Citius Pharmaceuticals Files Q2 2024 10-Q Report

TL;DR

Citius Pharma filed its 10-Q for Q2 2024. Check financials.

AI Summary

Citius Pharmaceuticals, Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in Nevada, is involved in the pharmaceutical preparations industry. Its principal executive offices are located in Cranford, New Jersey.

Why It Matters

This filing provides investors with an update on Citius Pharmaceuticals' financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing and does not inherently present new risks.

Key Numbers

• 0930 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• Citius Pharmaceuticals, Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 001-38174 (other) — Commission File Number
• Nevada (location) — State of incorporation
• Cranford, NJ (location) — Principal executive offices location

FAQ

Key Financial Figures

• $0.001 — ange on Which Registered Common stock, $0.001 par value CTXR Nasdaq Capital Market

Filing Documents

• ea0210893-10q_citius.htm (10-Q) — 575KB
• ea021089301ex1-1_citius.htm (EX-1.1) — 210KB
• ea021089301ex5-1_citius.htm (EX-5.1) — 6KB
• ea021089301ex31-1_citius.htm (EX-31.1) — 10KB
• ea021089301ex31-2_citius.htm (EX-31.2) — 11KB
• ea021089301ex32-1_citius.htm (EX-32.1) — 5KB
• 0001213900-24-067732.txt ( ) — 4185KB
• ctxr-20240630.xsd (EX-101.SCH) — 40KB
• ctxr-20240630_cal.xml (EX-101.CAL) — 31KB
• ctxr-20240630_def.xml (EX-101.DEF) — 188KB
• ctxr-20240630_lab.xml (EX-101.LAB) — 342KB
• ctxr-20240630_pre.xml (EX-101.PRE) — 181KB
• ea0210893-10q_citius_htm.xml (XML) — 369KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION: 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets at June 30, 2024 and September 30, 2023 1 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements 5 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 22 Item 4.

Controls and Procedures

Controls and Procedures 22

OTHER INFORMATION

PART II. OTHER INFORMATION 23 Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 24 Item 6. Exhibits 24

SIGNATURES

SIGNATURES 25 i EXPLANATORY NOTE In this Quarterly Report on Form 10-Q, and unless the context otherwise requires, the "Company," "we," "us," and "our" refer to Citius Pharmaceuticals, Inc. ("Citius Pharma") and its wholly-owned subsidiaries Leonard-Meron Biosciences, Inc., and Citius Oncology, Inc. ("Citius Oncology"), and its majority-owned subsidiary, NoveCite, Inc., taken as a whole. ii CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in this Report and in other documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to: our ability to apply for, obtain and maintain required regulatory approvals for our product candidates; the cost, timing and results of our pre-clinical and clinical trials; our ability to raise funds for general corporate purposes and operations, including our pre-clinical and clinical trials; the commercial feasibility and success of our technology and product candidates; our ability to recruit and retain qualified management and technical personnel to carry out our operations; our ability to realize some or all of the benefits expect

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CITIUS PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, September 30, 2024 2023 ASSETS Current Assets: Cash and cash equivalents $ 17,911,192 $ 26,480,928 Prepaid expenses 10,094,597 7,889,506 Total Current Assets 28,005,789 34,370,434 Property and equipment, net — 1,432 Operating lease right-of-use asset, net 299,932 454,426 Deposits 38,062 38,062 In-process research and development 59,400,000 59,400,000 Goodwill 9,346,796 9,346,796 Total Assets $ 97,090,579 $ 103,611,150 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 1,663,336 $ 2,927,334 Accrued expenses 550,485 476,300 Accrued compensation 1,702,668 2,156,983 Operating lease liability 235,581 218,380 Total Current Liabilities 4,152,070 5,778,997 Deferred tax liability 6,569,800 6,137,800 Operating lease liability – noncurrent 84,430 262,865 Total Liabilities 10,806,300 12,179,662 Commitments and Contingencies Stockholders' Equity: Preferred stock – $ 0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding — — Common stock – $ 0.001 par value; 400,000,000 shares authorized; 180,725,407 and 158,857,798 shares issued and outstanding at June 30, 2024 and September 30, 2023, respectively 180,725 158,858 Additional paid-in capital 276,083,228 252,903,629 Accumulated deficit ( 190,580,054 ) ( 162,231,379 ) Total Citius Pharmaceuticals, Inc. Stockholders' Equity 85,683,899 90,831,108 Non-controlling interest 600,380 600,380 Total Equity 86,284,279 91,431,488 Total Liabilities and Equity $ 97,090,579 $ 103,611,150 See notes to unaudited condensed consolidated

financial statements

financial statements. 1 CITIUS PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenues $ — $ — $ — $ — Operating Expenses Research and development 2,763,865 3,764,675 8,991,673 11,937,045 General and administrative 4,808,551 3,733,326 12,755,190 11,129,463 Stock-based compensation – general and administrative 3,061,763 1,174,111 9,198,340 3,540,787 Total Operating Expenses 10,634,179 8,672,112 30,945,203 26,607,295 Operating Loss ( 10,634,179 ) ( 8,672,112 ) ( 30,945,203 ) ( 26,607,295 ) Other Income Interest income 204,843 336,780 640,686 854,604 Gain on sale of New Jersey net operating losses — — 2,387,842 3,585,689 Total Other Income 204,843 336,780 3,028,528 4,440,293 Loss before Income Taxes ( 10,429,336 ) ( 8,335,332 ) ( 27,916,675 ) ( 22,167,002 ) Income tax expense 144,000 144,000 432,000 432,000 Net Loss ( 10,573,336 ) ( 8,479,332 ) ( 28,348,675 ) ( 22,599,002 ) Deemed dividend on warrant extension 321,559 — 321,559 — Net Loss Applicable to Common Stockholders $ ( 10,894,895 ) $ ( 8,479,332 ) $ ( 28,670,234 ) $ ( 22,599,002 ) Net Loss Per Share - Basic and Diluted $ ( 0.06 ) $ ( 0.06 ) $ ( 0.17 ) $ ( 0.15 ) Weighted Average Common Shares Outstanding Basic and diluted 173,856,960 153,775,380 163,947,311 148,746,002 See notes to unaudited condensed consolidated

financial statements

financial statements. 2 CITIUS PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Preferred Common Stock Additional Paid-In Accumulated Total Citius Pharmaceuticals, Inc. Stockholders' Non-Controlling Total Stock Shares Amount Capital Deficit Equity Interest Equity Balance, September 30, 2023 $ — 158,857,798 $ 158,858 $ 252,903,629 $ ( 162,231,379 ) $ 90,831,108 $ 600,380 $ 91,431,488 Issuance of common stock for services — 108,778 109 76,037 — 76,146 — 76,146 Stock-based compensation expense — — — 3,058,185 — 3,058,185 — 3,058,185 Net loss — — — — ( 9,231,185 ) ( 9,231,185 ) — ( 9,231,185 ) Balance, December 31, 2023 — 158,966,576 158,967 256,037,851 ( 171,462,564 ) 84,734,254 600,380 85,334,634 Issuance of common stock for services — 128,205 128 97,951 — 98,079 — 98,079 Stock-based compensation expense — — — 3,078,392 — 3,078,392 — 3,078,392 Net loss — — — — ( 8,544,154 ) ( 8,544,154 ) — ( 8,544,154 ) Balance, March 31, 2024 — 159,094,781 159,095 259,214,194 ( 180,006,718 ) 79,366,571 600,380 79,966,951 Issuance of common stock for services — 150,000 150 109,800 — 109,950 — 109,950 Issuance of common stock in registered direct offering, net of costs of $ 1,281,051 — 21,428,574 21,428 13,697,523 — 13,718,951 — 13,718,951 Issuance of common stock upon cashless exercise of stock options — 52,052 52 ( 52 ) — — — — Stock-based compensation expense — — — 3,061,763 — 3,061,763 — 3,061,763 Net loss — — — — ( 10,573,336 ) ( 10,573,336 ) — ( 10,573,336 ) Balance, June 30, 2024 $ — 180,725,407 $ 180,725 $ 276,083,228 $ ( 190,580,054 ) $ 85,683,899 $ 600,380 $ 86,284,279 Balance, September 30, 2022 $ — 146,211,130 $ 146,211 $ 232,368,121 $ ( 129,688,467 ) $ 102,825,865 $ 600,380 $ 103,4

financial statements

financial statements. 3 CITIUS PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) 2024 2023 Cash Flows From Operating Activities: Net loss $ ( 28,348,675 ) $ ( 22,599,002 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation expense 9,198,340 3,540,787 Issuance of common stock for services 284,175 102,000 Amortization of operating lease right-of-use asset 154,494 142,257 Depreciation 1,432 2,090 Deferred income tax expense 432,000 432,000 Changes in operating assets and liabilities: Prepaid expenses ( 2,205,091 ) ( 4,979,740 ) Accounts payable ( 1,263,998 ) 1,914,289 Accrued expenses 74,185 ( 512,520 ) Accrued compensation ( 454,315 ) ( 156,806 ) Operating lease liability ( 161,234 ) ( 145,352 ) Net Cash Used In Operating Activities ( 22,288,687 ) ( 22,259,997 ) Cash Flows From Financing Activities: Net proceeds from registered direct offering 13,718,951 13,798,870 Proceeds from common stock option exercise — 31,267 Net Cash Provided By Financing Activities 13,718,951 13,830,137 Net Change in Cash and Cash Equivalents ( 8,569,736 ) ( 8,429,860 ) Cash and Cash Equivalents - Beginning of Period 26,480,928 41,711,690 Cash and Cash Equivalents - End of Period $ 17,911,192 $ 33,281,830 See notes to unaudited condensed consolidated

financial statements

financial statements. 4 CITIUS PHARMACEUTICALS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) 1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Business Citius Pharmaceuticals, Inc. ("Citius Pharma," and together with its subsidiaries, the "Company," "we" or "us") is a late-stage biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products with a focus on oncology, anti-infectives in adjunct cancer care, unique prescription products and stem cell therapies. On March 30, 2016, Citius Pharma acquired Leonard-Meron Biosciences, Inc. ("LMB") as a wholly-owned subsidiary by issuing shares of its common stock. On September 11, 2020, we formed NoveCite, Inc. ("NoveCite"), a Delaware corporation, of which we own 75 % ( 7,500,000 shares) of the issued and outstanding capital stock (see Note 3). On August 23, 2021, we formed Citius Oncology, Inc. (formerly named Citius Acquisition Corp.) ("Citius Oncology"), as a wholly-owned subsidiary in conjunction with the acquisition of LYMPHIR, which began operations in April 2022. On October 23, 2023, Citius Pharma and Citius Oncology entered into an agreement and plan of merger and reorganization with TenX Keane Acquisition, and its wholly owned subsidiary, TenX Merger Sub Inc., whereby TenX Merger Sub Inc. will merge with and into Citius Oncology, with Citius Oncology surviving as a wholly owned subsidiary of TenX Keane Acquisition. The newly combined publicly traded company is to be named "Citius Oncology, Inc." (see Note 9). An inactive subsidiary, Citius Pharmaceuticals, LLC, was dissolved on December 29, 2023. In-process research and development ("IPR&D") consists of (i) the $ 19,400,000 acquisition value of LMB's drug candidate Mino-Lok, which is an antibiotic solution used to treat catheter-related bloodstream infections and is expected to be amortized on a straight-line basis over a period of eight years commencing upon revenue generation, and (ii) the $ 40,000,000 acquisition value of the exclusive license for LYMPHIR (denileukin diftitox), which is a late-stage oncology immunotherapy for the treatment

financial statements are issued

financial statements are issued. The Company has generated no operating revenue to date and has principally raised capital through the issuance of equity instruments to finance its operations. However, the Company's continued operations beyond December 2024, including its development plans for LYMPHIR (including after the proposed spin-off of Citius Oncology), Mino-Lok, Halo-Lido and NoveCite, will depend on its ability to obtain regulatory approval to market Mino-Lok, successfully commercialize LYMPHIR, Mino-Lok and any other approved products and generate substantial revenue from the sale of LYMPHIR and/or Mino-Lok and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its product candidates. However, the Company can provide no assurances on regulatory approval, commercialization, or future sales of LYMPHIR and/or Mino-Lok or that financing or strategic relationships will be available on acceptable terms, or at all. If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of LYMPHIR and/or Mino-Lok, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to develop its product candidates, including seeking regulatory approval, and protecting its intellectual property. 6 3. PATENT AND TECHNOLOGY LICENSE AGREEMENTS Patent and Technology License Agreement – Mino-Lok LMB has a patent and technology license agreement with Novel Anti-Infective Therapeutics, Inc. ("NAT") to develop and commercialize Mino-Lok on an exclusive, worldwide sub-licensable basis, as amended. LMB pays an annual maintenance fee each June until commercial sales of a product subject to the license commence. The Company recorded an annual maintenance fee expense of $ 90,000 in both 2024 and 2023 respectively. LMB will also pay

View Full Filing

View this 10-Q filing on SEC EDGAR