CAPR - NASDAQ

Good afternoon, ladies and gentlemen and welcome to the Capricor's Third Quarter 2024 Financial Results and Corporate Update Call. At this time, all participant lines are in a listen-only mode. Following the presentation, we’ll conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Wednesday, November 13, 2024. I would now like to turn the conference over to our host, Mr. A.J. Bergmann, Capricor's Chief Financial Officer, for the forward-looking statement. Please go ahead.

Thanks, Linda. This afternoon's press release provided a summary of our third quarter 2024 financials on a GAAP basis. You may also refer to our quarterly report on Form 10-Q which we expect to become available shortly and will be accessible on the SEC website as well as the financial section of Capricor's website. Let me start with our cash position. As of September 30, 2024, cash, cash equivalents and marketable securities totaled approximately $85 million. Subsequent to September 30, 2024, we completed a public offering of common stock for approximately $80.8 million in net proceeds. On a pro forma basis, after accounting for the net offering proceeds, our cash, cash equivalents and marketable securities would total approximately $166 million. Turning to the financials. Revenues for the third quarter of 2024 were approximately $2.3 million compared with approximately $6.2 million for the third quarter of 2023. The source of the revenue is the ratable recognition of the $40 million that we have received from our U.S. exclusive commercialization and distribution agreement with Nippon Shinyaku. Moving now to our operating expenses for the third quarter of 2024, excluding stock-based compensation, our research and development expense was approximately $11 million compared to approximately $9.5 million in Q3 2023. Turning now to G&A, excluding stock-based compensation, was approximately $2.2 million in Q3 2024 and approximately $1.8 million in Q3 2023. Net loss for the third quarter of 2024 was approximately $12.6 million compared to a net loss of approximately $6.4 million for the third quarter of 2023 and net loss for the 9 months ended September 30, 2024, was approximately $33.4 million compared to a net loss of approximately $21.5 million for the 9 months ended September 30, 2023. I will now open up the line for questions.

[Operator Instructions] Your first question comes from the line of Ted Tenthoff from Piper Sandler.

Really exciting to be on the call and congrats on all the progress. Can you hear me okay?

Please stay on the line. The conference will begin momentarily. Now back to the conference. Your first question comes from the line is from Ted Tenthoff from Piper Sandler.

And your next question comes from the line of Leland Gershell from Oppenheimer.

[Operator Instructions] Your next question is from Kristen Kluska from Cantor Fitzgerald.

And your next question comes from the line of Aydin Huseynov from Ladenburg.

Congrats on the progress.