Capricor Therapeutics (CAPR) 10-K17 Mar 232022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Mar. 16, 2023	Jun. 30, 2022
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	001-34058
Entity Registrant Name	CAPRICOR THERAPEUTICS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	88-0363465
Entity Address, Address Line One	10865 Road to the Cure, Suite 150
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	727-1755
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CAPR
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	false
Entity Public Float			$ 82,668,886
Entity Common Stock, Shares Outstanding		25,255,154
Auditor Name	Rose, Snyder & Jacobs LLP
Auditor Firm ID	468
Auditor Location	Encino, California
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001133869
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 9,603,242	$ 34,885,274
Marketable securities	31,818,020	0
Receivables	547,580	391,750
Prepaid expenses and other current assets	919,892	1,159,937
TOTAL CURRENT ASSETS	42,888,734	36,436,961
PROPERTY AND EQUIPMENT, net	4,588,030	1,795,696
OTHER ASSETS
Lease right-of-use assets, net	2,349,974	2,821,944
Other assets	268,172	275,722
TOTAL ASSETS	50,094,910	41,330,323
CURRENT LIABILITIES
Accounts payable and accrued expenses	4,834,683	3,116,371
Accounts payable and accrued expenses, related party	89,234	599,388
Lease liabilities, current	682,039	417,632
Deferred revenue, current	17,980,599	0
TOTAL CURRENT LIABILITIES	23,586,555	4,133,391
LONG-TERM LIABILITIES
CIRM liability	3,376,259	3,376,259
Lease liabilities, net of current	1,878,070	2,452,707
Deferred revenue, net of current	9,467,932	0
TOTAL LONG-TERM LIABILITIES	14,722,261	5,828,966
TOTAL LIABILITIES	38,308,816	9,962,357
COMMITMENTS AND CONTINGENCIES (NOTE 7)
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value, 50,000,000 shares authorized, 25,241,402 and 24,185,001 shares issued and outstanding, respectively	25,241	24,185
Additional paid-in capital	148,735,420	139,404,060
Accumulated other comprehensive income	105,244	0
Accumulated deficit	(137,079,811)	(108,060,279)
TOTAL STOCKHOLDERS' EQUITY	11,786,094	31,367,966
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 50,094,910	$ 41,330,323

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	25,241,402	24,185,001
Common stock, shares outstanding	25,241,402	24,185,001

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
REVENUE
Revenue	$ 2,551,469	$ 244,898
TOTAL REVENUE	2,551,469	244,898
OPERATING EXPENSES
Research and development	21,816,949	13,571,045
General and administrative	10,431,903	7,612,295
TOTAL OPERATING EXPENSES	32,248,852	21,183,340
LOSS FROM OPERATIONS	(29,697,383)	(20,938,442)
OTHER INCOME (EXPENSE)
Other income	190,582	548,207
Investment income	521,535	57,460
Forgiveness of debt	0	318,160
Loss on disposal of fixed assets	(34,266)	(7,905)
TOTAL OTHER INCOME (EXPENSE)	677,851	915,922
NET LOSS	(29,019,532)	(20,022,520)
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized gain on marketable securities	105,244	0
COMPREHENSIVE INCOME (LOSS)	$ (28,914,288)	$ (20,022,520)
Net loss per share, basic	$ (1.18)	$ (0.87)
Net loss per share, diluted	$ (1.18)	$ (0.87)
Weighted-average number of shares of common stock outstanding basic	24,552,688	23,089,323
Weighted-average number of shares of common stock outstanding diluted	24,552,688	23,089,323

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	COMMON STOCK [Member]	ADDITIONAL PAID-IN CAPITAL [Member]	OTHER COMPREHENSIVE INCOME [Member]	ACCUMULATED DEFICIT [Member]	Total
Balance at Dec. 31, 2020	$ 20,577	$ 116,216,966		$ (88,037,759)	$ 28,199,784
Balance (in shares) at Dec. 31, 2020	20,577,123
Issuance of common stock, net of fees	$ 3,566	20,170,882			20,174,448
Issuance of common stock, net of fees (in shares)	3,566,349
Exercise of common warrants	$ 20	22,410			22,430
Exercise of common warrants (in shares)	20,391
Stock-based compensation		2,965,692			2,965,692
Stock options exercised	$ 22	28,110			28,132
Stock options exercised (in shares)	21,138
Unrealized gain on marketable securities					0
Net loss				(20,022,520)	(20,022,520)
Balance at Dec. 31, 2021	$ 24,185	139,404,060		(108,060,279)	31,367,966
Balance (in shares) at Dec. 31, 2021	24,185,001
Issuance of common stock, net of fees	$ 831	4,802,703			4,803,534
Issuance of common stock, net of fees (in shares)	830,858
Stock-based compensation		4,458,578			4,458,578
Stock options exercised	$ 225	70,079			70,304
Stock options exercised (in shares)	225,543
Unrealized gain on marketable securities			$ 105,244		105,244
Net loss				(29,019,532)	(29,019,532)
Balance at Dec. 31, 2022	$ 25,241	$ 148,735,420	$ 105,244	$ (137,079,811)	$ 11,786,094
Balance (in shares) at Dec. 31, 2022	25,241,402

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (29,019,532)	$ (20,022,520)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Loss on disposal of fixed assets	34,266	7,905
Depreciation and amortization	533,131	245,697
Stock-based compensation	4,458,578	2,965,692
Forgiveness of debt	0	(318,160)
Changes in lease liabilities	161,740	48,395
Changes in operating assets and liabilities:
Receivables	(155,830)	(391,750)
Prepaid expenses and other current assets	240,045	(148,728)
Other assets	7,550	(187,021)
Accounts payable and accrued expenses	1,718,312	400,750
Accounts payable and accrued expenses, related party	(510,154)	590,416
Deferred revenue	27,448,531	0
Net cash provided by (used in) operating activities	4,916,637	(16,809,324)
Cash flows from investing activities:
Purchase of marketable securities	(114,218,737)	0
Proceeds from sales and maturities of marketable securities	82,505,961	0
Purchases of property and equipment	(2,000,243)	(1,196,286)
Payments for leasehold improvements	(1,359,488)	0
Net cash used in investing activities	(35,072,507)	(1,196,286)
Cash flows from financing activities:
Net proceeds from sale of common stock	4,803,534	20,174,448
Proceeds from exercise of stock awards	70,304	50,562
Net cash provided by financing activities	4,873,838	20,225,010
Net increase (decrease) in cash and cash equivalents	(25,282,032)	2,219,400
Cash and cash equivalents balance at beginning of period	34,885,274	32,665,874
Cash and cash equivalents balance at end of period	9,603,242	34,885,274
Supplemental disclosures of cash flow information:
Interest paid in cash	0	0
Income taxes paid in cash	$ 0	$ 0

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Capricor Therapeutics, Inc., a Delaware corporation (referred to herein as “Capricor Therapeutics” or the “Company” or “we”), is a clinical-stage biotechnology company focused on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with high unmet medical needs. Capricor, Inc. (“Capricor”), a wholly-owned subsidiary of Capricor Therapeutics, was founded in 2005 as a Delaware corporation based on the innovative work of its founder, Eduardo Marbán, M.D., Ph.D. After completion of a merger between Capricor and a subsidiary of Nile Therapeutics, Inc., a Delaware corporation (“Nile”), on November 20, 2013, Capricor became a wholly-owned subsidiary of Nile and Nile formally changed its name to Capricor Therapeutics, Inc. Capricor Therapeutics, together with its subsidiary, Capricor, has multiple drug and vaccine candidates in various stages of development. Basis of Consolidation Our consolidated financial statements include the accounts of the Company and our wholly-owned subsidiary. All intercompany transactions have been eliminated in consolidation. Reclassification Certain reclassification of prior period amounts has been made to conform to the current year presentation. Liquidity The Company has historically financed its research and development activities as well as operational expenses primarily from equity financings, government grants, and payments from distribution agreements and collaboration partners. Cash, cash equivalents, and marketable securities as of December 31, 2022 were approximately $41.4 million, compared to approximately $34.9 million as of December 31, 2021. In the first quarter of 2023, the Company expects to receive an upfront payment of $12.0 million from Nippon Shinyaku Co., Ltd., a Japanese corporation, (“Nippon Shinyaku”), in accordance with its Japan Exclusive Commercialization and Distribution Agreement (see Note 10 – “Subsequent Events”). Additionally, the Company has a Common Stock Sales Agreement in place with H.C. Wainwright & Co. LLC ("Wainwright") to create at-the-market equity programs under which the Company, from time to time, sells shares of its common stock (see Note 3 - "Stockholders' Equity"). The Company’s principal uses of cash are for research and development expenses, general and administrative expenses, capital expenditures and other working capital requirements. The Company’s future expenditures and capital requirements may be substantial and will depend on many factors, including, but not limited to, the following: ● the timing and costs associated with its research and development activities, clinical trials and preclinical studies, including the enrollment and progress of our ongoing HOPE-3 Phase III clinical study of CAP-1002 in DMD; ● the timing and costs associated with the manufacturing of our product candidates, including the expansion of our manufacturing capacity to support the potential commercialization of CAP-1002 for DMD; ● the timing and costs associated with potential commercialization of its product candidates; ● the number and scope of its research programs, including the expansion of our exosomes program; and ● the costs involved in prosecuting and enforcing patent claims and other intellectual property rights. The Company’s options for raising additional capital include potentially seeking additional financing primarily from, but not limited to, the sale and issuance of equity or debt securities, the licensing or sale of its technology and other assets, potential distribution and other partnering opportunities, and from government grants. The Company will require substantial additional capital to fund its operations. The Company cannot provide assurances that financing will be available when and as needed or that, if available, financing will be available on favorable or acceptable terms. If the Company is unable to obtain additional financing when and if required, it would have a material adverse effect on the Company’s business and results of operations. The Company would likely need to delay, curtail or terminate portions of its clinical trial programs. To the extent the Company issues additional equity securities, its existing stockholders would experience substantial dilution. Business Uncertainty Related to the Coronavirus The COVID-19 pandemic has presented a substantial public health and economic challenge around the world. Our business operations and financial condition and results have been impacted to varying degrees, and the impact may continue in future periods as we conduct our HOPE-3 trial and expand our exosomes-based research and development programs. We are continuing to assess and plan our development for the ongoing and potential impact of COVID-19 on our business, operations and financial condition and results. Despite careful tracking and planning, however, we are unable to accurately predict the extent of the impact of the pandemic on our business, results of operations and financial condition due to the uncertainty of future developments involving the pandemic and its impact on our employees and operations. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national and international markets. In light of uncertainties due to COVID-19 and its economic and other impacts and to uncertainties around the timing and availability of grant disbursements, the loss of revenue from the REGRESS and ALPHA trials as well as any potential equity and debt financings, the Company submitted for the Employee Retention Credit (“ERC”), a credit against certain payroll taxes allowed to an eligible employer for qualifying wages, which was established by the CARES Act. The Company has submitted $738,778 in ERC for applicable 2020 and 2021 periods, receiving $191,199 in 2021. As of December 31, 2022, the Company has recorded a receivable for $547,580 for the remainder of funds due. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Management uses its historical records and knowledge of its business in making these estimates. Accordingly, actual results may differ from these estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of less than 30 days at the date of purchase to be cash equivalents. Marketable Securities The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. All of the Company’s marketable securities are considered as available-for-sale and carried at estimated fair values. Realized gains and losses on the sale of debt and equity securities are determined using the specific identification method. Unrealized gains and losses on available-for-sale securities are excluded from net income (loss) and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. As of December 31, 2022, marketable securities consist primarily of short-term United States treasuries. Property and Equipment Property and equipment are stated at cost. Repairs and maintenance costs are expensed in the period incurred. Depreciation is computed using the straight-line method over the related estimated useful life of the asset, which such estimated useful lives range from five Property and equipment, net consisted of the following: December 31, December 31, 2022 2021 Furniture and fixtures $ 139,336 $ 43,123 Laboratory equipment 4,237,089 2,475,543 Leasehold improvements 1,393,230 33,742 5,769,655 2,552,408 Less accumulated depreciation (1,181,625) (756,712) Property and equipment, net $ 4,588,030 $ 1,795,696 Intangible Assets Amounts attributable to intellectual property consist primarily of the costs associated with the acquisition of certain technologies, patents, pending patents and related intangible assets with respect to research and development activities. Certain intellectual property assets are stated at cost and amortized on a straight-line basis over the respective estimated useful lives of the assets ranging from five The Company reviews goodwill and intangible assets at least annually for possible impairment. Goodwill and intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. No impairment was recorded for the years ended December 31, 2022 and 2021. Long-Lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with guidance issued by the FASB. Long-lived assets to be held and used are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable, or annually. No impairment related to long-lived assets was recorded for the years ended December 31, 2022 and 2021. Leases ASC Topic 842, “Leases” (“ASC 842”), requires lessees to recognize most leases on the balance sheet with a corresponding right-to-use asset (“ROU asset”). ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. ROU assets are evaluated for impairment using the long-lived assets impairment guidance. Leases will be classified as financing or operating, which will drive the expense recognition pattern. The Company elects to exclude short-term leases if and when the Company has them. The Company leases office and laboratory space, all of which are operating leases (see Note 7 - “Commitments and Contingencies”). Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. In addition, the Company’s lease agreements generally do not contain any residual value guarantees or restrictive covenants. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. For real estate leases, the Company has elected the practical expedient under ASC 842 to account for the lease and non-lease components together for existing classes of underlying assets and allocates the contract consideration to the lease component only. This practical expedient is not elected for manufacturing facilities and equipment embedded in product supply arrangements. Revenue Recognition The Company adopted ASU 606, Revenue for Contracts from Customers The revenue standard provides a five-step framework for recognizing revenue as control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that it determines are within the scope of the revenue standard, the Company performs the following five steps: (i) identify the contract; (ii) identify the performance obligations; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. At contract inception, the Company assesses whether the goods or services promised within each contract are distinct and, therefore, represent a separate performance obligation, or whether they are not distinct and are combined with other goods and services until a distinct bundle is identified. The Company then determines the transaction price, which typically includes upfront payments and any variable consideration that the Company determines is probable to not cause a significant reversal in the amount of cumulative revenue recognized when the uncertainty associated with the variable consideration is resolved. The Company then allocates the transaction price to each performance obligation and recognizes the associated revenue when, or as, each performance obligation is satisfied. The Company’s distribution agreements may entitle it to additional payments upon the achievement of milestones or royalties on sales. The milestones are generally categorized into three types: development milestones, regulatory milestones and sales-based milestones. The Company evaluates whether it is probable that the consideration associated with each milestone or royalty will not be subject to a significant reversal in the cumulative amount of revenue recognized. Amounts that meet this threshold are included in the transaction price using the most likely amount method, whereas amounts that do not meet this threshold are excluded from the transaction price until they meet this threshold. At the end of each subsequent reporting period, the Company re-evaluates the probability of a significant reversal of the cumulative revenue recognized for its milestones and royalties, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and net income (loss) in the Company’s consolidated statements of operation and comprehensive loss. Typically, milestone payments and royalties are achieved after the Company’s performance obligations associated with the distribution agreements have been completed and after the customer has assumed responsibility for the respective clinical program. Milestones or royalties achieved after the Company’s performance obligations have been completed are recognized as revenue in the period the milestone or royalty was achieved. If a milestone payment is achieved during the performance period, the milestone payment would be recognized as revenue to the extent performance had been completed at that point, and the remaining balance would be recorded as deferred revenue. The revenue standard requires the Company to assess whether a significant financing component exists in determining the transaction price. The Company performs this assessment at the onset of its distribution agreements. Typically, a significant financing component does not exist because the customer is paying for services in advance with an upfront payment. Additionally, future royalty payments are not substantially within the control of the Company or the customer. Whenever the Company determines that goods or services promised in a contract should be accounted for as a combined performance obligation over time, the Company determines the period over which the performance obligations will be performed and revenue will be recognized. Revenue is recognized using either the proportional performance method or on a straight-line basis if efforts will be expended evenly over time. Percentage of completion of patient visits in clinical trials are used as the measure of performance. The Company feels this method of measurement to be the best depiction of the transfer of services and recognition of revenue. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations. If the Company determines that the performance obligation is satisfied over time, any upfront payment received is initially recorded as deferred revenue on its consolidated balance sheets. Certain judgments affect the application of the Company’s revenue recognition policy. For example, the Company records short-term (less than one year) and long-term (over one year) deferred revenue based on its best estimate of when such revenue will be recognized. This estimate is based on the Company’s current operating plan and, the Company may recognize a different amount of deferred revenue over the next 12-month period if its plan changes in the future. The transaction price consists of variable sales-based royalties and fixed components in the form of an upfront payment and milestones. The timing of the fixed component of the transaction price is upfront, however, the performance obligation is satisfied over a period of time, the HOPE-3 clinical trial. Therefore, upon receipt of the upfront payment, a contract liability is recorded which represents deferred revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition. Grant Income Generally, government research grants that provide funding for research and development activities are recognized as income when the related expenses are incurred, as applicable. Because the terms of the grant award (the “CIRM Award”) from the California Institute for Regenerative Medicine (“CIRM”) allow Capricor to elect to convert the grant into a loan after the end of the project period, the CIRM Award is being classified as a liability rather than income (see Note 6 - “Government Grant Awards”). Grant income is due upon submission of a reimbursement request. The transaction price varies for grant income based on the expenses incurred under the awards. No grant income was recognized during the years ended December 31, 2022 and 2021. Miscellaneous Income Revenue is recognized in connection with the delivery of doses which were developed as part of our past research and development (“R&D”) efforts. Income is recorded when the Company has satisfied the obligations as identified in the contracts with the customer (see Note 9 – “Related Party Transactions”). Miscellaneous income is due upon billing. Miscellaneous income is based on contracts with fixed transaction prices. Miscellaneous income for the years ended December 31, 2022 and 2021 was zero and approximately $0.2 million, respectively. Income Taxes Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets are recognized for the future tax consequences of transactions that have been recognized in the Company’s financial statements or tax returns. A valuation allowance is provided when it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company uses guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position, and must assume that the tax position will be examined by taxing authorities. As of December 31, 2022, the Company had federal net operating loss carryforwards of approximately $129.6 million, available to reduce future taxable income, of which $73.7 million will begin to expire in 2027. The post December 31, 2017 net operating losses generated of $55.9 million will carryforward indefinitely, but may be subject to an 80% limitation upon utilization. As of December 31, 2022, the Company had state net operating loss carryforwards of approximately $143.8 million, available to reduce future taxable income, which will begin to expire in 2028. Utilization of these net operating losses could be limited under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and similar state laws based on ownership changes and the value of the Company’s stock. Additionally, currently, the Company has approximately $5.6 million of federal research and development credits and approximately $2.5 million of federal orphan drug credits, available to offset future taxable income. These federal research and development and orphan drug credits begin to expire in 2033 and 2035, respectively. Additionally, the Company currently has approximately $1.7 million of California research and development credits available to offset future taxable income which will carryforward indefinitely. Utilization of these credits could be limited under Section 383 of the Code and similar state laws based on ownership changes and the value of the Company’s stock. Under Section 382 of the Code, the Company’s ability to utilize NOL carryforwards or other tax attributes, such as federal tax credits, in any taxable year may be limited if the Company has experienced an “ownership change.” Generally, a Section 382 ownership change occurs if one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period. Similar rules may apply under state tax laws. We have experienced an ownership change that we believe under Section 382 of the Code will result in limitation in our ability to utilize net operating losses and credits. In addition, the Company may experience future ownership changes as a result of future offerings or other changes in ownership of its stock. As a result, the amount of the NOLs and tax credit carryforward presented in the financial statement could be limited and may expire unutilized. The Company’s net operating loss carryforwards are subject to Internal Revenue Service (“IRS”) examination until they are fully utilized and such tax years are closed. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company incurred no interest or penalties for the years ended December 31, 2022 and 2021. The Company files income tax returns with the IRS and the California Franchise Tax Board. Research and Development Costs relating to the design and development of new products are expensed as research and development as incurred in accordance with Financial Accounting Standards Board (“FASB”) ASC 730-10, Research and Development Comprehensive Income (Loss) Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company’s comprehensive loss was approximately $28.9 million and $20.0 million for the years ended December 31, 2022 and 2021, respectively. The Company’s other comprehensive income (loss) is related to a net unrealized gain (loss) on marketable securities. For the years ended December 31, 2022 and 2021, the Company’s other comprehensive income was $105,244 and zero, respectively. Clinical Trial Expense As part of the process of preparing our consolidated financial statements, we are required to estimate our accrued expenses. Our clinical trial accrual process is designed to account for expenses resulting from our obligations under contracts with vendors, consultants, contract research organizations (“CROs”), and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. Our objective is to reflect the appropriate clinical trial expenses in our consolidated financial statements by matching the appropriate expenses with the period in which services are provided and efforts are expended. We account for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. We determine accrual estimates through financial models that take into account discussions with applicable personnel and outside service providers as to the progress or state of completion of trials, or the services completed. During the course of a clinical trial, we adjust our clinical expense recognition if actual results differ from our estimates. We make estimates of our accrued expenses as of each balance sheet date in our consolidated financial statements based on the facts and circumstances known to us at that time. Our clinical trial accrual and prepaid assets are dependent, in part, upon the receipt of timely and accurate reporting from CROs and other third-party vendors. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low for any particular period. Stock-Based Compensation The Company accounts for stock-based employee compensation arrangements in accordance with guidance issued by the FASB, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants, and directors based on estimated fair values. The Company estimates the fair value of stock-based compensation awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s statements of operations and comprehensive loss. The Company estimates the fair value of stock-based compensation awards using the Black-Scholes model. This model requires the Company to estimate the expected volatility and value of its common stock and the expected term of the stock options, all of which are highly complex and subjective variables. The variables take into consideration, among other things, actual and projected stock option exercise behavior. For employees and directors, the expected life was calculated based on the simplified method as described by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment. For other service providers, the expected life was calculated using the contractual term of the award. The Company’s estimate of expected volatility was based on the historical stock price of the Company. The Company has selected a risk-free rate based on the implied yield available on U.S. Treasury securities with a maturity equivalent to the expected term of the options. Basic and Diluted Loss per Share The Company reports earnings per share in accordance with FASB ASC 260-10, Earnings per Share. For the years ended December 31, 2022 and 2021, warrants and options to purchase 5,882,621 and 3,899,606 shares of common stock, respectively, have been excluded from the computation of potentially dilutive securities. Potentially dilutive common shares, which primarily consist of stock options issued to employees, consultants, and directors as well as warrants issued, have been excluded from the diluted loss per share calculation because their effect is anti-dilutive. Because the impact of these items is anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per share for the years ended December 31, 2022 and 2021. Fair Value Measurements Assets and liabilities recorded at fair value in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following table summarizes the fair value measurements by level at December 31, 2022 for assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level I Level II Level III Total Marketable Securities $ 31,818,020 $ — $ — $ 31,818,020 Carrying amounts reported in the balance sheet of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to their relatively short maturity. The carrying amounts of the Company’s marketable securities are based on market quotations from national exchanges at the balance sheet date. Interest and dividend income are recognized separately on the income statement based on classifications provided by the brokerage firm holding the investments. The fair value of borrowings is not considered to be significantly different from its carrying amount because the stated rates for such debt reflect current market rates and conditions. Recent Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statement presentation or disclosures.

NOTE PAYABLE

NOTE PAYABLE	12 Months Ended
NOTE PAYABLE	Dec. 31, 2022
NOTE PAYABLE
NOTE PAYABLE	2. NOTE PAYABLE Paycheck Protection Program Loan In 2020, Capricor applied to City National Bank ("CNB") under the SBA Paycheck Protection Program of the CARES Act for the Loan in the amount of $318,160. The Loan was approved and Capricor received the Loan proceeds, which were used for covered payroll costs in accordance with the relevant terms and conditions of the CARES Act. In the second quarter of 2021, the Loan was forgiven, and the Company recognized a gain of $318,160 on the forgiveness.

STOCKHOLDER'S EQUITY

STOCKHOLDER'S EQUITY	12 Months Ended
STOCKHOLDER'S EQUITY	Dec. 31, 2022
STOCKHOLDER'S EQUITY
STOCKHOLDER'S EQUITY	3. STOCKHOLDERS’ EQUITY ATM Programs and Other Offerings The Company has established multiple “at-the-market” (“ATM”), programs pursuant to a Common Stock Sales Agreement with Wainwright by which Wainwright sold and may continue to sell our common stock at the market prices prevailing at the time of sale. Wainwright is entitled to compensation for its services at a commission rate of 3.0% of the gross sales price per share of common stock sold plus reimbursement of certain expenses. These programs are referred to below as the “May 2020 ATM Program” and the “June 2021 ATM Program” based on when each program was initiated. May 2020 ATM Program On May 4, 2020, the Company initiated the May 2020 ATM Program. The Company established the May 2020 ATM Program with an aggregate offering price of up to $40.0 million. From May 4, 2020 through June 21, 2021, the Company sold an aggregate of 6,027,852 shares of common stock under the May 2020 ATM Program at an average price of approximately $6.15 per share for gross proceeds of approximately $37.1 million. The Company paid cash commissions on the gross proceeds, plus reimbursement of expenses to Wainwright, as well as legal and accounting fees in the aggregate amount of approximately $1.2 million. As of June 21, 2021, the May 2020 ATM Program expired and was replaced with the June 2021 ATM Program described below. June 2021 ATM Program On June 21, 2021, the Company initiated the June 2021 ATM Program. The Company established the June 2021 ATM Program with an aggregate offering price of up to $75.0 million. From June 21, 2021 through December 31, 2022, the Company sold an aggregate of 2,098,333 shares of common stock under the June 2021 ATM Program at an average price of approximately $5.93 per share for gross proceeds of approximately $12.4 million. The Company paid cash commissions on the gross proceeds, plus reimbursement of expenses to Wainwright, as well as legal and accounting fees in the aggregate amount of approximately $0.4 million. Subsequent to December 31, 2022 and through the date of this filing, no additional shares have been sold under the June 2021 ATM Program. Outstanding Shares At December 31, 2022, the Company had 25,241,402 shares of common stock issued and outstanding

STOCK AWARDS, WARRANTS AND OPTI

STOCK AWARDS, WARRANTS AND OPTIONS	12 Months Ended
STOCK AWARDS, WARRANTS AND OPTIONS	Dec. 31, 2022
STOCK AWARDS, WARRANTS AND OPTIONS
STOCK AWARDS, WARRANTS AND OPTIONS	4. STOCK AWARDS, WARRANTS AND OPTIONS Warrants The following table summarizes all warrant activity for the years ended December 31, 2022 and 2021: Weighted Average Warrants Exercise Price Outstanding at January 1, 2021 126,173 $ 1.32 Granted — — Exercised (20,391) 1.10 Outstanding at December 31, 2021 105,782 $ 1.37 Granted — — Exercised — — Outstanding at December 31, 2022 105,782 $ 1.37 The following table summarizes all outstanding warrants to purchase shares of the Company’s common stock: Warrants Outstanding December 31, December 31, Exercise Price Expiration Type Grant Date 2022 2021 per Share Date Common Warrants 12/19/2019 40,782 40,782 $ 1.10 12/19/2024 Common Warrants 3/27/2020 65,000 65,000 $ 1.5313 3/27/2025 105,782 105,782 Stock Options The Company’s Board of Directors (the “Board”) has approved five stock option plans: (i) the 2006 Stock Option Plan, (ii) the 2012 Restated Equity Incentive Plan (which superseded the 2006 Stock Option Plan) (the “2012 Plan”), (iii) the 2012 Non-Employee Director Stock Option Plan (the “2012 Non-Employee Director Plan”), (iv) the 2020 Equity Incentive Plan (the “2020 Plan”), and (v) the 2021 Equity Incentive Plan (the “2021 Plan”). At this time, the Company only issues options under the 2020 Plan and the 2021 Plan. In September 2012, the Board approved the 2012 Non-Employee Director Plan, which authorized 269,731 shares of common stock, reserved for issuance of non-qualified options to members of the Board who are not employees of the Company. The 2012 Non-Employee Director Plan expired in September 2022, therefore, no additional stock option awards may be granted from the 2012 Non-Employee Director Plan. In November 2012, the Board approved the 2012 Plan, which superseded the 2006 Stock Option Plan. Under the 2012 Plan, the Company may grant stock options, stock appreciation rights, restricted stock awards, and performance/unit share awards to employees, consultants and other service providers. Pursuant to the 2012 Plan, inclusive of annual evergreen provisions and amendments, the Company is authorized to issue 710,142 shares of common stock. The 2012 Plan expired in November 2022. In June 2020, the Company’s stockholders approved the 2020 Equity Incentive Plan (the “2020 Plan”), which authorized 2,500,000 shares of common stock to be issued and allows for the grant of stock options as well as other forms of equity-based compensation. Pursuant to the “evergreen” provision, on January 1, 2021, 823,084 shares were added under the 2020 Plan. Once the 2021 Plan was approved on June 11, 2021, no new shares have been or will be added to the share reserve under the 2020 Plan pursuant to its “evergreen” provisions. In June 2021, the Company’s stockholders approved the 2021 Plan, which authorized 3,500,000 shares of common stock reserved under the 2021 Plan for the issuance of stock awards. The number of shares available for issuance under the 2021 Plan shall be automatically increased on January 1 of each year, commencing with January 1, 2022, by an amount equal to 5% of the outstanding shares of Common Stock as of the last day of the immediately preceding fiscal year. On January 1, 2023 and 2022, 1,262,070 and 1,209,250 shares were added under the 2021 Plan, respectively. As of December 31, 2022, 2,603,218 options remain available for issuance under the respective stock option plans. Each of the Company’s stock option plans are administered by the Board, or the compensation committee of the Board, which determines the recipients and types of awards to be granted, as well as the number of shares subject to the awards, the exercise price and the vesting schedule. Each stock option granted will be designated in the award agreement as either an incentive stock option or a nonstatutory stock option. Notwithstanding such designation, however, to the extent that the aggregate fair market value of the shares with respect to which incentive stock options are exercisable for the first time by the participant during any calendar year (under all plans of the Company and any parent or subsidiary) exceeds $100,000, such options will be treated as nonstatutory stock options. Stock options are granted with an exercise price equal to the closing price of the Company’s common stock on the date of grant, and generally vest over a period of one The estimated weighted average fair value of the options granted during 2022 and 2021 were approximately $3.04 and $3.45 per share, respectively. The Company estimates the fair value of each option award using the Black-Scholes option-pricing model, with the following assumptions: Year ended December 31, 2022 2021 Expected volatility 123 - 124 % 123 - 124 % Expected term 6 - 7 years 6 years Dividend yield 0 % 0 % Risk-free interest rates 1.5 - 3.9 % 0.5 - 1.1 % Employee and non-employee stock-based compensation expense was as follows: Year ended December 31, 2022 2021 General and administrative $ 3,653,489 $ 2,566,883 Research and development 805,089 398,809 Total $ 4,458,578 $ 2,965,692 The Company does not recognize an income tax benefit as the Company believes that an actual income tax benefit may not be realized. For non-qualified stock options, the loss creates a timing difference, resulting in a deferred tax asset, which is fully reserved by a valuation allowance. Common stock, stock options or other equity instruments issued to non-employees (including consultants) as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. The fair value of stock options is determined using the Black-Scholes option-pricing model. The Company calculates the fair value for non-qualified options as of the date of grant and expenses over the applicable vesting periods. We account for forfeitures upon occurrence. The following table summarizes information about stock options outstanding and exercisable at December 31, 2022: Options Outstanding Weighted Average Weighted Average Range of Ex. Prices Options Outstanding Term (yrs.) Exercise Price $1.39 1,682,707 6.40 $ 1.39 $2.54 - $3.74 3,539,132 8.70 $ 3.40 $4.37 - $6.30 555,000 8.82 $ 5.04 5,776,839 $ 2.97 Options Exercisable Weighted Average Weighted Average Range of Ex. Prices Options Exercisable Term (yrs.) Exercise Price $1.39 1,283,217 6.18 $ 1.39 $2.54 - $3.74 1,058,536 8.43 $ 3.51 $4.37 - $6.30 142,534 8.26 $ 5.15 2,484,287 $ 2.51 As of December 31, 2022, the total unrecognized fair value compensation cost related to non-vested stock options was approximately $10.1 million, which is expected to be recognized over a weighted average period of approximately 1.3 years. The following is a schedule summarizing employee and non-employee stock option activity for the years ended December 31, 2022 and 2021: Number of Weighted Average Aggregate Options Exercise Price Intrinsic Value Outstanding at January 1, 2021 2,361,873 $ 1.89 Granted 1,636,324 3.95 Exercised (21,338) 1.39 $ 51,044 Expired/Cancelled (183,035) 3.84 Outstanding at December 31, 2021 3,793,824 $ 2.68 Granted 2,817,370 3.46 Exercised (325,667) 1.37 $ 867,854 Expired/Cancelled (508,688) 4.55 Outstanding at December 31, 2022 5,776,839 $ 2.97 $ 5,773,788 Exercisable at December 31, 2022 2,484,287 $ 2.51 $ 3,540,034 The aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s common stock for each of the respective periods.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
CONCENTRATIONS	Dec. 31, 2022
CONCENTRATIONS
CONCENTRATIONS	5. CONCENTRATIONS Concentration of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash, cash equivalents, and marketable securities. The Company has historically maintained accounts at two financial institutions. These accounts are each insured by the Federal Deposit Insurance Corporation (the “FDIC”) for up to $250,000. The Company’s cash, cash equivalents, and marketable securities in excess of the FDIC insured limits as of December 31, 2022, were approximately $41.1 million. Historically, the Company has not experienced any significant losses in such accounts and does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held.

GOVERNMENT GRANT AWARDS

GOVERNMENT GRANT AWARDS	12 Months Ended
GOVERNMENT GRANT AWARDS	Dec. 31, 2022
GOVERNMENT GRANT AWARDS
GOVERNMENT GRANT AWARDS	6. GOVERNMENT GRANT AWARDS CIRM Grant Award (HOPE) On June 16, 2016, Capricor entered into the CIRM Award with CIRM in the amount of approximately $3.4 million to fund, in part, Capricor’s Phase I/II HOPE-Duchenne clinical trial investigating CAP-1002 for the treatment of Duchenne muscular dystrophy-associated cardiomyopathy. Pursuant to terms of the CIRM Award, the disbursements were tied to the achievement of specified operational milestones. In addition, the terms of the CIRM Award included a co-funding requirement pursuant to which Capricor was required to spend approximately $2.3 million of its own capital to fund the CIRM funded research project. The CIRM Award is further subject to the conditions and requirements set forth in the CIRM Grants Administration Policy for Clinical Stage Projects. Such requirements include, without limitation, the filing of quarterly and annual reports with CIRM, the sharing of intellectual property pursuant to Title 17, California Code of Regulations (CCR) Sections 100600-100612, and the sharing with the State of California of a fraction of licensing revenue received from a CIRM funded research project and net commercial revenue from a commercialized product which resulted from the CIRM funded research as set forth in Title 17, CCR Section 100608. The maximum royalty on net commercial revenue that Capricor may be required to pay to CIRM is equal to nine times the total amount awarded and paid to Capricor. After completing the CIRM funded research project and at any time after the award period end date (but no later than the ten-year anniversary of the date of the award), Capricor has the right to convert the CIRM Award into a loan, the terms of which will be determined based on various factors, including the stage of the research and development of the program at the time the election is made. On June 20, 2016, Capricor entered into a Loan Election Agreement with CIRM whereby, among other things, CIRM and Capricor agreed that if Capricor elects to convert the grant into a loan, the term of the loan could be up to five years from the date of execution of the applicable loan agreement; provided that the maturity date of the loan will not surpass the ten-year anniversary of the grant date of the CIRM Award. Beginning on the date of the loan, the loan shall bear interest on the unpaid principal balance, plus the interest that has accrued prior to the election point according to the terms set forth in CIRM’s Loan Policy (the “New Loan Balance”), at a per annum rate equal to the LIBOR rate for a three-month deposit in U.S. dollars, as published by the Wall Street Journal on the loan date, plus one percent. Interest shall be compounded annually on the outstanding New Loan Balance commencing with the loan date and the interest shall be payable, together with the New Loan Balance, upon the due date of the loan. If Capricor elects to convert the CIRM Award into a loan, certain requirements of the CIRM Award will no longer be applicable, including the revenue sharing requirements. Capricor has not yet made its decision as to whether it will elect to convert the CIRM Award into a loan. If we elect to do so, Capricor would be required to repay some or all of the amounts awarded by CIRM; therefore, the Company accounts for this award as a liability rather than income. In 2019, Capricor completed all milestones and close-out activities associated with the CIRM Award and expended all funds received. As of December 31, 2022 and 2021, Capricor’s liability balance for the CIRM Award was approximately $3.4 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES Short-Term Operating Leases Capricor leases office space in Beverly Hills, California from The Bubble Real Estate Company, LLC ("Bubble Real Estate") pursuant to a lease beginning in 2013. Capricor subsequently entered into several amendments modifying certain terms of the lease. Effective January 1, 2021, we entered into a month-to-month lease amendment with the Bubble Real Estate. The monthly lease payment was $13,073. In November 2021, Capricor entered into an amendment to the lease pursuant to which the square footage of the premises was reduced with a monthly lease payment of $5,548 per month commencing November 1, 2021. In July 2022, Capricor added additional office space increasing the monthly lease payment to $7,869 per month. The lease is terminable by either party upon 90 days’ written notice to the other party. Expenses incurred under short-term operating leases for the years ended December 31, 2022 and 2021 were $81,735 and $141,923, respectively. Long-Term Operating Leases Capricor leases facilities in Los Angeles, California from Cedars-Sinai Medical Center (“CSMC”), a related party (see Note 9 – “Related Party Transactions”), pursuant to a lease (the “Facilities Lease”) beginning in 2014. Capricor has subsequently entered into several amendments modifying certain terms of the lease. In July 2020, Capricor exercised its option to extend the term of the Facilities Lease for an additional 12-month period through July 31, 2021 with a monthly lease payment of $15,805. In July 2021, Capricor exercised its option to extend the term of the Facilities Lease for an additional 12-month period through July 31, 2022 with a monthly lease payment of $10,707. In July 2022, we entered into an amendment for an additional 24-month period extending the term through July 31, 2024 with a monthly lease payment of $10,707. The Company entered into a lease agreement commencing October 1, 2021 with Altman Investment Co, LLC (“Altman”) for 9,396 square feet of office and laboratory space located at 10865 Road to the Cure, Suite 150, in San Diego, California. Under the terms of the lease, the base rent will be $48,859 per month, for which the Company received certain rent abatements during the initial year. Additionally, the rent is subject to a 3.0% annual rent increase during the initial lease term of five years, plus certain operating expenses and taxes. The lease contains an option for Capricor to renew for an additional term of five years. Effective July 1, 2022 the Company entered into an amendment to the lease increasing the square footage to 9,485 square feet with a monthly lease payment of $49,322 per month. In November 2022, we entered into an amendment increasing the square footage to 9,605 square feet with a new monthly lease payment of $51,444 per month effective December 1, 2022. Effective November 1, 2021, the Company entered into a vivarium agreement with Explora BioLabs, Inc. (“Explora”), a Charles River Company, for vivarium space and services. Under the terms of the agreement, the base rent will be $4,021 per month for an exclusive large vivarium room located in San Diego, California. The lease term is for one-year and will automatically renew for additional successive one-year renewal terms unless either party provides the other party with 60-day written notice prior to the end of the then-current term. In December 2022, we were notified by Explora of a monthly rent escalation of 4.5% for a base rent of approximately $4,202 per month effective January 1, 2023. For ASC 842 purposes, we applied a lease term of five years. The long-term real estate operating leases are included in “lease right-of-use assets, net” on the Company’s Consolidated Balance Sheet and represent the Company’s right-to-use the underlying assets for the lease term. The Company’s obligation to make lease payments are included in “lease liabilities, current” and “lease liabilities, net of current” on the Company’s Consolidated Balance Sheet. The table below excludes short-term operating leases. The following table summarizes maturities of lease liabilities and the reconciliation of lease liabilities as of December 31, 2022: 2023 $ 798,688 2024 763,814 2025 708,087 2026 546,138 Total minimum lease payments 2,816,727 Less: imputed interest (256,618) Total operating lease liabilities $ 2,560,109 Included in the consolidated balance sheet: Current portion of lease liabilities $ 682,039 Lease liabilities, net of current 1,878,070 Total operating lease liabilities $ 2,560,109 Other Information: Weighted average remaining lease term 3.59 years Weighted average discount rate 5.18% As of December 31, 2022, ROU assets for operating leases were approximately $2.3 million and operating lease liabilities were approximately $2.6 million. The following table contains a summary of the lease costs recognized and lease payments pertaining to the Company’s operating leases under ASC 842 for the period indicated: Year ended December 31, 2022 2021 Lease costs, unrelated parties $ 632,689 $ 129,726 Lease costs, related parties 128,478 — Lease payments, unrelated parties 470,950 81,331 Lease payments, related parties 128,478 — Legal Contingencies The Company is not a party to any material legal proceedings at this time. From time to time, the Company may become involved in various legal proceedings that arise in the ordinary course of its business or otherwise. Accounts Payable During the normal course of business, disputes with vendors may arise. If a vendor disputed payment is probable and able to be estimated, we will record an estimated liability. Other Funding Commitments The Company is a party to various agreements, principally relating to licensed technology, that require future payments relating to milestones that may be met in subsequent periods or royalties on future sales of specific products (see Note 8 - "License and Distribution Agreements"). Additionally, the Company is a party to various agreements with contract research and/or manufacturing organizations that generally provide for termination upon notice, with the exact amounts owed in the event of termination to be based on the timing of termination and the terms of the agreement. Employee Severances The Board of Directors approved severance packages for specific full-time employees based on their length of service and position ranging up to six months of their base salaries, in the event of termination of their employment, subject to certain conditions. No liability under these severance packages has been recorded as of December 31, 2022.

LICENSE AND DISTRIBUTION AGREEM

LICENSE AND DISTRIBUTION AGREEMENTS	12 Months Ended
LICENSE AND DISTRIBUTION AGREEMENTS	Dec. 31, 2022
LICENSE AGREEMENTS
LICENSE AND DISTRIBUTION AGREEMENTS	8. LICENSE AND DISTRIBUTION AGREEMENTS Intellectual Property Rights for Capricor’s Technology - CAP-1002 and Exosomes Capricor has entered into exclusive license agreements for intellectual property rights related to certain cardiac-derived cells with Università Degli Studi Di Roma La Sapienza (the “University of Rome”), JHU and CSMC. Capricor has also entered into an exclusive license agreement for intellectual property rights related to exosomes with CSMC and JHU. In addition, Capricor has filed patent applications related to the technology developed by its own scientists. University of Rome License Agreement Capricor and the University of Rome entered into a License Agreement, dated June 21, 2006 (the “Rome License Agreement”), which provides for the grant of an exclusive, world-wide, royalty-bearing license by the University of Rome to Capricor (with the right to sublicense) to develop and commercialize licensed products under the licensed patent rights in all fields. Pursuant to the Rome License Agreement, Capricor paid the University of Rome a license issue fee, is currently paying minimum annual royalties in the amount of 20,000 Euros per year, and is obligated to pay a lower-end of a mid-range double-digit percentage on all royalties received as a result of sublicenses granted, which are net of any royalties paid to third parties under a license agreement from such third party to Capricor. The minimum annual royalties are creditable against future royalty payments. The Rome License Agreement will, unless extended or sooner terminated, remain in effect until the later of the last claim of any patent or until any patent application comprising licensed patent rights has expired or been abandoned. Under the terms of the Rome License Agreement, either party may terminate the agreement should the other party become insolvent or file a petition in bankruptcy. Either party may terminate the agreement upon the other party’s material breach, provided that the breaching party will have up to 90 days to cure its material breach. Capricor may also terminate for any reason upon 90 days’ written notice to the University of Rome. The Johns Hopkins University License Agreements License Agreement for CDCs Capricor and JHU entered into an Exclusive License Agreement, effective June 22, 2006 (the “JHU License Agreement”), which provides for the grant of an exclusive, world-wide, royalty-bearing license by JHU to Capricor (with the right to sublicense) to develop and commercialize licensed products and licensed services under the licensed patent rights in all fields and a nonexclusive right to the know-how. Various amendments were entered into to revise certain provisions of the JHU License Agreement. Under the JHU License Agreement, Capricor is required to exercise commercially reasonable and diligent efforts to develop and commercialize licensed products covered by the licenses from JHU. Pursuant to the JHU License Agreement, JHU was paid an initial license fee and, thereafter, Capricor is required to pay minimum annual royalties on the anniversary dates of the JHU License Agreement. The minimum annual royalties are creditable against a low single-digit running royalty on net sales of products and net service revenues, which Capricor is also required to pay under the JHU License Agreement, which running royalty may be subject to further reduction in the event that Capricor is required to pay royalties on any patent rights to third parties in order to make or sell a licensed product. In addition, Capricor is required to pay a low double-digit percentage of the consideration received by it from sublicenses granted and is required to pay JHU certain defined development milestone payments upon the successful completion of certain phases of its clinical studies and upon receiving approval from the FDA. The maximum aggregate amount of milestone payments payable under the JHU License Agreement, as amended, is $1,850,000. In March 2022, Capricor paid the $250,000 development milestone related to the Phase II study pursuant to the terms of the JHU License Agreement. The next milestone is triggered upon successful completion of a full Phase III study for which a payment of $500,000 will be due. The JHU License Agreement will, unless sooner terminated, continue in effect in each applicable country until the date of expiration of the last to expire patent within the patent rights, or, if no patents are issued, then for twenty years from the effective date. Under the terms of the JHU License Agreement, either party may terminate the agreement should the other party become insolvent or file a petition in bankruptcy, or fail to cure a material breach within 30 days after notice. In addition, Capricor may terminate for any reason upon 60 days’ written notice. License Agreement for Exosome-based Vaccines and Therapeutics Capricor and JHU entered into an Exclusive License Agreement (the “JHU Exosome License Agreement”), effective April 28, 2021 for its co-owned interest in certain intellectual property rights related to exosome-mRNA vaccines and therapeutics. The JHU Exosome License Agreement provides for the grant of an exclusive, world-wide, royalty-bearing license of JHU’s co-owned rights by JHU to Capricor, with the right to sublicense, in order to conduct research using the patent rights and know-how and to develop and commercialize products in the field using the patent rights and know-how. Pursuant to the JHU Exosome License Agreement, JHU was paid an upfront license fee of $10,000 and Capricor has agreed to reimburse JHU for certain fees and costs incurred in connection with the prosecution of certain patent rights. Additionally, Capricor is required to meet certain development milestones for which a milestone payment fee shall be due and is obligated to pay low single-digit royalties on sales of royalty-bearing products as well as a double-digit percentage of any non-royalty consideration received from any sublicenses, subject to certain exclusions. The above-mentioned royalties are subject to reduction in the event Capricor becomes obligated to pay royalties on one or more third party patents as a requirement to make or sell a licensed product. In addition, Capricor will, beginning with the third year of the JHU Exosome License Agreement, be obligated to pay JHU a minimum annual royalty which is non-refundable but will be credited against royalties incurred by Capricor for the year in which the minimum annual royalty becomes due. The JHU Exosome License Agreement will, unless sooner terminated, continue in each country until the date of expiration of the last to expire patent included within the patent rights in that country, or if no patents issue, then for 20 years. The JHU Exosome License Agreement may be terminated by Capricor upon 90 days’ written notice in its discretion and with 60 days’ notice with respect to any particular patent or application or as to any particular licensed product. The JHU Exosome License Agreement may also be terminated by either party if the other party fails to perform or otherwise breaches any of its obligations and fails to cure such breach within a 60-day cure period commencing upon notice. A material breach by Capricor may include (a) a delinquency with respect to payment or reporting; (b) the failure by Capricor to timely achieve a specified milestone or otherwise failing to diligently develop, commercialize, and sell licensed products throughout the term of the JHU Exosome License Agreement; (c) non-compliance with record keeping or audit obligations; (d) voluntary bankruptcy or insolvency of Capricor; and (e) non-compliance with Capricor’s insurance obligations. Cedars-Sinai Medical Center License Agreements License Agreement for CDCs On January 4, 2010, Capricor entered into an Exclusive License Agreement with CSMC (the “Original CSMC License Agreement”), for certain intellectual property related to its CDC technology. In 2013, the Original CSMC License Agreement was amended twice resulting in, among other things, a reduction in the percentage of sublicense fees which would have been payable to CSMC. Effective December 30, 2013, Capricor entered into an Amended and Restated Exclusive License Agreement with CSMC (the “Amended CSMC License Agreement”), which amended, restated, and superseded the Original CSMC License Agreement, pursuant to which, among other things, certain definitions were added or amended, the timing of certain obligations was revised and other obligations of the parties were clarified. The Amended CSMC License Agreement provides for the grant of an exclusive, world-wide, royalty-bearing license by CSMC to Capricor (with the right to sublicense) to conduct research using the patent rights and know-how and develop and commercialize products in the field using the patent rights and know-how. In addition, Capricor has the exclusive right to negotiate for an exclusive license to any future rights arising from related work conducted by or under the direction of Dr. Eduardo Marbán on behalf of CSMC. In the event the parties fail to agree upon the terms of an exclusive license for any future rights, Capricor will have a non-exclusive license to such future rights, subject to royalty obligations. Pursuant to the Original CSMC License Agreement, CSMC was paid a license fee and Capricor was obligated to reimburse CSMC for certain fees and costs incurred in connection with the prosecution of certain patent rights. Additionally, Capricor is required to meet certain spending and development milestones. Pursuant to the Amended CSMC License Agreement, Capricor remains obligated to pay low single-digit royalties on sales of royalty-bearing products as well as a low double-digit percentage of the consideration received from any sublicenses or other grant of rights. The above-mentioned royalties are subject to reduction in the event Capricor becomes obligated to obtain a license from a third party for patent rights in connection with the royalty-bearing product. The Amended CSMC License Agreement will, unless sooner terminated, continue in effect on a country by country basis until the last to expire of the patents covering the patent rights or future patent rights. Under the terms of the Amended CSMC License Agreement, unless waived by CSMC, the agreement shall automatically terminate: (i) if Capricor ceases, dissolves or winds up its business operations; (ii) in the event of the insolvency or bankruptcy of Capricor or if Capricor makes an assignment for the benefit of its creditors; (iii) if performance by either party jeopardizes the licensure, accreditation or tax exempt status of CSMC or the agreement is deemed illegal by a governmental body; (iv) within 30 days for non-payment of royalties; (v) after 90 days’ notice from CSMC if Capricor fails to undertake commercially reasonable efforts to exploit the patent rights or future patent rights; (vi) if a material breach has not been cured within 90 days; or (vii) if Capricor challenges any of the CSMC patent rights. If Capricor fails to undertake commercially reasonable efforts to exploit the patent rights or future patent rights, and fails to cure that breach after 90 days’ notice from CSMC, instead of terminating the license, CSMC has the option to convert any exclusive license to Capricor to a non-exclusive or co-exclusive license. Capricor may terminate the agreement if CSMC fails to cure any material breach within 90 days after notice. On March 20, 2015, August 5, 2016, December 26, 2017, June 20, 2018, and July 27, 2021, Capricor and CSMC entered into a number of amendments to the Amended CSMC License Agreement, pursuant to which the parties agreed to add and delete certain patent applications from the list of scheduled patents, among other things. Capricor reimbursed CSMC for certain attorneys’ fees and filing fees incurred in connection with the additional patent applications. License Agreement for Exosomes On May 5, 2014, Capricor entered into an Exclusive License Agreement with CSMC (the “Exosomes License Agreement”), for certain intellectual property rights related to CDC-derived exosomes technology. The Exosomes License Agreement provides for the grant of an exclusive, world-wide, royalty-bearing license by CSMC to Capricor (with the right to sublicense) in order to conduct research using the patent rights and know-how and to develop and commercialize products in the field using the patent rights and know-how. In addition, Capricor has the exclusive right to negotiate for an exclusive license to any future rights arising from related work conducted by or under the direction of Dr. Eduardo Marbán on behalf of CSMC. In the event the parties fail to agree upon the terms of an exclusive license, Capricor shall have a non-exclusive license to such future rights, subject to royalty obligations. Pursuant to the Exosomes License Agreement, CSMC was paid a license fee and Capricor reimbursed CSMC for certain fees and costs incurred in connection with the preparation and prosecution of certain patent applications. Additionally, Capricor is required to meet certain non-monetary development milestones and is obligated to pay low single-digit royalties on sales of royalty-bearing products as well as a single-digit percentage of the consideration received from any sublicenses or other grant of rights. The above-mentioned royalties are subject to reduction in the event Capricor becomes obligated to obtain a license from a third party for patent rights in connection with the royalty bearing product. The Exosomes License Agreement will, unless sooner terminated, continue in effect on a country by country basis until the last to expire of the patents covering the patent rights or future patent rights. Under the terms of the Exosomes License Agreement, unless waived by CSMC, the agreement shall automatically terminate: (i) if Capricor ceases, dissolves or winds up its business operations; (ii) in the event of the insolvency or bankruptcy of Capricor or if Capricor makes an assignment for the benefit of its creditors; (iii) if performance by either party jeopardizes the licensure, accreditation or tax exempt status of CSMC or the agreement is deemed illegal by a governmental body; (iv) within 30 days for non-payment of royalties; (v) after 90 days if Capricor fails to undertake commercially reasonable efforts to exploit the patent rights or future patent rights; (vi) if a material breach has not been cured within 90 days; or (vii) if Capricor challenges any of the CSMC patent rights. If Capricor fails to undertake commercially reasonable efforts to exploit the patent rights or future patent rights, and fails to cure that breach after 90 days’ notice from CSMC, instead of terminating the license, CSMC has the option to convert any exclusive license to Capricor to a non-exclusive or co-exclusive license. Capricor may terminate the agreement if CSMC fails to cure any material breach within 90 days after notice. On February 27, 2015, June 10, 2015, August 5, 2016, December 26, 2017, June 20, 2018, September 25, 2018, August 19, 2020, August 28, 2020, and March 19, 2021, Capricor and CSMC entered into a number of amendments to the Exosomes License Agreement. Collectively, these amendments added additional patent applications and patent families to the Exosomes License Agreement, added certain defined product development milestone payments, modified certain milestone deadlines, and added certain performance milestones with respect to product candidates covered by certain future patent rights in order to maintain an exclusive license to those future patent rights; failure to meet those milestones would cause CSMC to have the right to convert the license from exclusive to non-exclusive or co-exclusive, or to terminate the license, subject to Capricor’s right to license such patent rights for internal research purposes on a non-exclusive basis. These amendments also obligated Capricor to reimburse CSMC for certain attorneys’ fees and filing fees in connection with the additional patent applications and patent families. Sponsored Research Agreement with Johns Hopkins University On April 1, 2020 we entered into a Sponsored Research Agreement (the “SRA”) with JHU pursuant to which researchers in the lab of Dr. Stephen Gould performed certain research activities in connection with our engineered exosomes program. Pursuant to the SRA, we funded certain research activities. This SRA expired in accordance with its terms on March 31, 2022. Cell Line License Agreement with Life Technologies On March 7, 2022, Capricor entered into a non-exclusive cell line license agreement with Life Technologies Corporation, a subsidiary of Thermo Fisher Scientific, Inc., for the supply of certain cells which we will use in connection with the development of our exosomes platform. An initial license fee payment was made in the first quarter of 2022 and additional milestone fees may become due on the progress of our development program. Commercialization and Distribution Agreement with Nippon Shinyaku (Territory: United States) On January 24, 2022, Capricor entered into an Exclusive Commercialization and Distribution Agreement (the “U.S. Distribution Agreement”) with Nippon Shinyaku, a Japanese corporation. Under the terms of the U.S. Distribution Agreement, Capricor appointed Nippon Shinyaku as its exclusive distributor in the United States of CAP-1002 for the treatment of DMD. Under the terms of the U.S. Distribution Agreement, Capricor will be responsible for the conduct of the HOPE-3 trial as well as the manufacturing of CAP-1002. Nippon Shinyaku will be responsible for the distribution of CAP-1002 in the United States. Pursuant to the U.S. Distribution Agreement, Capricor has the obligation to sell commercial product to Nippon Shinyaku, subject to regulatory approval, and in addition Capricor will have the right to receive a meaningful, double-digit share of product revenue and additional development and sales-based milestone payments, if achieved. In the first quarter of 2022, Capricor received an upfront payment of $30.0 million. Pursuant to the terms of the U.S. Distribution Agreement, there are potential additional sales and development milestone payments of up to $705.0 million. The Company has evaluated the U.S. Distribution Agreement in accordance with ASU 606, Revenue for Contracts from Customers The Company determined the initial transaction price totaled $30.0 million, which was the upfront payment fee. The Company has excluded any future milestones or royalties from this transaction price to date based on probability. The Company has allocated the total $30.0 million initial transaction price to its one distinct performance obligation. Revenue will be recognized using a proportional performance method in relation to the completion of the HOPE-3 clinical study to determine the extent of progress towards completion. Under this method, the transaction price is recognized over the contract’s entire performance period using a cost percentage per patient visit relative to the total estimated costs of patient visits. For the year ended December 31, 2022, the Company recognized approximately $2.6 million as revenue. At the time of receipt of the upfront fee in March 2022, the Company recorded as a contract liability, which represent deferred revenue. As of December 31, 2022, there were approximately $27.4 million of contract liabilities recorded as deferred revenue. The Company had no opening or closing contract asset balances recognized. The difference between the opening and closing balances of the Company’s contract liability results from the Company performance of services in connection to its performance obligation. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized. As of December 31, 2022, remaining performance obligations were approximately $27.4 million. 66% of the remaining performance obligations are expected to be recognized over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations estimates are subject to change.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	9. RELATED PARTY TRANSACTIONS Lease and Sub-Lease Agreement As noted above, Capricor is a party to lease agreements with CSMC (see Note 7 – “Commitments and Contingencies”), and CSMC has served as an investigative site in Capricor’s clinical trials. Additionally, Dr. Eduardo Marbán, who is a stockholder of Capricor Therapeutics and has participated from time to time as an observer at the Company’s meetings of the Board of Directors, is the Director of the Cedars-Sinai Smidt Heart Institute, and co-founder of Capricor. Consulting Agreements In 2013, Capricor entered into a Consulting Agreement with Dr. Frank Litvack, the Company’s Executive Chairman and a member of its Board of Directors, whereby Capricor agreed to pay Dr. Litvack $10,000 per month for consulting services. The agreement is terminable upon 30 days’ notice. In July 2020, Capricor entered into an Advisory Services Agreement with Dr. Eduardo Marbán whereby he was granted an option to purchase 50,000 shares of the Company's common stock. Additionally, in January 2022, Dr. Eduardo Marbán was granted an additional option grant to purchase 50,000 shares of the Company’s common stock. Payables to Related Party As of December 31, 2022 and 2021, the Company had accounts payable and accrued expenses to related parties totaling $89,234 and $599,388, respectively. CSMC accounts for $79,234 and $589,388 of the total accounts payable and accrued expenses to related parties as of December 31, 2022 and December 31, 2021, respectively. CSMC expenses relate to clinical trial costs, research and development costs, license and patent fees, and facilities rent. During the years ended December 31, 2022 and 2021, the Company paid CSMC approximately $794,000 and approximately $341,000, respectively, for such costs. Related Party Clinical Trials Capricor provided CAP-1002 for investigational purposes in two clinical trials sponsored by CSMC. This product was developed as part of the Company’s past research and development efforts. The first trial is known as “Regression of Fibrosis and Reversal of Diastolic Dysfunction in HFpEF Patients Treated with Allogeneic CDCs”, or REGRESS. Dr. Eduardo Marbán is the named principal investigator under the study. The second trial is known as “Pulmonary Arterial Hypertension treated with Cardiosphere-derived Allogeneic Stem Cells” or ALPHA. In both studies, Capricor provided the necessary number of doses of cells and received a total of approximately $1.7 million of monetary compensation. For the year ended December 31, 2021, the Company recognized approximately $245,000 as revenue. No revenue was recognized in 2022 as the Company received the requisite funds in connection with these trials in 2021.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	10. SUBSEQUENT EVENTS Stock Option Grants In January 2023, the Company granted a total of 2,061,979 stock options to its employees, certain non-employee consultants, and directors. Commercialization and Distribution Agreement with Nippon Shinyaku (Territory: Japan) On February 10, 2023, Capricor entered into an Exclusive Commercialization and Distribution Agreement (the “Japan Distribution Agreement”) with Nippon Shinyaku. Under the terms of the Japan Distribution Agreement, Capricor appointed Nippon Shinyaku as its exclusive distributor in Japan of CAP-1002 for the treatment of DMD. Under the terms of the Japan Distribution Agreement, Capricor expects to receive an upfront payment of $12.0 million and in addition, Capricor will potentially receive additional development and sales-based milestone payments of up to approximately $89 million, subject to foreign currency exchange rates, and a meaningful double-digit share of product revenue. Nippon Shinyaku will be responsible for the distribution of CAP-1002 in Japan. Capricor will be responsible for the conduct of clinical development in Japan, as may be required, as well as the manufacturing of CAP-1002. Capricor will sell commercial product to Nippon Shinyaku. In addition, Capricor or its designee will hold the Marketing Authorization in Japan if the product is approved in that territory.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business	Description of Business Capricor Therapeutics, Inc., a Delaware corporation (referred to herein as “Capricor Therapeutics” or the “Company” or “we”), is a clinical-stage biotechnology company focused on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with high unmet medical needs. Capricor, Inc. (“Capricor”), a wholly-owned subsidiary of Capricor Therapeutics, was founded in 2005 as a Delaware corporation based on the innovative work of its founder, Eduardo Marbán, M.D., Ph.D. After completion of a merger between Capricor and a subsidiary of Nile Therapeutics, Inc., a Delaware corporation (“Nile”), on November 20, 2013, Capricor became a wholly-owned subsidiary of Nile and Nile formally changed its name to Capricor Therapeutics, Inc. Capricor Therapeutics, together with its subsidiary, Capricor, has multiple drug and vaccine candidates in various stages of development.
Basis of Consolidation	Basis of Consolidation Our consolidated financial statements include the accounts of the Company and our wholly-owned subsidiary. All intercompany transactions have been eliminated in consolidation.
Reclassification	Reclassification Certain reclassification of prior period amounts has been made to conform to the current year presentation.
Liquidity	Liquidity The Company has historically financed its research and development activities as well as operational expenses primarily from equity financings, government grants, and payments from distribution agreements and collaboration partners. Cash, cash equivalents, and marketable securities as of December 31, 2022 were approximately $41.4 million, compared to approximately $34.9 million as of December 31, 2021. In the first quarter of 2023, the Company expects to receive an upfront payment of $12.0 million from Nippon Shinyaku Co., Ltd., a Japanese corporation, (“Nippon Shinyaku”), in accordance with its Japan Exclusive Commercialization and Distribution Agreement (see Note 10 – “Subsequent Events”). Additionally, the Company has a Common Stock Sales Agreement in place with H.C. Wainwright & Co. LLC ("Wainwright") to create at-the-market equity programs under which the Company, from time to time, sells shares of its common stock (see Note 3 - "Stockholders' Equity"). The Company’s principal uses of cash are for research and development expenses, general and administrative expenses, capital expenditures and other working capital requirements. The Company’s future expenditures and capital requirements may be substantial and will depend on many factors, including, but not limited to, the following: ● the timing and costs associated with its research and development activities, clinical trials and preclinical studies, including the enrollment and progress of our ongoing HOPE-3 Phase III clinical study of CAP-1002 in DMD; ● the timing and costs associated with the manufacturing of our product candidates, including the expansion of our manufacturing capacity to support the potential commercialization of CAP-1002 for DMD; ● the timing and costs associated with potential commercialization of its product candidates; ● the number and scope of its research programs, including the expansion of our exosomes program; and ● the costs involved in prosecuting and enforcing patent claims and other intellectual property rights. The Company’s options for raising additional capital include potentially seeking additional financing primarily from, but not limited to, the sale and issuance of equity or debt securities, the licensing or sale of its technology and other assets, potential distribution and other partnering opportunities, and from government grants. The Company will require substantial additional capital to fund its operations. The Company cannot provide assurances that financing will be available when and as needed or that, if available, financing will be available on favorable or acceptable terms. If the Company is unable to obtain additional financing when and if required, it would have a material adverse effect on the Company’s business and results of operations. The Company would likely need to delay, curtail or terminate portions of its clinical trial programs. To the extent the Company issues additional equity securities, its existing stockholders would experience substantial dilution.
Business Uncertainty Related to the Coronavirus	Business Uncertainty Related to the Coronavirus The COVID-19 pandemic has presented a substantial public health and economic challenge around the world. Our business operations and financial condition and results have been impacted to varying degrees, and the impact may continue in future periods as we conduct our HOPE-3 trial and expand our exosomes-based research and development programs. We are continuing to assess and plan our development for the ongoing and potential impact of COVID-19 on our business, operations and financial condition and results. Despite careful tracking and planning, however, we are unable to accurately predict the extent of the impact of the pandemic on our business, results of operations and financial condition due to the uncertainty of future developments involving the pandemic and its impact on our employees and operations. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national and international markets. In light of uncertainties due to COVID-19 and its economic and other impacts and to uncertainties around the timing and availability of grant disbursements, the loss of revenue from the REGRESS and ALPHA trials as well as any potential equity and debt financings, the Company submitted for the Employee Retention Credit (“ERC”), a credit against certain payroll taxes allowed to an eligible employer for qualifying wages, which was established by the CARES Act. The Company has submitted $738,778 in ERC for applicable 2020 and 2021 periods, receiving $191,199 in 2021. As of December 31, 2022, the Company has recorded a receivable for $547,580 for the remainder of funds due.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Management uses its historical records and knowledge of its business in making these estimates. Accordingly, actual results may differ from these estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of less than 30 days at the date of purchase to be cash equivalents.
Marketable Securities	Marketable Securities The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. All of the Company’s marketable securities are considered as available-for-sale and carried at estimated fair values. Realized gains and losses on the sale of debt and equity securities are determined using the specific identification method. Unrealized gains and losses on available-for-sale securities are excluded from net income (loss) and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. As of December 31, 2022, marketable securities consist primarily of short-term United States treasuries.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Repairs and maintenance costs are expensed in the period incurred. Depreciation is computed using the straight-line method over the related estimated useful life of the asset, which such estimated useful lives range from five Property and equipment, net consisted of the following: December 31, December 31, 2022 2021 Furniture and fixtures $ 139,336 $ 43,123 Laboratory equipment 4,237,089 2,475,543 Leasehold improvements 1,393,230 33,742 5,769,655 2,552,408 Less accumulated depreciation (1,181,625) (756,712) Property and equipment, net $ 4,588,030 $ 1,795,696
Intangible Assets	Intangible Assets Amounts attributable to intellectual property consist primarily of the costs associated with the acquisition of certain technologies, patents, pending patents and related intangible assets with respect to research and development activities. Certain intellectual property assets are stated at cost and amortized on a straight-line basis over the respective estimated useful lives of the assets ranging from five The Company reviews goodwill and intangible assets at least annually for possible impairment. Goodwill and intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. No impairment was recorded for the years ended December 31, 2022 and 2021.
Long-Lived Assets	Long-Lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with guidance issued by the FASB. Long-lived assets to be held and used are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable, or annually. No impairment related to long-lived assets was recorded for the years ended December 31, 2022 and 2021.
Leases	Leases ASC Topic 842, “Leases” (“ASC 842”), requires lessees to recognize most leases on the balance sheet with a corresponding right-to-use asset (“ROU asset”). ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. ROU assets are evaluated for impairment using the long-lived assets impairment guidance. Leases will be classified as financing or operating, which will drive the expense recognition pattern. The Company elects to exclude short-term leases if and when the Company has them. The Company leases office and laboratory space, all of which are operating leases (see Note 7 - “Commitments and Contingencies”). Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. In addition, the Company’s lease agreements generally do not contain any residual value guarantees or restrictive covenants. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. For real estate leases, the Company has elected the practical expedient under ASC 842 to account for the lease and non-lease components together for existing classes of underlying assets and allocates the contract consideration to the lease component only. This practical expedient is not elected for manufacturing facilities and equipment embedded in product supply arrangements.
Revenue Recognition	Revenue Recognition The Company adopted ASU 606, Revenue for Contracts from Customers The revenue standard provides a five-step framework for recognizing revenue as control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that it determines are within the scope of the revenue standard, the Company performs the following five steps: (i) identify the contract; (ii) identify the performance obligations; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. At contract inception, the Company assesses whether the goods or services promised within each contract are distinct and, therefore, represent a separate performance obligation, or whether they are not distinct and are combined with other goods and services until a distinct bundle is identified. The Company then determines the transaction price, which typically includes upfront payments and any variable consideration that the Company determines is probable to not cause a significant reversal in the amount of cumulative revenue recognized when the uncertainty associated with the variable consideration is resolved. The Company then allocates the transaction price to each performance obligation and recognizes the associated revenue when, or as, each performance obligation is satisfied. The Company’s distribution agreements may entitle it to additional payments upon the achievement of milestones or royalties on sales. The milestones are generally categorized into three types: development milestones, regulatory milestones and sales-based milestones. The Company evaluates whether it is probable that the consideration associated with each milestone or royalty will not be subject to a significant reversal in the cumulative amount of revenue recognized. Amounts that meet this threshold are included in the transaction price using the most likely amount method, whereas amounts that do not meet this threshold are excluded from the transaction price until they meet this threshold. At the end of each subsequent reporting period, the Company re-evaluates the probability of a significant reversal of the cumulative revenue recognized for its milestones and royalties, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and net income (loss) in the Company’s consolidated statements of operation and comprehensive loss. Typically, milestone payments and royalties are achieved after the Company’s performance obligations associated with the distribution agreements have been completed and after the customer has assumed responsibility for the respective clinical program. Milestones or royalties achieved after the Company’s performance obligations have been completed are recognized as revenue in the period the milestone or royalty was achieved. If a milestone payment is achieved during the performance period, the milestone payment would be recognized as revenue to the extent performance had been completed at that point, and the remaining balance would be recorded as deferred revenue. The revenue standard requires the Company to assess whether a significant financing component exists in determining the transaction price. The Company performs this assessment at the onset of its distribution agreements. Typically, a significant financing component does not exist because the customer is paying for services in advance with an upfront payment. Additionally, future royalty payments are not substantially within the control of the Company or the customer. Whenever the Company determines that goods or services promised in a contract should be accounted for as a combined performance obligation over time, the Company determines the period over which the performance obligations will be performed and revenue will be recognized. Revenue is recognized using either the proportional performance method or on a straight-line basis if efforts will be expended evenly over time. Percentage of completion of patient visits in clinical trials are used as the measure of performance. The Company feels this method of measurement to be the best depiction of the transfer of services and recognition of revenue. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations. If the Company determines that the performance obligation is satisfied over time, any upfront payment received is initially recorded as deferred revenue on its consolidated balance sheets. Certain judgments affect the application of the Company’s revenue recognition policy. For example, the Company records short-term (less than one year) and long-term (over one year) deferred revenue based on its best estimate of when such revenue will be recognized. This estimate is based on the Company’s current operating plan and, the Company may recognize a different amount of deferred revenue over the next 12-month period if its plan changes in the future. The transaction price consists of variable sales-based royalties and fixed components in the form of an upfront payment and milestones. The timing of the fixed component of the transaction price is upfront, however, the performance obligation is satisfied over a period of time, the HOPE-3 clinical trial. Therefore, upon receipt of the upfront payment, a contract liability is recorded which represents deferred revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition. Grant Income Generally, government research grants that provide funding for research and development activities are recognized as income when the related expenses are incurred, as applicable. Because the terms of the grant award (the “CIRM Award”) from the California Institute for Regenerative Medicine (“CIRM”) allow Capricor to elect to convert the grant into a loan after the end of the project period, the CIRM Award is being classified as a liability rather than income (see Note 6 - “Government Grant Awards”). Grant income is due upon submission of a reimbursement request. The transaction price varies for grant income based on the expenses incurred under the awards. No grant income was recognized during the years ended December 31, 2022 and 2021. Miscellaneous Income Revenue is recognized in connection with the delivery of doses which were developed as part of our past research and development (“R&D”) efforts. Income is recorded when the Company has satisfied the obligations as identified in the contracts with the customer (see Note 9 – “Related Party Transactions”). Miscellaneous income is due upon billing. Miscellaneous income is based on contracts with fixed transaction prices. Miscellaneous income for the years ended December 31, 2022 and 2021 was zero and approximately $0.2 million, respectively.
Income Taxes	Income Taxes Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets are recognized for the future tax consequences of transactions that have been recognized in the Company’s financial statements or tax returns. A valuation allowance is provided when it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company uses guidance issued by the FASB that clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position, and must assume that the tax position will be examined by taxing authorities. As of December 31, 2022, the Company had federal net operating loss carryforwards of approximately $129.6 million, available to reduce future taxable income, of which $73.7 million will begin to expire in 2027. The post December 31, 2017 net operating losses generated of $55.9 million will carryforward indefinitely, but may be subject to an 80% limitation upon utilization. As of December 31, 2022, the Company had state net operating loss carryforwards of approximately $143.8 million, available to reduce future taxable income, which will begin to expire in 2028. Utilization of these net operating losses could be limited under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and similar state laws based on ownership changes and the value of the Company’s stock. Additionally, currently, the Company has approximately $5.6 million of federal research and development credits and approximately $2.5 million of federal orphan drug credits, available to offset future taxable income. These federal research and development and orphan drug credits begin to expire in 2033 and 2035, respectively. Additionally, the Company currently has approximately $1.7 million of California research and development credits available to offset future taxable income which will carryforward indefinitely. Utilization of these credits could be limited under Section 383 of the Code and similar state laws based on ownership changes and the value of the Company’s stock. Under Section 382 of the Code, the Company’s ability to utilize NOL carryforwards or other tax attributes, such as federal tax credits, in any taxable year may be limited if the Company has experienced an “ownership change.” Generally, a Section 382 ownership change occurs if one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing period. Similar rules may apply under state tax laws. We have experienced an ownership change that we believe under Section 382 of the Code will result in limitation in our ability to utilize net operating losses and credits. In addition, the Company may experience future ownership changes as a result of future offerings or other changes in ownership of its stock. As a result, the amount of the NOLs and tax credit carryforward presented in the financial statement could be limited and may expire unutilized. The Company’s net operating loss carryforwards are subject to Internal Revenue Service (“IRS”) examination until they are fully utilized and such tax years are closed. The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. The Company incurred no interest or penalties for the years ended December 31, 2022 and 2021. The Company files income tax returns with the IRS and the California Franchise Tax Board.
Research and Development	Research and Development Costs relating to the design and development of new products are expensed as research and development as incurred in accordance with Financial Accounting Standards Board (“FASB”) ASC 730-10, Research and Development
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company’s comprehensive loss was approximately $28.9 million and $20.0 million for the years ended December 31, 2022 and 2021, respectively. The Company’s other comprehensive income (loss) is related to a net unrealized gain (loss) on marketable securities. For the years ended December 31, 2022 and 2021, the Company’s other comprehensive income was $105,244 and zero, respectively.
Clinical Trial Expense	Clinical Trial Expense As part of the process of preparing our consolidated financial statements, we are required to estimate our accrued expenses. Our clinical trial accrual process is designed to account for expenses resulting from our obligations under contracts with vendors, consultants, contract research organizations (“CROs”), and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. Our objective is to reflect the appropriate clinical trial expenses in our consolidated financial statements by matching the appropriate expenses with the period in which services are provided and efforts are expended. We account for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. We determine accrual estimates through financial models that take into account discussions with applicable personnel and outside service providers as to the progress or state of completion of trials, or the services completed. During the course of a clinical trial, we adjust our clinical expense recognition if actual results differ from our estimates. We make estimates of our accrued expenses as of each balance sheet date in our consolidated financial statements based on the facts and circumstances known to us at that time. Our clinical trial accrual and prepaid assets are dependent, in part, upon the receipt of timely and accurate reporting from CROs and other third-party vendors. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low for any particular period.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based employee compensation arrangements in accordance with guidance issued by the FASB, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants, and directors based on estimated fair values. The Company estimates the fair value of stock-based compensation awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s statements of operations and comprehensive loss. The Company estimates the fair value of stock-based compensation awards using the Black-Scholes model. This model requires the Company to estimate the expected volatility and value of its common stock and the expected term of the stock options, all of which are highly complex and subjective variables. The variables take into consideration, among other things, actual and projected stock option exercise behavior. For employees and directors, the expected life was calculated based on the simplified method as described by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment. For other service providers, the expected life was calculated using the contractual term of the award. The Company’s estimate of expected volatility was based on the historical stock price of the Company. The Company has selected a risk-free rate based on the implied yield available on U.S. Treasury securities with a maturity equivalent to the expected term of the options.
Basic and Diluted Loss per Share	Basic and Diluted Loss per Share The Company reports earnings per share in accordance with FASB ASC 260-10, Earnings per Share. For the years ended December 31, 2022 and 2021, warrants and options to purchase 5,882,621 and 3,899,606 shares of common stock, respectively, have been excluded from the computation of potentially dilutive securities. Potentially dilutive common shares, which primarily consist of stock options issued to employees, consultants, and directors as well as warrants issued, have been excluded from the diluted loss per share calculation because their effect is anti-dilutive. Because the impact of these items is anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per share for the years ended December 31, 2022 and 2021.
Fair Value Measurements	Fair Value Measurements Assets and liabilities recorded at fair value in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following table summarizes the fair value measurements by level at December 31, 2022 for assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level I Level II Level III Total Marketable Securities $ 31,818,020 $ — $ — $ 31,818,020 Carrying amounts reported in the balance sheet of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to their relatively short maturity. The carrying amounts of the Company’s marketable securities are based on market quotations from national exchanges at the balance sheet date. Interest and dividend income are recognized separately on the income statement based on classifications provided by the brokerage firm holding the investments. The fair value of borrowings is not considered to be significantly different from its carrying amount because the stated rates for such debt reflect current market rates and conditions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statement presentation or disclosures.

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of property, plant and equipment	December 31, December 31, 2022 2021 Furniture and fixtures $ 139,336 $ 43,123 Laboratory equipment 4,237,089 2,475,543 Leasehold improvements 1,393,230 33,742 5,769,655 2,552,408 Less accumulated depreciation (1,181,625) (756,712) Property and equipment, net $ 4,588,030 $ 1,795,696
Schedule of fair value measurements	Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following table summarizes the fair value measurements by level at December 31, 2022 for assets and liabilities measured at fair value on a recurring basis: December 31, 2022 Level I Level II Level III Total Marketable Securities $ 31,818,020 $ — $ — $ 31,818,020

STOCK AWARDS, WARRANTS AND OP_2

STOCK AWARDS, WARRANTS AND OPTIONS (Tables)	12 Months Ended
STOCK AWARDS, WARRANTS AND OPTIONS (Tables)	Dec. 31, 2022
Schedule of employee and non-employee stock based compensation expense	Year ended December 31, 2022 2021 General and administrative $ 3,653,489 $ 2,566,883 Research and development 805,089 398,809 Total $ 4,458,578 $ 2,965,692
Summary of Stock Option Outstanding And Exercisable	Options Outstanding Weighted Average Weighted Average Range of Ex. Prices Options Outstanding Term (yrs.) Exercise Price $1.39 1,682,707 6.40 $ 1.39 $2.54 - $3.74 3,539,132 8.70 $ 3.40 $4.37 - $6.30 555,000 8.82 $ 5.04 5,776,839 $ 2.97 Options Exercisable Weighted Average Weighted Average Range of Ex. Prices Options Exercisable Term (yrs.) Exercise Price $1.39 1,283,217 6.18 $ 1.39 $2.54 - $3.74 1,058,536 8.43 $ 3.51 $4.37 - $6.30 142,534 8.26 $ 5.15 2,484,287 $ 2.51
Warrant [Member]
Summary of warrant activity	Weighted Average Warrants Exercise Price Outstanding at January 1, 2021 126,173 $ 1.32 Granted — — Exercised (20,391) 1.10 Outstanding at December 31, 2021 105,782 $ 1.37 Granted — — Exercised — — Outstanding at December 31, 2022 105,782 $ 1.37
Schedule of outstanding warrants	Warrants Outstanding December 31, December 31, Exercise Price Expiration Type Grant Date 2022 2021 per Share Date Common Warrants 12/19/2019 40,782 40,782 $ 1.10 12/19/2024 Common Warrants 3/27/2020 65,000 65,000 $ 1.5313 3/27/2025 105,782 105,782
Stock Option [Member]
Schedule of fair value of option using Black-Scholes option	Year ended December 31, 2022 2021 Expected volatility 123 - 124 % 123 - 124 % Expected term 6 - 7 years 6 years Dividend yield 0 % 0 % Risk-free interest rates 1.5 - 3.9 % 0.5 - 1.1 %
Schedule of employee and non-employee stock option	Number of Weighted Average Aggregate Options Exercise Price Intrinsic Value Outstanding at January 1, 2021 2,361,873 $ 1.89 Granted 1,636,324 3.95 Exercised (21,338) 1.39 $ 51,044 Expired/Cancelled (183,035) 3.84 Outstanding at December 31, 2021 3,793,824 $ 2.68 Granted 2,817,370 3.46 Exercised (325,667) 1.37 $ 867,854 Expired/Cancelled (508,688) 4.55 Outstanding at December 31, 2022 5,776,839 $ 2.97 $ 5,773,788 Exercisable at December 31, 2022 2,484,287 $ 2.51 $ 3,540,034

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
Schedule of Future Minimum Rental Payments	The table below excludes short-term operating leases. The following table summarizes maturities of lease liabilities and the reconciliation of lease liabilities as of December 31, 2022: 2023 $ 798,688 2024 763,814 2025 708,087 2026 546,138 Total minimum lease payments 2,816,727 Less: imputed interest (256,618) Total operating lease liabilities $ 2,560,109 Included in the consolidated balance sheet: Current portion of lease liabilities $ 682,039 Lease liabilities, net of current 1,878,070 Total operating lease liabilities $ 2,560,109 Other Information: Weighted average remaining lease term 3.59 years Weighted average discount rate 5.18%
Schedule of operating lease cost	Year ended December 31, 2022 2021 Lease costs, unrelated parties $ 632,689 $ 129,726 Lease costs, related parties 128,478 — Lease payments, unrelated parties 470,950 81,331 Lease payments, related parties 128,478 —

ORGANIZATION AND SUMMARY OF S_4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment, Gross	$ 5,769,655	$ 2,552,408
Less accumulated depreciation	(1,181,625)	(756,712)
Property and equipment, net	4,588,030	1,795,696
Furniture and fixtures
Property, Plant and Equipment, Gross	139,336	43,123
Laboratory equipment
Property, Plant and Equipment, Gross	4,237,089	2,475,543
Leasehold improvements
Property, Plant and Equipment, Gross	$ 1,393,230	$ 33,742

ORGANIZATION AND SUMMARY OF S_5

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended		24 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020
Accounting Policies [Line Items]
Cash, cash equivalents, and marketable securities		$ 41,400,000	$ 34,900,000	$ 41,400,000
Milestone payment received	$ 12,000,000	27,448,531	0
Revenue recognized under "ERC"			191,199
Receivables under "ERC"		547,580	738,778	547,580	$ 738,778
Depreciation		533,131	243,532
Research and development		21,816,949	13,571,045
Comprehensive loss		28,914,288	20,022,520
Net unrealized gain on marketable securities		105,244	0
Amortization of intangible assets		0	2,165
Long-lived assets impairment		0	0
Grant Income				0
Miscellaneous Income		0	200,000
Goodwill and intangible asset impairment		0	0
Tax credit carryforward amount		73,700,000		73,700,000
Interest and penalties related to unrecognized tax benefits		0	$ 0
Domestic Country
Accounting Policies [Line Items]
Operating loss carry forwards indefinitely		$ 55,900,000		55,900,000
Tax credit carryforward limitations on use		The post December 31, 2017 net operating losses generated of $55.9 million will carryforward indefinitely, but may be subject to an 80% limitation upon utilization.
Operating Loss Carryforwards		$ 129,600,000		129,600,000
Operating loss carryforwards expiration year		2027
State and Local Jurisdiction
Accounting Policies [Line Items]
Operating Loss Carryforwards		$ 143,800,000		143,800,000
Operating loss carryforwards expiration year		2028
General Business
Accounting Policies [Line Items]
Tax credit carryforward amount		$ 2,500,000		2,500,000
Operating loss carryforwards expiration year		2035
Research Tax Credit Carryforward
Accounting Policies [Line Items]
Tax credit carryforward amount		$ 5,600,000		5,600,000
Tax credit carry forwards Expiration Year		2033
Research Tax Credit Carryforward \| California
Accounting Policies [Line Items]
Tax credit carryforward amount		$ 1,700,000		$ 1,700,000
Warrant
Accounting Policies [Line Items]
Antidilutive securities		5,882,621	3,899,606
Minimum
Accounting Policies [Line Items]
Estimated useful lives (in years)		5 years
Intangible assets, useful lives (in years)		5 years
Maximum
Accounting Policies [Line Items]
Estimated useful lives (in years)		7 years
Intangible assets, useful lives (in years)		15 years

ORGANIZATION AND SUMMARY OF S_6

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value measurements by Levels (Details) - Recurring	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 31,818,020
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 31,818,020

NOTE PAYABLE (Details)

NOTE PAYABLE (Details) - USD ($)	3 Months Ended	12 Months Ended
NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Gain from forgiveness of debt	$ 318,160
Debt Instrument, Forgiveness of Debt		$ 0	$ 318,160
Paycheck Protection Program Loan
Debt Instrument [Line Items]
Amount of loan applied				$ 318,160

STOCKHOLDER'S EQUITY (Details)

STOCKHOLDER'S EQUITY (Details) - USD ($)				6 Months Ended	12 Months Ended		14 Months Ended	18 Months Ended
STOCKHOLDER'S EQUITY (Details) - USD ($)	Jun. 30, 2021	Jun. 21, 2021	May 04, 2020	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 21, 2021	Dec. 31, 2022
Class of Stock [Line Items]
Commission rate on sale price per share					3%
Gross proceeds from sale of common stock					$ 4,803,534	$ 20,174,448
Common stock, shares issued				24,185,001	25,241,402	24,185,001		25,241,402
Common stock, shares outstanding				24,185,001	25,241,402	24,185,001		25,241,402
May 2020 ATM Program
Class of Stock [Line Items]
Maximum aggregate offering price			$ 40,000,000
Number of common stock shares issued							6,027,852
Average price		$ 6.15					$ 6.15
Gross proceeds from sale of common stock							$ 37,100,000
Issuance costs							$ 1,200,000
June 2021 ATM Program
Class of Stock [Line Items]
Maximum aggregate offering price		$ 75,000,000
Number of common stock shares issued	2,098,333			2,098,333	2,098,333
Average price					$ 5.93			$ 5.93
Gross proceeds from sale of common stock								$ 12,400,000
Issuance costs								$ 400,000

STOCK AWARDS, WARRANTS AND OP_3

STOCK AWARDS, WARRANTS AND OPTIONS - Warrants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
STOCK AWARDS, WARRANTS AND OPTIONS
Warrants Outstanding at Beginning	105,782	126,173
Warrants Exercised		(20,391)
Warrants Outstanding at Ending	105,782	105,782
Weighted Average Exercise Price Outstanding at Beginning	$ 1.37	$ 1.32
Weighted Average Exercise Price Exercised	0	1.10
Weighted Average Exercise Price Outstanding at Ending	$ 1.37	$ 1.37

STOCK AWARDS, WARRANTS AND OP_4

STOCK AWARDS, WARRANTS AND OPTIONS - Outstanding Warrants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Class of Warrant or Right [Line Items]
Warrants Outstanding	105,782	105,782	126,173
Common Warrants with Expiration on December 2024 One
Class of Warrant or Right [Line Items]
Grant Date	Dec. 19, 2019
Warrants Outstanding	40,782	40,782
Exercise Price per Share	$ 1.10
Expiration Date	Dec. 19, 2024
Common Stock Warrants With Expiration On December 2025 Two
Class of Warrant or Right [Line Items]
Grant Date	Mar. 27, 2020
Warrants Outstanding	65,000	65,000
Exercise Price per Share	$ 1.5313
Expiration Date	Mar. 27, 2025

STOCK AWARDS, WARRANTS AND OP_5

STOCK AWARDS, WARRANTS AND OPTIONS - Assumptions (Details)	12 Months Ended
STOCK AWARDS, WARRANTS AND OPTIONS - Assumptions (Details)	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, Maximum	124%	124%
Expected volatility, Minimum	123%	123%
Expected term		6 years
Dividend yield	0%	0%
Risk-free interest rates, Minimum	1.50%	0.50%
Risk-free interest rates, Maximum	3.90%	1.10%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	7 years

STOCK AWARDS, WARRANTS AND OP_6

STOCK AWARDS, WARRANTS AND OPTIONS - Stock-based Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation cost	$ 4,458,578	$ 2,965,692
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation cost	3,653,489	2,566,883
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation cost	$ 805,089	$ 398,809

STOCK AWARDS, WARRANTS AND OP_7

STOCK AWARDS, WARRANTS AND OPTIONS - Stock options outstanding and exercisable (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding, Options (shares) \| shares	5,776,839
Outstanding, Weighted Average Exercise Price	$ 2.97
Exercisable, Option (Shares) \| shares	2,484,287
Exercisable, Weighted Average Exercise Price	$ 2.51
Range One [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range	$ 1.39
Outstanding, Options (shares) \| shares	1,682,707
Outstanding, Weighted Average Term	6 years 4 months 24 days
Outstanding, Weighted Average Exercise Price	$ 1.39
Exercisable, Option (Shares) \| shares	1,283,217
Exercisable, Weighted Average Term	6 years 2 months 4 days
Exercisable, Weighted Average Exercise Price	$ 1.39
Range Two [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range	2.54
Range of Exercise Prices, upper range	$ 3.74
Outstanding, Options (shares) \| shares	3,539,132
Outstanding, Weighted Average Term	8 years 8 months 12 days
Outstanding, Weighted Average Exercise Price	$ 3.40
Exercisable, Option (Shares) \| shares	1,058,536
Exercisable, Weighted Average Term	8 years 5 months 4 days
Exercisable, Weighted Average Exercise Price	$ 3.51
Range Three [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range	4.37
Range of Exercise Prices, upper range	$ 6.30
Outstanding, Options (shares) \| shares	555,000
Outstanding, Weighted Average Term	8 years 9 months 25 days
Outstanding, Weighted Average Exercise Price	$ 5.04
Exercisable, Option (Shares) \| shares	142,534
Exercisable, Weighted Average Term	8 years 3 months 3 days
Exercisable, Weighted Average Exercise Price	$ 5.15

STOCK AWARDS, WARRANTS AND OP_8

STOCK AWARDS, WARRANTS AND OPTIONS - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Aggregate Intrinsic Value
Exercised	$ 867,854	$ 51,044
Outstanding	5,773,788
Exercisable	$ 3,540,034
Stock Option
Number of Options
Outstanding at Beginning of the period	3,793,824	2,361,873
Granted	2,817,370	1,636,324
Exercised	(325,667)	(21,338)
Expired/Cancelled	(508,688)	(183,035)
Outstanding at End of the period	5,776,839	3,793,824
Exercisable	2,484,287
Weighted Average Exercise Price
Outstanding at Beginning of the period	$ 2.68	$ 1.89
Granted	3.46	3.95
Exercised	1.37	1.39
Expired/Cancelled	4.55	3.84
Outstanding at Ending of the period	2.97	$ 2.68
Exercisable	$ 2.51

STOCK AWARDS, WARRANTS AND OP_9

STOCK AWARDS, WARRANTS AND OPTIONS - Additional Information (Details) - USD ($)					1 Months Ended	12 Months Ended
	Jan. 01, 2023	Jan. 01, 2022	Jun. 11, 2021	Jan. 01, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2020	Nov. 30, 2012	Sep. 30, 2012
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Number of options available for issuance						2,603,218
Estimated weighted fair value of option granted (in per share)						$ 3.04	$ 3.45
Total unrecognized fair value compensation cost						$ 10,100,000
Weighted average period						1 year 3 months 18 days
Aggregate intrinsic value of exercisable						$ 3,540,034
Aggregate intrinsic value of stock options outstanding						5,773,788
Stock Option \| Stock Option Plan 2012
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Maximum number of common stock reserved under the Plan									710,142
Stock Option \| Non-Employee Director Plan 2012
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Maximum number of common stock reserved under the Plan										269,731
Stock Option \| Stock Option Plan 2020
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Number of additional shares authorized			0
Maximum number of common stock reserved under the Plan								2,500,000
Stock Option \| Stock Option Plan 2021
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Number of additional shares authorized	1,262,070	1,209,250		823,084
Percentage of outstanding shares					5%
Maximum number of common stock reserved under the Plan					3,500,000
Incentive Stock Option \| Stock Option Plan 2012
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Minimum limit of fair market value to be treated as non-statutory stock						$ 100,000
Minimum
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Vesting period						1 year
Maximum
Disclosure Stockholders Equity, stock Options And Warrants Additional Information [Line Items]
Vesting period						4 years
Terms of stock option plans						10 years

CONCENTRATIONS (Details)

CONCENTRATIONS (Details)	Dec. 31, 2022 USD ($) item
CONCENTRATIONS
Number of financial institutions \| item	2
Cash, FDIC insured amount	$ 250,000
Cash, uninsured deposits	$ 41,100,000

GOVERNMENT GRANT AWARDS (Detail

GOVERNMENT GRANT AWARDS (Details) - California Institute for Regenerative Medicine $ in Millions		1 Months Ended	12 Months Ended
	Jun. 16, 2016 USD ($) item	Jun. 16, 2016 USD ($)	Dec. 31, 2022 USD ($)
Minimum expected contribution		$ 2.3
Number of times, maximum royalty to be paid on total amount of award \| item	9
Term of award			10 years
Debt term			5 years
Grant award liability	$ 3.4	$ 3.4	$ 3.4
LIBOR
Interest rate			1%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Payments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES
2023	$ 798,688
2024	763,814
2025	708,087
2026	546,138
Total minimum lease payments	2,816,727
Less: imputed interest	(256,618)
Total operating lease liabilities	2,560,109
Included in the condensed consolidated balance sheet:
Current portion of lease liabilities	682,039	$ 417,632
Lease liabilities, net of current	1,878,070	$ 2,452,707
Total operating lease liabilities	$ 2,560,109
Weighted average remaining lease term	3 years 7 months 2 days
Weighted average discount rate	5.18%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Additional Information (Details)

1 Months Ended

12 Months Ended

Jul. 01, 2022 USD ($) ft²

Jan. 01, 2021 USD ($)

Dec. 31, 2022 USD ($)

Nov. 30, 2022 USD ($) ft²

Jul. 31, 2022 USD ($)

Nov. 30, 2021 USD ($)

Oct. 31, 2021 USD ($)

Jul. 31, 2021 USD ($)

Jul. 31, 2020 USD ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2021 USD ($)

Oct. 01, 2021 ft²

COMMITMENTS AND CONTINGENCIES

Operating lease, ROU asset

$ 2,349,974

$ 2,821,944

Operating lease, ROU liability

2,560,109

$ 2,560,109

Number of months of base salary

6 months

Restructuring reserve

$ 0

Short-term offices lease

COMMITMENTS AND CONTINGENCIES

Base rent per month

$ 13,073

$ 7,869

$ 5,548

Written Notice Period

90 days

Operating lease expense

$ 81,735

141,923

Facilities Lease

COMMITMENTS AND CONTINGENCIES

Lease renewal term

24 months

12 months

Base rent per month

$ 10,707

$ 15,805

Property Located at 10865 Road to Cure in Diego

COMMITMENTS AND CONTINGENCIES

Lease term

5 years

Lease renewal term

5 years

Base rent per month

$ 51,444

$ 48,859

Leased area | ft²

9,485

9,605

9,396

Operating lease percentage

Monthly lease payment

$ 49,322

Vivarium Space Lease [Member]

COMMITMENTS AND CONTINGENCIES

Lease renewal term

1 year

Base rent per month

$ 4,202

$ 4,021

Written Notice Period

60 days

Monthly rent escalation, percentage

4.50%

Vivarium Space Lease [Member] | Minimum

COMMITMENTS AND CONTINGENCIES

Lease term

1 year

Vivarium Space Lease [Member] | Maximum

COMMITMENTS AND CONTINGENCIES

Lease term

5 years

Unrelated Party

COMMITMENTS AND CONTINGENCIES

Operating lease expense

632,689

129,726

Operating lease payments

470,950

$ 81,331

Related party

COMMITMENTS AND CONTINGENCIES

Operating lease expense

128,478

Operating lease payments

$ 128,478

LICENSE AGREEMENTS (Details)

LICENSE AGREEMENTS (Details)				3 Months Ended	12 Months Ended
LICENSE AGREEMENTS (Details)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Apr. 28, 2021 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Jan. 24, 2022 USD ($)
LICENSE AGREEMENTS
Potential milestone payments								$ 705,000,000
Upfront Payment		$ 30,000,000
Milestone payment received				$ 12,000,000	$ 27,448,531		$ 0
Deferred revenue liability	$ 27,400,000	30,000,000			27,400,000
Revenue	2,600,000				2,551,469		244,898
Deferred revenue, current	17,980,599	30,000,000			17,980,599		0
Deferred revenue, net of current	9,467,932				$ 9,467,932		$ 0
Rome License Agreement
LICENSE AGREEMENTS
Notice period					90 days	90 days
JHU License Agreement
LICENSE AGREEMENTS
Notice period					60 days	60 days
Threshold period to cure breach					30 days	30 days
CSMC License Agreement
LICENSE AGREEMENTS
Notice period					90 days	90 days
Exosomes License Agreement
LICENSE AGREEMENTS
Notice period			90 days		90 days	90 days
Upfront Payment			$ 10,000
Minimum \| Rome License Agreement
LICENSE AGREEMENTS
Royalties payment \| €						€ 20,000
Maximum \| JHU License Agreement
LICENSE AGREEMENTS
Potential milestone payments	$ 1,850,000				$ 1,850,000
Completion Of Phase Two Due \| JHU License Agreement
LICENSE AGREEMENTS
Potential milestone payments		250,000
Milestone payments to be made upon completion of certain phases		$ 500,000
Patent rights \| JHU License Agreement
LICENSE AGREEMENTS
Agreement effective period					20 years	20 years
Patent rights \| Exosomes License Agreement
LICENSE AGREEMENTS
Agreement effective period			20 years
Particular Patent or Application or Any Particular Licensed Product \| Exosomes License Agreement
LICENSE AGREEMENTS
Notice period			60 days
Non Payment of Royalties \| CSMC License Agreement
LICENSE AGREEMENTS
Agreement termination period					30 days	30 days
Non Payment of Royalties \| Exosomes License Agreement
LICENSE AGREEMENTS
Threshold period to cure breach					30 days	30 days
CSMC Agreement Compliance \| CSMC License Agreement
LICENSE AGREEMENTS
Agreement termination period					90 days	90 days
CSMC Agreement Compliance \| Exosomes License Agreement
LICENSE AGREEMENTS
Threshold period to cure breach					90 days	90 days
Material Breach Has Not Been Cured \| CSMC License Agreement
LICENSE AGREEMENTS
Agreement termination period					90 days	90 days
Material Breach Has Not Been Cured \| Exosomes License Agreement
LICENSE AGREEMENTS
Threshold period to cure breach					90 days	90 days
Fails To Cure Breach after Notice From CSMC \| CSMC License Agreement
LICENSE AGREEMENTS
Agreement termination period					90 days	90 days
Fails To Cure Breach after Notice From CSMC \| Exosomes License Agreement
LICENSE AGREEMENTS
Threshold period to cure breach			60 days		90 days	90 days

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	1 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Jan. 31, 2022 shares	Jul. 31, 2020 shares	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Dec. 31, 2013 USD ($)
RELATED PARTY TRANSACTIONS
Accounts payable and accrued expenses, related party			$ 89,234	$ 599,388
Other revenues from related party			0	245,000
DO NOT USE Current Account payable and accrued expenses			89,234	599,388
Compensation received for services to be provided			$ 1,700,000
Advisory Services Agreement \| Dr Eduardo Marban
RELATED PARTY TRANSACTIONS
Granted option \| shares	50,000	50,000
Board of Directors Chairman \| Consulting Agreement with Frank Litvack
RELATED PARTY TRANSACTIONS
Monthly consulting fees					$ 10,000
Notice period for termination of agreement					30 days
CSMC
RELATED PARTY TRANSACTIONS
Number of clinical trial sponsored \| item			2
Payment for reimbursement for research and development, license and patent fees and facilities rent expenses incurred by related party			$ 794,000	341,000
CSMC \| Transaction other than Sub-Award Agreement
RELATED PARTY TRANSACTIONS
DO NOT USE Current Account payable and accrued expenses			$ 79,234	$ 589,388

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event - USD ($) $ in Millions		1 Months Ended
	Feb. 10, 2023	Jan. 31, 2023
Japan Distribution Agreement
SUBSEQUENT EVENTS
Upfront payment to be received	$ 12
Potential additional sales and development milestone payments	$ 89
Employees Non Employee Consultants And Directors
SUBSEQUENT EVENTS
Granted		2,061,979