Investment Thesis
Profusa is a pre-revenue or near-zero revenue medical device company with severe financial distress characterized by massive operating losses (-$24.1M), negative stockholders' equity (-$34.0M), and critical cash burn (-$11.1M operating cash flow). The company's liabilities ($38.2M) far exceed assets ($4.2M), and liquidity metrics indicate imminent solvency concerns with a current ratio of 0.18x.
Strengths
- Operating in high-growth medical devices sector (surgical instruments)
- 9 Form 4 insider filings suggest ongoing corporate activity
- Retained $3.0M in cash and equivalents as of latest period
Risks
- Negative stockholders' equity of -$34.0M indicates balance sheet insolvency
- Critical liquidity crisis with current ratio of 0.18x and liabilities exceeding assets by $34.0M
- Unsustainable cash burn of -$11.1M annually with minimal revenue generation ($100K) cannot support operations
- Operating margin of -24,136% demonstrates complete operational failure to generate revenue relative to expenses
Key Metrics to Watch
- Path to revenue generation and product commercialization timeline
- Monthly cash burn rate and runway until capital depletion
- Balance sheet restructuring or capital raise announcements to address negative equity
Financial Metrics
Revenue
100.0K
Net Income
-27.3M
EPS (Diluted)
$-2.29
Free Cash Flow
-11.1M
Total Assets
4.3M
Cash
3.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-24,136.0%
Net Margin
-27,256.0%
ROE
N/A
ROA
-641.3%
FCF Margin
-11,119.0%
Balance Sheet & Liquidity
Current Ratio
0.18x
Quick Ratio
0.18x
Debt/Equity
N/A
Debt/Assets
899.1%
Interest Coverage
N/A
Long-term Debt
713.0K
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: 2026-04-03T23:00:10.884659 |
Data as of: 2025-09-30 |
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