Investment Thesis
Atara Biotherapeutics faces existential financial distress with negative shareholders' equity of -$37.3M, minimal revenue of $516K with zero growth, and quarterly operating cash burn of -$3.1M. With only $8.4M cash on hand and a negative operating margin of -652.9%, the company has approximately 2-3 quarters of runway and requires urgent capital infusion or transformational revenue generation to avoid insolvency.
Strengths
- Maintains $8.4M cash position providing near-term liquidity buffer
- Current ratio of 2.16x indicates short-term current assets exceed current liabilities by reasonable margin
- EPS improvement of 122.5% YoY suggests potential operational adjustments, though from severely depressed base
Risks
- Negative shareholders' equity of -$37.3M represents technical insolvency with total liabilities ($57.3M) exceeding total assets ($20.0M)
- Severe cash burn of -$3.1M per quarter against only $8.4M cash reserves creates 2-3 quarter survival horizon without capital injection
- Revenue stagnation at $516K with 0% YoY growth and massive operating losses (-$3.4M) indicate company has not achieved commercial viability
Key Metrics to Watch
- Cash burn rate and remaining runway - critical for assessing near-term solvency risk
- Quarterly revenue trends and evidence of commercial traction - essential for long-term viability
- Capital raise announcements or partnering deals - necessary to extend operating runway and fund development
Financial Metrics
Revenue
516.0K
Net Income
-4.1M
EPS (Diluted)
$-0.29
Free Cash Flow
-3.1M
Total Assets
20.0M
Cash
8.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-652.9%
Net Margin
-803.3%
ROE
N/A
ROA
-20.7%
FCF Margin
-595.5%
Balance Sheet & Liquidity
Current Ratio
2.16x
Quick Ratio
2.16x
Debt/Equity
N/A
Debt/Assets
286.6%
Interest Coverage
-4.06x
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: 2026-05-23T07:47:42.723185 |
Data as of: 2026-03-31 |
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