Investment Thesis
Cocrystal Pharma faces severe financial distress with a debt-to-equity ratio of 12.13x and long-term debt of $49.9M against total assets of just $7.4M, creating an unsustainable capital structure. The company is burning cash operationally (-$2.3M FCF) with collapsing revenue (down 69% YoY to just $225K), leaving approximately 2 years of runway at current burn rates despite a modest cash position of $4.7M. Even for an early-stage pharma developer, the leverage and negative operating cash flow create existential solvency risk regardless of R&D pipeline potential.
Strengths
- Current ratio of 2.66x indicates short-term liquidity is adequate to meet immediate obligations
- Net loss improving 49.5% YoY suggests operational discipline or one-time charges from prior year
- Cash position of $4.7M provides near-term runway to fund operations and debt service
Risks
- Debt-to-equity ratio of 12.13x is critically unsustainable; long-term debt ($49.9M) is 6.7x total assets
- Revenue collapsed 69.3% YoY to minimal $225K, indicating failed commercialization or delayed milestone achievement
- Negative operating cash flow of -$2.3M is unsustainable; company will face refinancing or restructuring risk within 24-36 months at current burn rate
- Equity cushion deteriorating with accumulated losses; negative ROE (-55.9%) and ROA (-31%) indicate value destruction
Key Metrics to Watch
- Cash burn rate and remaining runway relative to debt maturity schedules
- Revenue trajectory and success of any clinical trial results or product launches
- Debt refinancing capacity and any covenant violations or restructuring announcements
Financial Metrics
Revenue
225.0K
Net Income
-2.3M
EPS (Diluted)
$-0.17
Free Cash Flow
-2.4M
Total Assets
7.4M
Cash
4.7M
Profitability Ratios
Gross Margin
898.5%
Operating Margin
-1,047.1%
Net Margin
-1,021.8%
ROE
-55.9%
ROA
-31.0%
FCF Margin
-1,045.3%
Balance Sheet & Liquidity
Current Ratio
2.66x
Quick Ratio
1.89x
Debt/Equity
12.13x
Debt/Assets
44.6%
Interest Coverage
N/A
Long-term Debt
49.9M
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: 2026-05-23T08:05:43.968192 |
Data as of: 2026-03-31 |
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