Investment Thesis
BioRestorative Therapies is in severe financial distress with only $23.2K quarterly revenue and $3.4M operating losses, creating a deteriorating cash position with less than one year of runway at current burn rates. Net income losses are accelerating (down 58.6% YoY) and the company shows no visible path to profitability or operational cash flow breakeven. While positive gross margin suggests product viability, the company faces existential going-concern risks without significant capital infusion.
Strengths
- Positive gross margin of 68.1% indicates products have economic viability when sold
- Low debt burden (0.08x D/E ratio) provides financial flexibility without leverage constraints
- Revenue growing 32.9% YoY demonstrates some market traction despite microscopic absolute base
Risks
- Catastrophic cash burn of -$3.9M quarterly free cash flow with only $3.1M cash on hand yields less than one year of operating runway
- Accelerating losses: net income down 58.6% YoY while operating losses remain at $3.4M against $23.2K revenue
- Zero insider Form 4 filings in 90 days and negative interest coverage of -32.4x indicate management lacks confidence and company cannot service debt from operations
Key Metrics to Watch
- Cash runway: monitor quarterly burn rate relative to balance for going-concern assessment
- Revenue acceleration: must scale dramatically from $23.2K base to offset $3.8M operating losses
- Operating cash flow inflection: critical when OCF approaches breakeven to demonstrate path to sustainability
Financial Metrics
Revenue
23.2K
Net Income
-2.2M
EPS (Diluted)
$-0.12
Free Cash Flow
-3.9M
Total Assets
4.6M
Cash
3.1M
Profitability Ratios
Gross Margin
68.1%
Operating Margin
-14,612.6%
Net Margin
-9,298.3%
ROE
-71.2%
ROA
-46.4%
FCF Margin
-16,935.1%
Balance Sheet & Liquidity
Current Ratio
2.35x
Quick Ratio
2.35x
Debt/Equity
0.08x
Debt/Assets
79.1%
Interest Coverage
-32.41x
Long-term Debt
250.0K
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: 2026-05-15T08:51:57.878042 |
Data as of: 2026-03-31 |
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