Creative Medical Technology Holdings, Inc. (CELZ) Bundle
Understanding Creative Medical Technology Holdings, Inc. (CELZ) Revenue Streams
Understanding Creative Medical Technology Holdings, Inc. Revenue Streams
Revenue Overview: For the nine months ended September 30, 2024, the company generated $8,000 in revenues, compared to $6,000 for the same period in 2023, representing a year-over-year increase of 33.33%.
Quarterly Revenue Analysis: In the three-month period ending September 30, 2024, the company reported no revenues, while the same period in 2023 had revenues of $6,000.
| Period | Revenue | Year-over-Year Change |
|---|---|---|
| Q3 2024 | $0 | N/A |
| Q3 2023 | $6,000 | N/A |
| 9M 2024 | $8,000 | +33.33% |
| 9M 2023 | $6,000 | N/A |
Contribution of Business Segments: The revenue primarily stems from the sale of disposable kits utilized for autologous procedures treating erectile dysfunction and female sexual dysfunction. However, detailed segment contributions are not explicitly outlined in the latest financial reports.
Cost of Goods Sold: For the nine months ended September 30, 2024, the cost of goods sold was $3,200, compared to $2,400 in the corresponding period of 2023. This indicates an increase of 33.33% in costs, reflecting the company's operational challenges.
Gross Profit: The gross profit for the nine months ended September 30, 2024, was $4,800, compared to $3,600 in 2023, showing an increase of 33.33%.
Operating Loss: The operating loss for the nine months ended September 30, 2024, was $3,858,127, slightly higher than the $3,848,293 loss for the same period in 2023.
Other Income: Other income for the nine months ended September 30, 2024, totaled $218,720, compared to $240,293 for the same period in 2023, indicating a decrease of 8.9%.
Net Loss: The net loss for the nine months ended September 30, 2024, was $3,639,407, compared to a net loss of $3,608,000 for the same period in 2023, reflecting a slight increase in losses.
Financial Summary:
| Financial Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Revenue | $8,000 | $6,000 |
| Cost of Goods Sold | $3,200 | $2,400 |
| Gross Profit | $4,800 | $3,600 |
| Operating Loss | $3,858,127 | $3,848,293 |
| Other Income | $218,720 | $240,293 |
| Net Loss | $3,639,407 | $3,608,000 |
Overall, the company has shown a modest increase in revenue year-over-year, but the operational losses and cost increases are significant factors for investors to consider.
A Deep Dive into Creative Medical Technology Holdings, Inc. (CELZ) Profitability
A Deep Dive into Creative Medical Technology Holdings, Inc. Profitability
Gross Profit, Operating Profit, and Net Profit Margins
For the three months ended September 30, 2024, the company reported:
- Gross Revenue: $0
- Cost of Goods Sold: $0
- Gross Profit: $0
- Operating Loss: $(1,109,674)
- Net Loss: $(1,040,135)
For the nine months ended September 30, 2024:
- Gross Revenue: $8,000
- Cost of Goods Sold: $3,200
- Gross Profit: $4,800
- Operating Loss: $(3,858,127)
- Net Loss: $(3,639,407)
Trends in Profitability Over Time
Comparing the nine-month periods:
- 2024 Gross Profit: $4,800
- 2023 Gross Profit: $3,600
- Net Loss in 2024: $(3,639,407)
- Net Loss in 2023: $(3,608,000)
Comparison of Profitability Ratios with Industry Averages
As of September 30, 2024, the profitability ratios are as follows:
- Net Profit Margin: -13.0% (Net Loss / Gross Revenue)
- Gross Margin: N/A (No gross profit)
- Operating Margin: -13.8% (Operating Loss / Gross Revenue)
Industry averages for biotechnology companies typically have a net profit margin ranging from 10% to 20%, indicating a significant deviation from the industry standard.
Analysis of Operational Efficiency
The company’s operational efficiency can be observed through its cost management:
- General and Administrative Expenses: $498,607 for Q3 2024, down from $531,042 in Q3 2023.
- Research and Development Expenses: $581,796 for Q3 2024, down from $992,272 in Q3 2023.
- Total Operating Expenses: $1,109,674 for Q3 2024, down from $1,546,785 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Gross Revenue | $0 | $6,000 | $8,000 | $6,000 |
| Cost of Goods Sold | $0 | $2,400 | $3,200 | $2,400 |
| Gross Profit | $0 | $3,600 | $4,800 | $3,600 |
| Operating Loss | $(1,109,674) | $(1,546,785) | $(3,858,127) | $(3,848,293) |
| Net Loss | $(1,040,135) | $(1,453,952) | $(3,639,407) | $(3,608,000) |
Debt vs. Equity: How Creative Medical Technology Holdings, Inc. (CELZ) Finances Its Growth
Debt vs. Equity: How Creative Medical Technology Holdings, Inc. Finances Its Growth
Overview of the Company's Debt Levels
As of September 30, 2024, the total liabilities for Creative Medical Technology Holdings, Inc. were reported at $330,908, with current liabilities comprising $330,908. The company does not have any long-term debt recorded in its financial statements.
Debt-to-Equity Ratio and Comparison to Industry Standards
The debt-to-equity ratio for the company is calculated by dividing total liabilities by total stockholders' equity. As of September 30, 2024, total stockholders' equity was $6,557,011. Therefore, the debt-to-equity ratio is 0.05 (calculated as $330,908 / $6,557,011). This ratio is significantly lower than the industry standard for biotechnology firms, which typically ranges from 0.25 to 0.50, indicating a conservative approach to leveraging.
Recent Debt Issuances, Credit Ratings, or Refinancing Activity
The company has not issued any new debt as of the latest financial report, nor does it have any outstanding credit ratings. There has been no reported refinancing activity, and the company has maintained a strategy focused on minimizing debt.
How the Company Balances Between Debt Financing and Equity Funding
Creative Medical Technology Holdings, Inc. primarily relies on equity funding to finance its operations and growth initiatives. The total additional paid-in capital as of September 30, 2024, was $69,739,235, indicating strong reliance on equity. The company has also engaged in stock repurchase programs, repurchasing 101,250 shares of its common stock.
| Financial Metric | Amount |
|---|---|
| Total Liabilities | $330,908 |
| Total Stockholders' Equity | $6,557,011 |
| Debt-to-Equity Ratio | 0.05 |
| Additional Paid-In Capital | $69,739,235 |
| Shares Repurchased | 101,250 |
Assessing Creative Medical Technology Holdings, Inc. (CELZ) Liquidity
Assessing Creative Medical Technology Holdings, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
Current Assets: $6,331,440
Current Liabilities: $330,908
Current Ratio: 19.1
Quick Ratio: The quick ratio, which excludes inventory from current assets, is:
Quick Assets: $6,328,046 (Current Assets - Inventory)
Quick Ratio: 19.1
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is:
Working Capital: $6,000,532
In comparison, as of December 31, 2023, working capital was:
Working Capital (Dec 31, 2023): $9,899,504
This shows a decrease of approximately 39%.
Cash Flow Statements Overview
For the nine-month period ended September 30, 2024:
- Net Cash Used in Operating Activities: $(3,351,756)
- Net Cash Received from Investing Activities: $6,320,191
- Net Cash Used in Financing Activities: $(174,864)
For the comparable period in 2023:
- Net Cash Used in Operating Activities: $(6,132,902)
- Net Cash Received from Investing Activities: $2,511,271
- Net Cash Used in Financing Activities: $(191,780)
Potential Liquidity Concerns or Strengths
The decrease in cash used in operating activities by 45% from the previous year indicates improved cash flow management. Additionally, the significant cash balance of $6,260,438 as of September 30, 2024, reflects a strong liquidity position.
| Metrics | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Current Assets | $6,331,440 | $10,270,898 | -38.6% |
| Current Liabilities | $330,908 | $371,394 | -10.9% |
| Working Capital | $6,000,532 | $9,899,504 | -39.0% |
| Cash Balance | $6,260,438 | $3,466,867 | 80.5% |
Is Creative Medical Technology Holdings, Inc. (CELZ) Overvalued or Undervalued?
Valuation Analysis
To assess whether Creative Medical Technology Holdings, Inc. is overvalued or undervalued, we will examine key valuation metrics, including the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratio.
Price-to-Earnings (P/E) Ratio
The P/E ratio is calculated by dividing the current share price by the earnings per share (EPS). As of the latest report, the company's net loss per share for the nine months ended September 30, 2024, was $(2.59) . Given that there is no positive earnings, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated by dividing the market value per share by the book value per share. As of September 30, 2024, the total stockholders' equity was $6,557,011 and the number of shares outstanding was 1,431,126 . Thus, the book value per share is:
- Book Value per Share = Total Stockholders' Equity / Total Shares Outstanding
- Book Value per Share = $6,557,011 / 1,431,126 ≈ $4.58
If the current market price of the stock is $16.90 , the P/B ratio would be:
- P/B Ratio = Market Price / Book Value per Share
- P/B Ratio = $16.90 / $4.58 ≈ 3.69
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
To calculate the EV/EBITDA ratio, we need to determine the enterprise value (EV) and EBITDA. The enterprise value is calculated as follows:
- EV = Market Capitalization + Total Debt - Cash and Cash Equivalents
- Market Capitalization = Current Share Price x Total Shares Outstanding = $16.90 x 1,431,126 = $24,198,826.40
- Total Debt is not specified but can include accrued expenses and accounts payable, totaling $330,908 .
- Cash and Cash Equivalents = $6,260,438 .
- EV = $24,198,826.40 + $330,908 - $6,260,438 = $18,269,296.40
EBITDA for the nine-month period ended September 30, 2024, is not directly provided but can be inferred from operating loss and interest income:
- EBITDA = Operating Loss + Interest Income = ($3,639,407) + $218,720 = $(3,420,687)
Since EBITDA is negative, the EV/EBITDA ratio cannot be calculated meaningfully at this time.
Stock Price Trends
Over the past 12 months, the stock price has shown volatility. The current price is $16.90 , representing a significant increase from historical lows. However, the performance should be evaluated against market trends and investor sentiments.
Dividend Yield and Payout Ratios
As of the latest information, the annual dividend yield is $0 , indicating that the company does not currently pay dividends.
Analyst Consensus on Stock Valuation
Analyst consensus is not explicitly detailed in the available data. However, the financial health indicators suggest a cautious approach, likely leaning towards a "hold" position given the negative earnings and high valuation ratios.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | N/A (Net Loss) |
| P/B Ratio | 3.69 |
| EV/EBITDA Ratio | N/A (Negative EBITDA) |
| Current Stock Price | $16.90 |
| Annual Dividend Yield | $0 |
| Analyst Consensus | Hold |
Key Risks Facing Creative Medical Technology Holdings, Inc. (CELZ)
Key Risks Facing Creative Medical Technology Holdings, Inc.
Creative Medical Technology Holdings, Inc. faces several internal and external risks that may impact its financial health, including industry competition, regulatory changes, and market conditions.
Industry Competition
The biotechnology sector is highly competitive, with many companies vying for market share in regenerative medicine and stem cell therapies. Major competitors include established firms with significant resources, which can lead to increased pressure on pricing and innovation. As of September 30, 2024, the company reported total liabilities of $330,908 and total stockholders' equity of $6,557,011.
Regulatory Changes
Regulatory risks are significant in the biotechnology industry. The company must comply with stringent FDA regulations for clinical trials and product approvals. Failure to meet these requirements could delay product launches or lead to fines. The company recorded a net loss of $3,639,407 for the nine-month period ended September 30, 2024, compared to a net loss of $3,608,000 in the same period of 2023.
Market Conditions
Market conditions can fluctuate due to economic changes, which may affect funding and investment in biotech firms. The company reported cash and cash equivalents of $6,260,438 as of September 30, 2024, down from $9,987,058 at the end of 2023.
Operational Risks
Operational risks include challenges in clinical trial execution and research and development efforts. The company incurred research and development expenses of $1,928,937 for the nine-month period ended September 30, 2024, up from $1,621,231 in the prior year.
Financial Risks
Financial risks include liquidity concerns and reliance on external funding. The company had a positive working capital of approximately $6,000,532 as of September 30, 2024, compared to $9,899,504 at the end of 2023. Additionally, the company utilized cash in operating activities amounting to $3,351,756 during the nine months ended September 30, 2024.
Strategic Risks
Strategic risks involve the potential for unsuccessful product development and commercialization strategies. The company must effectively manage its clinical trials and ensure successful outcomes to maintain investor confidence and market position.
Mitigation Strategies
The company has implemented a share repurchase program to stabilize its stock price, with total shares repurchased in 2024 amounting to 43,750 shares at an average price of $4.00. Additionally, the company engages in continuous monitoring of regulatory changes to adapt its strategies accordingly.
| Risk Category | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition in biotechnology | Pressure on pricing and innovation |
| Regulatory Changes | Compliance with FDA regulations | Potential delays and fines |
| Market Conditions | Fluctuations affecting funding | Cash reserves of $6,260,438 |
| Operational Risks | Challenges in clinical trials | R&D expenses of $1,928,937 |
| Financial Risks | Liquidity and funding reliance | Cash used in operations of $3,351,756 |
| Strategic Risks | Product development failures | Potential loss of investor confidence |
Future Growth Prospects for Creative Medical Technology Holdings, Inc. (CELZ)
Future Growth Prospects for Creative Medical Technology Holdings, Inc.
Analysis of Key Growth Drivers
The company has several key growth drivers that are expected to contribute to its future expansion. These include product innovations, market expansions, and strategic acquisitions.
- Product Innovations: The recent developments in the CELZ-201 therapy, which focuses on managing abnormal glucose tolerance and potentially preventing Type I Diabetes, represent a significant leap in therapeutic approaches. This personalized medicine initiative is believed to be a first in medical history .
- Market Expansions: The successful generation of human induced pluripotent stem cells (iPSCs) that produce human insulin opens new avenues for clinical applications, enhancing the company’s market potential .
- Acquisitions: The acquisition of research tools for $5 million from Narkeshyo LLC positions the company to enhance its research capabilities .
Future Revenue Growth Projections and Earnings Estimates
Revenue generation remains modest, with reported revenues of $8,000 for the nine-month period ending September 30, 2024, compared to $6,000 for the same period in the previous year . The company anticipates that the commercialization of new therapies, such as CELZ-201, will drive significant revenue growth in the coming years.
Projected earnings estimates are underpinned by the ongoing clinical trials, which are expected to lead to market-ready products. The operating loss for the nine-months ended September 30, 2024, was reported at $3,858,127, slightly higher than the $3,848,293 loss from the previous year .
Strategic Initiatives or Partnerships That May Drive Future Growth
Strategic initiatives include partnerships aimed at accelerating product development without detracting from core clinical programs. The collaboration with Greenstone Biosciences Inc. exemplifies this approach .
Furthermore, the company has initiated programs combining AI with its iPSC technology to enhance research efficiency and therapeutic interventions .
Competitive Advantages That Position the Company for Growth
Creative Medical Technology Holdings holds several competitive advantages:
- Innovative Therapies: The development of cutting-edge therapies, such as those targeting chronic lower back pain using AlloStem™, differentiates the company in the biotechnology space .
- Strong R&D Focus: Research and development expenses for the nine-months ending September 30, 2024, amounted to $1,928,937, reflecting a commitment to advancing its therapeutic pipeline .
- Regulatory Approvals: Securing FDA authorization for expanded access therapy positions the company favorably within regulatory frameworks, enhancing its market entry potential .
Financial Overview Table
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Gross Revenue | $0 | $6,000 | $8,000 | $6,000 |
| Cost of Goods Sold | $0 | $2,400 | $3,200 | $2,400 |
| Operating Loss | $1,109,674 | $1,546,785 | $3,858,127 | $3,848,293 |
| Net Loss | $1,040,135 | $1,453,952 | $3,639,407 | $3,608,000 |
| Cash Balance | $6,260,438 | $4,507,108 | $6,260,438 | $4,507,108 |
Creative Medical Technology Holdings, Inc. (CELZ) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Creative Medical Technology Holdings, Inc. (CELZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Creative Medical Technology Holdings, Inc. (CELZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Creative Medical Technology Holdings, Inc. (CELZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.