BioRestorative Therapies(BRTX) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's analysis for BioRestorative Therapies, Inc Financial Statements Unaudited Q2 and H1 2025 financial statements show significant losses and negative cash flow, raising going concern doubts Condensed Consolidated Balance Sheets Total assets decreased to $8.5 million from $12.3 million as of June 30, 2025, with stockholders' equity declining to $4.8 million Condensed Consolidated Balance Sheet Highlights (in USD) | Balance Sheet Item | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,555,251 | $547,890 | | Investments held in marketable securities | $5,825,685 | $10,184,701 | | Total Assets | $8,516,559 | $12,279,799 | | Total Current Liabilities | $3,671,235 | $3,748,406 | | Total Liabilities | $3,671,235 | $3,748,406 | | Accumulated deficit | $(163,674,777) | $(155,678,715) | | Total Stockholders' Equity | $4,845,324 | $8,531,393 | Condensed Consolidated Statements of Operations Q2 2025 revenues increased, net loss decreased to $2.7 million; H1 2025 net loss widened to $8.0 million due to higher R&D Statement of Operations Summary (in USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $303,300 | $89,100 | $328,300 | $124,100 | | Research and development | $2,225,882 | $1,454,000 | $4,872,782 | $3,531,278 | | General and administrative | $1,373,976 | $1,097,417 | $3,556,701 | $3,164,391 | | Loss From Operations | $(3,305,287) | $(2,468,807) | $(8,112,821) | $(6,578,059) | | Net Loss | $(2,656,263) | $(4,028,562) | $(7,996,062) | $(6,251,817) | | Net Loss Per Share | $(0.30) | $(0.50) | $(0.94) | $(0.84) | Condensed Consolidated Statements of Cash Flows H1 2025 net cash used in operations increased to $5.5 million; net cash from investing was $4.5 million, and cash increased to $1.6 million Cash Flow Summary for the Six Months Ended June 30 (in USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | $(5,472,653) | $(4,182,945) | | Net Cash Provided By (Used In) Investing Activities | $4,499,158 | $(1,954,831) | | Net Cash Provided By Financing Activities | $1,980,856 | $7,505,646 | | Net Increase In Cash and Cash Equivalents | $1,007,361 | $1,367,870 | | Cash and Cash Equivalents - End of Period | $1,555,251 | $2,252,247 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail business operations, accounting policies, and disclose substantial doubt about the company's ability to continue as a going concern - The company's financial condition raises substantial doubt about its ability to continue as a going concern for at least twelve months, due to a net loss of $8.0 million and negative operating cash flows of $5.5 million for the first six months of 2025[25] - The company develops therapeutic products using adult stem cells, focusing on its Disc/Spine Program (brtxDISC), ThermoStem Program for metabolic disorders, and a biologics-based cosmetic products business[23] - During the first six months of 2025, the company raised approximately $2.0 million in gross proceeds by selling 965,424 shares of common stock through its at-the-market (ATM) offering agreement[26][65] - On June 16, 2025, the Board of Directors authorized a common stock repurchase program for up to $2.0 million of its outstanding common stock, though no repurchases were made as of June 30, 2025[66] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, business overview, and liquidity, noting increased revenues, higher R&D, and ongoing going concern doubts requiring future financing - The company has commenced a Phase 2 clinical trial for its lead product candidate, BRTX-100, for the treatment of chronic lower back pain from degenerative disc disease[80] - The company's working capital decreased by $3.5 million to $3.9 million as of June 30, 2025, primarily due to cash used to fund operations[103] - Management states that current funds may not be sufficient for at least twelve months, raising substantial doubt about the company's ability to continue as a going concern[104] Results of Operations Q2 and H1 2025 revenues increased due to cosmetic sales, but R&D and G&A expenses rose; Q2 net loss narrowed, H1 net loss widened Comparison of Results for the Three Months Ended June 30 (in USD) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $303,300 | $89,100 | +240.4% | | Research and Development | $2,225,882 | $1,454,000 | +53.1% | | General and Administrative | $1,373,976 | $1,097,417 | +25.2% | | Net Loss | $(2,656,263) | $(4,028,562) | -34.1% | Comparison of Results for the Six Months Ended June 30 (in USD) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $328,300 | $124,100 | +164.5% | | Research and Development | $4,872,782 | $3,531,278 | +38.0% | | General and Administrative | $3,556,701 | $3,164,391 | +12.4% | | Net Loss | $(7,996,062) | $(6,251,817) | +27.9% | - The increase in R&D expenses for H1 2025 was primarily due to a $1.18 million increase in recruitment and other costs for the Phase 2 clinical trial[97] Liquidity and Capital Resources Liquidity is strained with $3.9 million working capital, an $8.0 million net loss, and negative operating cash flow, raising going concern doubts Liquidity Metrics (in USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,555,251 | $547,890 | | Investments held in marketable securities | $5,825,685 | $10,184,701 | | Working capital | $3,926,572 | $7,395,815 | - The company anticipates continued net losses and negative cash flows and believes it may not have sufficient cash for the next twelve months, raising substantial doubt about its ability to continue as a going concern[104] - Future capital requirements depend on factors like product commercialization and the need for collaborations; the company may be unable to raise sufficient capital or may do so on unattractive terms[105][107] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, BioRestorative Therapies, Inc. is exempt from providing market risk disclosures - As a smaller reporting company, BioRestorative Therapies, Inc. is not required to provide quantitative and qualitative disclosures about market risk[116] Controls and Procedures Management concluded disclosure controls were ineffective as of June 30, 2025, due to material weaknesses in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025[119] - Material weaknesses in internal control over financial reporting continued to exist, including: lack of adherence to formal policies, inadequate risk assessment, ineffective controls over financial reporting and journal entries, and ineffective controls over accounting for warrants[121][122] - A remediation plan is underway, which includes oversight from the CFO, engagement of an external financial consulting firm, and documentation of key procedures[121][122] PART II. OTHER INFORMATION This section includes references to risk factors, details on unregistered sales of equity securities, and a list of exhibits filed with the report Risk Factors Investors are directed to the Annual Report on Form 10-K for a comprehensive discussion of significant risks associated with investing in the company's common stock - The company refers to the "Risk Factors" section of its Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of risks associated with an investment in its common stock[126] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the three months ended June 30, 2025 - The company had no unregistered sales of equity securities during the three months ended June 30, 2025[127] Exhibits This section lists the certifications by the Principal Executive Officer and Principal Financial Officer, along with Inline XBRL documents, filed as exhibits - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL data files[128]