Company: REVB
Filing Date: 2025-05-20
Form Type: S-1
Source: 0001213900-25-045828
Chunk: 192

Company: REVELATION BIOSCIENCES, INC.
Filing Date: 2025-05-20
Form: S-1
Chunk 192
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ensed as incurred. Research and development costs consist primarily of salaries, employee benefits, costs associated with preclinical studies and clinical trials (including amounts paid to clinical research organizations and other professional services). Payments made prior to the receipt of goods or services to be used for research and development expense are capitalized until the goods or services are received. The Company records accruals for estimated research and development costs, comprising payments for work performed by third party contractors, laboratories, participating clinical trial sites, and others. Some of these contractors bill monthly based on actual services performed. Other contractors bill periodically based upon achieving certain contractual milestones. For the contractors that bill periodically, the Company accrues the expenses as goods or services are used or rendered. Clinical trial site costs related to patient enrollment are accrued as patients enter and progress through the trial. Upfront costs, such as costs associated with setting up clinical trial sites for participation in the trials, are expensed immediately once incurred as research and development expenses. F-9 REVELATION BIOSCIENCES, INC.
Notes to the Consolidated Financial Statements 2. Summary of Significant Accounting Policies(cont.)

Patent Costs

Legal costs in connection with
approved patents and patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. These costs are
recorded in general and administrative expenses in the consolidated statements of operations.

Stock-based Compensation

The Company recognizes stock-based
compensation expense related to stock options, third-party warrants, and Restricted Stock Unit (“RSU”) awards granted, based
on the estimated fair value of the stock-based awards on the date of grant. The fair value of employee stock options and third-party warrants
are generally determined using the Black-Scholes option-pricing model using various inputs, including estimates of historic volatility,
term, risk-free rate, and future dividends. The grant date fair value of the stock-based awards, which have graded vesting, is recognized
using the straight-line method over the requisite service period of each stock-based award, which is generally the vesting period of the
respective stock-based awards. The Company recognizes forfeitures as they occur.

Income Taxes

Income taxes are accounted
for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applied
to taxable income in the years