Investment Thesis
BullFrog AI is a pre-revenue pharmaceutical company with severe operational losses and negative cash flow, burning $5.5M annually while generating only $116.7K in revenue. Despite adequate liquidity (3.85x current ratio), the company faces existential profitability challenges with negative margins exceeding -5600%, indicating fundamental business model dysfunction rather than temporary scaling losses.
Strengths
- Strong liquidity position with 3.85x current ratio and $2.2M cash on hand
- No long-term debt, providing financial flexibility without debt burden
- Positive gross margin of 18.8% on limited revenue suggests potential product viability
Risks
- Massive operating losses of $6.6M against $116.7K revenue indicates unsustainable business model
- Negative free cash flow of $5.5M annually will deplete $2.2M cash reserves within 5 months at current burn rate
- Pharmaceutical sector requires successful clinical trials and regulatory approval; no indication of pipeline progress or commercialization path
- Negative ROE of -304% and ROA of -231% demonstrate severe shareholder value destruction
- Zero insider buying activity in last 90 days suggests lack of management confidence
Key Metrics to Watch
- Operating cash burn rate and runway to profitability
- Revenue growth trajectory and customer acquisition metrics
- R&D spend efficiency and clinical trial advancement status
- Cash balance depletion rate relative to operational losses
Financial Metrics
Revenue
116.7K
Net Income
-6.5M
EPS (Diluted)
$-0.63
Free Cash Flow
-5.5M
Total Assets
2.8M
Cash
2.2M
Profitability Ratios
Gross Margin
18.8%
Operating Margin
-5,652.4%
Net Margin
-5,569.6%
ROE
-304.2%
ROA
-231.4%
FCF Margin
-4,740.7%
Balance Sheet & Liquidity
Current Ratio
3.85x
Quick Ratio
3.85x
Debt/Equity
0.00x
Debt/Assets
23.9%
Interest Coverage
-2,014.86x
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: 2026-03-20T23:08:10.817775 |
Data as of: 2025-12-31 |
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