CELZ Losses Widen Amid Minimal Revenue, Cash Dips Despite Warrant Exercise

TL;DR

**CELZ is burning cash faster than it can generate revenue, making it a high-risk bet on future pipeline success with no clear path to profitability.**

AI Summary

Creative Medical Technology Holdings, Inc. (CELZ) reported a net loss of $1,235,934 for the three months ended September 30, 2025, an increase from a net loss of $1,040,135 in the prior-year period. For the nine months ended September 30, 2025, the net loss widened to $4,107,334 from $3,639,407 in the same period of 2024. Revenue remained minimal, totaling only $3,000 for the nine months ended September 30, 2025, down from $8,000 in the prior year. Operating expenses increased to $1,273,034 for the three months ended September 30, 2025, up from $1,109,674, primarily driven by a rise in selling, general, and administrative expenses to $776,821 from $498,607. Research and development expenses decreased slightly to $465,154 from $581,796 for the three-month period. Cash decreased by $564,891 to $5,375,511 as of September 30, 2025, from $5,940,402 at December 31, 2024, despite receiving $3,364,000 from the exercise of warrants. The company continues to operate with a limited history and minimal revenues, focusing on developing novel biological therapeutics.

Why It Matters

CELZ's continued significant net losses and minimal revenue generation raise serious concerns for investors regarding its long-term viability and ability to achieve profitability. The company's reliance on warrant exercises for capital, while providing a temporary cash infusion of $3,364,000, highlights its struggle to fund operations through commercial sales, especially as cash balances still declined by $564,891. This financial instability, coupled with intense competition in the biotechnology sector, could impact its ability to retain employees and advance its therapeutic pipeline, potentially leaving customers without future innovative treatments. The competitive landscape, where larger, well-funded companies dominate, makes CELZ's path to market penetration and sustainable growth extremely challenging.

Risk Assessment

Risk Level: high — The company reported a net loss of $4,107,334 for the nine months ended September 30, 2025, on only $3,000 in revenue, indicating a significant cash burn rate. Total current assets decreased from $6,135,303 at December 31, 2024, to $5,411,541 at September 30, 2025, while total liabilities are low at $261,353, but the accumulated deficit reached $68,699,247, demonstrating a history of substantial losses.

Analyst Insight

Investors should exercise extreme caution and consider CELZ a highly speculative investment due to its consistent net losses and minimal revenue. Monitor cash burn closely and look for concrete evidence of successful commercialization or significant clinical trial milestones before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$3,000

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$1,235,934

eps

N/A

gross Margin

N/A

cash Position

$5,375,511

revenue Growth

-62.5%

Revenue Breakdown

Key Numbers

• $1,235,934 — Net Loss (Q3 2025) (Increased from $1,040,135 in Q3 2024)
• $4,107,334 — Net Loss (YTD Q3 2025) (Widened from $3,639,407 in YTD Q3 2024)
• $3,000 — Revenue (YTD Q3 2025) (Minimal, down from $8,000 in YTD Q3 2024)
• $5,375,511 — Cash Balance (Sept 30, 2025) (Decreased from $5,940,402 at Dec 31, 2024)
• $3,364,000 — Proceeds from Warrant Exercise (Significant financing activity for YTD Q3 2025)
• $68,699,247 — Accumulated Deficit (Sept 30, 2025) (Indicates substantial historical losses)
• 2,580,532 — Common Shares Outstanding (Nov 1, 2025) (Increased from 1,748,428 at Dec 31, 2024)
• $776,821 — Selling, General & Administrative Expenses (Q3 2025) (Increased from $498,607 in Q3 2024)

Key Players & Entities

• Creative Medical Technology Holdings, Inc. (company) — Registrant
• The NASDAQ Stock Market LLC (regulator) — Exchange where common stock is registered
• Creative Medical Technologies, Inc. (company) — Wholly owned subsidiary
• Creative Medical Health, Inc. (company) — Principal stockholder prior to merger
• ImmCelz, Inc. (company) — Subsidiary developing immune cell treatments
• StemSpine, Inc. (company) — Subsidiary
• AlloCelz LLC (company) — Subsidiary
• Chief Executive Officer (person) — Company's Chief Operating Decision Maker (CODM)
• FASB (regulator) — Financial Accounting Standards Board
• Bloomberg (company) — Publisher

FAQ

Risk Factors

• Sustained Net Losses and Accumulated Deficit [high — financial]: The company reported a net loss of $1,235,934 for Q3 2025, an increase from $1,040,135 in Q3 2024. The year-to-date net loss widened to $4,107,334 from $3,639,407. The accumulated deficit stands at $68,699,247 as of September 30, 2025, indicating substantial historical unprofitability.
• Minimal and Declining Revenue [high — financial]: Revenue for the nine months ended September 30, 2025, was only $3,000, a significant decrease from $8,000 in the prior year. This minimal revenue stream raises concerns about the company's ability to generate sustainable income.
• Increasing Operating Expenses [medium — operational]: Operating expenses for Q3 2025 increased to $1,273,034 from $1,109,674 in Q3 2024. This rise was primarily driven by a substantial increase in selling, general, and administrative expenses to $776,821 from $498,607.
• Decreasing Cash Position [medium — financial]: The company's cash balance decreased by $564,891 to $5,375,511 as of September 30, 2025, from $5,940,402 at December 31, 2024. While warrant exercises provided $3,364,000, the overall cash burn rate remains a concern.
• Dilution from Share Issuance [medium — financial]: The number of common shares outstanding increased from 1,748,428 at December 31, 2024, to 2,580,532 as of November 1, 2025. This significant increase, likely due to warrant exercises and other equity financings, can dilute existing shareholders' ownership.
• Dependence on Research and Development [medium — operational]: The company's strategy relies heavily on developing novel biological therapeutics, with R&D expenses at $465,154 for Q3 2025. The success of these development efforts is critical for future revenue generation and profitability.

Industry Context

Creative Medical Technology Holdings, Inc. operates in the biotechnology sector, focusing on developing novel biological therapeutics. This industry is characterized by high research and development costs, long development cycles, and significant regulatory hurdles. Companies in this space often rely on external financing to fund their operations until they achieve commercialization and profitability.

Regulatory Implications

As a biotechnology company, CELZ is subject to stringent regulatory oversight from bodies like the FDA. The development and approval process for new therapeutics is lengthy and costly, with a high failure rate. Any delays or failures in the regulatory approval process can have a material adverse impact on the company's financial condition and prospects.

What Investors Should Do

1. Monitor R&D progress and clinical trial results closely.
2. Evaluate the burn rate and future financing needs.
3. Assess the competitive landscape and market adoption potential.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. It represents the total amount of money a company has lost over its lifetime. (Indicates the company has historically operated at a loss, with a significant accumulated deficit of $68,699,247 as of September 30, 2025.)

Warrants

A type of security that gives the holder the right, but not the obligation, to purchase a company's stock at a predetermined price within a specified timeframe. (The exercise of warrants provided $3,364,000 in financing, which is a key source of cash for the company, but also leads to share dilution.)

Selling, General, and Administrative Expenses (SG&A)

Costs incurred by a company that are not directly related to the production or acquisition of goods and services. This includes expenses like marketing, salaries of administrative staff, and office rent. (A significant increase in SG&A expenses to $776,821 in Q3 2025 contributed to the overall rise in operating expenses.)

Year-Over-Year Comparison

For the three months ended September 30, 2025, Creative Medical Technology Holdings, Inc. saw its net loss widen to $1,235,934 from $1,040,135 in the prior year, while revenue remained minimal at $3,000 for the nine-month period, down from $8,000. Operating expenses increased, primarily driven by a significant rise in SG&A costs, despite a slight decrease in R&D expenses. The company's cash position declined, although it received substantial proceeds from warrant exercises, which also led to an increase in outstanding shares.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CELZ The NASDAQ Stock Mar
• $100,000 — ng: The Company is required to pay CMH $100,000 within 30 days of demand as an initial
• $0.01 — ny's shares of common stock trade below $0.01 per share for two or more consecutive t
• $300,000 — mon stock. The remaining portion of the $300,000 obligation was paid in cash in 2020 . I

Filing Documents

• celz_10q.htm (10-Q) — 604KB
• celz_ex311.htm (EX-31.1) — 10KB
• celz_ex312.htm (EX-31.2) — 10KB
• celz_ex321.htm (EX-32.1) — 4KB
• celz_ex322.htm (EX-32.2) — 4KB
• celz_10qimg2.jpg (GRAPHIC) — 49KB
• 0001477932-25-007978.txt ( ) — 3059KB
• celz-20250930.xsd (EX-101.SCH) — 29KB
• celz-20250930_lab.xml (EX-101.LAB) — 204KB
• celz-20250930_cal.xml (EX-101.CAL) — 30KB
• celz-20250930_pre.xml (EX-101.PRE) — 168KB
• celz-20250930_def.xml (EX-101.DEF) — 97KB
• celz_10q_htm.xml (XML) — 318KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Unaudited Condensed Consolidated Balance Sheets 3 Unaudited Condensed Consolidated Statements of Operations 4 Unaudited Condensed Consolidated Statements of Cash Flows 5 Unaudited Condensed Consolidated Statements of Stockholder' Equity (Deficit) 6 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 22 Item 6. Exhibits 23 2 Table of Contents CREATIVE MEDICAL TECHNOLOGY HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash $ 5,375,511 $ 5,940,402 Inventory 994 2,194 Prepaids and other current assets 35,036 192,707 Total Current Assets 5,411,541 6,135,303 OTHER ASSETS Other assets 3,281 3,281 Licenses, net of amortization 438,181 530,559 TOTAL ASSETS $ 5,853,003 $ 6,669,143 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 247,159 $ 273,530 Accrued expenses - 39,920 Advances from related party 14,194 14,194 Total Current Liabilities 261,353 327,644 TOTAL LIABILITIES 261,353 327,644 Commitments and contingencies STOCKHOLDERS' EQUITY Preferred stock, $ 0.001 par value, 10,000,000 shares authorized at September 30, 2025 and December 31, 2024 - - Common stock, $ 0.001 par value, 25,000,000 shares authorized; 2,585,532 and 1,748,428 issued and 2,580,532 and 1,748,428 outstanding at September 30, 2025 and December 31, 2024, respectively 2,586 1,749 Additional paid-in capital 74,298,311 70,931,663 Accumulated deficit ( 68,699,247 ) ( 64,591,913 ) Treasury stock, at cost, 5,000 and 0 shares as of September 30, 2025 and December 31, 2024, respectively ( 10,000 ) - TOTAL STOCKHOLDERS' EQUITY 5,591,650 6,341,499 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,853,003 $ 6,669,143 The accompanying notes are an integral part of these condensed consolidated financial statements 3 Table of Contents CREATIVE MEDICAL TECHNOLOGY HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended September 30, 2025 For the Three Months Ended September 30, 2024 For the Nine Months Ended Sept

View Full Filing

View this 10-Q filing on SEC EDGAR