all discs identified as consistent
with pain by our technology were included in a surgical treatment, 97% of the patients met the criteria for “clinical improvement”.
This compared to only 54% of patients meeting the criteria for clinical improvement if a disc that our technology identified as consistent
with pain, was not included in the surgical treatment.
The results of this clinical
study led the CPT committee to approve four Category III codes for our technology in January 2021. The NIH also included our technology
as one of the handful of technologies selected to participate in their $150 million Back Pain Consortium (BACPAC) Research Program, an
NIH translational, patient-centered effort to address the need for effective and personalized therapies for chronic low back pain.
In April 2023, we have advanced
the evidence of our technology with a peer-reviewed journal article detailing the Gornet 2-year outcomes, published in the European Spine
Journal. The 2-year outcomes were durable with 1-year outcomes previously published in 2019. At 2-years follow-up, 85% of patients improved
when disc(s) identified as consistent with pain by our technology were included in a surgical treatment, compared to only 63% of patients
when disc(s) identified as consistent with pain were not treated or disc(s) identified as consistent without pain were treated.
Emerging Growth Company under the JOBS Act
As a company with less than
$1.235 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” under the Jumpstart Our Business
Startups Act of 2012, or the JOBS Act. As an emerging growth company, we have elected to take advantage of reduced reporting requirements
and are relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging
growth company:
| · | We may present only two years of audited financial statements and only two years of related Management’s
Discussion and Analysis of Financial Condition and Results of Operations; |
| | |
| · | We are exempt from the requirement to obtain an attestation and report from our auditors on whether we
maintained effective internal control over financial reporting under the Sarbanes-Oxley Act; |
| | |
| · | We are permitted to provide less extensive disclosure about our executive compensation arrangements; and |
| | |
| · | We are not required to give our stockholders non-binding advisory votes on executive compensation or golden
parachute arrangements. |
We may take advantage of
these provisions until December 31, 2026 (the last day of the fiscal year following the fifth anniversary of our initial public offering)
if we continue to be an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in
annual revenue, have more than $700 million in market value of our shares held by non-affiliates or issue more than $1.0 billion of non-convertible
debt over a three-year period. We may choose to take advantage of some but not all of these reduced burdens. We have elected to provide
two years of audited financial statements. Additionally, we have elected to take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting
standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer
an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in Section 7(a)(2)(B)
of the Securities Act.
Corporate Information
We
were formed under the name Nocimed, LLC, a limited liability company in January 2008, under the laws of the State of Delaware. In February
2015, Nocimed, LLC was converted into Nocimed, Inc. a Delaware corporation. On December 3, 2021, we changed our name to Aclarion, Inc.
Our principal executive offices are located at 8181 Arista Place, Suite 100, Broomfield, Colorado 80021. Our main telephone number is
(833) 275-2266. Our internet website is www.aclarion.com. The information contained in, or that can be accessed through, our website is
not incorporated by reference and is not a part of this prospectus.
Risk
Factors
Investing in our securities
is highly speculative and involves a high degree of risk. Before deciding whether to invest in our securities, you should carefully
consider the risk factors we describe in any accompanying prospectus or any future prospectus supplement, as well as in any related free
writing prospectus for a specific offering of securities, and the risk factors incorporated by reference into this prospectus, any accompanying
prospectus or such prospectus supplement. You should also carefully consider other information contained and incorporated by reference
in this prospectus and any applicable prospectus supplement, including our financial statements and the related notes thereto incorporated
by reference in this prospectus. The risks and uncertainties described in the applicable prospectus supplement and our other filings with
the SEC incorporated by reference herein are not the only ones we face. Additional risks and uncertainties not presently known to us or
that we currently consider immaterial may also adversely affect us. If any of the described risks occur, our business, financial condition
or results of operations could be materially harmed. In such case, the value of our securities could decline and you may lose all or part
of your investment.
Use
of Proceeds
Unless otherwise indicated
in a prospectus supplement, we intend to use the net proceeds from these sales to fund market development and clinical evidence,
product development and quality, and general and administration support, retire outstanding debt, and other general corporate purposes.
We may set forth additional information concerning our expected use of net proceeds from sales of securities in the applicable prospectus
supplement relating to the specific offering.
Dividend
Policy
We have never paid or declared
any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our common stock in the foreseeable future.
We intend to retain all available funds and any future earnings to fund the development and expansion of our business. Any future determination
to pay dividends will be at the discretion of our board of directors and will depend upon a number of factors, including our results of
operations, financial condition, future prospects, contractual restrictions, restrictions imposed by applicable law and other factors
our board of directors deems relevant. Our future ability to pay cash dividends on our stock may also be limited by the terms of any future
debt or preferred securities or future credit facility.
Plan
of Distribution
We may sell the securities
from time to time to or through underwriters or dealers, through agents, or directly to one or more purchasers. A distribution of the
securities offered by this prospectus may also be effected through the issuance of derivative securities, including without limitation,
warrants, rights to purchase and subscriptions. In addition, the manner in which we may sell some or all of the securities covered by
this prospectus includes, without limitation, through:
| · | a block trade in which a broker-dealer will attempt to sell as agent, but may position or resell a portion
of the block, as principal, in order to facilitate the transaction; |
| | |
| · | purchases by a broker-dealer, as principal, and resale by the broker-dealer for its account; or |
| | |
| · | ordinary brokerage transactions and transactions in which a broker solicits purchasers. |
A prospectus supplement or
supplements with respect to each series of securities will describe the terms of the offering, including, to the extent applicable:
| · | the terms of the offering; |
| | |
| · | the name or names of the underwriters or agents and the amounts of securities underwritten or purchased
by each of them, if any; |
| | |
| · | the public offering price or purchase price of the securities or other consideration therefor, and the
proceeds to be received by us from the sale; |
| | |
| · | any delayed delivery requirements; |
| | |
| · | any over-allotment options under which underwriters may purchase additional securities from us; |
| | |
| · | any underwriting discounts or agency fees and other items constituting underwriters’ or agents’
compensation; |
| | |
| · | any discounts or concessions allowed or re-allowed or paid to dealers; and |
| | |
| · | any securities exchange or market on which the securities may be listed. |
The offer and sale of the
securities described in this prospectus by us, the underwriters or the third parties described above may be effected from time to time
in one or more transactions, including privately negotiated transactions, either:
| · | at a fixed price or prices, which may be changed; |
| | |
| · | in an “at the market” offering within the meaning of Rule 415(a)(4) of the Securities Act
of 1933, as amended, or the Securities Act; |
| | |
| · | at prices related to such prevailing market prices; or |
| | |
| · | at negotiated prices. |
Only underwriters named in
the prospectus supplement will be underwriters of the securities offered by the prospectus supplement.
Underwriters and Agents; Direct Sales
If underwriters are used
in a sale, they will acquire the offered securities for their own account and may resell the offered securities from time to time in one
or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time
of sale. We may offer the securities to the public through underwriting syndicates represented by managing underwriters or by underwriters
without a syndicate.
Unless the prospectus supplement
states otherwise, the obligations of the underwriters to purchase the securities will be subject to the conditions set forth in the applicable
underwriting agreement. Subject to certain conditions, the underwriters will be obligated to purchase all of the securities offered by
the prospectus supplement, other than securities covered by any over-allotment option. Any public offering price and any discounts or
concessions allowed or re-allowed or paid to dealers may change from time to time. We may use underwriters with whom we have a material
relationship. We will describe in the prospectus supplement, naming the underwriter, the nature of any such relationship.
We may sell securities directly
or through agents we designate from time to time. We will name any agent involved in the offering and sale of securities, and we will
describe any commissions we will pay the agent in the prospectus supplement. Unless the prospectus supplement states otherwise, our agent
will act on a best-efforts basis for the period of its appointment.
We may authorize agents or
underwriters to solicit offers by certain types of institutional investors to purchase securities from us at the public offering price
set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in
the future. We will describe the conditions to these contracts and the commissions we must pay for solicitation of these contracts in
the prospectus supplement.
Dealers
We may sell the offered securities
to dealers as principals. The dealer may then resell such securities to the public either at varying prices to be determined by the dealer
or at a fixed offering price agreed to with us at the time of resale.
Institutional Purchasers
We may authorize agents,
dealers or underwriters to solicit certain institutional investors to purchase offered securities on a delayed delivery basis pursuant
to delayed delivery contracts providing for payment and delivery on a specified future date. The applicable prospectus supplement or other
offering materials, as the case may be, will provide the details of any such arrangement, including the offering price and commissions
payable on the solicitations.
We will enter into such delayed
contracts only with institutional purchasers that we approve. These institutions may include commercial and savings banks, insurance companies,
pension funds, investment companies and educational and charitable institutions.
Indemnification; Other Relationships
We may provide agents, underwriters,
dealers and remarketing firms with indemnification against certain civil liabilities, including liabilities under the Securities Act,
or contribution with respect to payments that the agents or underwriters may make with respect to these liabilities. Agents, underwriters,
dealers and remarketing firms, and their affiliates, may engage in transactions with, or perform services for, us in the ordinary course
of business. This includes commercial banking and investment banking transactions.
Market-Making; Stabilization and Other Transactions
There is currently no market
for any of the offered securities, other than our common stock, which is quoted on the Nasdaq Capital Market. If the offered securities
are traded after their initial issuance, they may trade at a discount from their initial offering price, depending upon prevailing interest
rates, the market for similar securities and other factors. While it is possible that an underwriter could inform us that it intends to
make a market in the offered securities, such underwriter would not be obligated to do so, and any such market-making could be discontinued
at any time without notice. Therefore, no assurance can be given as to whether an active trading market will develop for the offered securities.
We have no current plans for listing of the debt securities, preferred stock, warrants or subscription rights on any securities exchange
or quotation system; any such listing with respect to any particular debt securities, preferred stock, warrants or subscription rights
will be described in the applicable prospectus supplement or other offering materials, as the case may be.
Any underwriter may engage
in over-allotment, stabilizing transactions, short-covering transactions and penalty bids in accordance with Regulation M under the Securities
Exchange Act of 1934, as amended, or the Exchange Act. Over-allotment involves sales in excess of the offering size, which create a short
position. Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified
maximum price. Syndicate-covering or other short-covering transactions involve purchases of the securities, either through exercise of
the over-allotment option or in the open market after the distribution is completed, to cover short positions. Penalty bids permit the
underwriters to reclaim a selling concession from a dealer when the securities originally sold by the dealer are purchased in a stabilizing
or covering transaction to cover short positions. Those activities may cause the price of the securities to be higher than it would otherwise
be. If commenced, the underwriters may discontinue any of the activities at any time.
Any underwriters or agents
that are qualified market makers on the Nasdaq Capital Market may engage in passive market making transactions in our common stock on
the Nasdaq Capital Market in accordance with Regulation M under the Exchange Act, during the business day prior to the pricing of the
offering, before the commencement of offers or sales of our common stock. Passive market makers must comply with applicable volume and
price limitations and must be identified as passive market makers. In general, a passive market maker must display its bid at a price
not in excess of the highest independent bid for such security; if all independent bids are lowered below the passive market maker’s
bid, however, the passive market maker’s bid must then be lowered when certain purchase limits are exceeded. Passive market making
may stabilize the market price of the securities at a level above that which might otherwise prevail in the open market and, if commenced,
may be discontinued at any time.
Fees and Commissions
If 5% or more of the net
proceeds of any offering of securities made under this prospectus will be received by a FINRA member participating in the offering or
affiliates or associated persons of such FINRA member, the offering will be conducted in accordance with FINRA Rule 5121.
Description
of Securities We May Offer
General
This prospectus describes
the general terms of our capital stock. The following description is not complete and may not contain all the information you should consider
before investing in our capital stock. For a more detailed description of these securities, you should read the applicable provisions
of Delaware law and our certificate of incorporation, as amended, referred to herein as our certificate of incorporation, and our amended
and restated bylaws, referred to herein as our bylaws. When we offer to sell a particular series of these securities, we will describe
the specific terms of the series in a supplement to this prospectus. Accordingly, for a description of the terms of any series of securities,
you must refer to both the prospectus supplement relating to that series and the description of the securities described in this prospectus.
To the extent the information contained in the prospectus supplement differs from this summary description, you should rely on the information
in the prospectus supplement.
The total number of shares
of capital stock we are authorized to issue is 220,000,000 shares, of which (1) 200,000,000 shares are common stock, par value $0.00001
per share (or common stock) and (2) 20,000,000 shares are preferred stock, par value $0.00001 per share (or preferred stock), which
may, at the sole discretion of our board of directors be issued in one or more series.
We, directly or through agents,
dealers or underwriters designated from time to time, may offer, issue and sell, together or separately, up to $50,000,000 in the aggregate
of:
| · | common stock; |
| | |
| · | preferred stock; |
| | |
| · | warrants to purchase common stock, preferred stock, debt securities, other securities or any combination
of those securities; |
| | |
| · | subscription rights to purchase common stock, preferred stock, debt securities, other securities or any
combination of those securities; |
| | |
| · | secured or unsecured debt securities consisting of notes, debentures or other evidences of indebtedness
which may be senior debt securities, senior subordinated debt securities or subordinated debt securities, each of which may be convertible
into equity securities; or |
| | |
| · | units comprised of, or other combinations of, the foregoing securities. |
We may issue the debt securities
as exchangeable for or convertible into shares of common stock, preferred stock or other securities that may be sold by us pursuant to
this prospectus or any combination of the foregoing. The preferred stock may also be exchangeable for and/or convertible into shares of
common stock, another series of preferred stock or other securities that may be sold by us pursuant to this prospectus or any combination
of the foregoing. When a particular series of securities is offered, a supplement to this prospectus will be delivered with this prospectus,
which will set forth the terms of the offering and sale of the offered securities.
Common Stock
The holders of our common
stock are entitled to one vote for each share held on all matters submitted to a vote of the stockholders. The holders of our common stock
do not have any cumulative voting rights. Holders of our common stock are entitled to receive ratably any dividends declared by our board
of directors out of funds legally available for that purpose, subject to any preferential dividend rights of any outstanding preferred
stock. Our common stock has no preemptive rights, conversion rights or other subscription rights or redemption or sinking fund provisions.
In the event of our liquidation,
dissolution or winding up, holders of our common stock will be entitled to share ratably in all assets remaining after payment of all
debts and other liabilities and any liquidation preference of any outstanding preferred stock. Each outstanding share of common stock
is duly and validly issued, fully paid and non-assessable.
Market, Symbol and Transfer Agent
Our common stock is listed
for trading on the Nasdaq Capital Market under the symbol “ACON”. The transfer agent and registrar for our common stock is
VStock Transfer, LLC.
Preferred stock
Our board will have the authority,
without further action by our stockholders, to issue up to 20,000,000 shares of preferred stock in one or more series and to fix the rights,
preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights,
voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation
of, such series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely
affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon
our liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control
of our company or other corporate action.
Anti-Takeover Effects of Delaware Law and Provisions
of our Charter and our Bylaws
Certain provisions of the
DGCL and of our charter and our bylaws could have the effect of delaying, deferring or preventing another party from acquiring control
of us and encouraging persons considering unsolicited tender offers or other unilateral takeover proposals to negotiate with our board
of directors rather than pursue non-negotiated takeover attempts. These provisions include the items described below.
Delaware Anti-Takeover Statute
We are subject to the provisions
of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business
combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes
an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination
between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:
| · | before the stockholder became interested, our Board approved either the business combination or the transaction
which resulted in the stockholder becoming an interested stockholder; |
| | |
| · | upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder,
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced,
excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee
stock plans, in some instances, but not the outstanding voting stock owned by the interested stockholder; or |
| | |
| · | at or after the time the stockholder became interested, the business combination was approved by our Board
and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting
stock which is not owned by the interested stockholder. |
Section 203 defines a business
combination to include:
| · | any merger or consolidation involving the corporation and the interested stockholder; |
| | |
| · | any sale, transfer, lease, pledge, exchange, mortgage or other disposition involving the interested stockholder
of 10% or more of the assets of the corporation; |
| | |
| · | subject to exceptions, any transaction that results in the issuance or transfer by the corporation of
any stock of the corporation to the interested stockholder; or |
| | |
| · | the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or
other financial benefits provided by or through the corporation. |
In general, Section 203 defines
an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and
any entity or person affiliated with or controlling or controlled by the entity or person.
Board Composition and Filling Vacancies
Our charter provides that
stockholders may remove directors only for cause and only by the affirmative vote of the holders of at least two-thirds of our outstanding
common stock. Our charter and bylaws authorize only our board of directors to fill vacant directorships, including newly created seats.
In addition, the number of directors constituting our board of directors may only be set by a resolution adopted by a majority vote of
our entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then
gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change
the composition of our board of directors but promotes continuity of management.
No Written Consent of Stockholders
Our charter and bylaws provides
that all stockholder actions are required to be taken by a vote of the stockholders at an annual or special meeting, and that stockholders
may not take any action by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take stockholder
actions and would prevent the amendment of our bylaws or removal of directors by our stockholders without holding a meeting of stockholders.
Meetings of Stockholders
Our charter and bylaws provide
that only a majority of the members of our Board then in office, our Executive Chairman or our Chief Executive Officer may call special
meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon at a special
meeting of stockholders.
Advance Notice Requirements
Our bylaws provide advance
notice procedures for stockholders seeking to bring matters before our annual meeting of stockholders or to nominate candidates for election
as directors at our annual meeting of stockholders. Our bylaws also specify certain requirements regarding the form and content of a stockholder’s
notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making
nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions
might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate
of directors or otherwise attempting to obtain control of our company.
Amendment to our Charter and Bylaws
The DGCL, provides, generally,
that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate
of incorporation or bylaws, unless a corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater
percentage. Our bylaws may be amended or repealed by a majority vote of our board of directors or the affirmative vote of the holders
of at least two-thirds of the votes that all our stockholders would be entitled to cast in an annual election of directors. In addition,
the affirmative vote of the holders of at least two-thirds of the votes that all our stockholders would be entitled to cast in an election
of directors is required to amend or repeal or to adopt certain provisions of our charter.
Undesignated preferred stock
Our charter provides for 20,000,000
authorized shares of preferred stock. The existence of authorized but unissued shares of preferred stock may enable our board to discourage
an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise
of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of our stockholders,
our board could cause shares of convertible preferred stock to be issued without stockholder approval in one or more private offerings
or other transactions that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group.
In this regard, our charter grants our board broad power to establish the rights and preferences of authorized and unissued shares of
preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution
to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these
holders and may have the effect of delaying, deterring or preventing a change in control of us.
Choice of Forum
Our charter provides that
the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings: any derivative
action or proceeding brought on behalf of us, any action asserting a claim of breach of a fiduciary duty owed by any of our directors,
officers or other employees to us or our stockholders, any action asserting a claim against us arising pursuant to any provision of the
DGCL or our certificate of incorporation or bylaws, or any action asserting a claim against us governed by the internal affairs doctrine.
Our charter also provides that unless we consent in writing to the selection of an alternative forum, the federal district courts of the
United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the
Securities Act. Despite the fact that the certificate of incorporation provides for this exclusive forum provision to be applicable to
the fullest extent permitted by applicable law, Section 27 of the Exchange Act, creates exclusive federal jurisdiction over all suits
brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder and Section 22 of the Securities
Act, creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the
Securities Act or the rules and regulations thereunder. As a result, this provision of our certificate of incorporation would not apply
to claims brought to enforce a duty or liability created by the Exchange Act, or any other claim for which the federal courts have exclusive
jurisdiction. However, there is uncertainty as to whether a Delaware court would enforce the exclusive federal forum provisions for Securities
Act claims and that investors cannot waive compliance with the federal securities laws and rules and regulations thereunder.
Unless we consent in writing
to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for
the resolution of any complaint asserting a cause of action arising under the Securities Act.
Warrants
We may issue warrants to
purchase our securities or other rights, including rights to receive payment in cash or securities based on the value, rate or price of
one or more specified commodities, currencies, securities or indices, or any combination of the foregoing. Warrants may be issued independently
or together with any other securities that may be sold by us pursuant to this prospectus or any combination of the foregoing and may be
attached to, or separate from, such securities. To the extent warrants that we issue are to be publicly-traded, each series of such warrants
will be issued under a separate warrant agreement to be entered into between us and a warrant agent.
We will file as exhibits
to the registration statement of which this prospectus is a part, or will incorporate by reference from a current report on Form 8-K that
we file with the SEC, forms of the warrant and warrant agreement, if any. The prospectus supplement relating to any warrants that we may
offer will contain the specific terms of the warrants and a description of the material provisions of the applicable warrant agreement,
if any. These terms may include the following:
| · | the title of the warrants; |
| | |
| · | the price or prices at which the warrants will be issued; |
| | |
| · | the designation, amount and terms of the securities or other rights for which the warrants are exercisable; |
| | |
| · | the designation and terms of the other securities, if any, with which the warrants are to be issued and
the number of warrants issued with each other security; |
| | |
| · | the aggregate number of warrants; |
| | |
| · | any provisions for adjustment of the number or amount of securities receivable upon exercise of the warrants
or the exercise price of the warrants; |
| | |
| · | the price or prices at which the securities or other rights purchasable upon exercise of the warrants
may be purchased; |
| | |
| · | if applicable, the date on and after which the warrants and the securities or other rights purchasable
upon exercise of the warrants will be separately transferable; |
| · | a discussion of any material U.S. federal income tax considerations applicable to the exercise of the
warrants; |
| | |
| · | the date on which the right to exercise the warrants will commence, and the date on which the right will
expire; |
| | |
| · | the maximum or minimum number of warrants that may be exercised at any time; |
| | |
| · | information with respect to book-entry procedures, if any; and |
| | |
| · | any other terms of the warrants, including terms, procedures and limitations relating to the exchange
and exercise of the warrants. |
Exercise of Warrants.
Each warrant will entitle the holder of warrants to purchase the amount of securities or other rights, at the exercise price stated or
determinable in the prospectus supplement for the warrants. Warrants may be exercised at any time up to the close of business on the expiration
date shown in the applicable prospectus supplement, unless otherwise specified in such prospectus supplement. After the close of business
on the expiration date, if applicable, unexercised warrants will become void. Warrants may be exercised in the manner described in the
applicable prospectus supplement. When the warrant holder makes the payment and properly completes and signs the warrant certificate at
the corporate trust office of the warrant agent, if any, or any other office indicated in the prospectus supplement, we will, as soon
as possible, forward the securities or other rights that the warrant holder has purchased. If the warrant holder exercises less than all
of the warrants represented by the warrant certificate, we will issue a new warrant certificate for the remaining warrants.
Subscription Rights
We may issue rights to purchase
our securities. The rights may or may not be transferable by the persons purchasing or receiving the rights. In connection with any rights
offering, we may enter into a standby underwriting or other arrangement with one or more underwriters or other persons pursuant to which
such underwriters or other persons would purchase any offered securities remaining unsubscribed for after such rights offering. In connection
with a rights offering to holders of our capital stock a prospectus supplement will be distributed to such holders on the record date
for receiving rights in the rights offering set by us.
We will file as exhibits
to the registration statement of which this prospectus is a part, or will incorporate by reference from a current report on Form 8-K that
we file with the SEC, forms of the subscription rights, standby underwriting agreement or other agreements, if any. The prospectus supplement
relating to any rights that we offer will include specific terms relating to the offering, including, among other matters:
| · | the date of determining the security holders entitled to the rights distribution; |
| | |
| · | the aggregate number of rights issued and the aggregate amount of securities purchasable upon exercise
of the rights; |
| | |
| · | the exercise price; |
| | |
| · | the conditions to completion of the rights offering; |
| | |
| · | the date on which the right to exercise the rights will commence and the date on which the rights will
expire; and |
| | |
| · | any applicable federal income tax considerations. |
Each right would entitle
the holder of the rights to purchase the principal amount of securities at the exercise price set forth in the applicable prospectus supplement.
Rights may be exercised at any time up to the close of business on the expiration date for the rights provided in the applicable prospectus
supplement. After the close of business on the expiration date, all unexercised rights will become void.
Holders may exercise rights
as described in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly completed and duly executed
at the corporate trust office of the rights agent, if any, or any other office indicated in the prospectus supplement, we will, as soon
as practicable, forward the securities purchasable upon exercise of the rights. If less than all of the rights issued in any rights offering
are exercised, we may offer any unsubscribed securities directly to persons other than stockholders, to or through agents, underwriters
or dealers or through a combination of such methods, including pursuant to standby underwriting arrangements, as described in the applicable
prospectus supplement.
Debt Securities
As used in this prospectus,
the term “debt securities” means the debentures, notes, bonds and other evidences of indebtedness that we may issue from time
to time. The debt securities will either be senior debt securities, senior subordinated debt or subordinated debt securities. We may also
issue convertible debt securities. Debt securities may be issued under an indenture (which we refer to herein as an Indenture), which
are contracts entered into between us and a trustee to be named therein. The Indenture has been filed as an exhibit to the registration
statement of which this prospectus forms a part. We may issue debt securities and incur additional indebtedness other than through the
offering of debt securities pursuant to this prospectus. It is likely that convertible debt securities will not be issued under an Indenture.
The debt securities may be
fully and unconditionally guaranteed on a secured or unsecured senior or subordinated basis by one or more guarantors, if any. The obligations
of any guarantor under its guarantee will be limited as necessary to prevent that guarantee from constituting a fraudulent conveyance
under applicable law. In the event that any series of debt securities will be subordinated to other indebtedness that we have outstanding
or may incur, the terms of the subordination will be set forth in the prospectus supplement relating to the subordinated debt securities.
We may issue debt securities
from time to time in one or more series, in each case with the same or various maturities, at par or at a discount. Unless indicated in
a prospectus supplement, we may issue additional debt securities of a particular series without the consent of the holders of the debt
securities of such series outstanding at the time of the issuance. Any such additional debt securities, together with all other outstanding
debt securities of that series, will constitute a single series of debt securities under the applicable Indenture and will be equal in
ranking.
Should an Indenture relate
to unsecured indebtedness, in the event of a bankruptcy or other liquidation event involving a distribution of assets to satisfy our outstanding
indebtedness or an event of default under a loan agreement relating to secured indebtedness of our company or its subsidiaries, the holders
of such secured indebtedness, if any, would be entitled to receive payment of principal and interest prior to payments on the unsecured
indebtedness issued under an Indenture.
Each prospectus supplement
will describe the terms relating to the specific series of debt securities. These terms will include some or all of the following:
| · | the title of debt securities and whether the debt securities are senior or subordinated; |
| | |
| · | any limit on the aggregate principal amount of debt securities of such series; |
| | |
| · | the percentage of the principal amount at which the debt securities of any series will be issued; |
| | |
| · | the ability to issue additional debt securities of the same series; |
| | |
| · | the purchase price for the debt securities and the denominations of the debt securities; |
| · | the specific designation of the series of debt securities being offered; |
| | |
| · | the maturity date or dates of the debt securities and the date or dates upon which the debt securities
are payable and the rate or rates at which the debt securities of the series shall bear interest, if any, which may be fixed or variable,
or the method by which such rate shall be determined; |
| | |
| · | the basis for calculating interest; |
| | |
| · | the date or dates from which any interest will accrue or the method by which such date or dates will be
determined; |
| | |
| · | the duration of any deferral period, including the period during which interest payment periods may be
extended; |
| | |
| · | whether the amount of payments of principal of (and premium, if any) or interest on the debt securities
may be determined with reference to any index, formula or other method, such as one or more currencies, commodities, equity indices or
other indices, and the manner of determining the amount of such payments; |
| | |
| · | the dates on which we will pay interest on the debt securities and the regular record date for determining
who is entitled to the interest payable on any interest payment date; |
| | |
| · | the place or places where the principal of (and premium, if any) and interest on the debt securities will
be payable, where any securities may be surrendered for registration of transfer, exchange or conversion, as applicable, and notices and
demands may be delivered to or upon us pursuant to the applicable Indenture; |
| | |
| · | the rate or rates of amortization of the debt securities; |
| | |
| · | any terms for the attachment to the debt securities of warrants, options or other rights to purchase or
sell our securities; |
| | |
| · | if the debt securities will be secured by any collateral and, if so, a general description of the collateral
and the terms and provisions of such collateral security, pledge or other agreements; |
| | |
| · | if we possess the option to do so, the periods within which and the prices at which we may redeem the
debt securities, in whole or in part, pursuant to optional redemption provisions, and the other terms and conditions of any such provisions; |
| | |
| · | our obligation or discretion, if any, to redeem, repay or purchase debt securities by making periodic
payments to a sinking fund or through an analogous provision or at the option of holders of the debt securities, and the period or periods
within which and the price or prices at which we will redeem, repay or purchase the debt securities, in whole or in part, pursuant to
such obligation, and the other terms and conditions of such obligation; |
| | |
| · | the terms and conditions, if any, regarding the option or mandatory conversion or exchange of debt securities; |
| | |
| · | the period or periods within which, the price or prices at which and the terms and conditions upon which
any debt securities of the series may be redeemed, in whole or in part at our option and, if other than by a board resolution, the manner
in which any election by us to redeem the debt securities shall be evidenced; |
| | |
| · | any restriction or condition on the transferability of the debt securities of a particular series; |
| · | the portion, or methods of determining the portion, of the principal amount of the debt securities which
we must pay upon the acceleration of the maturity of the debt securities in connection with any event of default; |
| | |
| · | the currency or currencies in which the debt securities will be denominated and in which principal, any
premium and any interest will or may be payable or a description of any units based on or relating to a currency or currencies in which
the debt securities will be denominated; |
| | |
| · | provisions, if any, granting special rights to holders of the debt securities upon the occurrence of specified
events; |
| | |
| · | any deletions from, modifications of or additions to the events of default or our covenants with respect
to the applicable series of debt securities, and whether or not such events of default or covenants are consistent with those contained
in the applicable Indenture; |
| | |
| · | any limitation on our ability to incur debt, redeem stock, sell our assets or other restrictions; |
| | |
| · | the application, if any, of the terms of the applicable Indenture relating to defeasance and covenant
defeasance (which terms are described below) to the debt securities; |
| | |
| · | what subordination provisions will apply to the debt securities; |
| | |
| · | the terms, if any, upon which the holders may convert or exchange the debt securities into or for our
securities or property; |
| | |
| · | whether we are issuing the debt securities in whole or in part in global form; |
| | |
| · | any change in the right of the trustee or the requisite holders of debt securities to declare the principal
amount thereof due and payable because of an event of default; |
| | |
| · | the depositary for global or certificated debt securities, if any; |
| | |
| · | any material federal income tax consequences applicable to the debt securities, including any debt securities
denominated and made payable, as described in the prospectus supplements, in foreign currencies, or units based on or related to foreign
currencies; |
| | |
| · | any right we may have to satisfy, discharge and defease our obligations under the debt securities, or
terminate or eliminate restrictive covenants or events of default in the Indentures, by depositing money or U.S. government obligations
with the trustee of the Indentures; |
| | |
| · | the names of any trustees, depositories, authenticating or paying agents, transfer agents or registrars
or other agents with respect to the debt securities; |
| | |
| · | to whom any interest on any debt security shall be payable, if other than the person in whose name the
security is registered, on the record date for such interest, the extent to which, or the manner in which, any interest payable on a temporary
global debt security will be paid; |
| | |
| · | if the principal of or any premium or interest on any debt securities is to be payable in one or more
currencies or currency units other than as stated, the currency, currencies or currency units in which it shall be paid and the periods
within and terms and conditions upon which such election is to be made and the amounts payable (or the manner in which such amount shall
be determined); |
| · | the portion of the principal amount of any debt securities which shall be payable upon declaration of
acceleration of the maturity of the debt securities pursuant to the applicable Indenture; |
| | |
| · | if the principal amount payable at the stated maturity of any debt security of the series will not be
determinable as of any one or more dates prior to the stated maturity, the amount which shall be deemed to be the principal amount of
such debt securities as of any such date for any purpose, including the principal amount thereof which shall be due and payable upon any
maturity other than the stated maturity or which shall be deemed to be outstanding as of any date prior to the stated maturity (or, in
any such case, the manner in which such amount deemed to be the principal amount shall be determined); and |
| | |
| · | any other specific terms of the debt securities, including any modifications to the events of default
under the debt securities and any other terms which may be required by or advisable under applicable laws or regulations. |
Unless otherwise specified
in the applicable prospectus supplement, we do not anticipate the debt securities will be listed on any securities exchange. Holders of
the debt securities may present registered debt securities for exchange or transfer in the manner described in the applicable prospectus
supplement. Except as limited by the applicable Indenture, we will provide these services without charge, other than any tax or other
governmental charge payable in connection with the exchange or transfer.
Debt securities may bear
interest at a fixed rate or a variable rate as specified in the prospectus supplement. In addition, if specified in the prospectus supplement,
we may sell debt securities bearing no interest or interest at a rate that at the time of issuance is below the prevailing market rate,
or at a discount below their stated principal amount. We will describe in the applicable prospectus supplement any special federal income
tax considerations applicable to these discounted debt securities.
We may issue debt securities
with the principal amount payable on any principal payment date, or the amount of interest payable on any interest payment date, to be
determined by referring to one or more currency exchange rates, commodity prices, equity indices or other factors. Holders of such debt
securities may receive a principal amount on any principal payment date, or interest payments on any interest payment date, that are greater
or less than the amount of principal or interest otherwise payable on such dates, depending upon the value on such dates of applicable
currency, commodity, equity index or other factors. The applicable prospectus supplement will contain information as to how we will determine
the amount of principal or interest payable on any date, as well as the currencies, commodities, equity indices or other factors to which
the amount payable on that date relates and certain additional tax considerations.
Units
We may issue units consisting
of any combination of the other types of securities offered under this prospectus in one or more series. We may evidence each series of
units by unit certificates that we may issue under a separate agreement. We may enter into unit agreements with a unit agent. Each unit
agent, if any, may be a bank or trust company that we select. We will indicate the name and address of the unit agent, if any, in the
applicable prospectus supplement relating to a particular series of units. Specific unit agreements, if any, will contain additional important
terms and provisions. We will file as an exhibit to the registration statement of which this prospectus is a part, or will incorporate
by reference from a current report that we file with the SEC, the form of unit and the form of each unit agreement, if any, relating to
units offered under this prospectus.
If we offer any units, certain
terms of that series of units will be described in the applicable prospectus supplement, including, without limitation, the following,
as applicable:
| · | the title of the series of units; |
| | |
| · | identification and description of the separate constituent securities comprising the units; |
| | |
| · | the price or prices at which the units will be issued; |
| | |
| · | the date, if any, on and after which the constituent securities comprising the units will be separately
transferable; |
| | |
| · | a discussion of certain United States federal income tax considerations applicable to the units; and |
| | |
| · | any other material terms of the units and their constituent securities. |
Legal
Matters
Unless otherwise indicated
in the applicable prospectus supplement, the validity of the securities offered by this prospectus will be passed upon for us by Carroll
Legal LLC, Denver, Colorado. If legal matters in connection with offerings made by this prospectus are passed on by counsel for the underwriters,
dealers or agents, if any, that counsel will be named in the applicable prospectus supplement.
Experts
Haynie & Company, independent
registered public accounting firm, has audited the financial statements of the Company as of December 31, 2023 and for the year ended
December 31, 2023, as set forth in their report thereon appearing in Aclarion, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2023, and incorporated by reference herein. Such financial statements are incorporated by reference herein in reliance upon
such report, which includes an explanatory paragraph on Aclarion, Inc.’s ability to continue as a going concern, given on their
authority as experts in accounting and auditing.
CohnReznick LLP, independent
registered public accounting firm, has audited the restated financial statements of the Company as of December 31, 2022 and for the year
ended December 31, 2022, as set forth in their report included herein. The report of CohnReznick LLP contains an explanatory paragraph
about the ability of the Company to continue as a going concern. The restated financial statements of the Company are included in this
prospectus and elsewhere in this registration statement in reliance of CohnReznick LLP’s report, given on their authority as experts
in accounting and auditing.
Where
You Can Find Additional Information
This prospectus is part of
the registration statement on Form S-3 filed with the SEC under the Securities Act of 1933, as amended, or the Securities Act, and does
not contain all the information set forth in the registration statement. Whenever a reference is made in this prospectus to any of our
contracts, agreements or other documents, the reference may not be complete and you should refer to the exhibits that are a part of the
registration statement or the exhibits to the reports or other documents incorporated herein by reference for a copy of such contract,
agreement or other document.
We are currently subject
to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and in accordance therewith file
periodic reports, proxy statements and other information with the SEC. Our SEC filings are available to you on the SEC’s website
at http://www.sec.gov and in the “Investors” section of our website at www.aclarion.com. Our website and the information contained
on that site, or connected to that site, are not incorporated into and are not a part of this prospectus.
Incorporation
of Documents By Reference
We are “incorporating
by reference” in this prospectus certain documents we file with the SEC, which means that we can disclose important information
to you by referring you to those documents. The information in the documents incorporated by reference is considered to be part of this
prospectus. Statements contained in documents that we file with the SEC and that are incorporated by reference in this prospectus will
automatically update and supersede information contained in this prospectus, including information in previously filed documents or reports
that have been incorporated by reference in this prospectus, to the extent the new information differs from or is inconsistent with the
old information. We have filed or may file the following documents with the SEC and they are incorporated herein by reference as of their
respective dates of filing:
1. Our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 28, 2024;
2. Our Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, as filed with the SEC on May 15, 2024 and August 14, 2024, respectively;
3. Our Current Reports on
Form 8-K filed with the SEC on January 4, 2024, January 23, 2024, January 29, 2024, February 27, 2024, April 12, 2024, June 18, 2024,
June 26, 2024, August 13, 2024, August 16, 2024, August 23, 2024 and August 29, 2024; and
4. The description of our
Common Stock, which is contained in the Registration Statement on Form 8-A, as filed with the SEC on April 20, 2022, as updated by the
description of our Common Stock contained in Exhibit 4.4 to our Annual Report on Form 10-K for the fiscal year ended December 31,
2023, filed with the SEC on March 28, 2024.
All documents that we file
with the SEC pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act (i) after the date of the initial registration
statement and prior to effectiveness of the registration statement and (ii) on or after the date of the effectiveness of the registration
statement and prior to the filing of a post-effective amendment to this registration statement that indicates that all securities offered
under this prospectus have been sold, or that deregisters all securities then remaining unsold, will be deemed to be incorporated in this
registration statement by reference and to be a part hereof from the date of filing of such documents.
Any statement contained in
a document incorporated or deemed to be incorporated by reference in this prospectus shall be deemed modified, superseded or replaced
for purposes of this prospectus to the extent that a statement contained in this prospectus, or in any subsequently filed document that
also is deemed to be incorporated by reference in this prospectus, modifies, supersedes or replaces such statement. Any statement so modified,
superseded or replaced shall not be deemed, except as so modified, superseded or replaced, to constitute a part of this prospectus. None
of the information that we disclose under Items 2.02 or 7.01 of any Current Report on Form 8-K or any corresponding information, either
furnished under Item 9.01 or included as an exhibit therein, that we may from time to time furnish to the SEC will be incorporated by
reference into, or otherwise included in, this prospectus, except as otherwise expressly set forth in the relevant document. Subject to
the foregoing, all information appearing in this prospectus is qualified in its entirety by the information appearing in the documents
incorporated by reference.
You may request, orally or
in writing, a copy of these documents, which will be provided to you at no cost (other than exhibits, unless such exhibits are specifically
incorporated by reference), by contacting John Lorbiecki, c/o Aclarion, Inc., at 8181 Arista Place, Suite 100, Broomfield, Colorado 80021.
Our telephone number is (833) 275-2266. Information about us is also available at our website at www.aclarion.com. However, the information
in our website is not a part of this prospectus and is not incorporated by reference.
Up to $1,075,000
Common Stock
PROSPECTUS SUPPLEMENT
Ascendiant Capital
Markets, LLC
September 24, 2024
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