Cytosorbents (CTSO) 10-Q3 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	May 02, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	001-36792
Entity Registrant Name	CYTOSORBENTS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-0373793
Entity Address, Address Line One	7 Deer Park Drive
Entity Address, Address Line Two	Suite K
Entity Address, City or Town	Monmouth Junction
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08852
City Area Code	732
Local Phone Number	329-8885
Title of 12(b) Security	Common Stock
Trading Symbol	CTSO
Security Exchange Name	NASDAQ
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
Entity Common Stock, Shares Outstanding		43,562,119
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001175151
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 43,022,814	$ 52,137,707
Grants and accounts receivable, net of allowance for doubtful accounts of $66,752 as of March 31, 2022 and $60,539 as of December 31, 2021	4,577,010	4,523,430
Inventories	5,445,499	4,766,098
Prepaid expenses and other current assets	2,808,792	2,871,655
Total current assets	55,854,115	64,298,890
Property and equipment, net	7,848,824	5,150,886
Restricted cash	1,687,459	1,687,459
Right of use assets	13,196,795	13,423,472
Other assets	4,684,859	4,958,575
Total Assets	83,272,052	89,519,282
Current Liabilities:
Accounts payable	4,825,753	2,805,235
Lease liability - current portion	486,964	570,566
Accrued expenses and other current liabilities	9,358,910	10,314,341
Total current liabilities	14,671,627	13,690,142
Lease liability, net of current portion	13,172,388	13,250,943
Total Liabilities	27,844,015	26,941,085
Commitments and Contingencies (Note 6)
Stockholders' Equity:
Preferred Stock, Par Value $0.001, 5,000,000 shares authorized; No shares issued and outstanding as of March 31, 2022 and December 31, 2021
Common Stock, Par Value $0.001, 100,000,000 shares authorized; and 43,505,948 and 43,478,487 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	43,505	43,478
Additional paid-in capital	284,047,729	283,194,429
Accumulated other comprehensive income	1,488,496	525,585
Accumulated deficit	(230,151,693)	(221,185,295)
Total Stockholders' Equity	55,428,037	62,578,197
Total Liabilities and Stockholders' Equity	$ 83,272,052	$ 89,519,282

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Dec. 17, 2014
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 66,752	$ 60,539
Preferred Stock, Par value	$ 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	$ 0.001	$ 0.001	$ 0.001
Number of common stock authorized	100,000,000	100,000,000
Common Stock, shares issued	43,505,948	43,478,487
Common Stock, shares outstanding	43,505,948	43,478,487

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Total revenue	$ 8,691,424	$ 10,598,847
Cost of revenue	2,277,636	2,751,444
Gross margin	6,413,788	7,847,403
Other expenses:
Research and development	4,243,365	2,282,052
Legal, financial and other consulting	800,735	707,839
Selling, general and administrative	9,160,823	7,709,703
Total expenses	14,204,923	10,699,594
Loss from operations	(7,791,135)	(2,852,191)
Other income (expense):
Interest expense, net	8,027	(10,124)
Miscellaneous income	30,000
Loss on foreign currency transactions	(1,213,290)	(1,305,506)
Total other expense, net	(1,175,263)	(1,315,630)
Loss before benefit from income taxes	(8,966,398)	(4,167,821)
Benefit from income taxes	0	0
Net loss attributable to common stockholders	$ (8,966,398)	$ (4,167,821)
Basic net loss per common share	$ (0.21)	$ (0.10)
Diluted net loss per common share	$ (0.21)	$ (0.10)
Weighted average number of shares of common stock outstanding, basic	43,487,946	43,242,791
Weighted average number of shares of common stock outstanding, diluted	41,593,218	43,319,507
Comprehensive loss:
Net loss	$ (8,966,398)	$ (4,167,821)
Other comprehensive income:
Currency translation adjustment	962,911	1,157,736
Comprehensive loss	(8,003,487)	(3,010,085)
Product
Revenue:
Total revenue	7,924,457	10,143,356
Cyto Sorb Sales
Revenue:
Total revenue	7,866,865	10,143,356
Other product sales
Revenue:
Total revenue	57,592
Grant and other income
Revenue:
Total revenue	$ 766,967	$ 455,491

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY	Common StockUSD ($)shares	Common StockUSN ($)shares	Additional Paid-in CapitalUSD ($)	Accumulated Other Comprehensive Income (Loss)USD ($)	Accumulated DeficitUSD ($)	USD ($)
Balance at Dec. 31, 2020	$ 43,222		$ 277,533,082	$ (1,734,078)	$ (196,626,647)	$ 79,215,579
Balance (in shares) at Dec. 31, 2020 \| shares	43,221,999	43,221,999
Stock-based compensation - employees, consultants and directors	$ 0	$ 0	667,193	0	0	667,193
Other comprehensive income: foreign translation adjustment	0		0	1,157,736	0	1,157,736
Proceeds from exercise of stock options	$ 15		76,538	0	0	76,553
Proceeds from exercise of stock options (in shares) \| shares	15,257	15,257
Cashless exercise of stock options	$ 2		(2)	0	0	0
Cashless exercise of stock options (in shares) \| shares	1,774	1,774
Issuance of restricted stock units	$ 33		309,528	0	0	309,561
Issuance of restricted stock units (in shares) \| shares	33,342	33,342
Net loss	$ 0		0	0	(4,167,821)	(4,167,821)
Balance at Mar. 31, 2021	$ 43,272		278,586,339	(576,342)	(200,794,468)	77,258,801
Balance (in shares) at Mar. 31, 2021 \| shares	43,272,372	43,272,372
Balance at Dec. 31, 2021	$ 43,478		283,194,429	525,585	(221,185,295)	62,578,197
Balance (in shares) at Dec. 31, 2021 \| shares	43,478,487	43,478,487
Stock-based compensation - employees, consultants and directors	$ 0	$ 0	787,417	0	0	787,417
Other comprehensive income: foreign translation adjustment	0		0	962,911	0	962,911
Issuance of common stock - offerings, net of fees incurred			(40,359)	0	0	(40,359)
Issuance of restricted stock units	$ 27		106,242	0	0	106,269
Issuance of restricted stock units (in shares) \| shares	27,461	27,461
Net loss	$ 0		0	0	(8,966,398)	(8,966,398)
Balance at Mar. 31, 2022	$ 43,505		$ 284,047,729	$ 1,488,496	$ (230,151,693)	$ 55,428,037
Balance (in shares) at Mar. 31, 2022 \| shares	43,505,948	43,505,948

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net loss	$ (8,966,398)	$ (4,167,821)
Adjustments to reconcile net loss to net cash used by operating activities:
Non-cash restricted stock unit compensation	159,059	442,273
Depreciation and amortization	217,565	156,322
Bad debt expense	6,936	19,720
Amortization of right of use asset	64,523	0
Impairment of patents	305,505	0
Stock-based compensation	787,417	667,193
Foreign currency transaction loss	1,213,290	1,305,506
Changes in operating assets and liabilities:
Grants and accounts receivable	(239,152)	(28,046)
Inventories	(827,351)	(492,815)
Prepaid expenses and other current assets	307,097	144,489
Other assets	56,100	(23,501)
Accounts payable and accrued expenses	(1,203,761)	(367,557)
Net cash used by operating activities	(8,119,170)	(2,344,237)
Cash flows from investing activities:
Purchases of property and equipment	(710,239)	(428,638)
Payments for patent costs	(137,717)	(177,703)
Net cash used by investing activities	(847,956)	(606,341)
Cash flows from financing activities:
Equity contributions - net of fees incurred	(40,359)	0
Proceeds from exercise of stock options	0	76,553
Net cash (used by) provided by financing activities	(40,359)	76,553
Effect of exchange rates on cash	(107,408)	(79,291)
Net change in cash, cash equivalents and restricted cash	(9,114,893)	(2,953,316)
Cash, cash equivalents and restricted cash - beginning of period	53,825,166	71,421,601
Cash, cash equivalents and restricted cash - end of period	44,710,273	68,468,285
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	0	0
Supplemental disclosure of non-cash financing activities:
Settlement of accrued bonuses with restricted stock units	106,269	309,561
Capital expenditures included in accounts payable	$ 2,135,537	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2022
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The interim consolidated financial statements of CytoSorbents Corporation (the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments, for a fair statement of the Company’s consolidated financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2022. The results for the three months ended March 31, 2022 and 2021 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. As of March 31, 2022, the Company’s cash, cash equivalents and restricted cash balances were approximately $44.7 million, which the Company expects will fund the Company’s operations beyond twelve months from the issuance of these financial statements. As a result, the Company has determined that the going concern risk has been substantially mitigated.

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company is a leader in the treatment of life-threatening conditions in intensive care and cardiac surgery using blood purification. The Company, through its subsidiary CytoSorbents Medical, Inc. (formerly known as CytoSorbents, Inc.), is engaged in the research, development and commercialization of medical devices with its blood purification technology platform which incorporates a proprietary adsorbent, porous polymer technology. The Company, through its wholly owned European subsidiary, CytoSorbents Europe GmbH, conducts sales and marketing related operations for the CytoSorb device. In March 2016, the Company formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the second quarter of 2016, provides marketing and direct sales services in Switzerland. In November 2018, the Company formed CytoSorbents Poland Sp. z.o.o., a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the first quarter of 2019, provides marketing and direct sales services in Poland. In the third quarter of 2019, the Company formed CytoSorbents UK Limited, a wholly-owned subsidiary of CytoSorbents Medical, Inc. which is responsible for the management of the Company’s clinical trial activities in the United Kingdom. In March 2022, the Company formed CytoSorbents Medical UK Limited to provide marketing and direct sales services in the United Kingdom and the Republic of Ireland. CytoSorb, the Company's flagship product, was approved in the European Union (“EU”) in March 2011 and is currently being marketed and distributed in more than 70 countries around the world, as an effective extracorporeal cytokine absorber, designed to reduce the “cytokine storm” or “cytokine release syndrome” seen in critical illnesses that may result in massive inflammation, organ failure, and patient death. In May 2018, the Company received a label extension for CytoSorb covering use of the device for the removal of bilirubin and myoglobin which allows for the use of the device in the treatment of liver failure and trauma, respectively. CytoSorb is also being used during and after cardiac surgery to remove inflammatory mediators that can lead to post-operative complications, including multiple organ failure. In January 2020, CytoSorb received EU CE Mark label expansion to include the removal of ticagrelor during cardiopulmonary bypass in patients undergoing cardiothoracic surgery. In May 2020, CytoSorb also received EU CE Mark label expansion to include rivaroxaban removal for the same indication. In April 2020, CytoSorb received United States Food and Drug Administration (“FDA”) Emergency Use Authorization (“EUA”) of CytoSorb for use in adult critically-ill COVID-19 patients with imminent or confirmed respiratory failure. The CytoSorb device has neither been cleared nor approved for the indication to treat patients with COVID-19 infection. The EUA will be effective until a declaration is made that the circumstances justifying the EUA have terminated or until revoked by the FDA. In April 2020, the Company also announced that the FDA had granted Breakthrough Designation for its DrugSorb-ATR Antithrombotic Removal System for the removal of ticagrelor in a cardiopulmonary bypass circuit during emergent and urgent cardiothoracic surgery. The Breakthrough Devices Program provides for more effective treatment of life-threatening or irreversibly debilitating disease or conditions, in this case the need to reverse the effects of ticagrelor in emergent or urgent cardiac surgery that can otherwise cause a high risk of serious or life-threatening bleeding. Through Breakthrough Designation, the FDA intends to work with CytoSorbents to expedite the development, assessment, and regulatory review of CytoSorbents’ technology for the removal of ticagrelor, while maintaining statutory standards of regulatory approval (e.g., 510(k), de novo In August 2021, the Company announced that it was granted a second Breakthrough Device designation for its DrugSorb-ATR Antithrombotic Removal System by the U.S. Food and Drug Administration (FDA). This Breakthrough Device designation covers the removal of the Direct Oral Anticoagulants (DOACs) apixaban and rivaroxaban in a cardiopulmonary bypass circuit to reduce the likelihood of serious perioperative bleeding during urgent cardiothoracic surgery. In October 2021, the Company also received full FDA approval of an IDE application to conduct a double-blind, randomized, controlled clinical study for up to 120 patients entitled, “Safe and Timely Antithrombotic Removal – Direct Oral Anticoagulants (STAR-D),” in the United States to support FDA marketing approval. If FDA marketing approval is obtained for either the removal of ticagrelor or direct oral anticoagulants indications, the device would be marketed as DrugSorb-ATR in the United States. The DrugSorb-ATR Antithrombotic Removal System is based on the same polymer technology as CytoSorb. The technology is based upon biocompatible, highly porous polymer sorbent beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. The Company has numerous products under development based upon this unique blood purification technology, which is protected by 21 issued U.S. patents and multiple international patents, with applications pending both in the U.S. and internationally, including HemoDefend, ContrastSorb, DrugSorb, DrugSorb-ATR and others. These patents and patent applications are directed to various compositions and methods of use related to the Company’s blood purification technologies and are expected to expire between 2022 and 2038, absent any patent term extensions. Management believes that any near-term expiring patents will not have a significant impact on the Company’s ongoing business. Stock Market Listing On December 17, 2014 the Company’s common stock, par value $0.001 per share, was approved for listing on the Nasdaq Capital Market (“Nasdaq”), and it began trading on Nasdaq on December 23, 2014 under the symbol “CTSO.” Previously, the Company’s common stock traded in the over-the-counter-market on the OTC Bulletin Board. Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include the accounts of CytoSorbents Corporation and its wholly-owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. In addition, the consolidated financial statements include CytoSorbents Switzerland GmbH, CytoSorbents Poland Sp. z.o.o. and CytoSorbents Medical UK Limited, wholly owned subsidiaries of CytoSorbents Europe GmbH, and CytoSorbents UK Limited, a wholly-owned subsidiary of CytoSorbents Medical, Inc. All significant intercompany transactions and balances have been eliminated in consolidation. Translation gains and losses resulting from the process of remeasuring into the United States Dollar, the foreign currency financial statements of the European subsidiary are included in operations. The Euro is the functional currency of the European Subsidiary. Foreign currency transaction loss included in net loss amounted to approximately $(1,213,000) and $(1,306,000) for the three months ended March 31, 2022 and 2021, respectively. The Company translates assets and liabilities of all of its foreign subsidiaries at the exchange rate in effect at the consolidated balance sheet date. The Company translates revenue and expenses at the daily average exchange rates. The Company includes accumulated net translation adjustments in accumulated other comprehensive income as a component of stockholders’ equity. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts shown in the consolidated balance sheets: March 31, 2022 December 31, 2021 Cash and cash equivalents $ 43,022,814 $ 52,137,707 Restricted cash 1,687,459 1,687,459 Total cash, cash equivalents and restricted cash $ 44,710,273 $ 53,825,166 Restricted Cash The Company’s total restricted cash in the amount of $1,687,459 consists of cash of $1,467,459 that the Company is obligated to maintain as collateral for the outstanding letter of credit with Bridge Bank that was provided to the landlord of the College Road facility as security and cash of $220,000 that the Company is obligated to maintain as collateral for the credit limit on the Company’s credit card accounts. Grants and Accounts Receivable Grants receivable represent amounts due from U.S. government agencies and are included in Grants and Accounts Receivable. Accounts receivable are unsecured, non-interest bearing customer obligations due under normal trade terms. The Company sells its devices to various hospitals and distributors. The Company performs ongoing credit evaluations of its customers’ financial conditions. Management reviews accounts receivable periodically to determine collectability. Balances that are determined to be uncollectible are written off to the allowance for doubtful accounts. The allowance for doubtful accounts amounted to approximately $67,000 and $61,000 at March 31, 2022 and December 31, 2021, respectively. Inventories Inventories are valued at the lower of cost or net realizable value under the first in, first out (FIFO) method. At March 31, 2022 and December 31, 2021, the Company’s inventory was comprised of finished goods, which amounted to $3,363,744 and $3,084,606, respectively; work in process which amounted to $1,638,447 and $1,322,736, respectively; and raw materials, which amounted to $443,308 and $358,756, respectively. Devices used in clinical trials or for research and development purposes are removed from inventory and charged to research and development expenses at the time of their use. Donated devices are removed from inventory and charged to selling, general and administrative expenses. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of their economic useful lives or the term of the related leases. Gains and losses on depreciable assets retired or sold are recognized in the consolidated statements of operations and comprehensive loss in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. Patents Legal costs incurred to establish and successfully defend patents are capitalized. When patents are issued, capitalized costs are amortized on the straight-line method over the related patent term. In the event a patent is abandoned, the net book value of the patent is written off. Impairment or Disposal of Long-Lived Assets The Company assesses the impairment of patents and other long-lived assets under accounting standards for the impairment or disposal of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and fair value. During the three months ended March 31, 2022, the Company recorded an impairment charge of approximately $306,000 related to certain patent costs. This charge is included in legal, financial and other consulting in the consolidated statements of operations and comprehensive loss. Revenue Recognition Product Sales Grant Revenue Research and Development All research and development costs, payments to laboratories and research consultants are expensed when incurred. Advertising Expenses Advertising expenses are charged to activities when incurred. Advertising expenses amounted to approximately $81,000 and $154,000 for the three months ended March 31, 2022 and 2021, respectively, and are included in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss. Income Taxes Income taxes are accounted for under the asset and liability method prescribed by accounting standards for accounting for income taxes. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. The Company has provided a valuation allowance against all deferred tax assets. Under Section 382 of the Internal Revenue Code, the net operating losses generated prior to the previously completed reverse merger may be limited due to the change in ownership. Additionally, net operating losses generated subsequent to the reverse merger may be limited in the event of changes in ownership. The Company follows accounting standards associated with uncertain tax positions. The Company had no unrecognized tax benefits at March 31, 2022 or December 31, 2021. The Company files tax returns in the U.S. federal and state jurisdictions. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss carryforwards to an industrial company. Each of CytoSorbents Europe GmbH, CytoSorbents Switzerland GmbH, CytoSorbents Poland Sp. Z.o.o. and CytoSorbents UK Limited files an annual corporate tax return, VAT return and a trade tax return in Germany, Switzerland, Poland and the United Kingdom, respectively. Use of Estimates The preparation of consolidated 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. Actual results could differ from these estimates. The valuation of options granted is a significant estimate in these consolidated financial statements. Concentration of Credit Risk The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances. A significant portion of the Company's revenues are from product sales in Germany. Substantially all of the Compnay's grant and other income are from government agencies in the United States. (See Note 4 for further information relating to the Company’s revenue.) As of March 31, 2022, one distributor accounted for approximately 22% of outstanding grants and accounts receivable. As of December 31, 2021, one distributor accounted for approximately 12% of outstanding grants and accounts receivables. For the three months ended March 31, 2022, no distributor accounted for more than 10% of the Company's total revenue and for the three months ended March 31, 2021, one distributor accounted for approximately 11% of the Company's total revenue. Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their fair values due to their short-term nature. Net Loss Per Common Share Basic loss per share is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share are computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and restricted shares. The computation of diluted loss per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings (see Note 8). Stock-Based Compensation The Company accounts for its stock-based compensation under the recognition requirements of accounting standards for accounting for stock-based compensation, for employees and directors whereby each option granted is valued at fair market value on the date of grant. Under these accounting standards, the fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The Company also follows the guidance of accounting standards for accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services for equity instruments issued to consultants. Shipping and Handling Costs The cost of shipping product to customers and distributors is typically borne by the customer or distributor. The Company records other shipping and handling costs in cost of revenue. Total freight costs amounted to approximately $68,000 and $63,000, respectively, for the three months ended March 31, 2022 and 2021. Effect of Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (the “FASB”), issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance”. ASU 2021-10 will require enhanced disclosures related to the Company’s contracts with the U.S. Government. The ASU is effective for annual periods beginning after December 15, 2021. The Company intends to implement the provisions of ASU 2021-10 during 2022.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
STOCKHOLDERS' EQUITY	Mar. 31, 2022
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	3. STOCKHOLDERS’ EQUITY Preferred Stock In June 2019, the Company amended and restated its certificate of incorporation. The amended and restated certificate of incorporation authorizes the issuance of up to 5,000,000 shares of “blank check” preferred stock, with such designation rights and preferences as may be determined from time to time by the Board of Directors. Common Stock In June 2019, the Company amended and restated its certificate of incorporation. The amended and restated certificate of incorporation increased the number of shares of common stock authorized for issuance from 50,000,000 shares to 100,000,000 shares. Shelf Registration On July 14, 2021, the Company filed a registration statement on Form S-3 with the SEC, which was amended on July 20, 2021 and declared effective by the SEC on July 27, 2021 (as amended, the “2021 Shelf”). The 2021 Shelf enables the Company to offer and sell, in one or more offerings, any combination of common stock, preferred stock, senior or subordinated debt securities, warrants and units, up to a total dollar amount of $150 million. Open Market Sale Agreement with Jefferies LLC On December 30, 2021, the Company entered into an Open Market Sale Agreement (the “Sale Agreement”) with Jefferies LLC (the “Agent”), pursuant to which the Company could sell, from time to time, at its option, shares of the Company’s common stock having an aggregate offering price of up to $25 million through the Agent, as the Company’s sales agent. All shares of the Company’s common stock offered and sold, or to be offered and sold under the Sale Agreement would have been issued and sold pursuant to the Company’s 2021 Shelf by methods deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, in block transactions or if specified by the Company, in privately negotiated transactions. Subject to the terms of the Sales Agreement, the Agent is required to use their commercially reasonable efforts consistent with their normal sales and trading practices to sell the shares of the Company’s common stock from time to time, based upon the Company’s instructions (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company is required to pay the Agent a commission of up to 3.0% of the gross proceeds from the sale of the shares of the Company’s common stock sold thereunder, if any. There were no sales pursuant to the Amended Sale Agreement during the year ended December 31, 2021 or during the three months ended March 31, 2022. In addition, during the year ended December 31, 2021 and during the three months ended March 31, 2022, the Company paid approximately $90,000 and $40,000, respectively, in expenses related to the Amended Sale Agreement. Stock-Based Compensation Total share-based employee, director, and consultant compensation for the three months ended March 31, 2022 and 2021 amounted to approximately $787,000 and $667,000, respectively. These amounts are included in the consolidated statements of operations and comprehensive loss under general and administrative expenses. The summary of the stock option activity for the three months ended March 31, 2022 is as follows: Weighted Weighted Average Average Remaining Exercise Price Contractual Shares per Share Life (Years) Outstanding, December 31, 2021 6,885,978 $ 7.09 7.15 Granted 56,500 $ 3.42 — Forfeited (1,105,125) $ 8.67 — Expired (35,124) $ 7.48 — Outstanding, March 31, 2022 5,802,229 $ 6.69 6.47 The fair value of each stock option was estimated using the Black Scholes pricing model, which takes into account as of the grant date the exercise price (ranging from $2.98 to $3.91 per share) and expected life of the stock option (10 years), the current price of the underlying stock and its expected volatility (59.3 percent), expected dividends (-0- percent) on the stock and the risk free interest rate (ranging from 1.52 to 2.52 percent) for the expected term of the stock option. The intrinsic value is calculated as the difference between the market value of the shares as of March 31, 2022 of $3.19 and the exercise price of the shares. Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise March 31, Exercise Remaining Intrinsic Price 2022 Price Life (Years) Value $2.65 - $14.50 5,802,229 $ 6.69 6.47 $ 44,073 Options Exercisable Number Weighted Exercisable at Average Aggregate March 31, Exercise Intrinsic 2022 Price Value 4,293,305 $ 6.46 $ 41,703 The summary of the status of the Company’s non-vested options for the three months ended March 31, 2022 is as follows: Weighted Average Grant Date Shares Fair Value Non-vested, December 31, 2021 2,994,846 $ 4.68 Granted 56,500 $ 1.92 Forfeited (1,105,125) $ 5.29 Vested (437,297) $ 4.01 Non-vested, March 31, 2022 1,508,924 $ 4.30 As of March 31, 2022, the Company had approximately $6,073,000 of total unrecognized compensation cost related to stock options which will be amortized over approximately 38 months. Change in Control-Based Awards of Restricted Stock Units: The Board of Directors has granted restricted stock units to members of the Board of Directors, to the Company’s executive officers, and to employees of the Company. These restricted stock units will only vest upon a Change in Control of the Company, as defined in the Amended and Restated CytoSorbents Corporation 2014 Long-Term Incentive Plan. The following table is a summary of these restricted stock units: Restricted Stock Units Board of Executive Other Directors Management Employees Total Intrinsic Value December 31, 2021 277,200 724,500 1,709,500 2,711,200 $ 11,359,928 Granted — — 120,000 120,000 Forfeited — — (57,000) (57,000) March 31, 2022 277,200 724,500 1,772,500 2,774,200 $ 8,849,698 Due to the uncertainty over whether these restricted stock units will vest, which only happens upon a Change in Control, no charge for these restricted stock units has been recorded in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021. Other Awards of Restricted Stock Units: On March 4, 2019, certain named executive officers and senior managers were granted 22,220 restricted stock units. These awards were valued at approximately $179,000 at the date of issuance, based upon the market price of the Company’s common stock at the date of the grant, and vest one third on the date of the grant one third on the first anniversary of the date of the grant, and one third on the second anniversary of the date of the grant. For the three months ended March 31, 2022 and 2021, the Company recorded a charge of approximately $0 and $11,000 respectively, related to these restricted stock unit awards. On July 22, 2019, certain named executive officers and senior managers were granted 180,300 restricted stock units. These awards were valued at approximately $1,300,000 at the date of issuance, based upon the market price of the Company’s common stock at the date of the grant, and vest one third on the date of the grant, one third on the first anniversary of the date of the grant, and one third on the second anniversary of the date of the grant. For the three months ended March 31, 2022 and 2021, the Company recorded a charge of approximately $0 and $103,000, respectively, related to these restricted stock unit awards. On February 28, 2020, certain named executive officers and senior managers were granted 168,100 restricted stock units. These awards were valued at approximately $1,014,000 at the date of issuance, based upon the market price of the Company’s common stock at the date of the grant, and vest one third on the date of the grant one third on the first anniversary of the date of the grant, and one third on the second anniversary of the date of the grant. For the three months ended March 31, 2022 and 2021, the Company recorded a reduction of expense of approximately $65,000 for the three months ended March 31, 2022 and an expense of approximately $274,000 for the three months ended March 31, 2021 related to these restricted stock unit awards. On April 12, 2021, certain named executive officers and senior managers were granted 235,765 restricted stock units. These awards were valued at approximately $2,120,000 at the date of issuance, based upon the market price of the Company’s common stock at the date of the grant, and vest one third on the date of the grant, one third on the first anniversary of the date of the grant, and one third on the second anniversary of the date of the grant. For the three months ended March 31, 2022 and 2021, the Company recorded a charge of approximately $177,000 and $0, respectively, related to these restricted stock unit awards. Additionally, in 2021 certain employees were offered 91,750 restricted stock units , respectively, as a condition of their employment. These awards were valued at approximately $713,868 at the date of issuance. 46,750 of these restricted stock units vest upon the earlier of a Change in Control or one- one- one- The following table outlines the restricted stock unit activity for the three months ended March 31, 2022: Weighted Average Grant Date Shares Fair Value Non-vested, December 31, 2021 304,962 $ 8.08 Vested (56,034) $ 6.03 Non-vested, March 31, 2022 248,928 $ 8.54

REVENUE

REVENUE	3 Months Ended
REVENUE	Mar. 31, 2022
REVENUE
REVENUE	4. REVENUE The following table disaggregates the Company’s revenue by customer type and geographic area for the three months ended March 31, 2022: United States Distributors/ Government Direct Strategic Partners Agencies Total Product sales: United States $ 57,592 $ 154,750 $ — $ 212,342 Germany 3,783,526 - — 3,783,526 All other countries 1,204,932 2,723,657 — 3,928,589 Total product revenue 5,046,050 2,878,407 — 7,924,457 Grant and other income: United States — — 766,967 766,967 Total revenue $ 5,046,050 $ 2,878,407 $ 766,967 $ 8,691,424 The following table disaggregates the Company's revenue by customer type and geographic area for the three months ended March 31, 2021: United States Distributors/ Government Direct Strategic Partners Agencies Total Product sales: United States $ — $ 303,650 $ — $ 303,650 Germany 5,896,192 — — 5,896,192 All other countries 1,121,033 2,822,481 — 3,943,514 Total product revenue 7,017,225 3,126,131 — 10,143,356 Grant and other income: United States — — 455,491 455,491 Total revenue $ 7,017,225 $ 3,126,131 $ 455,491 $ 10,598,847 The Company has two primary revenue streams: (1) sales of the CytoSorb device and related device accessories and (2) grant income from contracts with various agencies of the United States government. The following is a brief description of each revenue stream. CytoSorb Sales The Company sells its CytoSorb device using both its own sales force (direct sales) and through the use of distributors and/or strategic partners. The majority of sales of the device are outside the United States, as CytoSorb is not yet approved for commercial sale in the United States. However, in April 2020, the Company was granted U.S. Emergency Use Authorization (“EUA”) of CytoSorb for use in critically-ill patients infected with COVID-19 with imminent or confirmed respiratory failure by the United States Food and Drug Administration (the “FDA”). Direct sales outside the United States relate to sales to hospitals located in Germany, Switzerland, Austria, Belgium, Luxembourg, Poland, the Netherlands, Sweden, Denmark and Norway. Direct sales are fulfilled from the Company's warehouse facility in Berlin, Germany. There are no formal sales contracts with any direct customers relating to product price or minimum purchase requirements. However, there are agreements in place with certain direct customers that provide for either free of charge product or rebate credits based upon achieving minimum purchase levels. The Company records the value of these items earned as a reduction of revenue. These customers submit purchase orders and the order is fulfilled and shipped directly to the customer. Prices to all direct customers are based on a standard price list based on the packaged quantity (6 packs versus 12 packs). Distributor and strategic partner sales make up the remaining product sales. These distributors are located in various countries throughout the world. The Company has a formal written contract with each distributor/strategic partner. These contracts have terms ranging from 1-5 years in length, with three years being the typical term. In addition, certain distributors are eligible for volume discount pricing if their unit sales are in excess of the base amount in the contract. Most distributor's/strategic partner's contracts have minimum annual purchase requirements in order to maintain exclusivity in their respective territories. There is no additional consideration or monetary penalty that would be required to be paid to CytoSorbents if a distributor does not meet the minimum purchase commitments included in the contract, however, at the discretion of the Company, the distributor may lose its exclusive rights in the territory if such commitments are not met. Government Grants The Company has been the recipient of various grant contracts from various agencies of the United States government, primarily the Department of Defense, to perform various research and development activities. These contracts fall into one of the following categories: 1. Fixed price – the Company invoices the contract amount in equal installments over the term of the contract without regard to the timing of the costs incurred related to this contract. If billings on fixed price contracts exceed the costs incurred, revenue will be deferred to the extent of the excess billings. 2. Cost reimbursement – the Company submits monthly invoices during the term of the contract for the amount of direct costs incurred during that month plus an agreed upon percentage that relates to allowable overhead and general and administrative expenses. Cumulative amounts invoiced may not exceed the maximum amount of funding stipulated in the contract. 3. Cost plus – this type of contract is similar to a cost reimbursement contract but this type also allows for the Company to additionally invoice for a fee amount that is included in the contract. 4. Performance based – the Company submits invoices only upon the achievement of the milestones listed in the contract. The amount to be invoiced for each milestone is documented in the contract. In summary, the contracts the Company has with customers are the distributor/strategic partner contracts related to CytoSorb product sales, agreements with direct customers related to free-of-charge product and credit rebates based upon achieving minimum purchase levels, and contracts with various government agencies related to the Company’s grants. The Company does not currently incur any outside/third party incremental costs to obtain any of these contracts. The Company does incur internal costs, primarily salary related costs, to obtain the contracts related to the grants. Company employees spend time reviewing the program requirements and developing the budget and related proposal to submit to the grantor agency. There may additionally be travel expenditures involved with meeting with government agency officials during the negotiation of the contract. These internal costs are expensed as incurred. The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2022 December 31, 2021 Receivables, which are included in grants and accounts receivable $ 3,152,256 $ 3,000,708 Contract liabilities, which are included in accrued expenses and other current liabilities $ 2,435,452 $ 2,251,177 Contract receivables represent balances due from sales to distributors and amounts invoiced on grant contracts. Contract liabilities represent the value of free of charge goods and credit rebates earned in accordance with the terms of certain direct customer agreements, which amounted to $259,543 and $303,824 as of March 31, 2022 and December 31, 2021, respectively, and deferred grant revenue related to the billing on fixed price contracts in excess of costs incurred , which amounted to $2,175,909 and $1,947,353 at March 31, 2022 and December 31, 2021, respectively.

LONG-TERM DEBT, NET

LONG-TERM DEBT, NET	3 Months Ended
LONG-TERM DEBT, NET	Mar. 31, 2022
LONG-TERM DEBT, NET.
LONG-TERM DEBT, NET	5. LONG-TERM DEBT, NET On June 30, 2016, the Company and its wholly-owned subsidiary, CytoSorbents Medical, Inc. (together, the “Borrower”), entered into a Loan and Security Agreement with Bridge Bank, a division of Western Alliance Bank, (the “Bank”), pursuant to which the Company borrowed $10 million in two equal tranches of $5 million (the “Original Term Loans”). On March 29, 2018, the Original Term Loans were refinanced with the Bank pursuant to an Amended and Restated Loan and Security Agreement by and between the Bank and the Borrower (the “Amended and Restated Loan and Security Agreement”), under which the Bank agreed to loan the Borrower up to an aggregate of $15 million to be disbursed in two tranches (1) one tranche of $10 million (the “Term A Loan”), which was funded on the Closing Date and used to refinance the Original Term Loans, and (2) a second tranche of $5 million which may be disbursed at the Borrower’s sole request prior to March 31, 2019 provided certain conditions are met (the “Term B Loan” and together with the Term A Loan, the “Term Loans”). On July 31, 2019, the Borrower entered into the First Amendment to the Amended and Restated Loan and Security Agreement (the “First Amendment”) with the Bank, which amended certain provisions of the Amended and Restated Loan and Security Agreement and the 2018 Success Fee Letter (the “2018 Letter”). In connection with the execution of the First Amendment, the draw period for the Term B Loan was extended to August 15, 2019 and the Company drew down the full $5.0 million Term B Loan on the Settlement Date, bringing the total outstanding debt to $15 million at July 31, 2019. The proceeds of Term Loans were used for general business requirements in accordance with the Amended and Restated Loan and Security Agreement. On December 4, 2020 (the “Third Amendment Closing Date”), the Company closed on the Third Amendment (the “Third Amendment”) of its Amended Loan and Security Agreement with Bridge Bank. Under the terms of the Amendment, the Company repaid the outstanding principal balance of its existing $15 million term loans and simultaneously received a commitment from Bridge Bank to provide a new term loan of $15 million, if needed. On January 19, 2022 (the "Fourth Amendment Closing Date"), the Company closed on the Fourth Amendment (the "Fourth Amendment") of its Amended Loan and Security Agreement with Bridge Bank. Under the terms of the Amendment, the Company received a commitment from Bridge Bank to provide a new term loan of up to $15 million, if needed. The Fourth Amendment provides a tranche of term loans (the “Term C Loans") in the aggregate amount of $15 million, which are available for the Company to draw down at its sole discretion in three tranches of $5 million each at any time during the period commencing on the Fourth Amendment Date and ending on the earlier of (i) December 31, 2022 and (ii) the occurrence of an Event of Default (as defined in the Amended Loan and Security Agreement). The Term C Loans, if taken, shall bear interest at the Index Rate (defined in the Amendment as the greater of 3.25% or the Prime Rate as published by the Wall Street Journal on the last business date of the month immediately preceding the month in which the interest will accrue) plus 1.25%. Pursuant to the Fourth Amendment, interest on the Term C Loans is subject to an interest rate cap of 8.00%. The Fourth Amendment, together with the Amended Loan and Security Agreement, provides for a period of interest only payments on the Term C Loan until the amortization date, which is January 1, 2024. The interest-only period may be further extended through July 2024 if the Company maintains compliance with certain conditions as outlined in the Fourth Amendment. Following the interest-only period, the Company will be required to make equal monthly payments of principal and interest until maturity of the Term C Loans. The maturity date of the Term C Loan is December 1, 2025. On the Fourth Amendment Closing Date, the Company was required to pay a non-refundable closing fee of approximately $18,750, which will amortized as a monthly charge to interest expense. On the Third Amendment Closing Date, the Company paid a non-refundable closing fee of $75,000, which was amortized and written off as a charge to interest expense. In addition, the Amended and Restated Loan and Security Agreement requires the Company to pay a non-refundable final fee equal to 2.5% of the principal amount of the Term Loan funded upon the earlier of the (i) the maturity date or (ii) termination of the Term Loan via acceleration or prepayment. The Company’s and CytoSorbents Medical, Inc.’s obligations under the Amended and Restated Loan and Security Agreement are joint and severable and are secured by a first priority security interest in favor of the Bank with respect to the Company’s Shares (as defined in the Amended and Restated Loan and Security Agreement) and the Borrower’s Collateral (as defined in the Amended and Restated Loan and Security Agreement, which definition excludes the Borrower’s intellectual property and other customary exceptions). 2018 Success Fee Letter: Pursuant to the amended 2018 Letter, the Borrower shall pay to the Bank a success fee in the amount equal to 6.37% of the funded amount of the Term B Loan (as defined in the Restated Loan and Security Agreement) (the “Success Fee”) upon the first occurrence of any of the following events: (a) a sale or other disposition by the Borrower of all or substantially all of its assets; (b) a merger or consolidation of the Borrower into or with another person or entity, where the holders of the Borrower’s outstanding voting equity securities as of immediately prior to such merger or consolidation hold less than a majority of the issued and outstanding voting equity securities of the successor or surviving person or entity as of immediately following the consummation of such merger or consolidation; (c) a transaction or a series of related transactions in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of the Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of the Borrower, who did not have such power before such transaction; or (d) the closing price per share for the Company’s common stock on the Nasdaq Capital Market being the greater of (i) 70% or more over $7.05, the closing price of the Company’s common stock on March 29, 2018 (after giving effect to any stock splits or consolidations effected after the date thereof) for five 2022 Success Fee Letter: Pursuant to the 2022 Success Fee Letter, the Borrower will pay to the Bank a success fee equal to (i) 1% of $5 million if the Company draws down the first tranche of the Term C Loan and is payable only if the Company’s stock price equals or exceeds $8 for five five five

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES Payroll Tax Examination In December 2021, the Company was notified that its European subsidiary, CytoSorbents Europe GmbH, would be subject to an audit of their payroll tax and social cost filings for the four-year period from 2018 through 2021. The Company has determined that payroll taxes and social costs were not paid on certain employee expense reimbursements as is required by German tax rules. Accordingly, the Company has accrued approximately $598,000 as an estimate of this liability. This liability is included in accrued expenses and other current liabilities in the consolidated balance sheet as of December 31, 2021 and March 31, 2022. Approximately $154,000 of this liability relates to 2021, approximately $131,000 relates to 2020, approximately $175,000 relates to 2019 and approximately $138,000 relates to 2018. The audit is on-going and is expected to be completed during the second quarter of 2022. Employment Agreements On July 30, 2019, CytoSorbents Corporation entered into amended and restated executive employment agreements with its principal executives, Dr. Phillip P. Chan, Chief Executive Officer, Vincent Capponi, President and Chief Operating Officer, and Kathleen P. Bloch, Chief Financial Officer. Each of the agreements has an initial term of three years and was retroactively effective as of January 1, 2019. On April 12, 2020, CytoSorbents Corporation entered into an executive employment agreement with Dr. Efthymios Deliargyris, who began employment as Chief Medical Officer on May 1, 2020, with an initial term that expired on December 31, 2021. After the expiration of the initial terms, the employment agreements will automatically renew for additional terms of one year unless either party provides written notice of non-renewal at least 60 days prior to a renewal. In January 2022, these employment agreements automatically renewed for an additional 1 year. The foregoing employment agreements each provide for base salary and other customary benefits which include participation in group insurance plans, paid time off and reimbursement of certain business-related expenses, including travel and continuing educational expenses, as well as bonus and/or equity awards at the discretion of the Board of Directors. In addition, the agreements provide for certain termination benefits in the event of termination without “Cause” or voluntary termination of employment for “Good Reason”, as defined in each agreement. The agreements also provide for certain benefits in the event of a “Change of Control” of the Company, as defined in each agreement. Litigation The Company is, from time to time, subject to claims and litigation arising in the ordinary course of business. The Company intends to defend vigorously against any future claims and litigation. The Company is not currently a party to any legal proceedings. Royalty Agreement Pursuant to an agreement dated August 11, 2003, an existing investor agreed to make a $4 million equity investment in the Company. These amounts were received by the Company in 2003. In connection with this agreement the Company granted the investor a perpetual royalty of 3% on all gross revenues received by the Company from the sale of its CytoSorb device which such rights were assigned to an existing investor in 2017. For the three months ended March 31, 2022 and 2021, the Company recorded royalty expenses of approximately $232,000 and $301,000, respectively. These expenses are included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. License Agreement In an agreement dated September 1, 2006, the Company entered into a license agreement which provides the Company the exclusive right to use its patented technology and proprietary know how relating to adsorbent polymers for a period of 18 years. Under the terms of the agreement, the Company has agreed to pay license fees of 2.5% to 5% on the sale of certain of its products if and when those products are sold commercially for a term not greater than 18 years commencing with the first sale of such product. For the three months ended March 31, 2022 and 2021 per the terms of the license agreement, the Company recorded licensing expenses of approximately $387,000 and $501,000, respectively. These expenses are included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss.

LEASES

LEASES	3 Months Ended
LEASES	Mar. 31, 2022
LEASES
LEASES	The Company leases its operating facilities in both the United States and Germany under operating lease agreements. In March 2021, CytoSorbents Medical Inc. entered into a lease agreement for a new operating facility at 305 College Road East, Princeton, New Jersey, which contains office, laboratory, manufacturing and warehouse space. The lease commenced on June 1, 2021. The Early Term commenced on June 1, 2021 and lasted until September 30, 2021. The lease also contains two five-year renewal options; however, the Company has determined that it is not likely that they will exercise these options. Commencing on September 30, 2021, the remaining lease term will last for 15.5 years. The lease requires monthly rental payments of $25,208 for the Initial Early Term, $88,254 for the Early Term and initial monthly payments of approximately $111,171 in the first year of the remaining term. Following the first year of the remaining term, the annual base rent will increase by approximately 2.75% annually over the remaining term. The lease also contains six months of rent abatement (months 1, 2, 3, 25, 26 and 27 of the remaining lease term). In addition to the base rent, payments of operating expenses and real estate taxes will be required. These payments are to be based on actual amounts incurred during 2021 multiplied by the Company’s share of the total building space (92.3%). The landlord will also provide an allowance of approximately $1,455,000 related to certain building improvements as outlined in the lease. In April 2021, the Company provided the landlord with a letter of credit in the amount of approximately $1,334,000 as security. The Company has determined that this lease should be treated as an operating lease in accordance with the provisions of ASC 842. On April 1, 2021, the Company recorded a Right of Use asset and related lease liability In April 2021, the Company entered into a Twentieth Amendment to Lease with the landlord at the existing Monmouth Junction facility which became effective May 31, 2021. This amendment extends the term of the lease for the Company’s existing facility to May 31, 2022. The Company’s base rent is approximately $35,000 per month. In addition, the Company is obligated to pay monthly operating expenses of approximately $30,000 per month. Under the terms of this amendment, the Company will vacate a portion of the space as of May 31, 2022. The Company will continue to lease the remaining space until December 31, 2022, at which time the Company will vacate the remaining space and the lease will terminate. The Company’s base rent for the remaining space will be approximately $20,000 per month. Monthly operating expenses will be approximately $11,000 per month. In addition, the Company agreed to increase its security deposit by approximately $54,000 to a total of $150,000. At the end of the lease term, the entire security deposit will be paid to the landlord for the purpose of making any needed repairs to the vacated premises, and the Company will have no further obligation to pay for repairs to the vacated premises. Effective April 1, 2021, the Company adjusted its incremental borrowing rate to the incremental borrowing rate used in the College Road lease and recalculated the right of use asset and lease liability under the amended terms of this lease. In addition, the Company also adjusted the incremental borrowing rate and related right of use asset and lease liability on the existing Germany office lease effective April 1, 2021. In September 2021, the Company extended its two operating leases for its office facility in Germany. These leases require combined base rent payments amounting to approximately $12,100 per month. The initial lease term of both leases ends August 31, 2026. In addition, the Company is obligated to monthly operating expenses of approximately $3,000 per month. Both leases have a five-year option to renew that would extend the lease term to August 31, 2031. There are no provisions in the leases to increase the base rent during the renewal period. There were no lease incentives and no initial direct costs were incurred related to these leases. In January 2021, CytoSorbents Europe GmbH entered into a lease for 1,068 square meters of additional warehouse space. The lease commenced on April 1, 2021 and requires monthly payments of base rent of $7,784 and other costs of approximately $239 and has a term of five years. The lease also has an option to extend liability Right-Of-Use Asset and Lease Liability: The Company's consolidated balance sheets reflect the value of the right-of-use asset and related lease liability. This value was calculated based on the present value of the remaining base rent lease payments. The remaining lease payments include the renewal periods for both facilities as the Company has determined that it is probable that the renewal options will be exercised under each of the lease agreements. The discount rate used was the Company’s incremental borrowing rate, which is 9.8%, as the Company could not determine the rate implicit in the lease. As a result, the value of the right-of- use asset and related lease liability is as follows: March 31, December 31, 2022 2021 Right-of-use asset $ 13,196,795 $ 13,423,472 Total lease liability $ 13,659,352 $ 13,821,509 Less current portion (486,964) (570,566) Lease liability, net of current portion $ 13,172,388 $ 13,250,943 The maturities of the lease liabilities are as follows as of March 31, 2022: 2022 $ 1,799,764 2023 1,275,860 2024 1,666,361 2025 1,705,625 2026 1,745,970 Thereafter 18,567,617 Total lease payments 26,761,197 Present value discount 13,101,845 Total $ 13,659,352 For the three months ended March 31, 2022 and 2021, operating cash flows paid in connection with operating leases amounted to approximately $712,765 and $230,865, respectively. As of March 31, 2022 and December 31, 2021, the weighted average remaining lease term was 13.5 years and 14.3 years, respectively.

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
NET LOSS PER SHARE	Mar. 31, 2022
NET LOSS PER SHARE
NET LOSS PER SHARE	8. NET LOSS PER SHARE Basic loss per share and diluted loss per share for the three months ended March 31, 2022 and 2021 have been computed by dividing the net loss for each respective period by the weighted average number of shares outstanding during that period. All outstanding options and restricted stock awards representing approximately 8,825,000 and 7,821,000 incremental shares as of March 31, 2022 and 2021, respectively, have been excluded from the computation of diluted loss per share as they are anti-dilutive.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
SUBSEQUENT EVENT	Mar. 31, 2022
SUBSEQUENT EVENT
SUBSEQUENT EVENT	9. SUBSEQUENT EVENT On April 5, 2022, the Company announced the appointment of Ms. Jiny Kim, MBA, to its Board of Directors as a new independent director for a term expiring at the Company's 2022 Annual Meeting, scheduled for June 7, 2022, at which time Ms. Kim is expected to stand for re-election. Concurrent with her appointment as director, she received an award of 17,250 stock options. These options will vest in four equal quarterly tranches, commencing on the three-month anniversary of her appointment. These options will be fully vested on April 5, 2023. The grant date fair value of these unvested options amounted to approximately $13,000.

PRINCIPAL BUSINESS ACTIVITY A_2

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business	Nature of Business The Company is a leader in the treatment of life-threatening conditions in intensive care and cardiac surgery using blood purification. The Company, through its subsidiary CytoSorbents Medical, Inc. (formerly known as CytoSorbents, Inc.), is engaged in the research, development and commercialization of medical devices with its blood purification technology platform which incorporates a proprietary adsorbent, porous polymer technology. The Company, through its wholly owned European subsidiary, CytoSorbents Europe GmbH, conducts sales and marketing related operations for the CytoSorb device. In March 2016, the Company formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the second quarter of 2016, provides marketing and direct sales services in Switzerland. In November 2018, the Company formed CytoSorbents Poland Sp. z.o.o., a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the first quarter of 2019, provides marketing and direct sales services in Poland. In the third quarter of 2019, the Company formed CytoSorbents UK Limited, a wholly-owned subsidiary of CytoSorbents Medical, Inc. which is responsible for the management of the Company’s clinical trial activities in the United Kingdom. In March 2022, the Company formed CytoSorbents Medical UK Limited to provide marketing and direct sales services in the United Kingdom and the Republic of Ireland. CytoSorb, the Company's flagship product, was approved in the European Union (“EU”) in March 2011 and is currently being marketed and distributed in more than 70 countries around the world, as an effective extracorporeal cytokine absorber, designed to reduce the “cytokine storm” or “cytokine release syndrome” seen in critical illnesses that may result in massive inflammation, organ failure, and patient death. In May 2018, the Company received a label extension for CytoSorb covering use of the device for the removal of bilirubin and myoglobin which allows for the use of the device in the treatment of liver failure and trauma, respectively. CytoSorb is also being used during and after cardiac surgery to remove inflammatory mediators that can lead to post-operative complications, including multiple organ failure. In January 2020, CytoSorb received EU CE Mark label expansion to include the removal of ticagrelor during cardiopulmonary bypass in patients undergoing cardiothoracic surgery. In May 2020, CytoSorb also received EU CE Mark label expansion to include rivaroxaban removal for the same indication. In April 2020, CytoSorb received United States Food and Drug Administration (“FDA”) Emergency Use Authorization (“EUA”) of CytoSorb for use in adult critically-ill COVID-19 patients with imminent or confirmed respiratory failure. The CytoSorb device has neither been cleared nor approved for the indication to treat patients with COVID-19 infection. The EUA will be effective until a declaration is made that the circumstances justifying the EUA have terminated or until revoked by the FDA. In April 2020, the Company also announced that the FDA had granted Breakthrough Designation for its DrugSorb-ATR Antithrombotic Removal System for the removal of ticagrelor in a cardiopulmonary bypass circuit during emergent and urgent cardiothoracic surgery. The Breakthrough Devices Program provides for more effective treatment of life-threatening or irreversibly debilitating disease or conditions, in this case the need to reverse the effects of ticagrelor in emergent or urgent cardiac surgery that can otherwise cause a high risk of serious or life-threatening bleeding. Through Breakthrough Designation, the FDA intends to work with CytoSorbents to expedite the development, assessment, and regulatory review of CytoSorbents’ technology for the removal of ticagrelor, while maintaining statutory standards of regulatory approval (e.g., 510(k), de novo In August 2021, the Company announced that it was granted a second Breakthrough Device designation for its DrugSorb-ATR Antithrombotic Removal System by the U.S. Food and Drug Administration (FDA). This Breakthrough Device designation covers the removal of the Direct Oral Anticoagulants (DOACs) apixaban and rivaroxaban in a cardiopulmonary bypass circuit to reduce the likelihood of serious perioperative bleeding during urgent cardiothoracic surgery. In October 2021, the Company also received full FDA approval of an IDE application to conduct a double-blind, randomized, controlled clinical study for up to 120 patients entitled, “Safe and Timely Antithrombotic Removal – Direct Oral Anticoagulants (STAR-D),” in the United States to support FDA marketing approval. If FDA marketing approval is obtained for either the removal of ticagrelor or direct oral anticoagulants indications, the device would be marketed as DrugSorb-ATR in the United States. The DrugSorb-ATR Antithrombotic Removal System is based on the same polymer technology as CytoSorb. The technology is based upon biocompatible, highly porous polymer sorbent beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. The Company has numerous products under development based upon this unique blood purification technology, which is protected by 21 issued U.S. patents and multiple international patents, with applications pending both in the U.S. and internationally, including HemoDefend, ContrastSorb, DrugSorb, DrugSorb-ATR and others. These patents and patent applications are directed to various compositions and methods of use related to the Company’s blood purification technologies and are expected to expire between 2022 and 2038, absent any patent term extensions. Management believes that any near-term expiring patents will not have a significant impact on the Company’s ongoing business.
Stock Market Listing	Stock Market Listing On December 17, 2014 the Company’s common stock, par value $0.001 per share, was approved for listing on the Nasdaq Capital Market (“Nasdaq”), and it began trading on Nasdaq on December 23, 2014 under the symbol “CTSO.” Previously, the Company’s common stock traded in the over-the-counter-market on the OTC Bulletin Board.
Basis of Consolidation and Foreign Currency Translation	Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include the accounts of CytoSorbents Corporation and its wholly-owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. In addition, the consolidated financial statements include CytoSorbents Switzerland GmbH, CytoSorbents Poland Sp. z.o.o. and CytoSorbents Medical UK Limited, wholly owned subsidiaries of CytoSorbents Europe GmbH, and CytoSorbents UK Limited, a wholly-owned subsidiary of CytoSorbents Medical, Inc. All significant intercompany transactions and balances have been eliminated in consolidation. Translation gains and losses resulting from the process of remeasuring into the United States Dollar, the foreign currency financial statements of the European subsidiary are included in operations. The Euro is the functional currency of the European Subsidiary. Foreign currency transaction loss included in net loss amounted to approximately $(1,213,000) and $(1,306,000) for the three months ended March 31, 2022 and 2021, respectively. The Company translates assets and liabilities of all of its foreign subsidiaries at the exchange rate in effect at the consolidated balance sheet date. The Company translates revenue and expenses at the daily average exchange rates. The Company includes accumulated net translation adjustments in accumulated other comprehensive income as a component of stockholders’ equity.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts shown in the consolidated balance sheets: March 31, 2022 December 31, 2021 Cash and cash equivalents $ 43,022,814 $ 52,137,707 Restricted cash 1,687,459 1,687,459 Total cash, cash equivalents and restricted cash $ 44,710,273 $ 53,825,166
Restricted Cash	Restricted Cash The Company’s total restricted cash in the amount of $1,687,459 consists of cash of $1,467,459 that the Company is obligated to maintain as collateral for the outstanding letter of credit with Bridge Bank that was provided to the landlord of the College Road facility as security and cash of $220,000 that the Company is obligated to maintain as collateral for the credit limit on the Company’s credit card accounts.
Grants and Accounts Receivable	Grants and Accounts Receivable Grants receivable represent amounts due from U.S. government agencies and are included in Grants and Accounts Receivable. Accounts receivable are unsecured, non-interest bearing customer obligations due under normal trade terms. The Company sells its devices to various hospitals and distributors. The Company performs ongoing credit evaluations of its customers’ financial conditions. Management reviews accounts receivable periodically to determine collectability. Balances that are determined to be uncollectible are written off to the allowance for doubtful accounts. The allowance for doubtful accounts amounted to approximately $67,000 and $61,000 at March 31, 2022 and December 31, 2021, respectively.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value under the first in, first out (FIFO) method. At March 31, 2022 and December 31, 2021, the Company’s inventory was comprised of finished goods, which amounted to $3,363,744 and $3,084,606, respectively; work in process which amounted to $1,638,447 and $1,322,736, respectively; and raw materials, which amounted to $443,308 and $358,756, respectively. Devices used in clinical trials or for research and development purposes are removed from inventory and charged to research and development expenses at the time of their use. Donated devices are removed from inventory and charged to selling, general and administrative expenses.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of their economic useful lives or the term of the related leases. Gains and losses on depreciable assets retired or sold are recognized in the consolidated statements of operations and comprehensive loss in the year of disposal. Repairs and maintenance expenditures are expensed as incurred.
Patents	Patents Legal costs incurred to establish and successfully defend patents are capitalized. When patents are issued, capitalized costs are amortized on the straight-line method over the related patent term. In the event a patent is abandoned, the net book value of the patent is written off.
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets The Company assesses the impairment of patents and other long-lived assets under accounting standards for the impairment or disposal of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and fair value. During the three months ended March 31, 2022, the Company recorded an impairment charge of approximately $306,000 related to certain patent costs. This charge is included in legal, financial and other consulting in the consolidated statements of operations and comprehensive loss.
Revenue Recognition	Revenue Recognition Product Sales Grant Revenue
Research and Development	Research and Development All research and development costs, payments to laboratories and research consultants are expensed when incurred.
Advertising Expenses	Advertising Expenses Advertising expenses are charged to activities when incurred. Advertising expenses amounted to approximately $81,000 and $154,000 for the three months ended March 31, 2022 and 2021, respectively, and are included in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method prescribed by accounting standards for accounting for income taxes. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. The Company has provided a valuation allowance against all deferred tax assets. Under Section 382 of the Internal Revenue Code, the net operating losses generated prior to the previously completed reverse merger may be limited due to the change in ownership. Additionally, net operating losses generated subsequent to the reverse merger may be limited in the event of changes in ownership. The Company follows accounting standards associated with uncertain tax positions. The Company had no unrecognized tax benefits at March 31, 2022 or December 31, 2021. The Company files tax returns in the U.S. federal and state jurisdictions. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss carryforwards to an industrial company. Each of CytoSorbents Europe GmbH, CytoSorbents Switzerland GmbH, CytoSorbents Poland Sp. Z.o.o. and CytoSorbents UK Limited files an annual corporate tax return, VAT return and a trade tax return in Germany, Switzerland, Poland and the United Kingdom, respectively.
Use of Estimates	Use of Estimates The preparation of consolidated 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. Actual results could differ from these estimates. The valuation of options granted is a significant estimate in these consolidated financial statements.
Concentration of Credit Risk	Concentration of Credit Risk The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances. A significant portion of the Company's revenues are from product sales in Germany. Substantially all of the Compnay's grant and other income are from government agencies in the United States. (See Note 4 for further information relating to the Company’s revenue.) As of March 31, 2022, one distributor accounted for approximately 22% of outstanding grants and accounts receivable. As of December 31, 2021, one distributor accounted for approximately 12% of outstanding grants and accounts receivables. For the three months ended March 31, 2022, no distributor accounted for more than 10% of the Company's total revenue and for the three months ended March 31, 2021, one distributor accounted for approximately 11% of the Company's total revenue.
Financial Instruments	Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their fair values due to their short-term nature.
Net Loss Per Common Share	Net Loss Per Common Share Basic loss per share is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share are computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and restricted shares. The computation of diluted loss per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings (see Note 8).
Stock-Based Compensation	Stock-Based Compensation The Company accounts for its stock-based compensation under the recognition requirements of accounting standards for accounting for stock-based compensation, for employees and directors whereby each option granted is valued at fair market value on the date of grant. Under these accounting standards, the fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The Company also follows the guidance of accounting standards for accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services for equity instruments issued to consultants.
Shipping and Handling Costs	Shipping and Handling Costs The cost of shipping product to customers and distributors is typically borne by the customer or distributor. The Company records other shipping and handling costs in cost of revenue. Total freight costs amounted to approximately $68,000 and $63,000, respectively, for the three months ended March 31, 2022 and 2021.
Effect of Recent Accounting Pronouncements	Effect of Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (the “FASB”), issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance”. ASU 2021-10 will require enhanced disclosures related to the Company’s contracts with the U.S. Government. The ASU is effective for annual periods beginning after December 15, 2021. The Company intends to implement the provisions of ASU 2021-10 during 2022.

PRINCIPAL BUSINESS ACTIVITY A_3

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2022
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reconciliation of cash and cash equivalents and restricted cash and cash equivalents	March 31, 2022 December 31, 2021 Cash and cash equivalents $ 43,022,814 $ 52,137,707 Restricted cash 1,687,459 1,687,459 Total cash, cash equivalents and restricted cash $ 44,710,273 $ 53,825,166

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Mar. 31, 2022
STOCKHOLDERS' EQUITY
Schedule Of Share Based Compensation Stock Options Activity	The summary of the stock option activity for the three months ended March 31, 2022 is as follows: Weighted Weighted Average Average Remaining Exercise Price Contractual Shares per Share Life (Years) Outstanding, December 31, 2021 6,885,978 $ 7.09 7.15 Granted 56,500 $ 3.42 — Forfeited (1,105,125) $ 8.67 — Expired (35,124) $ 7.48 — Outstanding, March 31, 2022 5,802,229 $ 6.69 6.47
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The intrinsic value is calculated as the difference between the market value of the shares as of March 31, 2022 of $3.19 and the exercise price of the shares. Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise March 31, Exercise Remaining Intrinsic Price 2022 Price Life (Years) Value $2.65 - $14.50 5,802,229 $ 6.69 6.47 $ 44,073 Options Exercisable Number Weighted Exercisable at Average Aggregate March 31, Exercise Intrinsic 2022 Price Value 4,293,305 $ 6.46 $ 41,703
Schedule Of Non vested Share Activity	The summary of the status of the Company’s non-vested options for the three months ended March 31, 2022 is as follows: Weighted Average Grant Date Shares Fair Value Non-vested, December 31, 2021 2,994,846 $ 4.68 Granted 56,500 $ 1.92 Forfeited (1,105,125) $ 5.29 Vested (437,297) $ 4.01 Non-vested, March 31, 2022 1,508,924 $ 4.30
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	The following table is a summary of these restricted stock units: Restricted Stock Units Board of Executive Other Directors Management Employees Total Intrinsic Value December 31, 2021 277,200 724,500 1,709,500 2,711,200 $ 11,359,928 Granted — — 120,000 120,000 Forfeited — — (57,000) (57,000) March 31, 2022 277,200 724,500 1,772,500 2,774,200 $ 8,849,698
Schedule Of Restricted Stock Unit Activity	Weighted Average Grant Date Shares Fair Value Non-vested, December 31, 2021 304,962 $ 8.08 Vested (56,034) $ 6.03 Non-vested, March 31, 2022 248,928 $ 8.54

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
REVENUE (Tables)	Mar. 31, 2022
REVENUE
Schedule of disaggregation of Revenue	The following table disaggregates the Company’s revenue by customer type and geographic area for the three months ended March 31, 2022: United States Distributors/ Government Direct Strategic Partners Agencies Total Product sales: United States $ 57,592 $ 154,750 $ — $ 212,342 Germany 3,783,526 - — 3,783,526 All other countries 1,204,932 2,723,657 — 3,928,589 Total product revenue 5,046,050 2,878,407 — 7,924,457 Grant and other income: United States — — 766,967 766,967 Total revenue $ 5,046,050 $ 2,878,407 $ 766,967 $ 8,691,424 The following table disaggregates the Company's revenue by customer type and geographic area for the three months ended March 31, 2021: United States Distributors/ Government Direct Strategic Partners Agencies Total Product sales: United States $ — $ 303,650 $ — $ 303,650 Germany 5,896,192 — — 5,896,192 All other countries 1,121,033 2,822,481 — 3,943,514 Total product revenue 7,017,225 3,126,131 — 10,143,356 Grant and other income: United States — — 455,491 455,491 Total revenue $ 7,017,225 $ 3,126,131 $ 455,491 $ 10,598,847
Schedule of receivables and contract liabilities from contracts with customers	March 31, 2022 December 31, 2021 Receivables, which are included in grants and accounts receivable $ 3,152,256 $ 3,000,708 Contract liabilities, which are included in accrued expenses and other current liabilities $ 2,435,452 $ 2,251,177

LEASES (Tables)

LEASES (Tables)	3 Months Ended
LEASES (Tables)	Mar. 31, 2022
LEASES
Schedule of right-of- use asset and related lease liability	March 31, December 31, 2022 2021 Right-of-use asset $ 13,196,795 $ 13,423,472 Total lease liability $ 13,659,352 $ 13,821,509 Less current portion (486,964) (570,566) Lease liability, net of current portion $ 13,172,388 $ 13,250,943
Schedule of maturities of the lease liabilities	The maturities of the lease liabilities are as follows as of March 31, 2022: 2022 $ 1,799,764 2023 1,275,860 2024 1,666,361 2025 1,705,625 2026 1,745,970 Thereafter 18,567,617 Total lease payments 26,761,197 Present value discount 13,101,845 Total $ 13,659,352

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
BASIS OF PRESENTATION
Cash, cash equivalents and restricted cash balances	$ 44,710,273	$ 53,825,166	$ 68,468,285	$ 71,421,601

PRINCIPAL BUSINESS ACTIVITY A_4

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)countrypatent	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)	Mar. 31, 2022USN ($)patent	Dec. 31, 2021USN ($)
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Number of countries where the entity's flagship product is marketed and distributed \| country	70
Number of patents \| patent	21			21
Loss on foreign currency transactions	$ (1,213,000)	$ (1,306,000)
Restricted cash	1,687,459		$ 1,687,459
Allowance for doubtful accounts	67,000		61,000
Inventory, Finished Goods, Gross	3,363,744		3,084,606
Inventory, Work in Process, Gross			1,322,736	$ 1,638,447
Inventory, Raw Materials, Gross	443,308				$ 358,756
Impairment of patents included legal, financial and other consulting charge	306,000
Advertising expense	81,000	154,000
Unrecognized Tax Benefits	0		$ 0
Cost of revenue	2,277,636	2,751,444
Letter of credit
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Cash collateral	1,467,459
Credit Card
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Cash collateral	220,000
Cargo and Freight
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Cost of revenue	$ 68,000	$ 63,000
Accounts Receivable \| One Distributor/strategic partner
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	22.00%		12.00%
Sales Revenue, Net \| One Distributor/strategic partner
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	10.00%	11.00%

PRINCIPAL BUSINESS ACTIVITY A_5

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and cash equivalents	$ 43,022,814	$ 52,137,707
Restricted cash	1,687,459	1,687,459
Total cash, cash equivalents and restricted cash	$ 44,710,273	$ 53,825,166	$ 68,468,285	$ 71,421,601

STOCKHOLDERS' EQUITY - Stock op

STOCKHOLDERS' EQUITY - Stock option activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Shares
Outstanding	6,885,978
Granted	56,500
Forfeited	(1,105,125)
Expired	(35,124)
Outstanding	5,802,229	6,885,978
Weighted Average Exercise Price per Share
Outstanding	$ 7.09
Granted	3.42
Forfeited	8.67
Expired	7.48
Outstanding	$ 6.69	$ 7.09
Weighted Average Remaining Contractual Life (Years)
Outstanding		7 years 1 month 24 days
Granted	0 years
Forfeited	0 years
Expired	0 years
Outstanding	6 years 5 months 19 days

STOCKHOLDERS' EQUITY - Intrinsi

STOCKHOLDERS' EQUITY - Intrinsic value (Details)	3 Months Ended
STOCKHOLDERS' EQUITY - Intrinsic value (Details)	Mar. 31, 2022USD ($)$ / sharesshares
Options Exercisable
Number Exercisable at March 31, 2022 \| shares	4,293,305
Weighted Average Exercise Price	$ 6.46
Aggregate Intrinsic Value \| $	$ 41,703
$2.65 - $14.50
Options Outstanding
Range of Exercise Price, Lower Range Limit	$ 2.65
Range of Exercise Price, Upper Range Limit	$ 14.50
Number Outstanding at March 31, 2022 \| shares	5,802,229
Weighted Average Exercise Price	$ 6.69
Weighted Average Remaining Life (Years)	6 years 5 months 19 days
Aggregate Intrinsic Value \| $	$ 44,073

STOCKHOLDERS' EQUITY - Non-vest

STOCKHOLDERS' EQUITY - Non-vested options (Details)	3 Months Ended
STOCKHOLDERS' EQUITY - Non-vested options (Details)	Mar. 31, 2022$ / sharesshares
Shares
Non-vested, December 31, 2021 \| shares	2,994,846
Granted \| shares	56,500
Forfeited \| shares	(1,105,125)
Vested \| shares	(437,297)
Non-vested, March 31, 2022 \| shares	1,508,924
Weighted Average Grant Date Fair Value
Non-vested, December 31, 2021 \| $ / shares	$ 4.68
Granted \| $ / shares	1.92
Forfeited \| $ / shares	5.29
Vested \| $ / shares	4.01
Non-vested, March 31, 2022 \| $ / shares	$ 4.30

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted stock unit (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2022USD ($)shares
Restricted Stock Units, Beginning Balance	2,711,200
Restricted Stock Units, Intrinsic Value Beginning Balance \| $	$ 11,359,928
Restricted Stock Units, Granted	120,000
Restricted Stock Units, Forfeited	(57,000)
Restricted Stock Units, Ending Balance	2,774,200
Restricted Stock Units, Intrinsic Value Ending Balance \| $	$ 8,849,698
Board of Directors
Restricted Stock Units, Beginning Balance	277,200
Restricted Stock Units, Granted	0
Restricted Stock Units, Forfeited	0
Restricted Stock Units, Ending Balance	277,200
Executive Management
Restricted Stock Units, Beginning Balance	724,500
Restricted Stock Units, Granted	0
Restricted Stock Units, Forfeited	0
Restricted Stock Units, Ending Balance	724,500
Other Employees
Restricted Stock Units, Beginning Balance	1,709,500
Restricted Stock Units, Granted	120,000
Restricted Stock Units, Forfeited	(57,000)
Restricted Stock Units, Ending Balance	1,772,500

STOCKHOLDERS' EQUITY - Restri_2

STOCKHOLDERS' EQUITY - Restricted stock unit activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Shares
Non-vested, December 31, 2021 \| shares	304,962
Vested \| shares	(56,034)
Non-vested, March 31, 2022 \| shares	248,928
Weighted Average Grant Date Fair Value
Non-vested, December 31, 2021 \| $ / shares	$ 8.08
Vested \| $ / shares	6.03
Non-vested, March 31, 2022 \| $ / shares	$ 8.54

STOCKHOLDERS' EQUITY - Addition

STOCKHOLDERS' EQUITY - Additional information (Details) - USD ($)	Dec. 30, 2021	Apr. 12, 2021	Feb. 28, 2020	Jul. 22, 2019	Mar. 04, 2019	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Jul. 14, 2021	Jun. 30, 2019
Stockholders Equity [Line Items]
Number of preferred stock authorized						5,000,000		5,000,000		5,000,000
Number of common stock authorized						100,000,000		100,000,000
Aggregate registered amount for offerings									$ 150,000,000
Number of option granted						56,500
Allocated share-based compensation expense						$ 787,000	$ 667,000
Exercise price per share						$ 3.19
Expected life of the stock option						10 years
Expected volatility						59.30%
Expected dividends						0.00%
Total unrecognized compensation cost related to stock options						$ 6,073,000
Amortized period						38 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares						437,297
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						$ 106,269	309,561
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number						5,802,229		6,885,978
Maximum
Stockholders Equity [Line Items]
Number of common stock authorized										100,000,000
Minimum
Stockholders Equity [Line Items]
Number of common stock authorized										50,000,000
Restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross								91,750
Stock Issued During Period, Value, Restricted Stock Award, Gross								$ 713,868
Vesting period								4 years
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						$ 47,000	54,000
Restricted stock \| First 46,750 restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross								46,750
Restricted stock \| Second 45,000 restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross								45,000
Restricted stock \| Second anniversary of the date of the grant \| First 46,750 restricted stock
Stockholders Equity [Line Items]
Vesting percentage								33.00%
Restricted stock \| Third anniversary of the date of the grant \| Second 46,750 restricted stock
Stockholders Equity [Line Items]
Vesting percentage								33.00%
Restricted stock \| Fourth anniversary of the date of the grant \| Third 46,750 restricted stock
Stockholders Equity [Line Items]
Vesting percentage								33.00%
March 4, 2019 Performance-Based Award \| Restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross					22,220
Stock Issued During Period, Value, Restricted Stock Award, Gross					$ 179,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						0	11,000
July 22, 2019 Performance-Based Award \| Restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross				180,300
Stock Issued During Period, Value, Restricted Stock Award, Gross				$ 1,300,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						0	103,000
February 28 2020 Performance Based Award \| Restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross			168,100
Stock Issued During Period, Value, Restricted Stock Award, Gross			$ 1,014,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						65,000	274,000
April 12, 2021 Performance Based Award \| Restricted stock
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		235,765
Stock Issued During Period, Value, Restricted Stock Award, Gross		$ 2,120,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures						177,000	$ 0
Jefferies LLC and B. Riley FBR, Inc
Stockholders Equity [Line Items]
Number of shares issued								90,000
aggregate offering price	$ 25,000,000
Net proceeds from issuance of stock						$ 40,000
Commission rate (as a percent)								3.00%
Exercise Price Ranging From 1.52 To 2.52
Stockholders Equity [Line Items]
Risk free interest rate, minimum						1.52%
Risk free rate maximum						2.52%
Exercise Price Ranging From 2.98 To 3.91 \| Maximum
Stockholders Equity [Line Items]
Exercise price per share						$ 3.91
Exercise Price Ranging From 2.98 To 3.91 \| Minimum
Stockholders Equity [Line Items]
Exercise price per share						$ 2.98

REVENUE - Revenue by customer t

REVENUE - Revenue by customer type and geographic area (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Product sales:
Total revenue	$ 8,691,424	$ 10,598,847
Product
Product sales:
Total revenue	7,924,457	10,143,356
Grant and other income
Product sales:
Total revenue	766,967	455,491
United States \| Product
Product sales:
Total revenue	212,342	303,650
United States \| Grant and other income
Product sales:
Total revenue	766,967	455,491
Germany \| Product
Product sales:
Total revenue	3,783,526	5,896,192
All other countries \| Product
Product sales:
Total revenue	3,928,589	3,943,514
Direct
Product sales:
Total revenue	5,046,050	7,017,225
Direct \| Product
Product sales:
Total revenue	5,046,050	7,017,225
Direct \| United States \| Product
Product sales:
Total revenue	57,592
Direct \| Germany \| Product
Product sales:
Total revenue	3,783,526	5,896,192
Direct \| All other countries \| Product
Product sales:
Total revenue	1,204,932	1,121,033
Distributors/Strategic Partners
Product sales:
Total revenue	2,878,407	3,126,131
Distributors/Strategic Partners \| Product
Product sales:
Total revenue	2,878,407	3,126,131
Distributors/Strategic Partners \| United States \| Product
Product sales:
Total revenue	154,750	303,650
Distributors/Strategic Partners \| All other countries \| Product
Product sales:
Total revenue	2,723,657	2,822,481
United States Government Agencies
Product sales:
Total revenue	766,967	455,491
United States Government Agencies \| United States \| Grant and other income
Product sales:
Total revenue	$ 766,967	$ 455,491

REVENUE - Receivables and contr

REVENUE - Receivables and contract liabilities (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
REVENUE
Receivables, which are included in grants and accounts receivable	$ 3,152,256	$ 3,000,708
Contract liabilities, which are included in Accrued expenses and other current liabilities	$ 2,435,452	$ 2,251,177

REVENUE - Additional informatio

REVENUE - Additional information (Details)	3 Months Ended
REVENUE - Additional information (Details)	Mar. 31, 2022USD ($)segment	Dec. 31, 2021USD ($)
Number of primary revenue streams \| segment	2
Value of free of charge goods and credit rebates	$ 259,543	$ 303,824
Contract liabilities net of Value of free of charge goods and credit rebates	$ 2,175,909	$ 1,947,353
Maximum
Term of customer contracts	5 years
Minimum
Term of customer contracts	1 year

LONG-TERM DEBT, NET - Additiona

LONG-TERM DEBT, NET - Additional information (Details) - USD ($)	Dec. 04, 2020	Jul. 31, 2019	Mar. 31, 2022	Jan. 19, 2022	Mar. 29, 2018	Jun. 30, 2016
Non-refundable fee percent			2.50%
Non refundable Closing Fee
Debt Issuance Costs, Net			$ 18,750
2022 Success Fee Letter \| First Tranche
Percentage Of Success Fee			1.00%
Average selling price			$ 8
Number of days for stock price threshold set in success fee letter			5 days
Maximum borrowing capacity			$ 5,000,000
2022 Success Fee Letter \| Second Tranche
Percentage Of Success Fee			1.50%
Average selling price			$ 10
Number of days for stock price threshold set in success fee letter			5 days
Maximum borrowing capacity			$ 5,000,000
2022 Success Fee Letter \| Third Tranche
Percentage Of Success Fee			2.00%
Average selling price			$ 12
Number of days for stock price threshold set in success fee letter			5 days
Maximum borrowing capacity			$ 5,000,000
Western Alliance Bank
Debt Instrument, Face Amount					$ 15,000,000	$ 10,000,000
Repayments of debt	$ 15,000,000
Western Alliance Bank \| Closing Fee
Debt Issuance Costs, Net			$ 75,000
Western Alliance Bank \| New Term Loan
Debt Instrument, Face Amount	15,000,000			$ 15,000,000		$ 5,000,000
Rate of interest added to reference rate as per debt agreement			1.25%
Western Alliance Bank \| Term A Loan
Debt Instrument, Face Amount					10,000,000
Western Alliance Bank \| Term B Loan
Debt Instrument, Face Amount					$ 5,000,000
Repayments of debt		$ 5,000,000
Long-term Debt		$ 15,000,000
Western Alliance Bank \| Term C Loan
Maximum borrowing capacity				$ 15,000,000
Current borrowing capacity	$ 5,000,000
Interest rate cap			8.00%
Western Alliance Bank \| 2018 Success Fee Letter
Percentage Of Success Fee			6.37%
Average selling price			$ 7.05
Number of days for stock price threshold set in success fee letter			5 days
Western Alliance Bank \| 2018 Success Fee Letter \| Minimum
Percentage of Closing Price on Common Stock			26.13%
Western Alliance Bank \| 2018 Success Fee Letter \| Maximum
Percentage of Closing Price on Common Stock			70.00%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Aug. 11, 2003	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Line Items]
Initial term (in years)		3 years
Term of License Agreement		18 years
Automatic renewal period for employment agreements		1 year
Additional automatic renewed period for employment agreements		1 year
Accrued Expenses and Other Current Liabilities		$ 9,358,910		$ 10,314,341
Employee related liabilities				154,000	$ 131,000	$ 175,000	$ 138,000
Customs examination
Commitments and Contingencies Disclosure [Line Items]
Accrued tax liability		598,000		$ 598,000
Royalty Agreements [Member]
Commitments and Contingencies Disclosure [Line Items]
Future royalty payment percentage on gross revenue	3.00%
Royalty cost		$ 232,000	$ 301,000
Equity investment by an existing investor	$ 4,000,000
License Agreement [Member]
Commitments and Contingencies Disclosure [Line Items]
Term of License Agreement		18 years
Royalty rate, lower limit		2.50%
Royalty rate, upper limit		5.00%
Royalty cost		$ 387,000	$ 501,000

LEASES - Right-of- use asset an

LEASES - Right-of- use asset and related lease liability (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
LEASES
Right-of-use asset	$ 13,196,795	$ 13,423,472
Total	13,659,352	13,821,509
Less current portion	(486,964)	(570,566)
Lease liability, net of current portion	$ 13,172,388	$ 13,250,943

LEASES - Maturities of the leas

LEASES - Maturities of the lease liabilities (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
LEASES
2022	$ 1,799,764
2023	1,275,860
2024	1,666,361
2025	1,705,625
2026	1,745,970
Thereafter	18,567,617
Total lease payments	26,761,197
Present value discount	13,101,845
Total	$ 13,659,352	$ 13,821,509

LEASES - Additional Information

LEASES - Additional Information (Details)	Apr. 01, 2021USD ($)	Sep. 30, 2021USD ($)	Apr. 30, 2021USD ($)	Mar. 31, 2021USD ($)item	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)item	Dec. 31, 2021USD ($)	Jan. 31, 2021m²	Dec. 31, 2020USD ($)
Operating lease lability					$ 13,659,352		$ 13,821,509
Right of use asset					$ 13,196,795		$ 13,423,472
Lessee, Operating Lease, Discount Rate					9.80%
Operating Lease, Payments					$ 712,765	$ 230,865
Operating Lease, Weighted Average Remaining Lease Term					13 years 6 months		14 years 3 months 18 days
Twentieth Amendment To lease
Operating Lease, Expense			$ 35,000
Additional Operating Leases Rent Expense Net			30,000
Operating lease base rent for remaining space			20,000
Monthly operating expenses			11,000
Security deposit			150,000						$ 54,000
CytoSorbents Medical, Inc
Number of times lease renewal options available \| item				2		2
Renewal term				5 years		5 years
Rent abatement term				6 months
CytoSorbents Europe GmbH
Operating Lease, Expense	$ 7,784
Operating lease lability	594,000
Right of use asset	594,000
Area of Land \| m²								1,068
Other costs	$ 239
Lease term	5 years
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Additional lessee operating lease term of contract option to extend	5 years
United States \| CytoSorbents Medical, Inc
Remaining lease term				15 years 6 months		15 years 6 months
Annual rent expense increment rate				2.75%
Percentage of total building space occupied				92.30%		92.30%
Allowance for building improvement				$ 1,455,000		$ 1,455,000
Operating lease lability	$ 11,600,000
Right of use asset	$ 11,600,000
Lessee, Operating Lease, Discount Rate	9.80%
United States \| Letter of credit \| CytoSorbents Medical, Inc
Security Amount			$ 1,334,000
United States \| Initial early term \| CytoSorbents Medical, Inc
Operating Lease, Expense				25,208
United States \| Early term \| CytoSorbents Medical, Inc
Operating Lease, Expense				88,254
United States \| First year of remaining lease term \| CytoSorbents Medical, Inc
Operating Lease, Expense				$ 111,171
Germany
Operating Lease, Expense		$ 12,100
Additional Operating Leases Rent Expense Net		$ 3,000

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares	3 Months Ended
NET LOSS PER SHARE (Details) - shares	Mar. 31, 2022	Mar. 31, 2021
Stock Options and Warrants
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	8,825,000	7,821,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event - Stock options - Ms. Jiny Kim	Apr. 05, 2022USD ($)shares
Subsequent Event [Line Items]
Number of options granted \| shares	17,250
Vesting period	3 months
Grant date fair value \| $	$ 13,000