Capricor Therapeutics, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Capricor Therapeutics reported a significant revenue increase and a net loss of $25.2 million for Q1 2024, with total assets of $31.1 million and cash reserves of $37.8 million.</b>

AI Summary

CAPRICOR THERAPEUTICS, INC. (CAPR) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Capricor Therapeutics reported total assets of $31,148,320 and total debt of $31,600,183 as of March 31, 2024. The company's net loss for the three months ended March 31, 2024, was $25,247,354. Revenue for the three months ended March 31, 2024, was $313,546, a significant increase from $0 for the same period in 2023. Operating expenses for the three months ended March 31, 2024, totaled $27,679,000. Cash and cash equivalents were $37,786,600 as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking CAPRICOR THERAPEUTICS, INC., this filing contains several important signals. The substantial increase in revenue from $0 to $313,546 in Q1 2024 suggests progress in commercialization efforts, potentially driven by new agreements or product launches. Despite revenue growth, the company incurred a net loss of $25.2 million, highlighting ongoing investment in research and development or commercialization activities that outweigh current sales.

Risk Assessment

Risk Level: medium — CAPRICOR THERAPEUTICS, INC. shows moderate risk based on this filing. The company has more debt ($31.6M) than assets ($31.1M) as of March 31, 2024, indicating a potentially precarious financial position that could impact future operations.

Analyst Insight

Investors should monitor Capricor's ability to manage its debt and convert its revenue growth into profitability.

Revenue Breakdown

Key Numbers

• 31354629 — Revenue (Three months ended March 31, 2024)
• 25247354 — Net Loss (Three months ended March 31, 2024)
• 31148320 — Total Assets (As of March 31, 2024)
• 31600183 — Total Debt (As of March 31, 2024)
• 377866 — Cash and Cash Equivalents (As of March 31, 2024)
• 0.31 — EPS (Basic and Diluted) (Three months ended March 31, 2024)
• 27679000 — Operating Expenses (Three months ended March 31, 2024)
• 0 — Revenue (Three months ended March 31, 2023)

Key Players & Entities

• CAPRICOR THERAPEUTICS, INC. (company) — Filer
• 20240331 (date) — Period of Report
• 8840 WILSHIRE BLVD (address) — Business Address
• Nile Therapeutics, Inc. (company) — Former Company Name
• SMI PRODUCTS INC (company) — Former Company Name
• Nippon Shinyaku Co Limited (company) — Commercialization and Distribution Agreement
• Michael Kelliher (person) — Consulting Agreement
• Wainwright (company) — Underwriter for At-Market Program

FAQ

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share CAPR The Nasdaq Capital M

Filing Documents

• capr-20240331x10q.htm (10-Q) — 1227KB
• capr-20240331xex31d1.htm (EX-31.1) — 10KB
• capr-20240331xex31d2.htm (EX-31.2) — 10KB
• capr-20240331xex32d1.htm (EX-32.1) — 6KB
• capr-20240331xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-008072.txt (&nbsp;) — 5438KB
• capr-20240331.xsd (EX-101.SCH) — 46KB
• capr-20240331_cal.xml (EX-101.CAL) — 35KB
• capr-20240331_def.xml (EX-101.DEF) — 196KB
• capr-20240331_lab.xml (EX-101.LAB) — 344KB
• capr-20240331_pre.xml (EX-101.PRE) — 289KB
• capr-20240331x10q_htm.xml (XML) — 763KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43

Other Information

Item 5. Other Information 43

Exhibits

Item 6. Exhibits 44

Signatures

Signatures 45 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS 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 statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: how long we expect to maintain liquidity to fund our planned level of operations and our ability to obtain additional funds for our operations; the development of our drug and vaccine candidates, including when we expect to undertake, initiate and complete clinical trials of our drug and vaccine candidates; the expectation, plans, projections, initiation, timing, progress and results of our research and development programs, preclinical studies, any clinical trials, compassionate uses, Investigational New Drug ("IND") filings, Clinical Trial Application ("CTA") filings, New Drug Application ("NDA") filings, Biologics License Application ("BLA"), and other regulatory submissions; regulatory developments involving products and our facilities, including the ability to obtain regulatory approvals or otherwise bring products to market; the regulatory status of our drug and vaccine candidates, including our ability to obtain and maintain orphan drug, rare pediatric and Regen

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CAPRICOR THERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS March 31, 2024 (unaudited) December 31, 2023 CURRENT ASSETS Cash and cash equivalents $ 6,214,647 $ 14,694,857 Marketable securities 33,702,431 24,792,846 Receivables 369,000 10,371,993 Prepaid expenses and other current assets 1,125,844 995,776 TOTAL CURRENT ASSETS 41,411,922 50,855,472 PROPERTY AND EQUIPMENT, net 5,893,552 5,560,641 OTHER ASSETS Lease right-of-use assets, net 1,845,246 2,050,042 Other assets 293,722 268,172 TOTAL ASSETS $ 49,444,442 $ 58,734,327 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 6,248,657 $ 6,250,241 Lease liabilities, current 771,506 749,112 Deferred revenue, current 19,363,589 24,270,465 TOTAL CURRENT LIABILITIES 26,383,752 31,269,818 LONG-TERM LIABILITIES CIRM liability 3,376,259 3,376,259 Lease liabilities, net of current 1,249,493 1,486,783 TOTAL LONG-TERM LIABILITIES 4,625,752 4,863,042 TOTAL LIABILITIES 31,009,504 36,132,860 COMMITMENTS AND CONTINGENCIES (NOTE 6) STOCKHOLDERS' EQUITY Preferred stock, $ 0.001 par value, 5,000,000 shares authorized, none issued and outstanding — — Common stock, $ 0.001 par value, 50,000,000 shares authorized, 31,600,183 and 31,148,320 shares issued and outstanding , respectively 31,600 31,148 Additional paid-in capital 187,257,063 181,701,859 Accumulated other comprehensive income 307,701 235,813 Accumulated deficit ( 169,161,426 ) ( 159,367,353 ) TOTAL STOCKHOLDERS' EQUITY 18,434,938 22,601,467 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 49,444,442 $ 58,734,327 See accompanying notes to the unaudited condensed consolidated financial statements. 5 Table of Contents CAPRICOR THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) Three months ended

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View this 10-Q filing on SEC EDGAR