UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________to____________

Commission file number: 001-40492

Femasys Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware	11-3713499
---	---
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
3950 Johns Creek Court, Suite 100
Suwanee, GA 30024	(770) 500-3910
(Address of principal executive offices, including zip code)	(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☑

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☑	Smaller reporting company ☑
Emerging growth company ☑

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which<br><br> <br>registered
Common stock, $0.001 par value	FEMY	The Nasdaq Capital Market

The Registrant had 11,813,610 shares of common stock, $0.001 par value, outstanding as of May 5, 2022.

	TABLE OF<br> CONENTS
		Page
Part I. Financial Information
Item 1	Financial Statements	5
	Balance Sheets as of March 31, 2022 and December 31, 2021 (unaudited)	5
	Statements of Comprehensive Loss for the Three Months Ended March 31, 2022 and 2021 (unaudited)	7
	Statements of Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2022 and 2021 (unaudited)	8
	Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	9
	Notes to Financial Statements (unaudited)	10
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4	Controls and Procedures	18
Part II. Other Information
Item 1	Legal Proceedings	19
Item 1A	Risk Factors	19
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3	Defaults Upon Senior Securities	19
Item 4	Mine Safety Disclosures	19
Item 5	Other Information	19
Item 6	Exhibits	20
SIGNATURES		21

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements include, but are not limited to, statements concerning:

•	our ability to develop and advance our current product candidates and programs into, and successfully initiate and complete, clinical trials;
•	the ability of our clinical trials to demonstrate safety and effectiveness of our product candidates and other positive results;
---	---
•	estimates regarding the total addressable market for our product candidates;
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•	our ability to enroll subjects in the clinical trials for our product candidates in order to<br> advance the development thereof on a timely basis;
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•	our ability to obtain additional financing to fund the clinical development of our products and<br> fund operations;
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•	competitive companies and technologies in our industry;
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•	our ability to obtain U.S Food and Drug Administration (FDA) approval for our permanent birth control<br> system, ability to gain FDA grant of a de novo classification request for our intrauterine insemination system, expand sales of our women-specific medical products and develop and commercialize additional products;
---	---
•	our ability to commercialize or obtain regulatory approvals, grants of de novo classification requests or 510(k) clearance for our product candidates, or the effect of delays in commercializing or obtaining<br> regulatory authorizations;
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•	our business model and strategic plans for our products, technologies and business, including our implementation thereof;
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•	commercial success and market acceptance of our product candidates;
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•	our ability to achieve and maintain adequate levels of coverage or reimbursement for our FemBloc system or any future products we may seek to commercialize;
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•	our ability to manufacture our products and product candidates in compliance with applicable laws, regulations and requirements and to oversee third-party suppliers, service providers and vendors in the<br> performance of any contracted activities in accordance with applicable laws, regulations and requirements;
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•	the impact of the COVID-19 pandemic on our business, financial condition, results of operations, and prospects;
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•	our ability to accurately forecast customer demand for our product candidates, and manage our inventory;
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•	our ability to build, manage and maintain our direct sales and marketing organization, and to market and sell our permanent birth control system, artificial insemination system and women-specific medical<br> products in markets in and outside of the United States (U.S.);
---	---
•	our ability to hire and retain our senior management and other highly qualified personnel;
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•	FDA or other U.S. or foreign regulatory actions affecting us or the healthcare industry generally, including healthcare reform measures<br> in the U.S. and international markets;
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•	the timing or likelihood of regulatory filings and approvals or clearances;
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•	our ability to establish and maintain intellectual property protection for our product candidates and our ability to avoid claims of infringement;
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•	the volatility of the trading price of our common stock; and
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•	our expectations about market trends.
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The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of known and unknown risks, uncertainties and assumptions, including those described under the sections in this Quarterly Report on Form 10-Q entitled “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the Securities and Exchange Commission as exhibits hereto completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. The forward-looking statements contained in this Quarterly Report on 10-Q are excluded from the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended.

PART I. FINANCIAL INFORMATION

ITEM I.	Financial Statements

FEMASYS INC.

Balance Sheets

(unaudited)

Assets	March 31,<br><br> <br>2022
Current assets:
Cash and cash equivalents	$	21,767,634		24,783,029
Accounts receivable, net		170,302		84,258
Inventory, net		223,008		208,270
Other current assets		567,300		555,853
Total current assets		22,728,244		25,631,410
Property and equipment, at cost:
Leasehold improvements		1,195,637		1,155,332
Office equipment		99,344		99,344
Furniture and fixtures		424,947		424,947
Machinery and equipment		2,287,126		2,261,793
Construction in progress		434,443		379,713
		4,441,497		4,321,129
Less accumulated depreciation		(2,854,315	)	(2,722,117	)
Net property and equipment		1,587,182		1,599,012
Long-term assets:
Lease right-of-use assets, net		574,943		665,747
Intangible assets, net of accumulated amortization		17,663		25,093
Other long-term assets		625,418		655,418
Total long-term assets		1,218,024		1,346,258
Total assets	$	25,533,450		28,576,680

(continued)

FEMASYS INC.

Balance Sheets

(unaudited)

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	548,377		445,522
Accrued expenses	565,228		603,787
Clinical holdback – current portion	36,238		18,947
Note payable – current portion	45,666		181,123
Lease liabilities – current portion	400,620		406,674
Other – current	36,037		36,037
Total current liabilities	1,632,166		1,692,090
Long-term liabilities:
Clinical holdback – long-term portion	102,502		149,791
Lease liabilities – long-term portion	305,071		402,417
Total long-term liabilities	407,573		552,208
Total liabilities	2,039,739		2,244,298
Commitments and contingencies
Stockholders’ equity:
Common stock, 0.001 par, 200,000,000 authorized,<br> 11,921,388 shares issued and 11,804,165 outstanding as of<br> March 31, 2022 and December 31, 2021	11,921		11,921
Treasury stock, 117,223 shares	(60,000	)	(60,000	)
Warrants	702,492		702,492
Additional paid-in-capital	108,462,663		108,418,304
Accumulated deficit	(85,623,365	)	(82,740,335	)
Total stockholders’ equity	23,493,711		26,332,382
Total liabilities and stockholders' equity	25,533,450		28,576,680

All values are in US Dollars.

The accompanying notes are an integral part of these unaudited financial statements.

FEMASYS INC.

Statements of Comprehensive Loss

(unaudited)

	Three Months Ended March 31,
	2022			2021
Sales	$	321,405			329,775
Cost of sales		122,675			93,042
Gross margin		198,730			236,733
Operating expenses:
Research and development		1,421,063			995,022
Sales and marketing		68,863			22,819
General and administrative		1,447,355			891,987
Depreciation and amortization		144,199			153,453
Total operating expenses		3,081,480			2,063,281
Loss from operations		(2,882,750	)		(1,826,548	)
Other income (expense):
Interest income, net		2,454			164
Interest expense		(2,734	)		(3,848	)
Other expense, net		(280	)		(3,684	)
Net loss	$	(2,883,030	)		(1,830,232	)
Net loss attributable to common stockholders, basic and diluted	$	(2,883,030	)		(1,830,232	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.24	)		(1.84	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,804,165			995,208

The accompanying notes are an integral part of these unaudited financial statements.

FEMASYS INC.

Statements of Stockholders’ Equity (Deficit)

(unaudited)

	Series B and Series C Redeemable Convertible																								Total
	Preferred stock				Common stock				Treasury stock					Preferred stock						Additional		Accumulated			stockholders’
	Shares		Amount		Shares		Amount		Shares		Amount			Shares		Amount		Warrants		paid-in capital		deficit			Equity (Deficit)
THREE MONTHS ENDED MARCH 31, 2022
Balance at December 31, 2021		—	$	—		11,921,388	$	11,921		117,223	$	(60,000	)		—	$	—	$	702,492	$	108,418,304	$	(82,740,335	)	$	26,332,382
Share-based compensation expense		—		—		—		—		—		—			—		—		—		44,359		—			44,359
Net loss		—		—		—		—		—		—			—		—		—		—		(2,883,030	)		(2,883,030	)
Balance at March 31, 2022		—	$	—		11,921,388	$	11,921		117,223	$	(60,000	)		—	$	—	$	702,492	$	108,462,663	$	(85,623,365	)	$	23,493,711
THREE MONTHS ENDED MARCH 31, 2021
Balance at December 31, 2020		55,835,833	$	55,343,686		1,110,347	$	1,110		117,223	$	(60,000	)		17,210,609	$	17,211	$	702,492	$	22,725,949	$	(75,202,490	)	$	(51,815,728	)
Issuance of common stock for cash upon exercise of options		—		—		2,084		2		—		—			—		—		—		10,048		—			10,050
Share-based compensation expense		—		—		—		—		—		—			—		—		—		72,490		—			72,490
Net loss		—		—		—		—		—		—			—		—		—		—		(1,830,232	)		(1,830,232	)
Balance at March 31, 2021		55,835,833	$	55,343,686		1,112,431	$	1,112		117,223	$	(60,000	)		17,210,609	$	17,211	$	702,492	$	22,808,487	$	(77,032,722	)	$	(53,563,420	)

The accompanying notes are an integral part of these unaudited financial statements.

FEMASYS INC.

Statements of Cash Flows

(unaudited)

	Three Months Ended March 31,
	2022			2021
Cash flows from operating activities:
Net loss	$	(2,883,030	)		(1,830,232	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		136,769			141,202
Amortization		7,430			12,251
Amortization of right-of-use assets		86,233			98,256
Inventory reserve		2,700			—
Share-based compensation expense		44,359			72,490
Changes in operating assets and liabilities:
Accounts receivable		(86,044	)		30,043
Inventory		(17,438	)		(12,679	)
Other assets		18,553			63,081
Accounts payable		102,855			171,665
Accrued expenses and other		(38,559	)		194,506
Lease liabilites		(97,851	)		(105,986	)
Other liabilities		(29,998	)		4,721
Net cash used in operating activities		(2,754,021	)		(1,160,682	)
Cash flows from investing activities:
Purchases of property and equipment		(120,368	)		—
Net cash used in investing activities		(120,368	)		—
Cash flows from financing activities:
Payments of deferred offering costs		—			(126,377	)
Proceeds from issuance of common stock		—			10,050
Repayment of note payable		(135,457	)		(23,643	)
Payments under lease obligations		(5,549	)		(5,021	)
Net cash used in financing activities		(141,006	)		(144,991	)
Net change in cash and cash equivalents		(3,015,395	)		(1,305,673	)
Cash and cash equivalents:
Beginning of period		24,783,029			3,322,226
End of period	$	21,767,634			2,016,553
Supplemental cash flow information
---	---	---	---
Cash paid for:
Interest	$	2,734	1,845
Income taxes	$	800	—
Non-cash financing activities:
Deferred offering costs included in accounts payable and accrued expenses	$	—	526,476
Prepaid insurance financed with promissory notes	$	45,666	41,199

The accompanying notes are an integral part of these unaudited financial statements.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(1)	Organization, Nature of Business, and Liquidity

Organization and Nature of Business

Femasys Inc. (the Company or Femasys) was incorporated in Delaware on February 19, 2004 and is headquartered in Suwanee, Georgia. The Company is a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. Our mission is to provide women worldwide with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. The Company currently operates as one segment and is primarily focused on servicing the reproductive health needs for those seeking permanent birth control or solutions for infertility issues.

Femasys has an expansive intellectual property portfolio which covers both design and utility patents in the U.S. and significant ex-U.S. markets for each product initiative. Femasys has taken concepts internally conceived and protected through development, including domestic and foreign regulatory approvals, and production, through in-house manufacturing. FemBloc® (FemBloc), the Company’s solution for permanent birth control, is based on the Company’s non-surgical platform technology and is presently completing a validation study under an approved Investigational Device Exemption (IDE) from the U.S. Food and Drug Administration (FDA). FemaSeed™ (FemaSeed), a solution which enables directed intrauterine insemination to improve on traditional intrauterine insemination (IUI) and provide a lower cost option to in vitro fertilization methods, received approval in April 2021 from the FDA on its IDE and the clinical study was initiated in July 2021. FemVue® (FemVue), a solution that enables fallopian tube assessment with ultrasound as an alternative to the radiologic approach (hysterosalpingogram) for the diagnosis of infertility, is approved for sale in the U.S., Europe, Japan, and Canada. FemChec® (FemChec), allows for fallopian tube evaluation after a FemBloc procedure to confirm occlusion (or procedure success) and is part of the FemBloc validation study. FemCerv® (FemCerv) is a solution for complete tissue sampling with minimal contamination of the endocervical canal as an alternative to the single biopsy method, is approved for sale in the U.S. and Europe. FemCath™ (FemCath), allows for selective evaluation of an individual fallopian tube as an alternative to the traditional intrauterine catheter that is undirected, is approved for sale in the U.S.

Basis of Presentation

The Company has prepared the accompanying financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to these rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and footnotes related thereto for the year ended December 31, 2021 included in our Annual Report on Form 10K filed with the SEC on March 24, 2022 (the Annual Report). Except as noted below, there have been no material changes to the Company’s significant accounting policies described in Note 2 to the financial statements included in the Annual Report.

In the opinion of management, the unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of its operations and cash flows at the dates for periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting periods. The most significant estimates used in these financial statements include the valuation of stock options, warrants, useful lives of property and equipment, intangible assets, and the pre-IPO valuation of our common stock and preferred stock. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates.

Liquidity

As of March 31, 2022, the Company has cash and cash equivalents of $21,767,634. The Company plans to finance its operations and development needs with its existing cash and cash equivalents, additional equity and/or debt financing arrangements, and revenue from the sale of FemVue to support the Company’s research and development activities, largely in connection with FemBloc and FemaSeed. There can be no assurance that the Company will be able to obtain additional financing on terms acceptable to the Company, on a timely basis, or at all. If the Company is not able to obtain sufficient funds on acceptable terms when needed, the Company’s business, results of operations, and financial condition could be materially adversely impacted.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

For the three months ended March 31, 2022, the Company generated a net loss of $2,883,030. The Company expects such losses to increase over the next few years as the Company advances FemBloc and FemaSeed through clinical development until FDA approval is received and the products are available to be marketed.

The Company believes that its cash and cash equivalents as of March 31, 2022 will be sufficient to fund our ongoing operations at least 12 months from the date of filing these financial statements.

Recently Issued Accounting Pronouncements – Recently Adopted

On January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which the Financial Accounting Standards Board (FASB) issued in December 2019. This guidance

  eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance was effective for annual periods after December 15, 2020, including
  interim periods within those annual periods. The Company’s adoption of this new guidance did not have a material impact on the Company’s financial statements and footnote disclosures \(unaudited\).

Recently Issued Accounting Pronouncements – Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial

    Instruments—Credit Losses \(Topic 326\): Measurement of Credit Losses on Financial Instruments. The new standard changes the accounting for credit losses for financial assets and certain other
  instruments, including trade receivables and contract assets, that are not measured at fair value through net income. Under legacy standards, we recognize an impairment of receivables when it was probable that a loss had been incurred. Under the new
  standard, we are required to recognize estimated credit losses expected to occur over the estimated life or remaining contractual life of an asset \(which includes losses that may be incurred in future periods\) using a broader range of information
  including reasonable and supportable forecasts about future economic conditions. The guidance is effective for smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within
  those fiscal years with early adoption permitted. We do not expect the adoption of the standard to have a significant impact on our results of operations, financial position, or cash flows as credit losses are not expected to be significant based on
  historical collection trends, the financial condition of payment partners, and external market factors.

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s financial statements.

(2)	Cash and Cash Equivalents

As of March 31, 2022 and December 31, 2021, money market funds included in cash and cash equivalents on the balance sheets were $21,424,306 and $24,388,443, respectively, which represent level 1 within the fair value hierarchy where there are quoted prices in active markets for identical assets.

(3)	Inventories

Inventory stated at cost, net of reserve, consisted of the following:

	March 31,<br><br> <br>2022
Materials	$	132,185	111,531
Work in progress		55,709	12,795
Finished goods		35,114	83,944
Inventory, net	$	223,008	208,270

The FemVue reserve for slow moving, obsolete, or unusable inventories was $1,287 and $850 as of March 31, 2022 and December 31, 2021, respectively.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(4)	Accrued Expenses

Accrued expenses consisted of the following:

	March 31,<br><br> <br>2022
Clinical trial costs	$	324,329	301,730
Compensation costs		127,873	98,272
Franchise taxes		16,500	103,020
Other		96,526	100,765
Accrued expenses	$	565,228	603,787
(5)	Clinical Holdback
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The following table shows the activity within the clinical holdback liability accounts for the three months ended March 31, 2022:

Balance at December 31, 2021	$	168,738
Clinical holdback retained		4,023
Clinical holdback paid		(34,021	)
Balance at March 31, 2022	$	138,740
Less: clinical holdback - current portion		(36,238	)
Clinical holdback - long-term portion	$	102,502
(6)	Revenue Recognition
---	---

Revenue is recognized upon shipment of our goods based upon contractually stated pricing at standard payment terms ranging from 30 to 60 days. All revenue is recognized point in time and no revenue is recognized over time. For the three months ended March 31, 2022 and 2021, there was no revenue recognized from performance obligations satisfied or partially satisfied in prior periods, nor were there any unsatisfied performance obligations as of March 31, 2022 or 2021.

The majority of products sold directly to U.S customers are shipped via common carrier, and the customer pays for shipping and handling and assumes control Free on Board (FOB) shipping point. Products shipped to our international distributors are in accordance with their respective agreements; however, the shipping terms are generally EX-Works, reflecting that control is assumed by the distributor at the shipping point. Returns are only accepted with prior authorization from the Company. Items to be returned must be in original unopened cartons and are subject to a 30% restocking fee. Throughout the periods presented, the Company has not had a history of significant returns.

The following table summarizes our FemVue sales by geographic region as follows:

	Three Months Ended March 31,
	2022		2021
Primary geographical markets
U.S.	$	263,360		271,730
International		58,045		58,045
Total	$	321,405		329,775
(7)	Commitments and Contingencies
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Legal Claims

Occasionally, the Company may be a party to legal claims or proceedings of which the outcomes are subject to significant uncertainty. In accordance with Accounting Standards Codification (ASC) 450, Contingencies, the Company will assess the likelihood of an adverse judgment for any outstanding claim as well as ranges of probable losses. When it has been determined that a loss is probable and the amount can be reasonably estimated, the Company will record a liability. For both periods presented, there were no material legal contingencies requiring accrual or disclosure.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

The Company, as permitted under Delaware law and in accordance with its bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The Company entered into employment agreements with its officers, which provides for indemnification protection in the executive’s capacity as an officer for actions taken within the scope of employment. The maximum amount of potential future indemnification is unlimited; however, the Company has obtained director and officer insurance that limits its exposure. The Company believes the fair value for these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations as of March 31, 2022 and December 31, 2021.

(8)	Notes Payable

AFCO

    Credit Corporation \(AFCO\)

As of March 31, 2022 and December 31, 2021, the principal balance on the remaining AFCO promissory note was $45,666 and $181,123, respectively and is included in Notes payable – current portion in the accompanying balance sheets. Interest expense in connection with the AFCO promissory notes was $1,796 and $378 for the three months ended March 31, 2022 and 2021, respectively.

(9)	Redeemable Convertible Preferred Stock and Stockholders’ Equity

In June 2021, the Company issued 2,650,000 shares of common stock in connection with the Company’s IPO of its common stock at $13.00 per share. Net proceeds to the Company, after deducting underwriting discounts, commissions, and legal expenses, was $31,613,500. Offering costs incurred by the company were $2,016,143, which include legal expenses incurred and paid by our underwriters of $425,000. Immediately prior to the closing of the IPO, all our shares of our convertible Series A preferred stock and our redeemable convertible Series B and Series C preferred stock automatically converted into 8,116,343 shares of common stock.

The Company filed an eleventh amended and restated certificate of incorporation (the Amended and Restated Certificate) with the Secretary of State of the State of Delaware in connection with the completion of the IPO on June 22, 2021. The Amended and Restated Certificate amends and restates the Company’s existing certificate of incorporation in its entirety to, among other things: (i) authorize 200,000,000 shares of common stock; (ii) eliminate all references to the previously-existing series of preferred stock (Series A, B and C); and (iii) authorize 10,000,000 shares of undesignated preferred stock that may be issued from time to time by the Board in one or more series.

As of March 31, 2022, the Company had 11,804,165 shares of common stock outstanding, and no dividends have been declared or paid.

(10)	Equity Incentive Plans

Stock-Based Awards

(a)	Stock Option Plans

In June 2021, in connection with the IPO, our 2021 Equity Incentive Plan (2021 Plan) became effective, which was adopted by our Board of Directors in February 2021 and our stockholders approved the 2021 Plan in March 2021. The 2021 Plan is administered by our compensation committee. Upon the effectiveness of the 2021 Plan, no new grants will be awarded under our 2015 Stock-Based Incentive Compensation Plan.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

As of March 31, 2022, the total number of shares of common stock reserved for future awards under the 2021 Plan is 1,319,136.

Activity under the stock option plans was as follows:

			Weighted<br><br> <br>average<br><br> <br>exercise price			Aggregate<br><br> <br>intrinsic<br><br> <br>value
Outstanding at December 31, 2021	689,995		$	3.58		$	683,531
Granted	270,170			6.71
Expired	(3,334	)		27.00
Forfeited	(834	)		6.12
Outstanding at March 31, 2022	955,997		$	4.38	6.47	$	125,279
Vested and exercisable at March 31, 2022	529,027		$	3.65	5.21	$	64,168

Options granted under our 2021 Plan for the three months ended March 31, 2022 to employees and a nonemployee were 253,170 and 17,000, respectively, and the weighted average exercise prices were $6.96 and $3.03, respectively. Included in awards granted to employees are 140,000 of performance based options that vest on achieving certain clinical related milestones. The weighted-average fair values of the options granted to employees and the nonemployee were $2.34 and $2.49, respectively and were estimated using the following weighted-average assumptions:


Expected term (in years)	6.47		6.00
Risk‑free interest rate	1.74	%	1.64	%
Dividend yield	—	%	—	%
Expected volatility	107.23	%	107.78	%

No options were exercised for the three months ended March 31, 2022 under our stock option plans.

(b)	Inducement Grant

On February 28, 2022, the Company awarded, outside the 2021 Plan, our Chief Financial Officer a stock option grant for the right to purchase 100,000 shares of common stock at an exercise price of $2.97 per share (inducement grant), which was approved by the Compensation Committee. The inducement grant will vest in equal installments over four years provided the employee remains employed by the Company on the vesting date. The fair value of the inducement grant was $2.46 and was estimated using the following assumptions:


Expected term (in years)	6.25
Risk‑free interest rate	1.76	%
Dividend yield	—	%
Expected volatility	106.76	%

As of March 31, 2022, 100,000 shares are outstanding, and none are exercisable.

FEMASYS INC.

Notes to Financial Statements

(unaudited)

(c)	Share-Based Compensation<br> Expense

The following table shows the share-based compensation expense related to vested stock option grants to employees and nonemployees by financial statement line item on the accompanying statement of comprehensive loss:

	Three Months Ended March 31,
	2022		2021
Research and development	$	29,139		35,496
Sales and marketing		1,126		926
General and administrative		14,094		36,068
Total share-based compensation expense	$	44,359		72,490

As March 31, 2022, the remaining share-based compensation expense that is expected to be recognized in future periods for employees and nonemployees is $1,122,943, which includes $463,311 of compensation expense to be recognized upon achieving certain performance conditions. For service based awards, the $659,632 of unrecognized expense is expected to be recognized over a weighted average period of 3.4 years.

(d)	Employee Stock Purchase Plan

In June 2021, in connection with the IPO, our Employee Stock Purchase Plan (ESPP) became effective which was adopted by our Board of Directors in February 2021 and our stockholders approved the 2021 ESPP Plan in March 2021. The ESPP is administered by our compensation committee.

As of March 31, 2022, the total number of shares of common stock reserved for future awards under the ESPP Plan is 284,707, and no shares of our common stock have been purchased under the ESPP.

(11)	Net Loss per Share Attributable to Common Stockholders

The following table sets forth the computation of the basic and diluted net loss per share:

	Three Months Ended March 31,
	2022			2021
Net loss attributable to common stockholders, basic & diluted	$	(2,883,030	)		(1,830,232	)
Weighted average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		11,804,165			995,208
Net loss per share attributable to common stockholders, basic and diluted	$	(0.24	)		(1.84	)

The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding because they would be anti-dilutive:


Convertible preferred stock outstanding	—	8,116,343
Options to purchase common stock	1,055,997	740,444
Warrants to purchase to common stock	244,572	244,572
Total potential shares	1,300,569	9,101,359

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or the SEC, on March 24, 2022. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “goal,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential” and similar expressions intended to identify forward-looking statements and reflect our beliefs and opinions on the relevant subject. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q. The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date hereof. These statements are based upon information available to us as of the filing date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

Overview

We are a biomedical company focused on transforming women’s healthcare by developing novel solutions and next-generation advancements providing significant clinical impact to address severely underserved areas. Our mission is to provide women worldwide with superior minimally-invasive, non-surgical product technologies, accessible in the office, improving patient care and overall health economics. We are a woman-founded and led company with an expansive, internally created intellectual property portfolio with over 150 patents globally, in-house chemistry, manufacturing, and controls (CMC) and device manufacturing capabilities and proven ability to develop and commercialize products. Our suite of products and product candidates address what we believe are multi-billion dollar global market segments in which there has been little advancement for many years, helping women avoid pharmaceutical solutions, implants and surgery that can be expensive and expose women to harm. With an initial focus in the area of reproductive health, our two lead product candidates offer solutions for two ends of the spectrum: FemBloc for permanent birth control and FemaSeed as an artificial insemination infertility treatment.

Results of Operations

Comparison of the Three Months Ended March 31, 2022 and 2021

The following table shows our results of operations for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
Sales	$	321,405			329,775		(8,370	)	-2.5	%
Cost of sales		122,675			93,042		29,633		31.8	%
Gross margin		198,730			236,733		(38,003	)	-16.1	%
Operating expenses:
Research and development		1,421,063			995,022		426,041		42.8	%
Sales and marketing		68,863			22,819		46,044		201.8	%
General and administrative		1,447,355			891,987		555,368		62.3	%
Depreciation and amortization		144,199			153,453		(9,254	)	-6.0	%
Total operating expenses		3,081,480			2,063,281		1,018,199		49.3	%
Loss from operations		(2,882,750	)		(1,826,548	)	(1,056,202	)	57.8	%
Other income (expense):
Interest income		2,454			164		2,290		1396.3	%
Interest expense		(2,734	)		(3,848	)	1,114		-29.0	%
Other expense, net		(280	)		(3,684	)	3,404		-92.4	%
Net loss	$	(2,883,030	)		(1,830,232	)	(1,052,798	)	57.5	%

Sales

Sales decreased by $8,370, or 2.5%, to $321,405 for the three months ended March 31, 2022 from $329,775 for the three months ended March 31, 2021. The $8,370 decrease was largely attributable to the 4.1% decrease in U.S. units sold for the three months ended March 31, 2022 as compared to the same period last year. International sales were $58,045 for both the three months ended March 31, 2022 and 2021.

Cost of sales and gross margin percentage

Cost of sales increased by $29,633, or 31.8%, to $122,675 for the three months ended March 31, 2022 from $93,042 for the three months ended March 31, 2021. The increase in cost of sales was largely due to increased labor and overhead costs applied to our cost of sales for the three months ended March 31, 2022 as compared to the same period last year mostly due to production personnel turnover as compared to the same period last year. As a result, gross margin percentage was 61.8% for the three months ended March 31, 2022 as compared to 71.8% for the three months ended March 31, 2021. We expect to see improvement in our gross margin in the future as we are investing in equipment and tooling which will enable us to reduce labor in certain manufacturing processes and reduce material costs as well.

Research and development

The following table summarizes our R&D expenses incurred during the periods presented:

	Three Months Ended March 31,
	2022		2021
Compensation and related personnel costs	$	764,792		676,547
Clinical-related costs		443,970		173,473
Material and development costs		131,450		114,118
Professional and outside consultant costs		68,664		17,957
Other costs		12,187		12,927
Total research and development expenses	$	1,421,063		995,022

R&D expenses increased by $426,041 or 42.8%, to $1,421,063 for the three months ended March 31, 2022 from $995,022 for the three months ended March 31, 2021. The net increase of $426,041 largely consists of the $88,245 increase in compensation and related personnel costs primarily due to an increase in headcount, an increase of $270,497 in clinical-related costs associated with our clinical trials, and an increase of $50,707 in professional and outside consultant costs which are largely attributable to additional consulting costs to support our clinical trials.

Sales and marketing

Sales and marketing expenses increased by $46,044 or 201.8%, to $68,863 for the three months ended March 31, 2022 from $22,819 for the three months ended March 31, 2021 largely due to an increase in compensation and related personnel costs due to an increase in headcount and additional marketing costs associated with our FemVue social media campaign to increase our commercial presence.

General and administrative

General and administrative expenses increased by $555,368, or 62.3%, to $1,447,355 for the three months ended March 31, 2022 from $891,987 for the three months ended March 31, 2021. The increase was largely due to various additional costs associated with being a public company including salaries and related personnel costs due to an increase in headcount, facility and other allocated overhead costs mainly for additional directors & officers insurance, and increased professional costs for legal and accounting.

Depreciation and amortization

Depreciation and amortization expenses decreased by $9,254, or 6.0%, to $144,199 for the three months ended March 31, 2022 from $153,453 for the three months ended March 31, 2021 primarily due to reduction of amortization expense associated with the Company’s intangible assets.

Other income (expense)

Other expense, net decreased by $3,404, or 92.4%, to $280 for the three months ended March 31, 2022 from $3,684 for the three months ended March 31, 2021 mainly due to an increase in interest income.

Liquidity and Capital Resources

Sources of liquidity

Since our inception through March 31, 2022, our operations have been financed primarily by net proceeds from the sale of our common stock and convertible preferred stock, indebtedness and, to a lesser extent, product revenue. As of March 31, 2022, we had $21,767,634 of cash and cash equivalents and an accumulated deficit of $85,623,365.

On June 22, 2021, we closed our initial public offering (the IPO) in which we issued and sold 2,650,000 shares of our authorized common stock. The price per share in the IPO was $13.00. Net proceeds received, after deducting underwriting discounts, commissions, and legal expenses, were $31,613,500. Offering costs incurred by the Company were $1,591,144, which excludes legal expenses incurred by our underwriters of $425,000. Immediately prior to the closing of the IPO, all our shares of our convertible Series A preferred stock and our redeemable convertible Series B and Series C preferred stock automatically converted into 8,116,343 shares of common stock.

Funding requirements

Based on our current operating plan, our current cash and cash equivalents are expected to be sufficient to fund our ongoing operations at least 12 months from the date of filing these financial statements. Our estimate as to how long we expect the net proceeds from this offering, together with our existing cash and cash equivalents, to be able to continue to fund our operations is based on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect. Changing circumstances, some of which may be beyond our control, could cause us to consume capital significantly faster than we currently anticipate, and we may need to seek additional funds sooner than planned.

Our cash and cash equivalents as of March 31, 2022 will not be sufficient to fund all of our product candidates through regulatory approval, and we anticipate needing to raise additional capital to complete the development and commercialization of our product candidates. However, we can give no assurances that we will be able to secure additional sources of funds to support our operations, or if such funds will be available to us, that such additional financing will be sufficient to meet our needs or be on terms acceptable to us. This risk may increase if economic and market conditions deteriorate. If we are unable to obtain additional financing when needed, we may need to terminate, significantly modify, or delay the development of our product candidates, or we may need to obtain funds through collaborations or otherwise on terms that may require us to relinquish rights to our technologies or product candidates that we might otherwise seek to develop or commercialize independently. If we are unable to raise adequate additional capital as and when required in the future, we could be forced to cease development activities and terminate our operations, and you could experience a complete loss of your investment.

Cash Flows

Comparison of the Three Months Ended March 31, 2022 and 2021

The following table summarizes our cash flows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
Net cash used in operating activities	$	(2,754,021	)		(1,160,682	)
Net cash used in investing activities		(120,368	)		—
Net cash used in financing activities		(141,006	)		(144,991	)
Net change in cash and cash equivalents	$	(3,015,395	)		(1,305,673	)

Operating activities

For the three months ended March 31, 2022, cash used in operating activities was $2,754,021, attributable to a net loss of $2,883,030, a net change in our net operating assets and liabilities of $148,482 and offset partially by non-cash charges of $277,491. Non-cash charges largely consisted of $144,199 in depreciation and amortization, $86,233 in right-of-use amortization, and $44,359 in stock-based compensation. The change in our net operating assets and liabilities was primarily due to an increase of $86,044 in accounts receivable and $97,851 in lease liabilities, which were offset partially by a net increase in accounts payable and accrued expenses of $64,296.

For the three months ended March 31, 2021, cash used in operating activities was $1,160,682, attributable to a net loss of $1,830,232, and offset by a net change in our net operating assets and liabilities of $345,351 and non-cash charges of $324,199. Non-cash charges consisted of $153,453 in depreciation and amortization, $98,256 in right-of-use amortization, and $72,490 in stock-based compensation. The change in our net operating assets and liabilities was primarily due to an increase in accounts payable, accrued expenses, and other liabilities for a total of $370,892, offset by a decrease in lease liabilities of $105,986.

Investing activities

For the three months ended March 31, 2022, cash used in investing activities for the purchase of property and equipment was $120,368.

For the three months ended March 31, 2021, there was no cash used in or provided from investing activities.

Financing activities

For the three months ended March 31, 2022, cash used in financing activities was $141,006, attributable to repayments on a note payable of $135,457 and payments under lease obligations of $5,549.

For the three months ended March 31, 2021, cash used in financing activities was $144,991, consisting of deferred offering cost payments of $126,377, repayment of a notes payable of $23,643 and payments under lease obligations of $5,021 and offset partially by proceeds from the exercise of stock options of $10,050.

Item 3.	Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4.	Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our management has concluded that our disclosure controls and procedures were not effective at a reasonable assurance level as of March 31, 2022 due to the material weakness as disclosed in our Annual Report on Form 10-K, under Part II, Item 9A. Controls and Procedures, filed with the SEC on March 24, 2022.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer (Principal Financial and Accounting Officer), does not expect that our disclosure controls and procedures or internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues within a company are detected. The inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

PART II OTHER INFORMATION

Item 1.	Legal Proceedings

From time to time we may be involved in legal proceedings arising in connection with our business. Based on information currently available, we believe that the amount, or range, of reasonably possible losses in connection with any pending actions against us in excess of established reserves, in the aggregate, is not material to our consolidated financial condition or cash flows. However, losses may be material to our operating results for any particular future period, depending on the level of income for such period.

Item 1A.	Risk Factors

You should carefully review and consider the information regarding certain risks and uncertainties facing us that could have a material adverse effect on our business prospects, financial condition, results of operations, liquidity and available capital resources set forth in Part I, Item 1A. Risk Factors, of the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2022.

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.	Defaults Upon Senior Securities

Not applicable.

Item 4.	Mine Safety Disclosures

Not applicable.

Item 5.	Other Information

Not applicable.

Item 6.	Exhibits
Exhibit		Incorporated by Reference
---	---	---	---	---	---
			File
Number	Description of Document	Schedule/Form	Number	Exhibit	Filing Date
31.1*	Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section<br> 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to<br> Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the<br> Sarbanes-Oxley Act of 2002
32.2*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the<br> Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are<br> embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRl Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
*	Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Suwanee, State of Georgia, on this 11 day of May 2022.

FEMASYS INC.

Dated: May 11, 2022	By: /s/ Kathy Lee-Sepsick
	Kathy Lee-Sepsick
	Chief Executive Officer and President
	By: /s/ Dov Elefant
	Dov Elefant
	Chief Financial Officer
	(Principal financial and accounting officer)

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kathy Lee-Sepsick, certify that:

I have reviewed this Report on Form 10-Q for Femasys Inc;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	FEMASYS INC.
Date: May 11, 2022	By:	/s/ Kathy Lee-Sepsick
		Kathy Lee-Sepsick
		Chief Executive Officer and President
		(principal executive officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dov Elefant, certify that:

I have reviewed this Report on Form 10-Q for Femasys Inc;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	FEMASYS INC.
Date: May 11, 2022	By:	/s/ Dov Elefant
		Dov Elefant
		Chief Financial Officer
		(principal financial and accounting officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Femasys Inc., a Delaware Corporation, (the “Company”) on Form 10-Q for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify the following pursuant to Section 18, U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	FEMASYS INC.
Date: May 11, 2022	By:	/s/ Kathy Lee-Sepsick
		Kathy Lee-Sepsick
		Chief Executive Officer and President
		(principal executive officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	FEMASYS INC.
Date: May 11, 2022	By:	/s/ Dov Elefant
		Dov Elefant
		Chief Financial Officer
		(principal financial and accounting officer)

10-Q

Table of Contents

Table of Contents

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PART I. FINANCIAL INFORMATION

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Use of Estimates

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On January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which the Financial Accounting Standards Board (FASB) issued in December 2019. This guidance

In June 2016, the FASB issued ASU 2016-13, Financial

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AFCO

Stock-Based Awards

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