Capricor Therapeutics, Inc 10-Q for FY2022 Q2

Capricor Therapeutics, Inc. (CAPR)

10-Q 2022-08-12 For: 2022-06-30

Added on April 10, 2026

About this 10-Q

Capricor Therapeutics, Inc filed this 10-Q on August 12, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $7.11M; compared with a net loss of $4.75M a year earlier
Diluted EPS: -$0.29; compared with -$0.21 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	for the quarterly period ended June 30, 2022

or

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	for the transition period from to


Delaware		88-0363465
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	CAPR	The Nasdaq Capital Market


		PAGES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements		5
Condensed Consolidated Balance Sheets at June 30, 2022 (unaudited) and December 31, 2021		5
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)		6
Condensed Consolidated Statements of Stockholders’ Equity (unaudited)		7
Condensed Consolidated Statements of Cash Flows (unaudited)		9
Notes to Condensed Consolidated Financial Statements (unaudited)		10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3. Quantitative and Qualitative Disclosures about Market Risk		39
Item 4. Controls and Procedures		39

PART II. OTHER INFORMATION
Item 1. Legal Proceedings		39
Item 1A. Risk Factors		39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		40
Item 3. Defaults Upon Senior Securities		40
Item 4. Mine Safety Disclosures		40
Item 5. Other Information		40
Item 6. Exhibits		41
Signatures		42



ASSETS
	June 30, 2022
	(Unaudited)		December 31, 2021

CURRENT ASSETS
Cash and cash equivalents	$	16,394,067	$	34,885,274
Marketable securities		35,022,883		—
Receivables		547,580		391,750
Prepaid expenses and other current assets		659,269		1,159,937

TOTAL CURRENT ASSETS		52,623,799		36,436,961

PROPERTY AND EQUIPMENT, net		2,629,114		1,795,696

OTHER ASSETS
Lease right-of-use assets, net		2,544,489		2,821,944
Other assets		268,172		275,722

TOTAL ASSETS	$	58,065,574	$	41,330,323

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expenses	$	3,127,836	$	3,116,371
Accounts payable and accrued expenses, related party		94,135		599,388
Lease liabilities, current		579,672		417,632
Deferred revenue, current		15,745,576		—

TOTAL CURRENT LIABILITIES		19,547,219		4,133,391

LONG-TERM LIABILITIES
CIRM liability		3,376,259		3,376,259
Lease liabilities, net of current		2,158,677		2,452,707
Deferred revenue, net of current		14,254,424		—

TOTAL LONG-TERM LIABILITIES		19,789,360		5,828,966

TOTAL LIABILITIES		39,336,579		9,962,357

COMMITMENTS AND CONTINGENCIES (NOTE 7)

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, 24,334,952 and 24,185,001 shares issued and outstanding, respectively		24,335		24,185
Additional paid-in capital		141,669,614		139,404,060
Accumulated other comprehensive income		22,830		—
Accumulated deficit		(122,987,784)		(108,060,279)

TOTAL STOCKHOLDERS’ EQUITY		18,728,995		31,367,966

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	58,065,574	$	41,330,323


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021

REVENUE
Revenue	$	—	$	204,082	$	—	$	244,898

TOTAL REVENUE		—		204,082		—		244,898

OPERATING EXPENSES
Research and development		4,965,088		3,497,275		10,080,787		6,793,597
General and administrative		2,356,666		1,789,974		5,072,501		3,695,556

TOTAL OPERATING EXPENSES		7,321,754		5,287,249		15,153,288		10,489,153

LOSS FROM OPERATIONS		(7,321,754)		(5,083,167)		(15,153,288)		(10,244,255)

OTHER INCOME (EXPENSE)
Other income		190,582		—		190,582		—
Investment income		21,761		16,741		35,201		25,906
Forgiveness of debt		—		318,160		—		318,160

TOTAL OTHER INCOME (EXPENSE)		212,343		334,901		225,783		344,066

NET LOSS		(7,109,411)		(4,748,266)		(14,927,505)		(9,900,189)

OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized gain on marketable securities		22,830		—		22,830		—

COMPREHENSIVE INCOME (LOSS)	$	(7,086,581)	$	(4,748,266)	$	(14,904,675)	$	(9,900,189)

Net loss per share, basic and diluted	$	(0.29)	$	(0.21)	$	(0.61)	$	(0.44)
Weighted average number of shares, basic and diluted		24,324,156		22,861,051		24,303,564		22,546,634


	For the Six Months Ended June 30, 2022
						OTHER				TOTAL
	COMMON STOCK			ADDITIONAL PAID-		COMPREHENSIVE		ACCUMULATED		STOCKHOLDERS'
	SHARES	AMOUNT		IN CAPITAL		INCOME		DEFICIT		EQUITY

Balance at December 31, 2021	24,185,001	$	24,185	$	139,404,060	$	—	$	(108,060,279)	$	31,367,966

Stock-based compensation	—		—		1,065,329		—		—		1,065,329

Stock options exercised	139,155		139		27,326		—		—		27,465

Net loss	—		—		—		—		(7,818,094)		(7,818,094)

Balance at March 31, 2022	24,324,156	$	24,324	$	140,496,715	$	—	$	(115,878,373)	$	24,642,666

Stock-based compensation	—		—		1,157,904		—		—		1,157,904

Stock options exercised	10,796		11		14,995		—		—		15,006

Unrealized gain on marketable securities	—		—		—		22,830		—		22,830

Net loss	—		—		—		—		(7,109,411)		(7,109,411)

Balance at June 30, 2022	24,334,952	$	24,335	$	141,669,614	$	22,830	$	(122,987,784)	$	18,728,995


	For the Six Months Ended June 30, 2021
								TOTAL
	COMMON STOCK			ADDITIONAL PAID-		ACCUMULATED		STOCKHOLDERS'
	SHARES	AMOUNT		IN CAPITAL		DEFICIT		EQUITY

Balance at December 31, 2020	20,577,123	$	20,577	$	116,216,966	$	(88,037,759)	$	28,199,784

Issuance of common stock, net of fees	2,218,874		2,219		12,576,307		—		12,578,526

Stock-based compensation	—		—		752,962		—		752,962

Stock options exercised	1,933		2		1,434		—		1,436

Net loss	—		—		—		(5,151,923)		(5,151,923)

Balance at March 31, 2021	22,797,930	$	22,798	$	129,547,669	$	(93,189,682)	$	36,380,785

Issuance of common stock, net of fees	200,504		200		1,035,112		—		1,035,312

Stock-based compensation	—		—		712,299		—		712,299

Net loss	—		—		—		(4,748,266)		(4,748,266)

Balance at June 30, 2021	22,998,434	$	22,998	$	131,295,080	$	(97,937,948)	$	33,380,130


	June 30,		December 31,
	2022		2021
Furniture and fixtures	$	139,336	$	43,123
Laboratory equipment		3,109,268		2,475,543
Leasehold improvements		323,086		33,742
		3,571,690		2,552,408
Less accumulated depreciation		(942,576)		(756,712)
Property and equipment, net	$	2,629,114	$	1,795,696


Level Input:		Input Definition:

Level I		Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level II		Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date.
Level III		Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.


	June 30, 2022
	Level I		Level II		Level III		Total
Marketable Securities	$	35,022,883	$	—	$	—	$	35,022,883


		Weighted Average
	Warrants	Exercise Price
Outstanding at December 31, 2021	105,782	$	1.37
Granted	—		—
Exercised	—		—
Outstanding at June 30, 2022	105,782	$	1.37


		Warrants Outstanding
		June 30,	December 31,	Exercise Price		Expiration
Type	Grant Date	2022	2021	per Share		Date

Common Warrants	12/19/2019	40,782	40,782	$	1.10	12/19/2024
Common Warrants	3/27/2020	65,000	65,000	$	1.5313	3/27/2025
		105,782	105,782


	June 30, 2022		June 30, 2021
Expected volatility	123 - 124	%	123 - 124	%
Expected term	6 - 7 years		6 years
Dividend yield	0	%	0	%
Risk-free interest rates	1.5 - 2.9	%	0.5 - 1.1	%


	Number of	Weighted Average		Aggregate
	Options	Exercise Price		Intrinsic Value
Outstanding at December 31, 2021	3,793,824	$	2.68	$	3,104,631
Granted	2,563,370		3.31
Exercised	(235,112)		1.39	$	454,156
Expired/Cancelled	(85,661)		3.92
Outstanding at June 30, 2022	6,036,421	$	2.98	$	4,381,251
Exercisable at June 30, 2022	1,931,479	$	2.31	$	2,587,286


2022 (remainder of the year)	$	321,677
2023		656,678
2024		674,931
2025		693,732
2026		562,627
Total minimum lease payments		2,909,645
Less: imputed interest		(171,296)
Total operating lease liabilities	$	2,738,349
Included in the condensed consolidated balance sheet:
Current portion of lease liabilities	$	579,672
Lease liabilities, net of current		2,158,677
Total operating lease liabilities	$	2,738,349

Other Information:
Weighted average remaining lease term		4.29 years
Weighted average discount rate		2.75%


Liquidity and capital resources	June 30, 2022		December 31, 2021
Cash, cash equivalents and marketable securities	$	51,417	$	34,885
Working capital	$	33,077	$	32,304
Stockholders’ equity	$	18,729	$	31,368


	Six months ended June 30,
Cash flow data	2022		2021
Cash provided by (used in):
Operating activities	$	17,504	$	(7,844)
Investing activities		(36,038)		(359)
Financing activities		43		13,615
Net increase (decrease) in cash and cash equivalents	$	(18,491)	$	5,412


2.1		Agreement and Plan of Merger, dated as of August 15, 2007, by and among SMI Products, Inc., Nile Merger Sub, Inc. and Nile Therapeutics, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the SEC on August 17, 2007).

2.2		Agreement and Plan of Merger and Reorganization, dated as of July 7, 2013, by and among Nile Therapeutics, Inc., Bovet Merger Corp. and Capricor, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the SEC on July 9, 2013).

2.3		First Amendment to Agreement and Plan of Merger and Reorganization, dated as of September 27, 2013, by and between Nile Therapeutics, Inc., Bovet Merger Corp. and Capricor, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the SEC on October 3, 2013).

3.1		Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on February 9, 2007).

3.2		Certificate of Amendment of Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on November 26, 2013).

3.3		Certificate of Amendment of Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on June 4, 2019).

3.4		Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on August 25, 2020).

31.1		Certification of Principal Executive Officer.*

31.2		Certification of Principal Financial Officer.*

32.1		Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

32.2		Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101		The following financial information from Capricor Therapeutics, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements.*

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


	CAPRICOR THERAPEUTICS, INC.

Date: August 11, 2022	By:	/s/ Linda Marbán, Ph.D.
		Linda Marbán, Ph.D.
		Chief Executive Officer
		(Principal Executive Officer)

Date: August 11, 2022	By:	/s/ Anthony J. Bergmann
		Anthony J. Bergmann
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

/s/ Linda Marbán, Ph.D.
Name: Linda Marbán, Ph.D.
Title: Chief Executive Officer and Principal Executive Officer

/s/ Anthony J. Bergmann
Name: Anthony J. Bergmann
Title: Chief Financial Officer and Principal Financial Officer