Business Context and Reporting Period
Company: Creative Medical Technology Holdings, Inc. (CELZ)
Reporting Period: Quarter ended March 31, 2026 (Q1 2026)
Business Overview: A commercial-stage biotechnology company focused on regenerative therapies, including immunotherapy, endocrinology, and orthopedics. The company markets disposable kits for erectile and female sexual dysfunction (CaverStem® and FemCelz®) and is developing stem cell-based therapies for Type 1 Diabetes, chronic lower back pain, and other conditions through subsidiaries ImmCelz, StemSpine, and AlloCelz.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $0 | $3,000 |
| Net Loss | $(1,403,717) | $(1,638,097) |
| Net Loss Attributable to CMTH | $(1,405,077) | $(1,638,097) |
| Net Loss Per Share (Basic & Diluted) | $(0.38) | $(0.83) |
| Cash and Cash Equivalents (Ending) | $5,723,176 | $7,702,867 |
| Total Assets | $6,440,577 | $7,809,525 |
| Total Liabilities | $307,649 | $284,880 |
| Working Capital | $5,751,270 | $7,114,134 |
Material Changes vs. Prior Period
- Revenue: Revenue dropped to $0 in Q1 2026 from $3,000 in Q1 2025, indicating a cessation of commercial kit sales during the quarter.
- Operating Expenses: Total operating expenses decreased by approximately 12% to $1,459,153 from $1,662,278.
- R&D: Decreased by 27% ($201,646) to $541,658, primarily due to reduced general R&D spending, partially offset by increased costs for the AlloStemSpine® clinical trial.
- SG&A: Remained relatively flat at $888,640, with increases in compensation and legal fees offset by decreases in marketing and insurance costs.
- Other Income: Interest income increased significantly to $55,436 from $22,381, driven by higher short-term investment balances.
- Cash Flow: Net cash used in operating activities improved (decreased) by 17% to $1,323,310. However, the company utilized $175,000 in investing activities for a related entity investment and a note receivable, compared to zero in the prior year.
Outlook, Risks, and Unusual Items
- Clinical Progress: The company reported positive interim data for the CELZ-201 ADAPT trial (chronic lower back pain) and received FDA Fast Track designation for CELZ-201-DDT in August 2025. Patient enrollment for the ADAPT trial was completed in December 2025.
- Strategic Initiatives: Launched the BioDefense Veterans Initiative in October 2025 in partnership with Greenstone Biosciences to address toxic burn pit exposure using AI and iPSC technology.
- Investment Activities: Formed Bionance LLC to invest in public securities. In Q1 2026, the company invested $125,000 in a related entity controlled by the CEO intended to form a SPAC and purchased a $50,000 convertible note.
- Liquidity: The company maintains positive working capital of approximately $5.75 million. Management notes that while cash balances are sufficient for current operations, the company has a history of net losses and may require additional capital to fund future clinical trials and commercialization.
- Risks: The company faces risks related to its limited operating history, minimal revenue generation, dependence on successful clinical trial outcomes, and the need for future financing. It also notes concentration risk regarding cash deposits exceeding FDIC limits at two institutions.
Investor Verification Checklist
- Revenue Sustainability: Verify the status of commercial sales for CaverStem® and FemCelz® kits given the $0 revenue reported for Q1 2026.
- Cash Burn Rate: Assess the runway provided by the $5.7 million cash balance against the quarterly operating cash burn of approximately $1.3 million.
- Related Party Transactions: Review the $125,000 investment in the unorganized entity controlled by the CEO and the terms of the convertible notes purchased by Bionance LLC.
- Clinical Trial Milestones: Monitor upcoming data readouts for the CELZ-201 ADAPT trial and the progress of the BioDefense Veterans Initiative.
- Dilution Risk: Note the outstanding warrants to purchase over 6.1 million shares of common stock, which could impact future share count if exercised.