Tue, Jun 11, 8:25 PM (88 days ago)
BioRestorative Therapies, Inc. has restated its financial statements for the fiscal years ended December 31, 2023, and 2022, and for the interim periods from March 31, 2022, to September 30, 2023, due to a misapplication of accounting guidance regarding certain warrants. These warrants, previously classified as equity, should have been classified as liabilities, affecting the financial statements' presentation and reliability. The restatement has led to a reevaluation of internal controls, revealing an additional material weakness related to warrant accounting. The company focuses on developing therapeutic products using adult stem cells, with two core programs: the Disc/Spine Program (BRTX-100) and the ThermoStem Program. BRTX-100 is in a Phase 2 clinical trial for chronic lower back pain, while the ThermoStem Program targets metabolic disorders using brown adipose-derived stem cells. For 2023, BioRestorative raised approximately $2.68 million through public offerings and received $8.1 million from warrant exercises in early 2024. These funds are sufficient to complete the Phase 2 trial for BRTX-100 and continue pre-clinical research for ThermoStem, but additional financing will be needed for further development and operations. Risk factors include the variability and regulatory challenges of autologous cell therapy, competition, potential product liability claims, and the need for significant additional funding. The company also faces risks related to the recent restatement of financial statements, which could lead to additional scrutiny and potential legal actions.