[10-Q] Celcuity Inc. Quarterly Earnings Report
Celcuity Inc. reported interim financial details showing material financing and capital activity supporting its clinical programs. The company amended and restated a loan agreement that provided initial borrowings including Term A, B and C loans and contemplates additional tranches (Term D, Term E and optional Term F) tied to milestones and covenants; the Term Loans mature May 1, 2029 and bear variable interest with a portion payable in-kind. Innovatus has limited conversion and warrant rights tied to the loan.
Subsequent events include a completed equity offering of 1,836,842 shares and pre-funded warrants and the issuance of $201.25 million aggregate principal amount of 2.75% Convertible Senior Notes due 2031, generating approximately $194.9 million net proceeds. The company recognized a $5.0 million upfront license fee and issued $5.0 million in common stock to Pfizer and recorded a related R&D expense tied to an NDA filing deemed probable. Outstanding common shares increased to 38,914,208 as of June 30, 2025; no dividends were declared.
Celcuity Inc. ha comunicato dati finanziari intermedi che evidenziano significative operazioni di finanziamento e di capitale a sostegno dei suoi programmi clinici. La societ脿 ha modificato e riformulato un contratto di prestito che ha previsto prelievi iniziali comprendenti i prestiti Term A, B e C e contempla tranche aggiuntive (Term D, Term E e un opzionale Term F) collegate a milestone e covenant; i Term Loans scadono il 1掳 maggio 2029 e prevedono tassi di interesse variabili, con una parte pagabile in natura. Innovatus dispone di diritti limitati di conversione e di esercizio di warrant collegati al prestito.
Eventi successivi comprendono un鈥檕fferta di azioni completata pari a 1.836.842 azioni e warrant prefinanziati e l鈥檈missione di 201,25 milioni di dollari di obbligazioni convertibili senior al 2,75% con scadenza 2031, che hanno generato circa 194,9 milioni di dollari di proventi netti. La societ脿 ha rilevato un corrispettivo di licenza upfront di 5,0 milioni di dollari e ha emesso azioni ordinarie per 5,0 milioni di dollari a Pfizer, registrando una spesa di R&S correlata a una presentazione di NDA ritenuta probabile. Le azioni ordinarie in circolazione sono salite a 38.914.208 al 30 giugno 2025; non sono stati dichiarati dividendi.
Celcuity Inc. inform贸 detalles financieros intermedios que muestran importantes operaciones de financiaci贸n y de capital en apoyo a sus programas cl铆nicos. La compa帽铆a enmend贸 y reformul贸 un acuerdo de pr茅stamo que permiti贸 desembolsos iniciales incluidos los pr茅stamos Term A, B y C y prev茅 tramos adicionales (Term D, Term E y un opcional Term F) vinculados a hitos y convenios; los pr茅stamos Term vencen el 1 de mayo de 2029 y devengan inter茅s variable, con una parte pagadera en especie. Innovatus cuenta con derechos limitados de conversi贸n y de warrants vinculados al pr茅stamo.
Eventos posteriores incluyen una oferta de capital completada de 1.836.842 acciones y warrants prefinanciados y la emisi贸n de 201,25 millones de d贸lares en Notas Convertibles Senior al 2,75% con vencimiento en 2031, generando aproximadamente 194,9 millones de d贸lares en ingresos netos. La empresa reconoci贸 una tarifa de licencia inicial de 5,0 millones de d贸lares y emiti贸 5,0 millones de d贸lares en acciones ordinarias a Pfizer, registrando un gasto de I+D relacionado con una presentaci贸n de NDA considerada probable. Las acciones ordinarias en circulaci贸n aumentaron a 38.914.208 al 30 de junio de 2025; no se declararon dividendos.
Celcuity Inc.電� 鞛勳儊 頂勲攴鸽灗鞚� 歆�鞗愴晿電� 欷戩殧頃� 鞛愱笀臁半嫭 氚� 鞛愲掣 頇滊彊鞚� 氤挫棳欤茧姅 欷戧皠 鞛 雮挫毄鞚� 氤搓碃頄堨姷雼堧嫟. 須岇偓電� 雽�於� 瓿勳暯鞚� 靾橃爼路鞛瀾靹表晿鞐� Term A, B, C 雽�於滌潉 韽暔頃� 齑堦赴 彀瀰鞚� 鞝滉车頄堨溂氅�, 毵堨澕鞀ろ啢 氚� 鞎届爼鞐� 鞐半彊霅� 於旉皜 韸鸽灉旃�(Term D, Term E 氚� 靹犿儩鞝� Term F)毳� 鞓堨爼頃橁碃 鞛堨姷雼堧嫟. 鞚� Term 雽�於滌潃 2029雲� 5鞗� 1鞚检棎 毵岅赴霅橂┌ 氤�霃� 旮堧Μ毳� 鞝侅毄頃橁碃 鞚茧秬電� 順勲搿� 歆�旮夒惄雼堧嫟. Innovatus電� 雽�於滌棎 鞐半彊霅� 鞝滍暅霅� 鞝勴櫂甓� 氚� 鞗岆煱韸� 甓岆Μ毳� 氤挫湢頃╇媹雼�.
頉勳啀 靷贝鞙茧電� 1,836,842欤� 氚� 頂勲Μ韼�霐旊摐 鞗岆煱韸胳潣 欤检嫕 瓿惦 鞕勲鞕� 2031雲� 毵岅赴, 鞐� 2.75%鞚� 鞝勴櫂順� 靹犾垳鞙勳眲甓�(齑濎暋 2鞏� 125毵� 雼煬) 氚滍枆鞚� 韽暔霅橂┌, 靾滌垬鞚奠潃 鞎� 1鞏� 9,490毵� 雼煬鞓�鞀惦媹雼�. 須岇偓電� 齑堦赴 霛检澊靹犾姢 靾橃垬耄� 500毵� 雼煬毳� 鞚胳嫕頄堦碃 頇旍澊鞛愳棎 雽�頃� 500毵� 雼煬 靸侂嫻鞚� 氤错喌欤茧ゼ 氚滍枆頄堨溂氅�, 鞚措姅 NDA 鞝滌稖鞚� 臧滌棸靹膘澊 鞛堧姅 瓴冹溂搿� 韺愲嫧霅橃柎 甏�霠� 鞐瓣惮臧滊皽牍勲 瓿勳儊霅橃棃鞀惦媹雼�. 氚滍枆 氤错喌欤茧姅 2025雲� 6鞗� 30鞚� 旮办 38,914,208欤茧 歃濌皜頄堨溂氅� 氚半嫻鞚� 靹犾柛霅橃 鞎婌晿鞀惦媹雼�.
Celcuity Inc. a communiqu茅 des 茅l茅ments financiers interm茅diaires montrant des op茅rations de financement et de capitaux significatives soutenant ses programmes cliniques. La soci茅t茅 a modifi茅 et repris un accord de pr锚t qui a permis des emprunts initiaux comprenant les pr锚ts Term A, B et C et pr茅voit des tranches suppl茅mentaires (Term D, Term E et un Term F optionnel) li茅es 脿 des jalons et des covenants ; les Term Loans arrivent 脿 茅ch茅ance le 1er mai 2029 et portent un int茅r锚t variable, dont une partie est payable en nature. Innovatus dispose de droits limit茅s de conversion et de bons de souscription li茅s au pr锚t.
Les 茅v茅nements post茅rieurs incluent une offre d鈥檃ctions achev茅e de 1 836 842 titres et de bons pr茅financ茅s ainsi que l鈥櫭﹎ission de 201,25 millions de dollars de billets convertibles senior 脿 2,75 % arrivant 脿 茅ch茅ance en 2031, g茅n茅rant environ 194,9 millions de dollars de produits nets. La soci茅t茅 a comptabilis茅 un paiement de licence initial de 5,0 millions de dollars et a 茅mis pour 5,0 millions de dollars d鈥檃ctions ordinaires 脿 Pfizer, enregistrant une charge R&D li茅e 脿 un d茅p么t de NDA jug茅 probable. Les actions ordinaires en circulation sont pass茅es 脿 38 914 208 au 30 juin 2025 ; aucun dividende n鈥檃 茅t茅 d茅clar茅.
Celcuity Inc. ver枚ffentlichte vorl盲ufige Finanzangaben, die erhebliche Finanzierungs- und Kapitakt盲tigkeiten zur Unterst眉tzung ihrer klinischen Programme zeigen. Das Unternehmen hat einen Kreditvertrag ge盲ndert und neu gefasst, der anf盲ngliche Auszahlungen in Form von Term A-, B- und C-Darlehen vorsah und zus盲tzliche Tranchen (Term D, Term E und optional Term F) vorsieht, die an Meilensteine und Covenants gebunden sind; die Term Loans laufen am 1. Mai 2029 aus und tragen variablen Zins, wobei ein Teil in Naturalien zahlbar ist. Innovatus hat begrenzte Umwandlungs- und Optionsrechte, die mit dem Darlehen verkn眉pft sind.
Nachfolgende Ereignisse umfassen ein abgeschlossenes Eigenkapitalangebot von 1.836.842 Aktien und vorausfinanzierten Warrants sowie die Begebung von wandelbaren Senior Notes in H枚he von 201,25 Mio. USD mit 2,75% Zins und F盲lligkeit 2031, wodurch netto etwa 194,9 Mio. USD eingenommen wurden. Das Unternehmen erkannte eine einmalige Lizenzgeb眉hr von 5,0 Mio. USD an und gab Aktien im Wert von 5,0 Mio. USD an Pfizer aus; eine damit zusammenh盲ngende F&E-Aufwendung wurde im Zusammenhang mit einer als wahrscheinlich eingesch盲tzten NDA-Einreichung verbucht. Die ausstehenden Stammaktien erh枚hten sich zum 30. Juni 2025 auf 38.914.208; Dividenden wurden nicht ausgesch眉ttet.
- Significant new liquidity from a $201.25 million convertible note issuance, yielding approximately $194.9 million net proceeds
- Completed equity offering of 1,836,842 shares (plus option shares) increasing cash resources
- License agreement with Pfizer includes a $5.0 million upfront fee and equity grant, and establishes tiered royalties on future product sales
- Loan tranches available (Term D and Term E) tied to milestones provide additional potential funding
- Increased leverage and secured indebtedness under the A&R Loan Agreement secured by all company assets
- Potential non-utilization fees for Term D and Term E ($0.9M and $1.5M) if draws are not taken after milestones
- Convertible and warrant features and multiple equity issuances introduce meaningful dilution risk to existing shareholders
- Loan covenants and in-kind interest (1.0% paid-in-kind through May 31, 2027) add cash flow and compliance constraints
Insights
TL;DR: Large financing and convertible note issuance materially strengthen liquidity but introduce dilution and covenant constraints.
Celcuity executed a comprehensive financing package combining secured term loans, a sizable equity offering and a $201.25 million convertible note issuance, producing meaningful near-term cash inflows to fund Phase 3 and other trials. The A&R Loan Agreement includes milestone-linked tranches and customary covenants, with Innovatus holding limited conversion and warrant rights; the company recorded fees capitalized into debt and faces non-utilization fees if tranche draws are not taken. The convertible notes provide substantial proceeds at a 2.75% coupon but include conversion features equivalent to an initial conversion price near $51.30 per share, and ownership limits on conversions. These events materially affect capital structure and liquidity while creating potential dilution and covenant monitoring needs for investors.
TL;DR: Financing secures clinical funding but increases leverage, secured claims and potential contingent fees.
The amended loan is secured by all company assets and carries in-kind interest and upfront and contingent fees recognized as debt principal and discounts to be amortized. Term D and Term E include non-utilization fees ($0.9 million and $1.5 million respectively) if not drawn following milestone achievement. The loan contains liquidity and other financial covenants and conversion/warrant features for lenders that can dilute equity. The subsequent convertible notes and equity offering substantially bolster cash, yet they layer secured debt, convertible obligations and additional equity, requiring careful covenant compliance and cash management as clinical milestones are pursued.
Celcuity Inc. ha comunicato dati finanziari intermedi che evidenziano significative operazioni di finanziamento e di capitale a sostegno dei suoi programmi clinici. La societ脿 ha modificato e riformulato un contratto di prestito che ha previsto prelievi iniziali comprendenti i prestiti Term A, B e C e contempla tranche aggiuntive (Term D, Term E e un opzionale Term F) collegate a milestone e covenant; i Term Loans scadono il 1掳 maggio 2029 e prevedono tassi di interesse variabili, con una parte pagabile in natura. Innovatus dispone di diritti limitati di conversione e di esercizio di warrant collegati al prestito.
Eventi successivi comprendono un鈥檕fferta di azioni completata pari a 1.836.842 azioni e warrant prefinanziati e l鈥檈missione di 201,25 milioni di dollari di obbligazioni convertibili senior al 2,75% con scadenza 2031, che hanno generato circa 194,9 milioni di dollari di proventi netti. La societ脿 ha rilevato un corrispettivo di licenza upfront di 5,0 milioni di dollari e ha emesso azioni ordinarie per 5,0 milioni di dollari a Pfizer, registrando una spesa di R&S correlata a una presentazione di NDA ritenuta probabile. Le azioni ordinarie in circolazione sono salite a 38.914.208 al 30 giugno 2025; non sono stati dichiarati dividendi.
Celcuity Inc. inform贸 detalles financieros intermedios que muestran importantes operaciones de financiaci贸n y de capital en apoyo a sus programas cl铆nicos. La compa帽铆a enmend贸 y reformul贸 un acuerdo de pr茅stamo que permiti贸 desembolsos iniciales incluidos los pr茅stamos Term A, B y C y prev茅 tramos adicionales (Term D, Term E y un opcional Term F) vinculados a hitos y convenios; los pr茅stamos Term vencen el 1 de mayo de 2029 y devengan inter茅s variable, con una parte pagadera en especie. Innovatus cuenta con derechos limitados de conversi贸n y de warrants vinculados al pr茅stamo.
Eventos posteriores incluyen una oferta de capital completada de 1.836.842 acciones y warrants prefinanciados y la emisi贸n de 201,25 millones de d贸lares en Notas Convertibles Senior al 2,75% con vencimiento en 2031, generando aproximadamente 194,9 millones de d贸lares en ingresos netos. La empresa reconoci贸 una tarifa de licencia inicial de 5,0 millones de d贸lares y emiti贸 5,0 millones de d贸lares en acciones ordinarias a Pfizer, registrando un gasto de I+D relacionado con una presentaci贸n de NDA considerada probable. Las acciones ordinarias en circulaci贸n aumentaron a 38.914.208 al 30 de junio de 2025; no se declararon dividendos.
Celcuity Inc.電� 鞛勳儊 頂勲攴鸽灗鞚� 歆�鞗愴晿電� 欷戩殧頃� 鞛愱笀臁半嫭 氚� 鞛愲掣 頇滊彊鞚� 氤挫棳欤茧姅 欷戧皠 鞛 雮挫毄鞚� 氤搓碃頄堨姷雼堧嫟. 須岇偓電� 雽�於� 瓿勳暯鞚� 靾橃爼路鞛瀾靹表晿鞐� Term A, B, C 雽�於滌潉 韽暔頃� 齑堦赴 彀瀰鞚� 鞝滉车頄堨溂氅�, 毵堨澕鞀ろ啢 氚� 鞎届爼鞐� 鞐半彊霅� 於旉皜 韸鸽灉旃�(Term D, Term E 氚� 靹犿儩鞝� Term F)毳� 鞓堨爼頃橁碃 鞛堨姷雼堧嫟. 鞚� Term 雽�於滌潃 2029雲� 5鞗� 1鞚检棎 毵岅赴霅橂┌ 氤�霃� 旮堧Μ毳� 鞝侅毄頃橁碃 鞚茧秬電� 順勲搿� 歆�旮夒惄雼堧嫟. Innovatus電� 雽�於滌棎 鞐半彊霅� 鞝滍暅霅� 鞝勴櫂甓� 氚� 鞗岆煱韸� 甓岆Μ毳� 氤挫湢頃╇媹雼�.
頉勳啀 靷贝鞙茧電� 1,836,842欤� 氚� 頂勲Μ韼�霐旊摐 鞗岆煱韸胳潣 欤检嫕 瓿惦 鞕勲鞕� 2031雲� 毵岅赴, 鞐� 2.75%鞚� 鞝勴櫂順� 靹犾垳鞙勳眲甓�(齑濎暋 2鞏� 125毵� 雼煬) 氚滍枆鞚� 韽暔霅橂┌, 靾滌垬鞚奠潃 鞎� 1鞏� 9,490毵� 雼煬鞓�鞀惦媹雼�. 須岇偓電� 齑堦赴 霛检澊靹犾姢 靾橃垬耄� 500毵� 雼煬毳� 鞚胳嫕頄堦碃 頇旍澊鞛愳棎 雽�頃� 500毵� 雼煬 靸侂嫻鞚� 氤错喌欤茧ゼ 氚滍枆頄堨溂氅�, 鞚措姅 NDA 鞝滌稖鞚� 臧滌棸靹膘澊 鞛堧姅 瓴冹溂搿� 韺愲嫧霅橃柎 甏�霠� 鞐瓣惮臧滊皽牍勲 瓿勳儊霅橃棃鞀惦媹雼�. 氚滍枆 氤错喌欤茧姅 2025雲� 6鞗� 30鞚� 旮办 38,914,208欤茧 歃濌皜頄堨溂氅� 氚半嫻鞚� 靹犾柛霅橃 鞎婌晿鞀惦媹雼�.
Celcuity Inc. a communiqu茅 des 茅l茅ments financiers interm茅diaires montrant des op茅rations de financement et de capitaux significatives soutenant ses programmes cliniques. La soci茅t茅 a modifi茅 et repris un accord de pr锚t qui a permis des emprunts initiaux comprenant les pr锚ts Term A, B et C et pr茅voit des tranches suppl茅mentaires (Term D, Term E et un Term F optionnel) li茅es 脿 des jalons et des covenants ; les Term Loans arrivent 脿 茅ch茅ance le 1er mai 2029 et portent un int茅r锚t variable, dont une partie est payable en nature. Innovatus dispose de droits limit茅s de conversion et de bons de souscription li茅s au pr锚t.
Les 茅v茅nements post茅rieurs incluent une offre d鈥檃ctions achev茅e de 1 836 842 titres et de bons pr茅financ茅s ainsi que l鈥櫭﹎ission de 201,25 millions de dollars de billets convertibles senior 脿 2,75 % arrivant 脿 茅ch茅ance en 2031, g茅n茅rant environ 194,9 millions de dollars de produits nets. La soci茅t茅 a comptabilis茅 un paiement de licence initial de 5,0 millions de dollars et a 茅mis pour 5,0 millions de dollars d鈥檃ctions ordinaires 脿 Pfizer, enregistrant une charge R&D li茅e 脿 un d茅p么t de NDA jug茅 probable. Les actions ordinaires en circulation sont pass茅es 脿 38 914 208 au 30 juin 2025 ; aucun dividende n鈥檃 茅t茅 d茅clar茅.
Celcuity Inc. ver枚ffentlichte vorl盲ufige Finanzangaben, die erhebliche Finanzierungs- und Kapitakt盲tigkeiten zur Unterst眉tzung ihrer klinischen Programme zeigen. Das Unternehmen hat einen Kreditvertrag ge盲ndert und neu gefasst, der anf盲ngliche Auszahlungen in Form von Term A-, B- und C-Darlehen vorsah und zus盲tzliche Tranchen (Term D, Term E und optional Term F) vorsieht, die an Meilensteine und Covenants gebunden sind; die Term Loans laufen am 1. Mai 2029 aus und tragen variablen Zins, wobei ein Teil in Naturalien zahlbar ist. Innovatus hat begrenzte Umwandlungs- und Optionsrechte, die mit dem Darlehen verkn眉pft sind.
Nachfolgende Ereignisse umfassen ein abgeschlossenes Eigenkapitalangebot von 1.836.842 Aktien und vorausfinanzierten Warrants sowie die Begebung von wandelbaren Senior Notes in H枚he von 201,25 Mio. USD mit 2,75% Zins und F盲lligkeit 2031, wodurch netto etwa 194,9 Mio. USD eingenommen wurden. Das Unternehmen erkannte eine einmalige Lizenzgeb眉hr von 5,0 Mio. USD an und gab Aktien im Wert von 5,0 Mio. USD an Pfizer aus; eine damit zusammenh盲ngende F&E-Aufwendung wurde im Zusammenhang mit einer als wahrscheinlich eingesch盲tzten NDA-Einreichung verbucht. Die ausstehenden Stammaktien erh枚hten sich zum 30. Juni 2025 auf 38.914.208; Dividenden wurden nicht ausgesch眉ttet.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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(Exact name of registrant as specified in its charter)
| No.
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| (State of incorporation) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
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telephone number, including area code:
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ | |
| ☒ | Smaller reporting company | |||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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On
August 7, 2025 there were
Celcuity Inc.
Table of Contents
| PAGE | |
| PART I. FINANCIAL INFORMATION | |
| ITEM 1. Financial Statements (unaudited) | 3 |
| Condensed Balance Sheets as of June 30, 2025 and December 31, 2024 | 3 |
| Condensed Statements of Operations for the three months and six months ended June 30, 2025 and 2024 | 4 |
| Condensed Statements of Stockholders’ Equity for the three months and six months ended June 30, 2025 | 5 |
| Condensed Statements of Stockholders’ Equity for the three months and six months ended June 30, 2024 | 6 |
| Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024 | 7 |
| Notes to Unaudited Condensed Financial Statements | 8 |
| ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 |
| ITEM 3. Quantitative and Qualitative Disclosures About Market Risk | 32 |
| ITEM 4. Controls and Procedures | 32 |
| PART II. OTHER INFORMATION | |
| ITEM 1. Legal Proceedings | 33 |
| ITEM 1A. Risk Factors | 33 |
| ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds | 35 |
| ITEM 3. Defaults Upon Senior Securities | 35 |
| ITEM 4. Mine Safety Disclosures | 35 |
| ITEM 5. Other Information | 35 |
| ITEM 6. Exhibits | 36 |
| Signatures | 37 |
As used in this report, the terms “we,” “us,” “our,” “Celcuity,” and the “Company” mean Celcuity Inc., unless the context indicates another meaning.
| 2 |
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Celcuity Inc.
Condensed Balance Sheets
(in thousands, except share and par value amounts)
| June 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Investments | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Operating lease liabilities | ||||||||
| Accrued expenses | ||||||||
| Total current liabilities | ||||||||
| Operating lease liabilities | - | |||||||
| Note payable, non-current | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies (Note 5) | - | - | ||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock,
$ | - | - | ||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total Stockholders’ Equity | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | $ | ||||||
See accompanying notes to the condensed financial statements.
| 3 |
Celcuity Inc.
Condensed Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | $ | $ | $ | ||||||||||||
| General and administrative | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Interest income | ||||||||||||||||
| Other (expense) income, net | ( | ) | ( | ) | ||||||||||||
| Net loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income tax benefits | - | - | - | - | ||||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average common shares outstanding, basic and diluted | ||||||||||||||||
See accompanying notes to the condensed financial statements.
| 4 |
Celcuity Inc.
Condensed Statements of Changes in Stockholders’ Equity
Three and Six Months Ended June 30, 2025
(in thousands, except share amounts)
| Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
| Common Stock | Preferred Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | - | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Exercise of common stock warrants | - | - | - | |||||||||||||||||||||||||
| Exercise of common stock options, net of shares withheld for exercise price | - | - | - | - | ||||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at March 31, 2025 (unaudited) | - | ( | ) | |||||||||||||||||||||||||
| Stock-based compensation | - | - | - | |||||||||||||||||||||||||
| Employee stock purchases | - | - | - | |||||||||||||||||||||||||
| Conversion of preferred stock to common stock | ( | ) | - | ( | ) | - | - | |||||||||||||||||||||
| Exercise of common stock options, net of shares withheld for exercise price | - | - | - | - | ||||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2025 (unaudited) | $ | $ | - | $ | $ | ( | ) | $ | ||||||||||||||||||||
See accompanying notes to the condensed financial statements.
| 5 |
Celcuity Inc.
Condensed Statements of Changes in Stockholders’ Equity
Three and Six Months Ended June 30, 2024
(in thousands, except share amounts)
| Common Stock | Preferred Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Exercise of common stock warrants, net of shares withheld for exercise price | - | - | - | |||||||||||||||||||||||||
| Exercise of common stock options, net of shares withheld for exercise price | - | - | - | - | ||||||||||||||||||||||||
| Conversion of preferred to common stock | ( | ) | ( | ) | - | - | ||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at March 31, 2024 (unaudited) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Balance | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Stock-based compensation | - | - | - | - | ||||||||||||||||||||||||
| Employee stock purchases | - | - | - | - | ||||||||||||||||||||||||
| Conversion of preferred stock to common stock | ( | ) | ( | ) | ( | ) | - | - | ||||||||||||||||||||
| Exercise of common stock warrants, net of shares withheld for exercise price | - | - | - | - | ||||||||||||||||||||||||
| Exercise of common stock options, net of shares withheld for exercise price | - | - | - | - | ||||||||||||||||||||||||
| Issuance of common stock in an ATM offering | - | - | - | - | ||||||||||||||||||||||||
| Issuance costs associated with an ATM offering | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Issuance of common stock upon closing of follow-on offering, net of underwriting discounts and offering costs | - | - | - | |||||||||||||||||||||||||
| Issuance of common stock warrants, note payable | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2024 (unaudited) | $ | $ | - | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Balance | $ | $ | - | $ | $ | ( | ) | $ | ||||||||||||||||||||
See accompanying notes to the condensed financial statements.
| 6 |
Celcuity Inc.
Condensed Statements of Cash Flows
(in thousands)
(unaudited)
| 2025 | 2024 | |||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash and cash equivalents used in operations: | ||||||||
| Depreciation | ||||||||
| Stock-based compensation | ||||||||
| Amortization of debt issuance costs and discount | ||||||||
| Payment-in-Kind interest | ||||||||
| Non-cash operating lease expense, net | ( | ) | ||||||
| Change in accrued interest income | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Other current assets | ( | ) | ||||||
| Accounts payable | ||||||||
| Accrued expenses | ||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from maturities of investments | ||||||||
| Purchases of investments | ( | ) | ( | ) | ||||
| Purchases of property and equipment | ( | ) | ( | ) | ||||
| Net cash provided by (used in) investing activities | ( | ) | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of common stock warrants | ||||||||
| Proceeds from exercise of employee stock options | ||||||||
| Proceeds from employee stock purchases | ||||||||
| Proceeds from follow-on offering, net of underwriting discounts and offering costs | - | |||||||
| Proceeds
from note payable, net of debt issuance costs and discount of $ | - | |||||||
| Proceeds from an ATM offering, net of issuance costs | - | |||||||
| Payments for secondary registration statement costs | ( | ) | ( | ) | ||||
| Payments for debt issuance costs | ( | ) | - | |||||
| Net cash provided by financing activities | ||||||||
| Net change in cash and cash equivalents | ( | ) | ||||||
| Cash and cash equivalents: | ||||||||
| Beginning of period | ||||||||
| End of period | $ | $ | ||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Interest paid | $ | $ | ||||||
| Supplemental disclosures of non-cash investing and financing activities: | ||||||||
| Change in accounts payable attributed to offering and registration statement costs | $ | $ | ||||||
| Change in accounts payable attributed to property and equipment | - | |||||||
| Non-cash interest receivable | - | |||||||
| Common stock warrants issued with note payable transaction | - | |||||||
See accompanying notes to the condensed financial statements.
| 7 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
1. Organization
Nature of Business
Celcuity Inc., a Delaware corporation (the “Company”), is a clinical-stage biotechnology company focused on the development of targeted therapies for the treatment of multiple solid tumor indications. The Company’s lead therapeutic candidate is gedatolisib, a kinase inhibitor of the phosphatidylinositol 3-kinase (“PI3K”), serine/threonine-protein kinase protein kinase B (“AKT”), mechanistic target of rapamycin (“mTOR”) pathway that binds to all Class I PI3K isoforms and the mTOR complexes, mTORC1 and mTORC2. By targeting all Class I PI3K isoforms and mTORC1/2, gedatolisib induces comprehensive inhibition of the PI3K/AKT/mTOR (“PAM”) pathway. Gedatolisib’s mechanism of action and pharmacokinetic properties are differentiated from other currently approved and investigational therapies that target PI3K or mTOR alone or together. A Phase 3 clinical trial, VIKTORIA-1, evaluating gedatolisib in combination with fulvestrant with or without palbociclib in patients with hormone receptor-positive (HR+), human epidermal growth factor receptor 2-negative (HER2-) (“HR+/HER2-”) advanced breast cancer has completed enrollment of and reported topline data for cohort 1, patients with PIK3CA wild-type (“WT”) tumors, and is continuing to enroll cohort 2, patients with PIK3CA mutant-type (“MT”) tumors. Our Phase 3 clinical trial, VIKTORIA-2, evaluating gedatolisib in combination with a cyclin-dependent kinase (“CDK”) 4/6 inhibitor and fulvestrant as first-line treatment for patients with endocrine treatment resistant HR+/HER2- advanced breast cancer is currently enrolling patients. The first patient was dosed in July of 2025. A Phase 1b/2 clinical trial, CELC-G-201, evaluating gedatolisib in combination with darolutamide in patients with metastatic castration resistant prostate cancer, is ongoing. The Company was co-founded in 2012 by Brian F. Sullivan and Dr. Lance G. Laing and is based in Minnesota. The Company has not generated any revenue to date.
2. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Basis of Presentation
The accompanying unaudited condensed financial statements include the accounts of the Company and have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, as permitted by Article 10, the unaudited condensed financial statements do not include all of the information required by accounting principles generally accepted in the United States (“U.S. GAAP”). The balance sheet at December 31, 2024 was derived from the audited financial statements at that date and does not include all the disclosures required by U.S. GAAP. In the opinion of management, all adjustments which are of a normal recurring nature and necessary for a fair presentation have been reflected in the financial statements. These unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2024 and the related footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected during the remainder of the current year or for any other future period.
Accounting Estimates
Management uses estimates and assumptions in preparing these unaudited condensed financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could differ from those estimates and the difference could be material. Significant items subject to such estimates and assumptions include the valuation of stock-based compensation and prepaid or accrued clinical trial costs.
Risks and Uncertainties
The Company is subject to risks common to companies in the development stage including, but not limited to, the clinical and commercial success of its initial drug product, gedatolisib, the regulatory approval of gedatolisib, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, and significant competition.
| 8 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
Clinical Trial Costs
The Company relies on third parties to conduct certain aspects of clinical studies and to formulate and manufacture our drug product. While there are alternative vendors that can perform these functions, any disruption or delay by the Company’s current third parties in carrying out their contractual duties could delay the clinical trials. The Company records prepaid assets or accrued expenses for prepaid or estimated clinical trial costs conducted by third-party service providers, which includes the conduct of preclinical studies and clinical trials. These costs can be a significant component of the Company’s research and development expenses. The Company primarily relies on a compilation of progress reports from third-party service providers, including the respective invoicing, to record actual expenses, along with determining changes to prepaid assets and accrued liabilities. To date, the Company believes utilization of third-party reports most accurately reflects expenses incurred. With the ongoing VIKTORIA-1 and VIKTORIA-2 Phase 3 clinical trials, and the CELC-G-201 Phase 1b/2 clinical trial, the Company’s estimated expenses in future periods and actual services performed may vary from these estimates, and these estimates may become more significant. Changes in these estimates that result in material changes to the Company’s prepaid assets or accrued expenses could materially affect the Company’s results of operations and financial position.
3. Net Loss Per Common Share
Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. For all periods presented, the common shares underlying the preferred stock, options, warrants, and restricted stock have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average shares outstanding used to calculate both basic and diluted loss per common share are the same.
The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three and six-month periods presented below:
Schedule of Potentially-Dilutive Shares Excluded from Diluted Weighted-Average Shares Outstanding
| 2025 | 2024 | |||||||
| June 30, | ||||||||
| 2025 | 2024 | |||||||
| Preferred stock on an as-if-converted to common stock basis | ||||||||
| Options to purchase common stock | ||||||||
| Warrants to purchase common stock | ||||||||
| Restricted common stock | ||||||||
| Anti-dilutive securities excluded from diluted weighted- average shares outstanding | ||||||||
Pre-funded
warrant shares of
4. Investments
Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at historical cost adjusted for amortization of premiums and accretion of discounts. Expected credit losses, if any, are recorded through the establishment of an allowance for credit losses. All of the Company’s held-to-maturity investment securities are U.S. Treasury and agencies securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly, the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities.
| 9 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
The following tables summarize the Company’s held-to-maturity investment securities at amortized cost as of June 30, 2025 and December 31, 2024:
Schedule of Investment
| (in thousands) | Amortized Cost, as Adjusted | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | ||||||||||||
| June 30, 2025 | ||||||||||||||||
| (in thousands) | Amortized Cost, as Adjusted | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | ||||||||||||
| U.S. Treasury Bills | $ | $ | - | $ | ( | ) | $ | |||||||||
| Total | $ | $ | - | $ | ( | ) | $ | |||||||||
| (in thousands) | Amortized Cost, as Adjusted | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | ||||||||||||
| December 31, 2024 | ||||||||||||||||
| (in thousands) | Amortized Cost, as Adjusted | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Estimated Fair Value | ||||||||||||
| U.S. Treasury Bills | $ | $ | $ | - | $ | |||||||||||
| Total | $ | $ | $ | - | $ | |||||||||||
The fair value of the Company’s held-to-maturity debt securities is determined based upon inputs, other than the quoted prices in active markets, that are observable either directly or indirectly and are classified as Level 2 fair value instruments.
5. Commitments
Operating and Finance Leases
The Company leases its corporate space in Minneapolis, Minnesota, with an operating lease in place through April 30, 2026. The lease provides for monthly rent, real estate taxes, and operating expenses. Rent expense is recorded on a straight-line basis over the lease term.
Clinical Research Studies
The
Company enters into contracts in the normal course of business to conduct research and development programs internally and through third
parties that include, among others, arrangements with vendors, consultants, contract manufacturing organizations, and contract research
organizations. The Company has a license agreement in place with Pfizer Inc. (“Pfizer”) to research, develop, manufacture
and commercialize gedatolisib. In conjunction with the license agreement, the Company completed a Phase 1b clinical trial, B2151009,
related to gedatolisib. These patients subsequently transitioned to an Expanded Access study, CELC-G-001. Contracts related to
the Expanded Access study are generally based on time and material. In addition, contracts related to the Company’s Phase 3 clinical
studies (VIKTORIA-1 and VIKTORIA-2) and the Phase 1b/2 clinical trial (CELC-G-201) are generally cancelable with reasonable notice within
120 days and the Company’s obligations under these contracts are primarily based on services performed through termination dates
plus certain cancelation charges, if any, as defined in each of the respective agreements. In addition, these agreements may, from time
to time, be subject to amendments as a result of any change orders executed by the parties. As of June 30, 2025, the Company had three
material non-cancelable contractual commitments with respect to these arrangements, which totaled approximately $
6. Stockholders’ Equity
Capital Stock
At
December 31, 2024, the Company’s authorized capital stock consisted of
In
March 2025, an investor exercised
| 10 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
In
June 2025,
At
June 30, 2025, the Company’s authorized capital stock consisted of
7. Stock-Based Compensation
The Company recognized total stock-based compensation expense as follows for the three and six months ended June 30, 2025 and 2024:
Schedule of Stock-based Compensation Expenses
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Stock-based compensation expense in operating expenses: | ||||||||||||||||
| Research and development | $ | $ | $ | $ | ||||||||||||
| General and administrative | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Stock-based compensation expense | $ | $ | $ | $ | ||||||||||||
2017 Plan
The
Company initially reserved a maximum of
At
the Annual Meeting held on May 13, 2025, the stockholders approved a
Stock Options
The following table summarizes the activity for all stock options outstanding for the six months ended June 30:
Schedule of Stock Options Activity
| 2025 | 2024 | |||||||||||||||
| Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||
| Options outstanding at beginning of year | $ | $ | ||||||||||||||
| Granted | ||||||||||||||||
| Exercised | ( | ) | ( | ) | ||||||||||||
| Forfeited | ( | ) | ( | ) | ||||||||||||
| Balance at June 30 | $ | $ | ||||||||||||||
| Options exercisable at June 30: | $ | $ | ||||||||||||||
| Weighted Average Grant Date Fair Value for options granted during the period: | $ | $ | ||||||||||||||
| 11 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2025. The stock-based compensation expense disclosed in the following paragraphs is shown in thousands.
Schedule of Stock Options Outstanding and Exercisable
| Options Outstanding | Options Exercisable | |||||||||||||||||||||||
| Options Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | Options Exercisable | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | ||||||||||||||||||
| $ | $ | |||||||||||||||||||||||
The
Company recognized stock-based compensation expense for stock options of $
The Black-Scholes option-pricing model was used to estimate the fair value of equity-based awards with the following weighted-average assumptions for the six months ended June 30:
Schedule of Assumptions for Fair Value of Equity-based Awards
| 2025 | 2024 | |||||||
| Risk-free interest rate | % | % | ||||||
| Expected volatility | % | % | ||||||
| Expected life (years) | ||||||||
| Expected dividend yield | % | % | ||||||
The inputs for the Black-Scholes valuation model require management’s significant assumptions. Prior to the Company’s initial public offering, the price per share of common stock was determined by the Company’s board based on recent prices of common stock sold in private offerings. Subsequent to the initial public offering, the price per share of common stock is determined by using the closing market price on the Nasdaq Capital Market on the grant date. The risk-free interest rates are based on the rate for U.S. Treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date. The expected life is based on the simplified method for the time-based awards in accordance with SEC Staff Accounting Bulletin Nos. 107 and 110. The expected volatility is estimated based on historical volatility information of peer companies that are publicly available in combination with the Company’s calculated volatility since being publicly traded.
All assumptions used to calculate the grant date fair value of non-employee options are generally consistent with the assumptions used for options granted to employees. In the event the Company terminates any of its consulting agreements, the unvested options issued in connection with the agreements would also be cancelled.
Restricted Stock Awards
Restricted
stock awards (“RSAs”) granted to members of the Company’s board during the three and six months ended June 30,
2025 and 2024 were
| 12 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
Total unrecognized compensation cost related to stock options and RSAs that is estimated to be recognized at June 30, 2025 is as follows:
Schedule of Unrecognized Compensation Cost
(in thousands) | ||||
| 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Total estimated compensation cost to be recognized | $ | |||
Employee Stock Purchase Plan
The
Company recognized stock-based compensation expense related to its employee stock purchase plan of $
8. Debt
On
May 30, 2024, the Company entered into an Amended and Restated Loan and Security Agreement (the “A&R Loan Agreement”)
with Innovatus Life Sciences Lending Fund I, LP, a Delaware limited partnership (“Innovatus”), as collateral agent, and the
Lenders including Innovatus in its capacity as a Lender and Oxford Finance LLC (“Oxford”), pursuant to which Innovatus and
Oxford, as Lenders, have agreed to make certain term loans (“Term Loans”) to the Company in the aggregate principal amount
of up to $
Funding
of the first $
Pursuant
to the A&R Loan Agreement,
| 13 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
The
A&R Loan Agreement contains a Final Fee, which is equal to
In
connection with the funding of each of the Term C Loan, the Term D Loan, the Term E Loan and the Term F Loan, the Company agreed to issue
to Innovatus and Oxford warrants to purchase that number of shares of the Company’s common stock equal to
On
May 13, 2025, the Company entered into the First Amendment (the “First Amendment”) to the A&R Loan Agreement, pursuant
to which the Company agreed to
The Company evaluated the change of terms under ASC 470-50, “Debt – Modification and Extinguishment”, and concluded the change in terms did not result in significant and consequential changes to the economic substance of the debt and thus resulted in a modification of the debt and not an extinguishment of the debt.
| 14 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
Long-term debt consisted of the following at June 30, 2025 and December 31, 2024:
Schedule of Long-term Debt
| (in thousands) | June 30, 2025 | December 31, 2024 | ||||||
| Note payable | $ | $ | ||||||
| Add: Final fee | ||||||||
| Add: PIK interest (added to principal) | ||||||||
| Less: unamortized debt issuance costs | ( | ) | ( | ) | ||||
| Less: unamortized debt discount | ( | ) | ( | ) | ||||
| Total long-term debt | $ | $ | ||||||
Future principal payments, including the incurred PIK interest and Final Fee, are as follows:
Schedule of Long Term Debt Future Principal Payments
| (in thousands) | Years Ending December 31, | |||
| 2027 | $ | |||
| 2028 | ||||
| 2029 | ||||
| Total | $ | |||
9. License Agreement
On
April 8, 2021, the Company entered into a license agreement with Pfizer to research, develop, manufacture and commercialize gedatolisib,
a potent, investigational, multi-target PAM inhibitor that potently targets all four Class I PI3K isoforms, mTORC1, and mTORC2
to induce comprehensive blockade of the PAM pathway.
The Company paid Pfizer $
The
Company is also required to make milestone payments to Pfizer upon achievement of certain development and commercial milestone events,
up to an aggregate of $
The Company has the right to terminate the license agreement for convenience upon 90 days’ prior written notice. Pfizer may not terminate the agreement for convenience. Either the Company or Pfizer may terminate the license agreement if the other party is in material breach and such breach is not cured within the specified cure period. In addition, either the Company or Pfizer may terminate the license agreement in the event of specified insolvency events involving the other party.
10. Subsequent Events
Second Amendment to Amended and Restated Loan and Security Agreement
On
July 28, 2025, the Company entered into the Second Amendment (the “Second Amendment”) to the A&R Loan Agreement,
pursuant to which the A&R Loan Agreement was amended to (i) subject to certain terms and conditions, permit the issuance of the
Notes (as defined below) and certain transactions in connection therewith, including the conversion thereof settled solely in common
stock (together with cash in lieu of the issuance of any fractional share of common stock), (ii) permit capped call transactions in
connection with the pricing of the Notes, (iii) require an amendment fee payable by the Company to Oxford in the amount of $
| 15 |
CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
Further,
in connection with the release of the topline data from the wild-type cohort of the VIKTORIA-1 Phase 3 clinical trial, the Company achieved the Term D Milestone (as defined in the A&R Loan Agreement) and therefore is eligible to draw an additional $
July 2025 Equity Offering
On
July 30, 2025, the Company entered into an underwriting agreement (the “Equity Underwriting Agreement”) with Jefferies
LLC, TD Securities (USA) LLC, and Leerink Partners LLC as representatives (the “Representatives”) of the several
underwriters named therein (collectively, the “Underwriters”) agreeing, subject to customary conditions, to issue and
sell in a public offering (i)
The
net proceeds from the Equity Offering, after deducting underwriting discounts and commissions and offering expenses, were
approximately $
Each
Pre-Funded Warrant is exercisable for one share of common stock at an exercise price of $
July 2025 Convertible Notes Offering
On
July 30, 2025, the Company also entered into an underwriting agreement (the “Note Underwriting Agreement”) with the
Underwriters, subject to customary conditions, to issue and sell in a public offering $
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CELCUITY INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
(For the Three and Six Months Ended June 30, 2025 and 2024)
The
Notes are general, unsecured, senior obligations of the Company. The Notes will accrue interest payable semi-annually in arrears on February
1 and August 1 of each year, beginning on February 1, 2026, at a rate equal to
Noteholders
may convert their Notes at their option at any time prior to the close of business on the scheduled trading day immediately preceding
the maturity date based on an initial conversion rate of
If a “Fundamental Change” (as defined in the Indenture) occurs, then, subject to certain conditions and except as set forth in the Indenture, noteholders may require the Company to repurchase their Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition in the Indenture of a Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the common stock.
Lastly,
the Notes contain a beneficial ownership limitation, and as a result of such limitation, noteholders do not have the right to convert
all or any portion of the Notes held by such noteholder, to the extent that immediately prior to, or immediately after giving effect
to such conversion by such noteholder, together with its affiliates and any other persons acting as a group together with such noteholder
or any of such noteholder’s affiliates, would
Warrants Exercised
In July 2025, an investor exercised
In August
2025, investors exercised
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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed financial statements and the related notes appearing under Item 1 of Part I of this Quarterly Report on Form 10-Q (this “Quarterly Report”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business and expected financial results, includes forward-looking statements that involve risks and uncertainties. You should review the “Risk Factors” discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 31, 2025, and the cautionary statements elsewhere in this Quarterly Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Celcuity is a clinical-stage biotechnology company focused on the development of targeted therapies for the treatment of multiple solid tumor indications. The Company’s lead therapeutic candidate is gedatolisib, a kinase inhibitor of the phosphatidylinositol 3-kinase (“PI3K”), serine/threonine-protein kinase protein kinase B (“AKT”), mechanistic target of rapamycin (“mTOR”) pathway that binds to all Class I PI3K isoforms and the mTOR complexes, mTORC1 and mTORC2. By targeting all Class I PI3K isoforms and mTORC1/2, gedatolisib induces comprehensive inhibition of the PI3K/AKT/mTOR (“PAM”) pathway. Its mechanism of action and pharmacokinetic properties are differentiated from other currently approved and investigational therapies that target PI3K, AKT, or mTOR alone or together. Our Phase 3 clinical trial, VIKTORIA-1, evaluating gedatolisib in combination with fulvestrant with or without palbociclib in patients with hormone receptor-positive (HR+), human epidermal growth factor receptor 2-negative (HER2-) (“HR+/HER2-”) advanced breast cancer has completed enrollment of and reported topline data for cohort 1, patients with PIK3CA wild-type (“WT”) tumors, and is continuing to enroll cohort 2, patients with PIK3CA mutant-type (“MT”) tumors. Our Phase 3 clinical trial, VIKTORIA-2, evaluating gedatolisib in combination with a cyclin-dependent kinase (“CDK”) 4/6 inhibitor and fulvestrant as first-line treatment for patients with endocrine treatment resistant HR+/HER2- advanced breast cancer is currently enrolling patients. The first patient was dosed in July of 2025. A Phase 1b/2 clinical trial, CELC-G-201, evaluating gedatolisib in combination with darolutamide in patients with metastatic castration resistant prostate cancer (“mCRPC”), is ongoing. An investigator sponsored trial has been initiated in collaboration with the Dana Farber Cancer Institute and Massachusetts General Hospital to evaluate gedatolisib in combination with abemaciclib and letrozole in patients with endometrial cancer.
In April 2021, we obtained exclusive global development and commercialization rights to gedatolisib under a license agreement with Pfizer. We believe gedatolisib’s unique mechanism of action, differentiated chemical structure, favorable pharmacokinetic properties, and intravenous route of administration offer distinct advantages over currently approved and investigational therapies that target PI3K, AKT, or mTOR alone or together.
| ● | Overcomes limitations of therapies that only inhibit a single Class I PI3K isoform, AKT, or one mTOR kinase complex. |
Gedatolisib is a pan-class I isoform PI3K inhibitor with low nanomolar potency for the p110α, p110β, p110γ, and p110δ isoforms and the mTORC1 and mTORC2 complexes. By targeting all Class I PI3K isoforms and mTORC1/2, gedatolisib induces comprehensive inhibition of the PAM pathway. Each PI3K isoform and mTOR complex is known to preferentially affect different signal transduction events that involve tumor cell survival, depending upon the aberrations associated with the linked pathway. When a therapy only inhibits a single Class I PI3K isoform (e.g., alpelisib, a PI3K-α inhibitor), AKT (e.g., capivasertib, an AKT inhibitor) or only one mTOR kinase complex (e.g., everolimus, an mTORC1 inhibitor), numerous feedforward and feedback loops between the PI3K isoforms and mTOR complexes cross-activate the uninhibited sub-units. This, in turn, induces compensatory resistance that reduces the efficacy of isoform specific PI3K, AKT, or mTORC1 kinase inhibitors. Inhibiting all four PI3K isoforms and both mTOR complexes, as gedatolisib does, thus prevents the confounding effect of isoform interaction that may occur with isoform-specific PI3K inhibitors and the confounding interaction between PI3K isoforms, AKT, and mTOR.
| ● | Better tolerated by patients than oral PI3K and mTOR drugs. |
Gedatolisib is administered intravenously on a four-week cycle of three weeks-on, one week-off, in contrast to the orally administered pan-PI3K or dual PI3K/mTOR inhibitors that are no longer being clinically developed. Oral pan-PI3K or PI3K/mTOR inhibitors have repeatably been found to induce significant side effects that were not well tolerated by patients. This typically leads to a high proportion of patients requiring dose reductions or treatment discontinuation. The challenging toxicity profile of these drug candidates ultimately played a significant role in the decisions to halt their development, despite showing promising efficacy. By contrast, gedatolisib’s comprehensive inhibition of the PAM pathway at low nanomolar potency, IV route of administration, and pharmacokinetic properties enables it to achieve optimal anti-proliferative effects on tumor cells without inducing the levels of hyperglycemia, rash, and diarrhea typically associated with oral single-node inhibitors of the PAM pathway.
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Isoform-specific PI3K inhibitors administered orally were developed to reduce toxicities in patients. While the range of toxicities associated with isoform-specific inhibitors is narrower than oral pan-PI3K or PI3K/mTOR inhibitors, administering them orally on a continuous basis can still lead to challenging toxicities. The experience with an FDA approved oral p110-α specific inhibitor, PIQRAY, illustrates the challenge. In its Phase 3 pivotal trial, PIQRAY was found to induce a Grade 3 or 4 adverse event (“AE”) related to hyperglycemia in 39% of patients evaluated. In addition, 26% of patients discontinued alpelisib due to treatment related AEs. By contrast, in the 103-patient dose expansion portion of the Phase 1b clinical trial with gedatolisib, only 7% of patients experienced Grade 3 or 4 hyperglycemia and less than 9% discontinued treatment.
As of June 30, 2025, 492 patients with solid tumors have received gedatolisib in eight completed clinical trials. Of the 492 patients, 129 were treated with gedatolisib as a single agent in three clinical trials. The remaining 363 patients received gedatolisib in combination with other anti-cancer agents in five clinical trials. Additional patients received gedatolisib in combination with other anti-cancer agents in nine investigator sponsored clinical trials.
B2151009 Phase 1b Trial
A Phase 1b clinical trial (B2151009) evaluating patients with HR+/HER2- metastatic breast cancer was initiated in 2016 and subsequently enrolled 138 patients. Four patients from this study continue to receive study treatment, as of June 30, 2025, each of whom has received study treatment for approximately five years. The B2151009 clinical trial was an open label, multiple arm Phase 1b clinical trial that evaluated gedatolisib in combination with palbociclib (CDK 4/6 inhibitor) and fulvestrant or letrozole in patients with HR+/HER2- advanced breast cancer. Thirty-five patients were enrolled in two dose escalation arms to evaluate the safety and tolerability and to determine the maximum tolerated dose (“MTD”) of gedatolisib when used in combination with the standard doses of palbociclib and endocrine therapy (letrozole or fulvestrant). The MTD was determined to be 180 mg administered intravenously once weekly. A total of 103 patients were subsequently enrolled in one of four expansion arms (A, B, C, and D).
High objective overall response rates (“ORR”) were observed in all four expansion arms and were comparable in each arm for PIK3CA wild type (“WT”) and PIK3CA mutant (“MT”) patients. In patients who received prior hormonal therapy alone or in combination with a CDK 4/6 inhibitor (Arms B, C, and D), the ORR (including unconfirmed partial responses) ranged from 36% to 77%. In patients who were treatment naïve in the advanced setting (Arm A), the ORR was 85%. Each arm achieved its primary endpoint target, which was reporting higher ORR in the study arm than the ORR from either the PALOMA-2 study (ORR=55%) that evaluated palbociclib plus letrozole for Arm A or the PALOMA-3 study (ORR=25%) that evaluated palbociclib plus fulvestrant for Arms B, C, and D. For all patients enrolled in the expansion portion of the study who had evaluable tumors, the ORR observed was 63%.
Median progression-free survival (“PFS”) was 12.9 months for patients who received a prior CDK 4/6 inhibitor and were treated in the study with the Phase 3 dosing schedule (Arm D). For all treatment naïve patients who received gedatolisib combined with palbociclib plus letrozole in Expansion Arm A and Escalation Arm A (N=41), median PFS was 48.6 months and ORR was 79%. These results compare favorably to published data for current first-line standard-of-care treatments for patients with HR+/HER2-advanced breast cancer.
Gedatolisib combined with palbociclib and endocrine therapy demonstrated a favorable safety profile with manageable toxicity. The majority of treatment related AEs were Grades 1 and 2. The most frequently observed AEs included stomatitis/mucosal inflammation, the majority of which were Grades 1 and 2. The most common Grade 4 AEs were neutropenia and neutrophil count decrease, which were assessed as related to treatment with palbociclib. No Grade 5 events were reported in this study.
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VIKTORIA-1 Phase 3 Trial
We are currently enrolling patients in a Phase 3, open-label, randomized clinical trial, VIKTORIA-1, to evaluate the efficacy and safety of two regimens in adults with HR+/HER2- advanced breast cancer whose disease has progressed after prior CDK 4/6 therapy in combination with an aromatase inhibitor: 1) gedatolisib in combination with palbociclib and fulvestrant; and 2) gedatolisib in combination with fulvestrant. Over two hundred clinical sites in North America, Europe, Latin America, and Asia-Pacific are participating in the study. The first patient was dosed in this trial in December 2022.
The VIKTORA-1 Phase 3 clinical trial enables separate evaluation of subjects according to their PIK3CA status. Subjects who meet eligibility criteria and have PIK3CA WT tumors were randomly assigned (1:1:1) to receive a regimen of either gedatolisib, palbociclib, and fulvestrant (Arm A), gedatolisib and fulvestrant (Arm B), or fulvestrant (Arm C). During the fourth quarter of 2024, we achieved our enrollment goal of 351 subjects for the PIK3CA WT cohort. The primary completion date for this cohort was achieved in May 2025 and the database cut-off date for this cohort was May 30, 2025. Topline data from the PIK3CA WT cohort was reported in July 2025. See “Recent Developments,” below, for a summary of the topline data. Subjects who meet eligibility criteria and are PIK3CA MT are randomly assigned (3:3:1) to receive a regimen of either gedatolisib, palbociclib, and fulvestrant (Arm D), alpelisib and fulvestrant (Arm E), or gedatolisib and fulvestrant (Arm F). Enrollment of up to 350 subjects who have PIK3CA MT tumors is ongoing. We expect topline data for this group to be available in the fourth quarter of 2025.
CELC-G-201 Phase 1b/2 Trial
We received approval from the FDA in mid-2023 to proceed with the clinical development of gedatolisib in combination with Nubeqa® (darolutamide), an approved androgen receptor inhibitor, for the treatment of patients with mCRPC. We have since initiated a Phase 1b/2 clinical trial, CELC-G-201, that is enrolling patients with mCRPC who progressed after treatment with an androgen receptor inhibitor. The first patient was dosed in this trial in February 2024.
The primary objectives of the Phase 1b portion of the trial include assessment of the safety and tolerability of gedatolisib in combination with darolutamide and determination of the recommended Phase 2 dose (“RP2D”) of gedatolisib. The primary objective of the Phase 2 portion of the trial is to assess the radiographic PFS at six months of patients who received the RP2D.
In the Phase 1b portion of the clinical trial, 38 patients with mCRPC were randomly assigned to receive 600 mg of darolutamide twice daily combined with either 120 mg of gedatolisib in Arm 1 or 180 mg of gedatolisib in Arm 2. In both arms, gedatolisib was administered once weekly for three weeks, then one week off. Additionally, all patients received prophylactic treatment for stomatitis.
On June 30, 2025, we announced topline data for the CELC-G-201 Phase 1b trial, utilizing a May 30, 2025 data cut-off. The preliminary efficacy and safety analyses for the combined arms showed:
| ● | The six-month radiographic PFS was 66%. | |
| ● | No patients discontinued treatment due to a treatment-related AE and no dose reductions were required with gedatolisib or darolutamide. | |
| ● | No Grade 3 hyperglycemia was reported. | |
| ● | Grade 2-3 stomatitis was reported in four (10.5%) patients - three (7.9%) Grade 2 and one (2.6%) Grade 3. |
Based on these data, we have amended the clinical trial protocol to enable exploration of additional doses in the Phase 1b portion of this clinical trial to determine the RP2D. Once RP2D is determined, an additional 12 participants will then be enrolled in the Phase 2 portion of the study at the RP2D level to enable evaluation of 30 participants treated with the RP2D of gedatolisib.
Additional preliminary results for the Phase 1b portion of the clinical trial will be presented at a medical conference later this year.
VIKTORIA-2 Phase 3 Trial
A Phase 3, open-label, randomized clinical trial to evaluate the efficacy and safety of gedatolisib in combination with a CDK4/6 inhibitor and fulvestrant as first-line treatment for patients with endocrine treatment resistant HR+/HER2- advanced breast cancer (“VIKTORIA-2”) is currently enrolling patients. The first patient was dosed in July of 2025. For the CDK 4/6 inhibitor, investigators may choose either ribociclib or palbociclib. This multi-center, international trial is expected to enroll approximately 12–36 evaluable subjects in the safety run-in portion of the study to evaluate the safety of gedatolisib when combined with ribociclib and fulvestrant. In the Phase 3 portion of the study, approximately 638 subjects will be randomized and assigned to Cohort 1 (PIK3CA WT) or Cohort 2 (PIK3CA MT) based on their PIK3CA status. Subjects in each cohort will be randomized on a 1:1 basis to either Arm A (gedatolisib with fulvestrant and ribociclib or palbociclib) or Arm B (fulvestrant and ribociclib or palbociclib). It is expected that approximately 200 clinical sites across North America, Europe, Latin America, and Asia-Pacific will participate.
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Investigator-Sponsored Phase 2 Trial
In an investigator-sponsored Phase 2 clinical trial, 44 patients with HER2+/PIK3CA mutated metastatic breast cancer were treated with gedatolisib plus standard doses of trastuzumab-pkrb. No prophylaxis for stomatitis was administered. The median number of prior anti-HER2 therapies enrolled patients received in the metastatic setting was four or more; 86% of patients had received at least three prior anti-HER2 therapies. The data cut-off was February 10, 2025.
Key efficacy and safety results, as presented at the American Society of Clinical Oncologists meeting in June 2025, showed:
| ● | The ORR among all patients enrolled was 43%. | |
| ● | Median PFS was 6.0 months (95% CI, 5.0-7.7). | |
| ● | Median overall survival was 24.7 months (95% CI; 17.3-NA). | |
| ● | No patients discontinued gedatolisib due to a treatment-related AE. | |
| ● | One (2.3%) patient experienced Grade 3 hyperglycemia. |
Recent Developments
New Patent Issuance
On July 8, 2025, the U.S. Patent and Trademark Office (“USPTO”) issued to the Company U.S. Patent No. 12,350,276 covering the clinical dosing regimen for gedatolisib in HR+/HER2- advanced breast cancer patients. The patent extends our patent exclusivity in the U.S. into August 2042. The USPTO previously issued five U.S. patents directed to gedatolisib’s composition of matter, four U.S. patents directed to various formulations comprising gedatolisib, and three U.S. patents directed to methods of using gedatolisib. The worldwide gedatolisib-related patent portfolio now comprises 13 granted gedatolisib-related patents in the U.S. and 290 patents granted in foreign jurisdictions.
VIKTORIA-1 Topline Data for PIK3CA WT Cohort
On July 28, 2025, we announced topline data from the PIK3CA WT cohort of the VIKTORIA-1 clinical trial. The key efficacy and safety data from the PIK3CA WT cohort showed:
| ● | The gedatolisib triplet (gedatolisib, fulvestrant and palbociclib) demonstrated a statistically significant and clinically meaningful improvement in PFS among patients, reducing the risk of disease progression or death by 76% compared to fulvestrant (based on a hazard ratio [HR] of 0.24, 95% confidence interval [CI] 0.17-0.35; p<0.0001). The median PFS, as assessed by blinded independent central review (“BICR”), was 9.3 months with the gedatolisib triplet versus 2.0 months with fulvestrant, an incremental improvement of 7.3 months. | |
| ● | The gedatolisib doublet (gedatolisib and fulvestrant) also demonstrated a statistically significant and clinically meaningful improvement in PFS among patients, reducing the risk of disease progression or death by 67% compared to fulvestrant (HR of 0.33, 95% CI 0.24-0.48; p<0.0001). The median PFS, as assessed by BICR, was 7.4 months with the gedatolisib doublet versus 2.0 months with fulvestrant, an incremental improvement of 5.4 months. | |
| ● | The hazard ratios for the gedatolisib triplet and doublet are more favorable than have ever been reported by any Phase 3 trial for patients with HR+/HER2- advanced breast cancer. | |
| ● | The 7.3- and 5.4-months incremental improvements in median PFS for the gedatolisib triplet and gedatolisib doublet over fulvestrant, respectively, are higher than have ever been reported by any Phase 3 trial for patients with HR+/HER2- advanced breast cancer receiving at least their second line of therapy. | |
| ● | Gedatolisib is the first inhibitor targeting the PI3K/AKT/mTOR pathway to demonstrate positive Phase 3 results in patients with HR+/HER2-/PIK3CA wild-type advanced breast cancer whose disease progressed on or after treatment with a CDK 4/6 inhibitor. |
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| ● | Both gedatolisib regimens showed lower rates of hyperglycemia and stomatitis and the rate of discontinuation of all treatment due to a treatment-related adverse event (“AE”), was lower than was reported in a Phase 1b study in this patient population. |
Full data from the PIK3CA wild-type cohort of the VIKTORIA-1 clinical trial will be presented at an upcoming medical conference later this year.
At the same time, we announced that we expect to submit an NDA for gedatolisib to the FDA in the fourth quarter of 2025.
Common Stock Offering
On July 30, 2025, we entered into an underwriting agreement (the “Equity Underwriting Agreement”) with Jefferies LLC, TD Securities (USA) LLC, and Leerink Partners LLC as representatives (the “Representatives”) of the several underwriters named therein (collectively, the “Underwriters”) agreeing, subject to customary conditions, to issue and sell in a public offering (i) 1,836,842 shares (the “Shares”) of our common stock, at a price to the public of $38.00 per Share and (b) in lieu of Shares to certain investors, pre-funded warrants to purchase up to 400,000 shares of common stock (the “Pre-Funded Warrants”), at a price to the public of $37.999 per Pre-Funded Warrant, which represents the per share public offering price for the Shares less the $0.001 per share exercise price for each such Pre-Funded Warrant (the “Equity Offering”). In addition, pursuant to the Equity Underwriting Agreement, we granted the Underwriters an option to purchase up to an additional 335,526 shares of common stock (the “Option Shares”), less underwriting discounts and commissions. The Underwriters exercised their option to purchase the Option Shares in full on July 30, 2025. The Equity Offering was completed on July 31, 2025.
The net proceeds from the Equity Offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $91.6 million, including the proceeds from the Underwriters’ exercise of their option in full to purchase the Option Shares. We may also receive nominal proceeds, if any, from the exercise of the Pre-Funded Warrants. We intend to use the net proceeds from the Equity Offering for working capital and general corporate purposes, which may include capital expenditures, research and development expenditures, clinical trial expenditures, commercial launch expenditures, expansion of business development activities and other general corporate purposes. Please see “Liquidity and Capital Resources” below for additional information regarding the Equity Offering.
Convertible Notes Offering
On July 30, 2025, we also entered into an underwriting agreement (the “Note Underwriting Agreement”) with the Underwriters, subject to customary conditions, to issue and sell in a public offering $175,000,000 aggregate principal amount of the Company’s 2.750% Convertible Senior Notes due 2031 (the “Notes”) to the Underwriters (the “Note Offering”). In addition, pursuant to the Note Underwriting Agreement, we granted the Underwriters an option to purchase up to an additional $26,250,000 aggregate principal amount of Notes solely to cover over-allotments. On July 30, 2025, the Underwriters exercised such option to purchase an additional $26,250,000 aggregate principal amount of Notes. The issuance of $201,250,000 aggregate principal amount of Notes was completed on August 1, 2025. The Notes were issued pursuant to, and are governed by, an indenture (the “Base Indenture”), dated as of August 1, 2025, between us and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as supplemented by a first supplemental indenture (the “Supplemental Indenture,” and the Base Indenture, as supplemented by the Supplemental Indenture, the “Indenture”), dated as of August 1, 2025, between us and the Trustee. The net proceeds from the Note Offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $194.9 million, including the proceeds from the Underwriters’ exercise of their over-allotment option in full. We intend to use the net proceeds from the Note Offering for working capital and general corporate purposes, which may include capital expenditures, research and development expenditures, clinical trial expenditures, commercial launch expenditures, expansion of business development activities and other general corporate purposes. Please see “Liquidity and Capital Resources” below for additional information regarding the Note Offering.
Results of Operations
We have not generated any revenue from sales to date, and we continue to incur significant research and development and other expenses related to our ongoing operations. As a result, we are not and have never been profitable and have incurred losses in each period since our inception in 2012. For the three months ended June 30, 2025 and 2024, we reported a net loss of approximately $45.3 million and $23.7 million, respectively, and for the six months ended June 30, 2025, we reported a net loss of approximately $82.3 million and $45.3 million, respectively. As of June 30, 2025, we had an accumulated deficit of approximately $354.1 million. As of June 30, 2025, we had cash and cash equivalents and short-term investments of approximately $168.4 million.
Components of Operating Results
Revenue
To date, we have not generated any revenue. With the execution of the Pfizer license agreement in April 2021, whereby we acquired exclusive world-wide licensing rights to develop and commercialize gedatolisib, we initiated a Phase 3 clinical trial, VIKTORIA-1, in 2022 to support potential regulatory approval to market gedatolisib. In August 2023, we initiated a Phase 1b/2 clinical trial, CELC-G-201. In July 2025 we dosed our first patient and are currently enrolling patients in a second Phase 3 clinical trial, VIKTORIA-2. We expect to submit an NDA to the FDA in the fourth quarter of 2025 seeking approval for gedatolisib in combination with fulvestrant and with or without palbociclib for the treatment of adults with endocrine therapy resistant HR+/HER2- advanced breast cancer following progression on or after treatment with a CDK 4/6 inhibitor in combination with endocrine therapy. If we obtain regulatory approvals to market gedatolisib, we expect to generate revenue from sales of the drug for this and potentially additional breast cancer indications.
Research and Development
Since our inception, we have primarily focused on research and development of gedatolisib, a PI3K/mTOR targeted therapy, and our CELsignia platform and corresponding tests. Research and development expenses primarily include:
| ● | employee-related expenses related to our research and development activities, including salaries, benefits, recruiting, travel and stock-based compensation expenses; | |
| ● | laboratory supplies; | |
| ● | consulting fees paid to third parties; | |
| ● | clinical trial costs; | |
| ● | validation costs for gedatolisib; | |
| ● | facilities expenses; and | |
| ● | legal costs associated with patent applications. |
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Internal and external research and development costs are expensed as they are incurred. As we continue development of gedatolisib and manage studies and clinical trials, including the VIKTORIA-1 Phase 3 clinical trial, the CELC-G-201 Phase 1b/2 clinical trial, and the VIKTORIA-2 Phase 3 clinical trial, the proportion of research and development expenses allocated to external spending will grow at a faster rate than expenses allocated to internal expenses.
General and Administrative
General and administrative expenses consist primarily of salaries, benefits and stock-based compensation related to our executive, finance and support functions. Other general and administrative expenses include professional fees for auditing, tax, and legal services associated with being a public company, director and officer insurance, investor relations and travel expenses for our general and administrative personnel.
Sales and Marketing
Expenses and costs related to marketing, supply chain, distribution, market access and other commercial operations related activities are being incurred in anticipation of the commercialization of gedatolisib. These expenses consist primarily of employee-related expenses, professional and consulting fees related to these functions and operations, software costs, and the acquisition of data required to support our market analysis for gedatolisib. We expect sales and marketing expenses to increase as we get closer to a potential FDA approval date.
Interest Expense
Interest expense to date is primarily related to the A&R Loan Agreement. Going forward, interest expense also will be related to the Notes.
Interest Income
Interest income consists of interest income earned on our cash, cash equivalents, and investment balances.
Results of Operations
Comparison of the Three Months Ended June 30, 2025 and 2024 (in thousands)
| Three Months Ended | ||||||||||||||||
| June 30, | Change | |||||||||||||||
| 2025 | 2024 | $ | Percent | |||||||||||||
| Statements of Operations Data: | ||||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 40,222 | $ | 22,498 | $ | 17,724 | 79 | % | ||||||||
| General and administrative | 3,787 | 1,786 | 2,001 | 112 | ||||||||||||
| Total operating expenses | 44,009 | 24,284 | 19,725 | 81 | ||||||||||||
| Loss from operations | (44,009 | ) | (24,284 | ) | (19,725 | ) | 81 | |||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense | (3,204 | ) | (2,260 | ) | (944 | ) | 42 | |||||||||
| Interest income | 1,945 | 2,822 | (877 | ) | (31 | ) | ||||||||||
| Other (expense) income, net | (1,259 | ) | 562 | (1,821 | ) | (324 | ) | |||||||||
| Net loss before income taxes | (45,268 | ) | (23,722 | ) | (21,546 | ) | 91 | |||||||||
| Income tax benefits | - | - | - | - | ||||||||||||
| Net loss | $ | (45,268 | ) | $ | (23,722 | ) | $ | (21,546 | ) | 91 | % | |||||
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Comparison of the Six Months Ended June 30, 2025 and 2024 (in thousands)
| Six Months Ended | ||||||||||||||||
| June 30, | Change | |||||||||||||||
| 2025 | 2024 | $ | Percent | |||||||||||||
| Statements of Operations Data: | ||||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 72,449 | $ | 43,145 | $ | 29,304 | 68 | % | ||||||||
| General and administrative | 7,693 | 3,632 | 4,061 | 112 | ||||||||||||
| Total operating expenses | 80,142 | 46,777 | 33,365 | 71 | ||||||||||||
| Loss from operations | (80,142 | ) | (46,777 | ) | (33,365 | ) | 71 | |||||||||
| Other (expense) income | ||||||||||||||||
| Interest expense | (6,387 | ) | (3,661 | ) | (2,726 | ) | 74 | |||||||||
| Interest income | 4,264 | 5,104 | (840 | ) | (16 | ) | ||||||||||
| Other (expense) income, net | (2,123 | ) | 1,443 | (3,566 | ) | (247 | ) | |||||||||
| Net loss before income taxes | (82,265 | ) | (45,334 | ) | (36,931 | ) | 81 | |||||||||
| Income tax benefits | - | - | - | - | ||||||||||||
| Net loss | $ | (82,265 | ) | $ | (45,334 | ) | $ | (36,931 | ) | 81 | % | |||||
Research and Development
Our research and development expenses for the three months ended June 30, 2025 were approximately $40.2 million, representing an increase of approximately $17.7 million, or 79%, compared to the same period in 2024. Of the $17.7 million increase in research and development expense, $6.6 million was related to increased employee and consulting expenses, $6.1 million was related to increased research and development costs primarily attributable to activities supporting our ongoing clinical trials, and $5.0 million is related to an anticipated development milestone payment under the license agreement with Pfizer.
Our research and development expenses for the six months ended June 30, 2025 were approximately $72.4 million, representing an increase of approximately $29.3 million, or 68%, compared to the same period in 2024. Of the $29.3 million increase in research and development expenses, $12.5 million was related to increased employee and consulting expenses, $11.8 million was related to increased research and development costs primarily attributable to activities supporting our ongoing clinical trials, and $5.0 million is related to an anticipated development milestone payment under the license agreement with Pfizer.
Conducting a significant amount of research and development is central to our business model. We plan to increase our research and development expenses for the foreseeable future as we seek to continue to develop gedatolisib, including conducting the VIKTORIA-1 Phase 3 clinical trial, the CELC-G-201 Phase 1b/2 clinical trial and the VIKTORIA-2 Phase 3 clinical trial.
General and Administrative
Our general and administrative expenses for the three months ended June 30, 2025 were approximately $3.8 million, representing an increase of approximately $2.0 million, or 112%, compared to the same period in 2024. Of the $2.0 million increase in general and administrative expense, $1.6 million was related to increased employee and consulting expenses. The remaining $0.4 million of the $2.0 million increase resulted from professional fees, expanding infrastructure and other administrative expenses
Our general and administrative expenses for the six months ended June 30, 2025 were approximately $7.7 million, representing an increase of approximately $4.1 million, or 112%, compared to the same period in 2024. Employee related expenses accounted for $3.2 million of the $4.1 million increase. The remaining $0.9 million of the increase resulted from professional fees, expanding infrastructure and other administrative expenses.
We anticipate that our general and administrative expenses will increase in future periods, reflecting both increased costs in connection with the potential future commercialization of gedatolisib, an expanding infrastructure, and increased professional fees associated with public company regulatory developments and requirements, and other compliance matters.
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Interest Expense
Interest expense for the three months ended June 30, 2025 was $3.2 million and represents an increase of $0.9 million, or 42%, compared to the same period in 2024. Interest expense is the result of the A&R Loan Agreement. The increase is due primarily to the incremental $61.7 million funding of Term Loan C in May 2024. The $3.2 million of interest expense includes $0.8 million of non-cash interest expense.
Interest expense for the six months ended June 30, 2025 was $6.4 million and represents an increase of $2.7 million, or 74%, compared to the same period in 2024. Interest expense is the result of the A&R Loan Agreement. The increase is due primarily to the incremental $61.7 million funding of Term Loan C in May 2024. The $6.4 million of interest expense includes $1.6 million of non-cash interest expense.
Interest Income
Interest income for the three months ended June 30, 2025 was $1.9 million and represents a decrease of $0.9 million compared to the same period in 2024. The decrease was primarily the result of lower market interest rates, as well as lower average cash, cash equivalent and investment balances in the current period.
Interest income for the six months ended June 30, 2025 was $4.3 million and represents a decrease of $0.8 million compared to the same period in 2024. The decrease was primarily the result of lower market interest rates.
Liquidity and Capital Resources
Since our inception, we have incurred losses and cumulative negative cash flows from operations. As of June 30, 2025, our cash and cash equivalents and short-term investments were approximately $46.4 million and $122.0 million, respectively, and we had an accumulated deficit of approximately $354.1 million.
Through the date of this Quarterly Report, we have funded our operations primarily through private placements and registered offerings of our equity securities and unsecured convertible notes, and borrowings under loan agreements. From inception through the date of this Quarterly Report, we raised an aggregate of approximately $478.7 million of net proceeds through sales of our equity securities, approximately $194.9 million of net proceeds through the issuance of the Notes, and $100.0 million of borrowings under loan agreements, not including payable-in-kind interest. The terms of our more recent financings are described below.
July 2025 Equity Offering
On July 30, 2025, we entered into the Equity Underwriting Agreement with the Representatives of the Underwriters agreeing, subject to customary conditions, to issue and sell in a public offering (i) 1,836,842 shares at a price to the public of $38.00 per Share and (b) in lieu of Shares to certain investors, Pre-Funded Warrants to purchase up to 400,000 shares of common stock, at a price to the public of $37.999 per Pre-Funded Warrant, which represents the per share public offering price for the Shares less the $0.001 per share exercise price for each such Pre-Funded Warrant. In addition, pursuant to the Equity Underwriting Agreement, we granted the Underwriters an option to purchase up to an additional 335,526 Option Shares, less underwriting discounts and commissions. The Underwriters exercised their option to purchase the Option Shares in full on July 30, 2025. The Equity Offering was completed on July 31, 2025.
The net proceeds from the Equity Offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $91.6 million, including the proceeds from the Underwriters’ exercise of their option in full to purchase the Option Shares. We may also receive nominal proceeds, if any, from the exercise of the Pre-Funded Warrants. We intend to use the net proceeds from the Equity Offering for working capital and general corporate purposes, which may include capital expenditures, research and development expenditures, clinical trial expenditures, commercial launch expenditures, expansion of business development activities and other general corporate purposes.
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Each Pre-Funded Warrant is exercisable for one share of common stock at an exercise price of $0.001 per share, or alternatively, at the election of each holder, shares of common stock may be issued through a cashless exercise, with the net number of shares of common stock determined according to the formula set forth in each Pre-Funded Warrant. The Pre-Funded Warrants are exercisable at any time after the date of issuance until all of the Pre-Funded Warrants are exercised. A holder (together with its “attribution parties,” as defined in the Pre-Funded Warrant) may not exercise any portion of the Pre-Funded Warrants if immediately after exercise, the holder (together with its attribution parties), would beneficially own in excess of 4.99% of the number of shares of common stock outstanding immediately after giving effect to the exercise. However, a holder may increase or decrease such percentage to any other percentage not in excess of 19.99%, which increase or decrease shall not become effective until 61 days after notice from the holder to us.
July 2025 Convertible Notes Offering
On July 30, 2025, we also entered into the Note Underwriting Agreement with the Underwriters, subject to customary conditions, to issue and sell in a public offering $175,000,000 aggregate principal amount of the Notes to the Underwriters. In addition, pursuant to the Note Underwriting Agreement, we granted the Underwriters an option to purchase up to an additional $26,250,000 aggregate principal amount of Notes solely to cover over-allotments. On July 30, 2025, the Underwriters exercised such option to purchase an additional $26,250,000 aggregate principal amount of Notes. The issuance of $201,250,000 aggregate principal amount of Notes was completed on August 1, 2025. The Notes were issued pursuant to, and are governed by the Indenture. The net proceeds from the Note Offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $194.9 million, including the proceeds from the Underwriters’ exercise of their over-allotment option in full. We intend to use the net proceeds from the Note Offering for working capital and general corporate purposes, which may include capital expenditures, research and development expenditures, clinical trial expenditures, commercial launch expenditures, expansion of business development activities and other general corporate purposes.
The Notes are our general, unsecured, senior obligations. The Notes will accrue interest payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2026, at a rate equal to 2.750% per year. In addition, special interest will accrue on the Notes upon the occurrence of certain events relating to our failure to file certain reports with the SEC as provided in the Indenture and as described below. The Notes also have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture) with certain interest penalty provisions. The Notes will mature on August 1, 2031, unless earlier converted, redeemed or repurchased by us.
Noteholders may convert their Notes at their option at any time prior to the close of business on the scheduled trading day immediately preceding the maturity date based on an initial conversion rate of 19.4932 shares of common stock, per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $51.30 per share of common stock. The conversion rate is subject to customary adjustments upon the occurrence of certain events as described in the Indenture. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
The Notes will be redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on a redemption date on or after August 6, 2029 and on or before the 51st scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. However, we may not redeem less than all of the outstanding Notes unless at least $50.0 million aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice. In addition, calling any Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption.
If a “Fundamental Change” (as defined in the Indenture) occurs, then, subject to certain conditions and except as set forth in the Indenture, noteholders may require us to repurchase their Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition in the Indenture of a Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the common stock.
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Lastly, the Notes contain a beneficial ownership limitation, and as a result of such limitation, noteholders do not have the right to convert all or any portion of the Notes held by such noteholder, to the extent that immediately prior to, or immediately after giving effect to such conversion by such noteholder, together with its affiliates and any other persons acting as a group together with such noteholder or any of such noteholder’s affiliates, would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately prior to, and immediately after giving effect to, the conversion of all or any portion of the Notes; provided, that such 4.99% beneficial ownership can be increased or decreased at the discretion of the noteholder; provided further, that such limitation in no event can exceed 19.99%.
Private Placement Warrants
In March 2025, an investor exercised 695,650 warrants at an exercise price of $8.05, which generated approximately $5.6 million in cash. The warrants were issued pursuant to a private placement that closed on December 9, 2022.
In July 2025, an investor exercised 1,286,960 warrants at an exercise price of $8.05, which generated approximately $10.4 million in cash. The warrants were issued pursuant to a private placement that closed on December 9, 2022.
In August 2025, investors exercised 200,000 warrants at an exercise price of $8.05, which generated approximately $1.6 million in cash. The warrants were issued pursuant to a private placement that closed on December 9, 2022.
Open Market Sale Agreement
On February 4, 2022, we entered into an Open Market Sale Agreement with Jefferies LLC (“Jefferies”), as agent, pursuant to which we may offer and sell, from time to time, through Jefferies, shares of our common stock having an aggregate offering price of up to $50.0 million, which amount was subsequently increased to $125.0 million on December 6, 2024. On July 29, 2025, prior to the pricing of the Equity Offering and the Note Offering, the aggregate offering price was reduced from $125.0 million to $50.0 million. On October 12, 2022, pursuant to this agreement, we sold 500,000 shares of common stock in a single transaction at a price of $10.35 per share, generating gross proceeds of $5.2 million ($4.8 million net of commissions and offering expenses). On December 1, 2023, pursuant to this agreement, we sold 1,034,500 shares of common stock in a single transaction at a price of $14.50 per share, generating gross proceeds of $15.0 million ($14.4 million net of commissions and offering expenses). In April 2024 and May 2024, pursuant to this agreement, we sold 285,714 and 149,700 shares of common stock, respectively, at an average selling price of $17.55 per share, generating gross proceeds of $7.6 million before deducting commissions and other offering expenses of $0.3 million. At June 30, 2025, $125.0 million of common stock remains available for sale under the Open Market Sale Agreement with Jefferies.
May 2024 Equity Offering
On May 30, 2024, we entered into an underwriting agreement with Leerink Partners LLC, TD Securities (USA) LLC and Stifel, Nicolaus & Company, Incorporated as representatives of the several underwriters relating to the issuance and sale of 3,871,000 shares of common stock, at a price to the public of $15.50, generating gross proceeds of approximately $60.0 million. The offering closed on May 31, 2024 and resulted in net proceeds to the Company of approximately $56.3 million after deducting underwriting discounts and other offering expenses payable by the Company.
A&R Loan Agreement
On May 30, 2024, we entered into an Amended and Restated Loan and Security Agreement (the “A&R Loan Agreement”) with Innovatus Life Sciences Lending Fund I, LP, a Delaware limited partnership (“Innovatus”), as collateral agent, and the Lenders including Innovatus in its capacity as a Lender and Oxford Finance LLC (“Oxford”), pursuant to which Innovatus and Oxford, as Lenders, have agreed to make certain term loans (“Term Loans”) to us in the aggregate principal amount of up to $180 million. The A&R Loan Agreement amends and restates, in its entirety, that certain Loan and Security Agreement, dated April 8, 2021, as amended, between us and Innovatus, as collateral agent, and the Lenders named therein (the “Prior Loan Agreement”).
Funding of the first $100 million under the A&R Loan Agreement occurred on May 30, 2024, including tranche payments of $16.8 million (the “Term A Loan”) and $21.5 million (the “Term B Loan”) reflecting repayment of the principal amount of loans under the Prior Loan Agreement plus accrued payment-in-kind interest, in addition to $61.7 million of new borrowings (the “Term C Loan”). We became eligible to draw on a fourth tranche of $30 million (the “Term D Loan”) as of July 28, 2025 and will become eligible to draw on a fifth tranche of $50 million (the “Term E Loan”), upon achievement of certain clinical trial milestones and satisfaction of certain financial covenants. The Lenders may, in their sole discretion upon our request, make additional term loans to us of $45 million (the “Term F Loan”). Funding of these additional tranches is also subject to other customary conditions and limits on when we can request funding for such tranches. Costs associated with the new borrowings were approximately $2.4 million.
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Pursuant to the A&R Loan Agreement, we are entitled to make interest-only payments for thirty-six months, or up to forty-eight months if certain conditions are met. The Term Loans will mature on May 1, 2029 and will bear interest at a rate equal to the sum of (a) the greater of (i) the Prime Rate (as defined in the A&R Loan Agreement) or (ii) 7.75%, plus (b) 2.85%, provided that 1.0% of such interest will be payable in-kind by adding an amount equal to such 1.0% of the outstanding principal amount to the then outstanding principal balance on a monthly basis through May 31, 2027. The A&R Loan Agreement is secured by all assets of the Company. Proceeds will be used for working capital purposes and to fund our general business requirements, including the ongoing Phase 3 VIKTORIA-1 clinical trial, the Phase 1b/2 CELC-G-201 clinical trial, and the Phase 3 VIKTORIA-2 clinical trial. The A&R Loan Agreement contains customary representations and warranties and covenants, subject to customary carve-outs, and includes financial covenants related to liquidity and other financial measures. Innovatus has the right, at its election and until August 9, 2025, to convert up to 20% of the outstanding principal of the Term A Loan into shares of our common stock at a price per share of $10.00. Innovatus will continue to have the right to exercise a previously disclosed warrant granted to it under the Prior Loan Agreement to purchase 26,042 shares of common stock at a price per share of $14.40 through April 8, 2031.
The A&R Loan Agreement contains a Final Fee, which is equal to 4.5% of the initial funding of the agreement and is due on the earliest to occur of (a) the Maturity Date, (b) the acceleration of any Term Loan, and (c) the prepayment of the Term Loans. There is also a contingent non-utilization fee for both the Term D and Term E Loans. Because we achieved the Term D Milestone on July 28, 2025, if we (i) fail to draw the full amount of the Term D Loan during the Term D Draw Period and (ii) fail to notify Collateral Agent, at any time before the date that is four weeks after the our achievement of the Term D Milestone, of our intent not to draw the full amount of the Term D Loan, a non-utilization fee of $0.9 million, with respect to the Term D Loan shall become due and payable on the earliest of (i) the termination of the Term D Draw Period, (ii) the Maturity Date, (iii) the acceleration of any Term Loan, and (iv) the prepayment in whole of the Term Loans. If we achieve the Term E Milestone and (i) fail to draw the full amount of the Term E Loan during the Term E Draw Period and (ii) fail to notify Collateral Agent, at any time before the date that is four weeks after our achievement of the Term E Milestone, of our intent not to draw the full amount of the Term E Loan, a non-utilization fee of $1.5 million with respect to the Term E Loan shall become due and payable on the earliest of (i) the termination of the Term E Draw Period, (ii) the Maturity Date, (iii) the acceleration of any Term Loan, and (iv) the prepayment in whole of the Term Loans. After the 18-month anniversary of the Effective Date, we shall have the option to prepay all, but not less than all, of the Term Loans advanced by the Lenders under the A&R Loan Agreement, provided we (i) provide written notice to Collateral Agent of its election to prepay the Term Loans at least seven business days prior to such prepayment, and (ii) pay to Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (B) the Final Fee, (C) the Prepayment Fee, plus (D) all other outstanding Obligations that are due and payable, including, without limitation, Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts. At May 30, 2024, we recognized the Final Fee of $4.5 million as additional debt principal and a corresponding debt discount to be amortized over the life of the loan.
In connection with the funding of each of the Term C Loan, the Term D Loan, the Term E Loan and the Term F Loan, we agreed to issue to Innovatus and Oxford warrants to purchase that number of shares of the Company’s common stock equal to 2.5% of the principal amount of the applicable Term Loan divided by the exercise price, which shall, with respect to the Term C Loan, be equal to the lower of (i) the volume weighted average closing price of the Company’s common stock for the five-trading day period ending on the last trading day immediately preceding the execution of the A&R Loan Agreement or (ii) the closing price on the last trading day immediately preceding the execution of the A&R Loan Agreement. Accordingly, on May 30, 2024, we issued 103,876 warrants with an exercise price of $14.84 per share. The relative fair value of the warrants was approximately $1.2 million. For the additional Term Loans, the exercise price will be based on the lower of (i) the exercise price for the Warrants issued pursuant to the Term C Loan or (ii) the volume weighted average closing price of the Company’s common stock for the five-trading day period ending on the last trading day immediately preceding the applicable Term Loan funding. The Warrants may be exercised on a cashless basis and are exercisable through the tenth anniversary of the applicable funding date. The number of shares of common stock for which each Warrant is exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in such Warrant.
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On May 13, 2025, we entered into the First Amendment (the “First Amendment”) to the A&R Loan Agreement, pursuant to which we agreed to (i) pay Oxford an amendment fee of $40,000 on the effective date of the First Amendment, (ii) extend to March 9, 2026 the expiration date of Innovatus’ right to convert up to 20% of the outstanding principal of the Term A Loan into shares of the Company’s common stock at a price per share of $10.00, (iii) extend the expiration date of the Term D Draw Period to the earlier of (x) August 31, 2025 and (y) the occurrence of an Event of Default (as defined in the A&R Loan Agreement), (iv) update the liquidity covenant to increase the Minimum Liquidity Percentage (as defined in the First Amendment) to 50% if we fail to achieve the Term D Milestone prior to June 1, 2025 and to decrease the Minimum Liquidity Percentage back to 30% if we subsequently achieve the Term D Milestone prior to the end of the Term D Draw Period, and (v) release Innovatus and the Lenders from any and all claims arising out of or related to the A&R Loan Agreement, the First Amendment and related documentation.
On July 28, 2025, we entered into the Second Amendment to the A&R Loan Agreement, pursuant to which we agreed to (i) subject to certain terms and conditions, permit the issuance of the Notes and certain transactions in connection therewith, including the conversion thereof settled solely in common stock (together with cash in lieu of the issuance of any fractional share of common stock), (ii) permit the capped call transactions in connection with the pricing of the Notes, (iii) require an amendment fee payable by us to Oxford in the amount of $25,000, which was paid upon execution of the Second Amendment, and (iv) extend to May 9, 2026 the expiration date of Innovatus’ right to convert up to 20% of the outstanding principal of the Term A Loan into shares of our common stock at a price per share of $10.00.
In connection with the release of the topline data from the WT cohort of the VIKTORIA-1 Phase 3 clinical trial, we achieved the Term D Milestone (as defined in the A&R Loan Agreement) and therefore are eligible to draw down an additional $30.0 million of indebtedness under the Term D Loan (as defined in the A&R Loan Agreement). We intend to draw down such $30.0 million in late August 2025 prior to the expiration of the Term D Draw Period (as defined in the A&R Loan Agreement) on August 31, 2025.
We expect that our research and development and general and administrative expenses will increase as we continue to develop gedatolisib, conduct the VIKTORIA-1 Phase 3 clinical trial, the CELC-G-201 Phase 1b/2 trial, and the VIKTORIA-2 Phase 3 clinical trial, conduct other studies and clinical trials, and pursue other business development activities. We would also expect to incur sales and marketing expenses as we prepare for commercial launch and then commercialize gedatolisib. We expect to use cash on hand, together with the funds received or to be received under the debt and equity financings described above, to fund our research and development expenses, clinical trial costs, capital expenditures, working capital, sales and marketing expenses, and general corporate expenses.
Based on our current business plan, we believe that our current cash, cash equivalents and short-term investments, including amounts received upon the closing of the Equity Offering and Note Offering, together with available borrowings under the A&R Loan Agreement, will provide sufficient cash to finance our operations through 2027.
Our expectations as to how long our current capital resources will be sufficient to fund our operations are based on assumptions that may not be accurate, and we could use our current capital resources sooner than we currently expect. In addition, we may seek to raise additional capital to finance capital expenditures and operating expenses over the next several years as we seek to obtain approval for and launch gedatolisib; expand our infrastructure, commercial operations and research and development activities; and to take advantage of financing or other opportunities that we believe to be in the best interests of the Company and our stockholders. Additional capital may be raised through the sale of common or preferred equity or convertible debt securities, entry into debt facilities or other third-party funding arrangements. The sale of equity and convertible debt securities may result in dilution to our stockholders and those securities may have rights senior to those of our common stock. Agreements entered into in connection with such capital raising activities could contain covenants that would restrict our operations or require us to relinquish certain rights. Additional capital may not be available on reasonable terms, or at all.
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Cash Flows
The following table sets forth the primary sources and uses of cash for the six months ended June 30:
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Net cash (used in) provided by: | ||||||||
| Operating activities | $ | (72,065 | ) | $ | (35,135 | ) | ||
| Investing activities | 90,118 | (102,531 | ) | |||||
| Financing activities | 5,786 | 137,462 | ||||||
| Net increase (decrease) in cash and cash equivalents | $ | 23,839 | $ | (204 | ) | |||
Operating Activities
Net cash used in operating activities was approximately $72.1 million for the six months ended June 30, 2025 and consisted primarily of a net loss of approximately $82.3 million, partially offset by non-cash expense items of approximately $7.2 million and decreased working capital changes of $3.0 million. Non-cash expense items of approximately $7.2 million primarily consisted of $5.1 million of stock-based compensation expense and net non-cash interest of $2.0 million. The approximately $3.0 million of working capital changes was primarily due to increases in accrued expenses and accounts payable, partially offset by increases in other current assets,
Net cash used in operating activities was approximately $35.1 million for the six months ended June 30, 2024 and consisted primarily of a net loss of approximately $45.3 million, offset by working capital changes of $6.9 million and non-cash expense items of approximately $3.3 million. Non-cash expense items of approximately $3.3 million primarily consisted of $2.7 million of stock-based compensation expense and net non-cash interest of $0.5 million. The approximately $6.9 million of working capital changes was primarily due to increases in accrued expenses, accounts payable and other current assets.
Investing Activities
Net cash provided by investing activities for the six months ended June 30, 2025 was approximately $90.1 million and consisted primarily of net proceeds from the maturities of short-term investments in government securities (U.S. Treasury Bills and U.S. government agency).
Net cash used in investing activities for the six months ended June 30, 2024 was approximately $102.5 million and consisted primarily of net purchases of short-term investments in government securities (U.S. Treasury Bills and U.S. government agency).
Financing Activities
Net cash provided by financing activities for the six months ended June 30, 2025 was approximately $5.8 million and consisted of proceeds of approximately $5.6 million from the exercise of common stock warrants and $0.3 million from the exercise of exercise of employee stock options and employee stock purchases, offset slightly by debt and equity issuance costs of $0.1 million in the aggregate.
Net cash provided by financing activities for the six months ended June 30, 2024 was approximately $137.5 million and consisted of net proceeds of approximately $56.3 million from an equity offering, $59.2 million from incremental debt financing, and $7.3 million from an at-the market offering. The remaining $14.7 million consisted of proceeds from the exercise of common stock warrants, the exercise of employee stock options and employee stock purchases.
Recent Accounting Pronouncements
From time-to-time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed in Note 2 to our unaudited condensed financial statements included in Item 1 of Part I of this Quarterly Report, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.
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Critical Accounting Policies and Use of Estimates
Our management’s discussion and analysis of financial condition and results of operations is based on our unaudited condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses during the reporting periods. These items are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates could occur in the future. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Changes in estimates are reflected in reported results for the period in which they become known. Actual results may differ materially from these estimates.
Our significant accounting policies are more fully described in Note 2 to our unaudited condensed financial statements included in Item 1 of Part I of this Quarterly Report.
Private Securities Litigation Reform Act
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Such forward-looking information is included in this Quarterly Report and in other materials filed or to be filed by us with the SEC (as well as information included in oral statements or other written statements made or to be made by us). Forward-looking statements include all statements based on future expectations. This Quarterly Report contains forward-looking statements that involve risks and uncertainties including, but not limited to, (i) our clinical trial plans and the estimated timelines and costs for such trials; (ii) our plans to develop and commercialize our products, and our expectations about the market opportunity for gedatolisib and our ability to serve that market; (iii) our expectations with respect to our competitive advantages, including the potential efficacy of gedatolisib in various patient types alone or in combination with other treatments, and our interpretation of the topline data from the PIK3CA WT cohort of the Phase 3 VIKTORIA-1 clinical trial; (iv) our expectations regarding the timeline of patient enrollment and results from clinical trials, including our ongoing Phase 3 VIKTORIA-1 clinical trial, ongoing Phase 3 VIKTORIA-2 clinical trial, and ongoing Phase 1b/2 clinical trial for gedatolisib; (v) our expectations regarding the timing of submitting an NDA for, and our ability to obtain FDA approval to commercialize, gedatolisib; (vi) our expectations regarding governmental laws and regulations affecting our operations, including, without limitation, developments in laws and regulations or their interpretation, including, among others, changes in tax laws and regulations internationally and in the U.S. and laws that affect our operations and our laboratory; (vii) our expectations with respect to the development, validation, required approvals, costs and timelines of our drug candidate gedatolisib; (viii) our beliefs related to the potential benefits resulting from Breakthrough Therapy designation for gedatolisib; (ix) our plans with respect to research and development and related expenses for the foreseeable future; (x) our beliefs about our ability to capitalize on the exclusive global development and commercialization rights obtained from our license agreement with Pfizer with respect to gedatolisib; (xi) our expectations regarding the future payments that may be owed to Pfizer under the license agreement with them; (xii) our beliefs with respect to the potential rate and degree of market acceptance, both in the United States and internationally, and clinical utility of gedatolisib; (xiii) our revenue expectations; (xiv) our expectations regarding business development activities, including collaborations with pharmaceutical companies; (xv) our plans with respect to pricing in the United States and internationally, and our ability to obtain reimbursement for our drug candidate, gedatolisib, including expectations as to our ability or the amount of time it will take to achieve successful reimbursement from third-party payors, such as commercial insurance companies and health maintenance organizations, and from government insurance programs, such as Medicare and Medicaid; (xvi) our expectations as to the use of proceeds from our financing activities; (xvii) our expectations with respect to availability of capital, including accessing our current debt facility or any other debt facility or other capital sources in the future, and our assumption that we will have adequate authorized shares for future equity issuances; (xviii) our beliefs regarding the adequacy of our cash on hand to fund our clinical trials, capital expenditures, working capital, and other general corporate expenses, as well as the increased costs associated with being a public company; (xix) our plans with respect to potentially raising capital; and (xx) our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates, including our gedatolisib drug candidate and our CELsignia platform and tests.
In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on our management’s beliefs and assumptions, which in turn are based on their interpretation of currently available information.
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These statements involve known and unknown risks, uncertainties and other factors that may cause our results or our industry’s actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Certain risks, uncertainties and other factors include, but are not limited to, our limited operating history; our potential inability to develop, validate, obtain regulatory approval for and commercialize gedatolisib on a timely basis or at all; the uncertainties and costs associated with clinical studies and with developing and commercializing biopharmaceuticals; the complexity and difficulty of demonstrating the safety and sufficient magnitude of benefit to support regulatory approval of gedatolisib and other products we may develop; challenges we may face in developing and maintaining relationships with pharmaceutical company partners; the uncertainty and costs associated with clinical trials; the uncertainty regarding market acceptance by physicians, patients, third-party payors and others in the medical community, and with the size of market opportunities available to us; difficulties we may face in managing growth, such as hiring and retaining a qualified sales force and attracting and retaining key personnel; changes in government regulations; tightening credit markets and limitations on access to capital; stock market volatility or other factors that may affect our ability to access capital on favorable terms or at all; and obtaining and maintaining intellectual property protection for our technology and time and expense associated with defending third-party claims of intellectual property infringement, investigations or litigation threatened or initiated against us. These and additional risks, uncertainties and other factors are described more fully in our Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere in this Quarterly Report. Copies of filings made with the SEC are available through the SEC’s electronic data gathering, analysis, and retrieval system (EDGAR) at www.sec.gov.
You should read the cautionary statements made in this Quarterly Report as being applicable to all related forward-looking statements wherever they appear in this Quarterly Report. We cannot assure you that the forward-looking statements in this Quarterly Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. You should read this Quarterly Report completely. Other than as required by law, we undertake no obligation to update these forward-looking statements, even though our situation may change in the future.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
As a smaller reporting company, we are not required to provide disclosure pursuant to this item.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer and Chief Financial Officer, referred to collectively herein as the Certifying Officers, are responsible for establishing and maintaining our disclosure controls and procedures. The Certifying Officers have reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2025. Based on that review and evaluation, the Certifying Officers have concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures, as designed and implemented, are effective and provide reasonable assurance that information required to be disclosed by us in the periodic and current reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the periods specified by the SEC’s rules and forms.
Changes in Internal Control Over Financial Reporting.
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. — OTHER INFORMATION
ITEM 1. Legal Proceedings
From time to time we may be involved in disputes or litigation relating to claims arising out of our operations. We are not currently a party to any legal proceedings that could reasonably be expected to have a material adverse effect on our business, financial condition and results of operations.
ITEM 1A. Risk Factors
In addition to other information set forth in this Quarterly Report, including the important information in the section entitled “Private Securities Litigation Reform Act,” you should carefully consider the “Risk Factors” discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this Quarterly Report. Except as set forth below, there have been no material changes to the risk factors previously disclosed in such Annual Report on Form 10-K. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial might materially adversely affect our actual business, financial condition and/or operating results.
Changes to trade policy, including new or increased tariffs and changing import and export regulations, could have a material adverse effect on our business, results of operations and financial condition.
Our business, results of operations, and financial condition could be adversely affected by uncertainty and changes in U.S. or international trade policies, including tariffs, quotas, trade agreements, or other trade restrictions imposed by the U.S. or other governments. For example, the U.S. has instituted certain changes, and has proposed additional changes, in trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on imports into the U.S., and other government regulations affecting trade between the U.S. and other countries. The new tariffs and other changes in U.S. trade policy have triggered retaliatory actions by affected countries, and foreign governments have instituted or are considering imposing trade sanctions on U.S. goods. Several tariff announcements have been followed by announcements of limited exemptions, revisions, and temporary pauses, resulting in significant uncertainty.
The imposition of tariffs and other trade restrictions, as well as the escalation of trade disputes and any downturns in the global economy resulting therefrom, could materially and adversely affect our business, financial condition and results of operations. The extent and duration of the tariffs and other trade restrictions and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, and availability and cost of alternative sources of supply.
While we plan to maintain adequate inventory of the gedatolisib active pharmaceutical ingredient (“API”) and to qualify a second source of gedatolisib API, any imposition of, or increase in, tariffs or other restrictions on imports of equipment or other materials (or the components of these materials) could increase the cost for such materials and also increase the prices for such materials available domestically or locally, if any, which in turn could increase our costs. Such cost increases could materially and adversely affect our results of operations and financial condition. Tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation, and diminished expectations for the economy. Such conditions could have a material adverse impact on our business, results of operations and financial position.
Disruptions at the FDA, and other government agencies from funding cuts, personnel losses, leadership changes, regulatory reform, government shutdowns and other developments could hinder our ability to obtain guidance from the FDA regarding our clinical development programs and develop and secure approval of our product candidates in a timely manner, which would negatively impact our business.
The FDA and comparable regulatory agencies in foreign jurisdictions, such as the European Medicines Agency (“EMA”), play an important role in the development of our product candidates by providing guidance on our clinical development programs and reviewing our regulatory submissions, including investigational new drug applications (“INDs”), requests for special designations and marketing applications. If these oversight and review activities are disrupted, then correspondingly our ability to develop and secure timely approval of our product candidates could be impacted in a negative manner.
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For example, the recent loss of FDA leadership and personnel, and new leadership at the U.S. Department of Health and Human Services, FDA and the Center for Drug Evaluation and Research could lead to disruptions and delays in FDA guidance and review and approval of our product candidate. Further, while the FDA’s review of marketing applications and other activities for new drugs is largely funded through the user fee program established under the Prescription Drug User Fee Act, it remains unclear how the administration’s recent reduction in force and budget cuts will impact this program and the ability of the FDA to provide guidance and review our product candidate in a timely manner.
There is also substantial uncertainty as to how regulatory reform measures being implemented by the Trump Administration across the government will impact the FDA and other federal agencies with jurisdiction over our activities. For example, since taking office, the President has issued a number of executive orders that could have a significant impact on the manner in which the FDA conducts its operations and engages in regulatory and oversight activities.
Accordingly, if any of the foregoing developments and others impact the ability of the FDA to provide us with guidance regarding our clinical development programs or delay the agency’s review and processing of our regulatory submissions, including INDs and new drug applications, our business would be negatively impacted.
Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations and impair our ability to satisfy our debt obligations.
As of June 30, 2025, we had $100.0 million aggregate principal amount of indebtedness for borrowed money, all of which was secured indebtedness consisting of the Term Loans. We incurred $201.25 million principal amount of additional indebtedness as a result of the offering of the Notes. We may incur additional indebtedness to meet future financing needs. For example, we intend to draw down our $30.0 million Term D Loan in late August 2025 prior to the expiration of the Term D Draw Period on August 31, 2025, and have an additional $50.0 million in incremental Term Loans that can be drawn under the A&R Loan Agreement upon the achievement of certain clinical milestones. Our indebtedness could have significant negative consequences for our security holders and our business, results of operations and financial condition by, among other things:
| ● | increasing our vulnerability to adverse economic and industry conditions; | |
| ● | limiting our ability to obtain additional financing on acceptable terms or at all; | |
| ● | requiring the dedication of a substantial portion of our cash flow from operations to service our indebtedness, which will reduce the amount of cash available for other purposes; | |
| ● | limiting our flexibility to plan for, or react to, changes in our business; | |
| ● | diluting the interests of our existing stockholders as a result of issuing shares of our common stock upon conversion of the Notes; and | |
| ● | placing us at a possible competitive disadvantage with competitors that are less leveraged than us or have better access to capital. |
Our business may not generate sufficient funds, and we may otherwise be unable to maintain sufficient cash reserves, to pay amounts due under our indebtedness, and our cash needs may increase in the future. In addition, the A&R Loan Agreement contains, and any future indebtedness that we may incur in the future may contain, financial and other restrictive covenants that limit our ability to operate our business, raise capital or make payments under our other indebtedness. If we fail to comply with these covenants or to make payments under our indebtedness when due, then we would be in default under that indebtedness, which could, in turn, result in that and our other indebtedness becoming immediately due and payable in full.
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We may be unable to raise the funds necessary to repurchase the Notes for cash following a fundamental change or to pay any cash amounts due upon maturity and our other indebtedness may limit our ability to repurchase the Notes or to pay any cash amounts due upon their maturity.
Noteholders may, subject to a limited exception, require us to repurchase their Notes following a fundamental change at a cash repurchase price generally equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. Upon maturity of the Notes, we must pay their principal amount and accrued and unpaid interest in cash, unless they have been previously converted, redeemed or repurchased. We may not have enough available cash or be able to obtain financing at the time we are required to repurchase the Notes or pay any cash amounts due upon their maturity. In addition, applicable law, regulatory authorities and the agreements governing our other indebtedness may restrict our ability to repurchase the Notes or to pay any cash amounts due upon their maturity. Our failure to repurchase Notes or to pay any cash amounts due upon their maturity when required will constitute a default under the Indenture. A default under the Indenture or the fundamental change itself could also lead to a default under agreements governing our other indebtedness, which may result in that other indebtedness becoming immediately payable in full after any applicable notice or grace periods. We may not have sufficient funds to satisfy all amounts due under our indebtedness.
Provisions in the Indenture could delay or prevent an otherwise beneficial takeover of us.
Certain provisions in the Notes and the Indenture could make a third-party attempt to acquire us more difficult or expensive. For example, if a takeover constitutes a fundamental change, then, subject to limited exceptions, Noteholders will have the right to require us to repurchase their Notes for cash. In addition, if a takeover constitutes a make-whole fundamental change, then we may be required to temporarily increase the conversion rate of the Notes. In either case, and in other cases, our obligations under the Notes and the Indenture could increase the cost of acquiring us or otherwise discourage a third party from acquiring us or removing incumbent management, including in a transaction that holders of our common stock may view as favorable.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
Recent Unregistered Sales of Equity Securities
None.
Issuer Purchases of Equity Securities
None.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Mine Safety Disclosures
None.
ITEM 5. Other Information
Trading Plans
On June 13, 2025, Brightstone adopted a 10b5-1 plan for the sale of up to 229,335 shares of Celcuity Inc. common stock beginning December 15, 2025 through December 15, 2026. David Dalvey is a General Partner at Brightstone.
During
the three months ended June 30, 2025, none of our other directors or officers (as defined in Rule 16a-1(f) of the Exchange Act)
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ITEM 6. Exhibits
EXHIBIT INDEX
| Exhibit No. | Description | |
| 3.1 | Certificate of Incorporation of the Company, as amended, including the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 9, 2024). | |
| 3.2 | Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 13, 2017). | |
| 10.1 | First Amendment to Amended and Restated Loan and Security Agreement, dated May 13, 2025, by and among the Company, Innovatus Life Sciences Lending Fund I, LP, as collateral agent, the Lenders named therein and Oxford Finance LLC (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 15, 2025). | |
| 10.2 | Celcuity Inc. Amended and Restated 2017 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 16, 2025). | |
| 31.1* | Certification of Chairman and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2* | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1** | Certification of Chairman and Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 32.2** | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101* | The following information from the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2025, formatted in Inline XBRL: (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Stockholders’ Equity, (iv) the Condensed Statements of Cash Flows, (v) the Notes to Condensed Financial Statements, and (vi) the information under Part II, Item 5, “Other Information.” | |
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
| * | Filed herewith. |
| ** | Furnished herewith. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
| Dated: August 14, 2025 | CELCUITY INC. | |
| By | /s/ Brian F. Sullivan | |
| Brian F. Sullivan | ||
| Chairman and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| By | /s/ Vicky Hahne | |
| Vicky Hahne | ||
| Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
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Source:
FAQ
What financing did CELC complete according to the 10-Q?
How much cash did CELC receive from warrants and exercises in the period?
What are the key terms of the A&R Loan Agreement?
Did Celcuity record any material license or collaboration fees?
How many common shares were outstanding as of June 30, 2025?
Are dividends declared on CELC common stock?
