Investment Thesis
Renalytix faces existential financial distress with negative stockholders' equity of -$11.3M, indicating technical insolvency. The company burns $3.8M annually while revenue collapses 32.7% YoY to only $522K, leaving approximately 3 months of cash runway at $909K. Absent immediate capital infusion or dramatic operational turnaround, bankruptcy risk is severe.
Strengths
- Gross profit of $100K demonstrates core business model generates some positive contribution margin
- Operating and net losses improving YoY (26.6% and 43.6% respectively) suggests cost discipline
- No significant long-term debt obligations limiting downside complexity
Risks
- Negative stockholders' equity of -$11.3M: company is technically insolvent
- Critical liquidity crisis: current ratio of 0.24x with only $909K cash supporting -$3.8M annual operating burn
- Revenue collapse of -32.7% YoY indicates loss of customers and deteriorating business momentum
- Negative operating and free cash flows unsustainable without external capital or radical restructuring
- Estimated 3-month cash runway creates imminent solvency risk and potential for equity dilution or bankruptcy
- Zero insider buying activity indicates management has no confidence in recovery
Key Metrics to Watch
- Monthly operating cash burn rate and cash balance depletion trajectory
- Quarterly revenue stabilization and customer retention metrics
- Capital raising announcements or debt restructuring activities
- Pathway to positive operating cash flow and cost reduction milestones
- Operating margin compression or expansion trends
Financial Metrics
Revenue
522.0K
Net Income
-4.7M
EPS (Diluted)
$-0.04
Free Cash Flow
-3.8M
Total Assets
4.8M
Cash
909.0K
Profitability Ratios
Gross Margin
19.2%
Operating Margin
-784.1%
Net Margin
-905.7%
ROE
N/A
ROA
-98.6%
FCF Margin
-734.9%
Balance Sheet & Liquidity
Current Ratio
0.24x
Quick Ratio
0.24x
Debt/Equity
N/A
Debt/Assets
336.1%
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: 2026-04-08T21:00:23.622910 |
Data as of: 2024-09-30 |
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