Investment Thesis
Armata Pharmaceuticals faces existential financial distress with negative stockholders equity of -$311.6M, indicating technical insolvency. The company generates negligible revenue ($31.0K) against operating losses of -$8.8M and negative operating cash flow of -$5.8M, creating an unsustainable burn rate with only $4.8M in cash reserves.
Strengths
- Minimal revenue base ($31.0K) shows early commercialization activity, albeit at negligible scale
- Recent Form 4 insider filings (12 in 90 days) indicate some management activity
- As a biotech company, potential for future pipeline value if capital constraints are resolved
Risks
- Negative stockholders equity of -$311.6M indicates permanent loss of shareholder capital and technical insolvency
- Critical liquidity crisis with current ratio of 0.64x; liabilities of $381.4M exceed assets of $69.8M by $311.6M
- Unsustainable burn rate with operating cash flow of -$5.8M against only $4.8M cash; limited runway without immediate capital injection
- Net losses of -$115.3M with operating margin of -28338.7%; no path to profitability evident from current fundamentals
- Interest coverage ratio of -1.9x indicates inability to service debt obligations from operations
Key Metrics to Watch
- Cash runway and timeline to next financing event or bankruptcy filing
- Quarterly revenue trends and customer concentration
- Operating burn rate and operating cash flow improvement trajectory
Financial Metrics
Revenue
31.0K
Net Income
-115.3M
EPS (Diluted)
$-3.16
Free Cash Flow
-5.8M
Total Assets
69.8M
Cash
4.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-28,338.7%
Net Margin
-372,083.9%
ROE
N/A
ROA
-165.3%
FCF Margin
-18,854.8%
Balance Sheet & Liquidity
Current Ratio
0.64x
Quick Ratio
0.64x
Debt/Equity
N/A
Debt/Assets
546.4%
Interest Coverage
-1.94x
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: 2026-05-15T08:39:14.901257 |
Data as of: 2026-03-31 |
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