Investment Thesis
Orgenesis is in acute financial distress with negative stockholders' equity (-$37.5M), critically depleted cash reserves ($78K), and a current ratio of 0.03x indicating imminent insolvency. While revenue grew 95% YoY, negative gross margins (-86.3%) reveal fundamental business model failure—the company loses money on every sale and burns $17.1M annually in operating cash, with insufficient resources to reach profitability.
Strengths
- Revenue growth of 95.3% YoY demonstrates active market traction
- Operating in regulated pharmaceutical sector with established infrastructure
- Some positive top-line activity despite pre-profitability stage
Risks
- Negative stockholders' equity of -$37.5M indicates technical insolvency
- Critical liquidity crisis: current ratio of 0.03x with only $78K cash reserves
- Negative gross margins (-86.3%) reveal fundamental unit economics failure
- Annual operating cash burn of $17.1M with severely limited runway
- Liabilities ($38.9M) exceed total assets ($1.4M) by 27x
- Zero insider stock purchases in last 90 days suggests loss of management confidence
- Negative equity means shareholders have no residual claim in bankruptcy scenario
Key Metrics to Watch
- Monthly cash burn rate and estimated runway to depletion
- Gross margin inflection point—must become positive for viability
- Success of capital raise or debt restructuring initiatives
- Revenue per unit economics and path to gross profitability
Financial Metrics
Revenue
1.0M
Net Income
-48.2M
EPS (Diluted)
$11.44
Free Cash Flow
-17.3M
Total Assets
1.4M
Cash
78.0K
Profitability Ratios
Gross Margin
-86.3%
Operating Margin
-3,842.3%
Net Margin
-4,653.6%
ROE
N/A
ROA
-3,565.1%
FCF Margin
-1,675.3%
Balance Sheet & Liquidity
Current Ratio
0.03x
Quick Ratio
0.03x
Debt/Equity
N/A
Debt/Assets
2,878.2%
Interest Coverage
N/A
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: 2026-04-13T19:12:25.323346 |
Data as of: 2024-12-31 |
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