UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-36792

CYTOSORBENTS CORPORATION

(Exact name of registrant as specified in its charter)




Delaware		98-0373793
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)

7 Deer Park Drive, Suite K
Monmouth Junction, New Jersey		08852
(Address of principal executive offices)		(Zip Code)

(732) 329-8885

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	CTSO	Nasdaq Capital Market

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. þ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐

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	☐
Non-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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes þ No

As of May 2, 2022, there were 43,562,119 shares of the issuer’s common stock outstanding.

Table of Contents

CytoSorbents Corporation

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements		3

Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021		3
Consolidated Statements of Operations and Comprehensive Loss for the Three Months ended March 31, 2022 and 2021 (unaudited)		4
Consolidated Statements of Changes in Stockholders’ Equity for the Three Months ended March 31, 2022 and 2021 (unaudited)		5
Consolidated Statements of Cash Flows for the Three Months ended March 31, 2022 and 2021 (unaudited)		6

Notes to Consolidated Financial Statements (unaudited)		7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		22

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		33

Item 3. Defaults Upon Senior Securities		33

Item 4. Mine Safety Disclosures		33

Item 5. Other Information		33

Item 6. Exhibits		34

This Quarterly Report on Form 10-Q includes our trademarks and trade names, such as “CytoSorb,” “CytoSorb XL,” “ECOS-300CY,” “BetaSorb,” “ContrastSorb,” “DrugSorb,” “DrugSorb-ATR,” “HemoDefend-RBC,” “HemoDefend-BGA, “K+ontrol” and “VetResQ,” which are protected under applicable intellectual property laws and are the property of CytoSorbents Corporation and our subsidiaries. This Quarterly Report on Form 10-Q also contains the trademarks, trade names and service marks of other companies, which are the property of their respective owners. Solely for convenience, trademarks, trade names and service marks referred to in this Quarterly Report on Form 10-Q may appear without the ™, ®, or ^SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties’ trademarks, trade names or service marks to imply, and such use or display should not be construed to imply a relationship with, or endorsement or sponsorship of us by, these other parties.

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

CYTOSORBENTS CORPORATION

CONSOLIDATED BALANCE SHEETS


	March 31,
	2022		December 31,
	(Unaudited)		2021

ASSETS
Current Assets:
Cash and cash equivalents	$	43,022,814	$	52,137,707
Grants and accounts receivable, net of allowance for doubtful accounts of $66,752 as of March 31, 2022 and $60,539 as of December 31, 2021		4,577,010		4,523,430
Inventories		5,445,499		4,766,098
Prepaid expenses and other current assets		2,808,792		2,871,655
Total current assets		55,854,115		64,298,890

Property and equipment, net		7,848,824		5,150,886
Restricted cash		1,687,459		1,687,459
Right of use assets		13,196,795		13,423,472
Other assets		4,684,859		4,958,575
Total Assets	$	83,272,052	$	89,519,282

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	4,825,753	$	2,805,235
Lease liability – current portion		486,964		570,566
Accrued expenses and other current liabilities		9,358,910		10,314,341
Total current liabilities		14,671,627		13,690,142
Lease liability, net of current portion		13,172,388		13,250,943
Total Liabilities		27,844,015		26,941,085

Commitments and Contingencies (Note 6)
Stockholders’ Equity:
Preferred Stock, Par Value $0.001, 5,000,000 shares authorized; No shares issued and outstanding as of March 31, 2022 and December 31, 2021		—		—
Common Stock, Par Value $0.001, 100,000,000 shares authorized; and 43,505,948 and 43,478,487 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		43,505		43,478
Additional paid-in capital		284,047,729		283,194,429
Accumulated other comprehensive income		1,488,496		525,585
Accumulated deficit		(230,151,693)		(221,185,295)
Total Stockholders' Equity		55,428,037		62,578,197
Total Liabilities and Stockholders’ Equity	$	83,272,052	$	89,519,282

See accompanying notes to consolidated financial statements.

Table of Contents

CYTOSORBENTS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


	Three Months Ended March 31,
	2022		2021
	(Unaudited)		(Unaudited)
Revenue:
CytoSorb sales	$	7,866,865	$	10,143,356
Oher product sales		57,592		—
Total product sales		7,924,457		10,143,356
Grant income		766,967		455,491
Total revenue		8,691,424		10,598,847
Cost of revenue		2,277,636		2,751,444
Gross margin		6,413,788		7,847,403
Other expenses:
Research and development		4,243,365		2,282,052
Legal, financial and other consulting		800,735		707,839
Selling, general and administrative		9,160,823		7,709,703
Total expenses		14,204,923		10,699,594
Loss from operations		(7,791,135)		(2,852,191)
Other income (expense):
Interest expense, net		8,027		(10,124)
Miscellaneous income		30,000		—
Loss on foreign currency transactions		(1,213,290)		(1,305,506)
Total other expense, net		(1,175,263)		(1,315,630)

Loss before benefit from income taxes		(8,966,398)		(4,167,821)

Benefit from income taxes		—		—

Net loss attributable to common stockholders	$	(8,966,398)	$	(4,167,821)

Basic and diluted net loss per common share	$	(0.21)	$	(0.10)

Weighted average number of shares of common stock outstanding		43,487,946		43,242,791

Net loss	$	(8,966,398)	$	(4,167,821)
Other comprehensive income:
Currency translation adjustment		962,911		1,157,736
Comprehensive loss	$	(8,003,487)	$	(3,010,085)

See accompanying notes to consolidated financial statements.

Table of Contents

CYTOSORBENTS CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the three months ended March 31, 2022 and 2021 (Unaudited)


						Accumulated
				Additional		Other
	Common Stock			Paid-In		Comprehensive		Accumulated		Stockholders’
	Shares	Par value		Capital		Income (Loss)		Deficit		Equity
Balance at December 31, 2021	43,478,487	$	43,478	$	283,194,429	$	525,585	$	(221,185,295)	$	62,578,197
Stock-based compensation - employees, consultants and directors	—		—		787,417		—

SEC Form 10-Q filed by Cytosorbents Corporation