Investment Thesis
Tempest Therapeutics is in critical financial distress with near-zero revenue ($203K), catastrophic operating losses (-$27.7M), and quarterly cash burn (-$7.6M) that far exceeds available liquidity ($1.8M). The balance sheet reveals a stockholders' equity of only $822K against $9.9M in liabilities, with current ratio of 0.74x signaling imminent liquidity crisis and potential insolvency within weeks without emergency capital infusion.
Strengths
- Early-stage biotech structure suggests pipeline development may yield breakthrough products
- Recent insider activity (3 Form 4 filings in 90 days) indicates some management engagement
- Minimal capital expenditure indicates capital-light development model
Risks
- Cash runway estimated at 2-3 weeks based on $1.8M cash against -$7.6M quarterly burn rate
- Current ratio 0.74x with debt-to-equity 5.11x indicates acute insolvency risk and inability to meet near-term obligations
- Revenue of $203K combined with -$27.7M operating loss indicates complete lack of product commercialization or market validation
- Negative interest coverage (-37.5x) and -$7.6M operating cash flow show inability to sustain operations from business activity
- Stockholders' equity devastation ($822K) leaves zero cushion; any equity financing will severely dilute existing shareholders
Key Metrics to Watch
- Cash balance and monthly cash burn trajectory - critical survival metric
- Debt covenant compliance and refinancing status - watch for default risks
- Capital raise announcements - timing and terms will determine shareholder dilution severity
- Revenue inflection - any commercial product launch or licensing agreement
- Operating expense reduction - assessment of cost control measures
Financial Metrics
Revenue
203.0K
Net Income
-27.7M
EPS (Diluted)
$-2.53
Free Cash Flow
-7.6M
Total Assets
10.7M
Cash
1.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-13,654.7%
Net Margin
-13,643.3%
ROE
-3,369.3%
ROA
-257.7%
FCF Margin
-3,742.9%
Balance Sheet & Liquidity
Current Ratio
0.74x
Quick Ratio
0.74x
Debt/Equity
5.11x
Debt/Assets
92.4%
Interest Coverage
-37.46x
Long-term Debt
4.2M
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: 2026-05-15T08:22:35.448170 |
Data as of: 2026-03-31 |
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