Investment Thesis
Allarity is a development-stage pharmaceutical company with minimal revenue ($320K) and severe cash burn (-$14.8M operating cash flow), resulting in a cash runway of approximately 12 months at current burn rates. Negative margins across all metrics and inability to generate operating income create critical financial distress absent near-term product commercialization or external funding.
Strengths
- Adequate short-term liquidity with 2.13x current ratio
- Manageable leverage ratio of 0.27x debt-to-equity
- $14.7M cash position provides near-term operational runway
Risks
- Unsustainable cash burn of $14.8M per period with less than 12 months runway at current rate
- Negligible revenue generation ($320K) with negative gross profit indicates failed or pre-commercial product portfolio
- Severe operating losses (-$12.6M) and negative interest coverage (-123.6x) indicate inability to achieve profitability without major operational restructuring
- Dependent on clinical trial success, regulatory approval, and capital raises to survive
Key Metrics to Watch
- Cash burn rate and remaining runway (critical)
- Revenue growth and product commercialization progress
- Clinical trial outcomes and regulatory milestone achievements
Financial Metrics
Revenue
320.0K
Net Income
-11.2M
EPS (Diluted)
$-0.73
Free Cash Flow
-14.8M
Total Assets
18.3M
Cash
14.7M
Profitability Ratios
Gross Margin
-707.8%
Operating Margin
-3,939.1%
Net Margin
-3,509.7%
ROE
-114.3%
ROA
-61.5%
FCF Margin
-4,633.8%
Balance Sheet & Liquidity
Current Ratio
2.13x
Quick Ratio
2.13x
Debt/Equity
0.27x
Debt/Assets
46.2%
Interest Coverage
-123.58x
Long-term Debt
2.7M
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: 2026-05-10T07:12:01.854736 |
Data as of: 2025-12-31 |
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