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Creative Medical Technology (CELZ) - 2025 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION Financial Statements The unaudited condensed consolidated financial statements for Q1 2025 detail the company's first revenue, widened net loss, and strengthened cash position Unaudited Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $8.35 million due to higher cash, with liabilities decreasing and equity growing Consolidated Balance Sheet Summary | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Cash | $7,702,867 | $5,940,402 | | Total Current Assets | $7,844,011 | $6,135,303 | | Total Assets | $8,347,274 | $6,669,143 | | LIABILITIES & EQUITY | | | | Total Current Liabilities | $286,387 | $327,644 | | Total Liabilities | $286,387 | $327,644 | | Total Stockholders' Equity | $8,060,887 | $6,341,499 | | Total Liabilities & Equity | $8,347,274 | $6,669,143 | Unaudited Condensed Consolidated Statements of Operations For Q1 2025, the company generated its first revenue of $3,000, but increased operating expenses led to a widened net loss Statement of Operations Summary (Q1 2025 vs Q1 2024) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Revenues | $3,000 | $ - | | Gross Profit | $1,800 | $ - | | Research and development | $743,304 | $422,392 | | Selling, general and administrative | $888,397 | $671,484 | | Operating loss | $(1,660,478) | $(1,123,147) | | Net Loss | $(1,638,097) | $(1,041,544) | | Net Loss Per Share | $(0.83) | $(0.73) | Unaudited Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash used in operations was $1.59 million, offset by financing activities, leading to a net cash increase and an ending cash balance Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,591,535) | $(896,864) | | Net cash provided by investing activities | $ - | $6,520,191 | | Net cash provided by (used in) financing activities | $3,354,000 | $(82,796) | | Net Increase in Cash | $1,762,465 | $5,540,531 | | Ending Cash Balance | $7,702,867 | $9,007,398 | Unaudited Condensed Consolidated Statement of Stockholders' Equity (Deficit) Stockholders' equity increased from $6.34 million to $8.06 million in Q1 2025, driven by warrant exercises and offset by the net loss Changes in Stockholders' Equity (Q1 2025) | Description | Amount | | :--- | :--- | | Equity at Dec 31, 2024 | $6,341,499 | | Proceeds from exercise of warrants | $3,700,000 | | Offering costs | $(336,000) | | Net loss | $(1,638,097) | | Equity at March 31, 2025 | $8,060,887 | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's accounting policies, business risks, and financial items, including licensing agreements and a warrant exercise inducement - The company is a commercial-stage biotechnology firm focused on immunotherapy, endocrinology, urology, neurology, and orthopedics. Its commercial operations are primarily through the sale of CaverStem® and FemCelz® disposable kits1517 - In March 2025, the company entered into warrant exercise inducement letters, resulting in the exercise of 837,104 warrants for approximately $3.7 million in gross proceeds. In exchange, new 'Inducement Warrants' will be issued pending shareholder approval5556 Licensing Agreements Rollforward (Q1 2025) | Licensing Agreements Rollforward | Assets | Accumulated Amortization | | :--- | :--- | :--- | | Balances at December 31, 2024 | $1,060,000 | $(530,559) | | Amortization | - | $(30,577) | | Balances at March 31, 2025 | $1,060,000 | $(561,136) | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's progress as a commercial-stage biotech firm, highlighting pipeline advancements, increased net loss, and strong liquidity - The company is advancing multiple clinical programs, including CELZ-201 for Type I Diabetes and AlloStemSpine® for Chronic Lower Back Pain, both of which have received FDA clearance for Phase I/II trials7378 - In March 2024, the company received Orphan Drug Designation (ODD) from the FDA for its ImmCelz™ (CELZ-100) platform for the treatment of Brittle Type 1 Diabetes76 - The company has initiated a program combining artificial intelligence (AI) with its proprietary iPSC platform to diagnose and treat patients exposed to biological and chemical weapons83 Results of Operations Comparison (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Revenue | $3,000 | $0 | N/A | | SG&A Expenses | $888,397 | $671,484 | +32% | | R&D Expenses | $743,304 | $422,392 | +76% | | Net Loss | $(1,638,097) | $(1,041,544) | +57% | Liquidity Summary | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and equivalents | $7,702,867 | $5,940,402 | | Working Capital | $7,557,624 | $5,807,659 | Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Creative Medical Technology Holdings has elected not to provide typical market risk disclosures - The company has opted out of providing market risk disclosures as permitted for a smaller reporting company102 Controls and Procedures Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period103 - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control105 PART II – OTHER INFORMATION Legal Proceedings The company reports no material lawsuits or legal proceedings at this time, though ordinary course of business matters may arise - The company may be involved in ordinary course of business lawsuits but reports no specific material legal proceedings at this time108 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities This section discloses the company's share repurchase activity, including the buyback of 5,000 shares in March 2025 under its $2 million program - The Board of Directors authorized a share repurchase program for up to $2 million of common stock, which commenced in August 2023109 Issuer Purchases of Equity Securities (March 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Plan | | :--- | :--- | :--- | :--- | | March 1 - 31, 2025 | 5,000 | $2.00 | $1,549,084 | Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL data files - The report includes standard exhibits such as corporate governance documents (Articles of Incorporation, Bylaws), CEO/CFO certifications (Rule 13a-14(a)/15d-14a(a) and Section 1350), and XBRL data files112