Investment Thesis
Actuate Therapeutics is a pre-revenue pharmaceutical company burning $5.0M operating cash flow per period with only $8.1M in cash reserves, implying critical runway constraints. While net losses improved 18.5% year-over-year, the absence of revenue generation combined with rapid cash depletion creates existential execution risk.
Strengths
- Zero long-term debt eliminates financial leverage risk and provides refinancing flexibility
- Year-over-year loss improvement (18.5% net income, 67.5% EPS) demonstrates operational progress toward commercialization
- Adequate near-term liquidity with 1.80x current ratio provides 1-2 periods of operational funding
Risks
- No revenue and pre-revenue stage with unproven commercialization capability
- Critical cash runway of approximately 1.6 periods at $5.0M quarterly burn rate
- Negative free cash flow indicates unsustainable capital structure requiring dilutive financing
- Minimal asset base ($8.9M total assets) with limited collateral for future borrowing
Key Metrics to Watch
- Quarterly cash burn rate and updated cash runway estimates
- Clinical development milestones and regulatory pathway progress
- Equity financing activity and dilution impact on existing shareholders
Financial Metrics
Revenue
N/A
Net Income
-5.6M
EPS (Diluted)
$-0.24
Free Cash Flow
-5.0M
Total Assets
8.9M
Cash
8.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-148.7%
ROA
-63.1%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
1.80x
Quick Ratio
1.80x
Debt/Equity
0.00x
Debt/Assets
57.5%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-23T07:32:30.869681 |
Data as of: 2026-03-31 |
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