Investment Thesis
Protagenic Therapeutics exhibits critical financial distress with negative stockholders equity of -$2.4M, zero revenue generation despite being in the pharmaceutical sector, and a severe liquidity crisis evidenced by a 0.34x current ratio. With operating cash burn of -$3.1M annually against only $2.2M in cash, the company has insufficient runway and faces imminent solvency challenges.
Strengths
- Maintains $2.2M in cash providing short-term operational runway
- Still maintains assets of $4.4M that could theoretically be liquidated
- Operating in pharmaceutical sector with potential IP or research pipeline (though not generating revenue)
Risks
- Negative stockholders equity of -$2.4M indicates technical insolvency
- Zero revenue with annual operating loss of -$4.4M indicates no viable business model
- Critical liquidity crisis: current ratio of 0.34x; liabilities 1.5x total assets
- Negative free cash flow of -$3.2M annually depletes $2.2M cash in under 12 months
- Return on assets of -83.9% indicates severe asset inefficiency
- No insider activity in 90 days suggests lack of confidence from management
- High probability of bankruptcy, debt restructuring, or highly dilutive financing
Key Metrics to Watch
- Cash balance and monthly burn rate
- Any revenue generation or partnership announcements
- Operating cash flow improvements or deterioration
- Stockholders equity trend toward solvency
- SEC filings for bankruptcy, restructuring, or capital raise announcements
Financial Metrics
Revenue
0.0
Net Income
-3.7M
EPS (Diluted)
$-1.50
Free Cash Flow
-3.2M
Total Assets
4.4M
Cash
2.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-83.9%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.34x
Quick Ratio
0.34x
Debt/Equity
N/A
Debt/Assets
154.0%
Interest Coverage
-40.71x
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: 2026-04-14T17:57:22.821876 |
Data as of: 2025-12-31 |
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