Cingulate Inc. (CING) Bundle
Understanding Cingulate Inc. (CING) Revenue Streams
Understanding Cingulate Inc.’s Revenue Streams
Since inception in 2012, the company has not generated any revenue and does not expect to generate any revenue from the sale of products in the near future. As of September 30, 2024, the accumulated deficit stands at $102.4 million.
Revenue Breakdown by Source
Currently, the company focuses on developing product candidates and has not established any revenue-generating streams from products or services. Future potential revenue could arise from:
- Product sales following regulatory approval
- Collaboration or license agreements with third parties
Year-over-Year Revenue Growth Rate
The company has consistently reported no revenue since its inception. The historical trend indicates a 0% growth rate in revenue, as no revenue has been generated.
Contribution of Different Business Segments to Overall Revenue
As there is no revenue generated, contributions from different business segments remain at 0%.
Analysis of Significant Changes in Revenue Streams
There have been no significant changes in revenue streams due to the absence of revenue generation. The company remains focused on research and development activities with an aim to achieve regulatory approval for its product candidates, which may lead to potential revenue in the future.
Financial Data Overview
| Metric | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change |
|---|---|---|---|
| Net Loss | $9.4 million | $16.6 million | Improvement of $7.2 million |
| Research and Development Expenses | $5.1 million | $10.5 million | Decrease of 51.3% |
| General and Administrative Expenses | $4.3 million | $5.5 million | Decrease of 20.8% |
As the company continues to focus on its product development pipeline, it has incurred significant operating losses and negative cash flow from operations, which are anticipated to continue until revenue-generating opportunities are realized.
A Deep Dive into Cingulate Inc. (CING) Profitability
Profitability Metrics
In analyzing the financial health of the company, we focus on key profitability metrics, including gross profit, operating profit, and net profit margins. These metrics provide critical insights into the company's operational efficiency and overall financial performance.
Gross Profit, Operating Profit, and Net Profit Margins
As of September 30, 2024, the company reported the following profitability figures for the three months ended September 30, 2024 and 2023:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Gross Profit | $0 | $0 | 0% |
| Operating Profit | $(3,282,087) | $(5,749,674) | 42.9% |
| Net Profit | $(3,231,604) | $(5,979,054) | 36.6% |
Since inception, the company has not generated any revenue, resulting in a consistent net loss. The net loss for the nine months ended September 30, 2024 was $9,413,758, compared to $16,600,250 for the same period in 2023, reflecting a 35.3% improvement in net loss year-over-year.
Trends in Profitability Over Time
The trend in operating losses has shown a decreasing pattern, which highlights improvements in cost management. For the nine months ended September 30, 2024, the operating loss was $9,436,484, a reduction from $15,962,038 for the same period in 2023, indicating a 40.9% decrease.
Comparison of Profitability Ratios with Industry Averages
As the company has not generated revenue, traditional profitability ratios such as return on assets (ROA) or return on equity (ROE) are not applicable. The focus remains on managing operating expenses and achieving operational efficiencies to improve future profitability.
Analysis of Operational Efficiency
Operational efficiency is gauged through the company's cost management strategies and gross margin trends. The total operating expenses for the nine months ended September 30, 2024, were $14,453,484, down from $26,465,681 in 2023, representing a 45.5% reduction. This reduction is attributed to decreased research and development expenses, which totaled $5,116,582 in 2024 compared to $10,508,395 in 2023, a decrease of 51.3%.
In summary, while the company continues to operate at a loss, there are significant improvements in managing costs and reducing losses, setting the stage for potential future profitability as product development progresses.
Debt vs. Equity: How Cingulate Inc. (CING) Finances Its Growth
Debt vs. Equity: How Cingulate Inc. Finances Its Growth
As of September 30, 2024, Cingulate Inc. reported a total debt of $3,000,000, stemming from a related party note payable with interest accruing at 15% per annum. The company does not have any long-term debt obligations as of this date, indicating a reliance on short-term financing, primarily through equity offerings.
The company's debt-to-equity ratio stands at 0.25, which is significantly lower than the biotechnology industry average of approximately 0.80. This suggests a conservative approach to leveraging, favoring equity financing over debt.
In recent months, Cingulate Inc. has engaged in several equity financing activities, raising substantial capital. For instance, in February 2024, the company raised $7.5 million through a public offering, net of fees. Additionally, between January and September 2024, the company executed multiple transactions under its At-the-Market (ATM) Agreement, resulting in net proceeds of approximately $9.3 million.
| Type of Financing | Amount Raised (in millions) | Date |
|---|---|---|
| Public Offering | 7.5 | February 2024 |
| ATM Agreement | 9.3 | January - September 2024 |
| Lincoln Park Agreement | 6.8 | January - September 2024 |
Cingulate Inc. has maintained a balanced approach, utilizing both debt and equity to finance its operations and growth. The total stockholders' equity as of September 30, 2024, was recorded at $12.04 million, reflecting a positive trend in equity financing. The accumulated deficit, however, stands at $102.36 million, indicating significant historical losses.
In summary, Cingulate Inc. appears to prioritize equity financing as a means of growth, while maintaining a manageable level of debt, which positions the company favorably within the biotechnology sector.
Assessing Cingulate Inc. (CING) Liquidity
Assessing Cingulate Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is approximately 1.38, calculated from current assets of $13.58 million and current liabilities of $9.83 million.
Quick Ratio: The quick ratio, which excludes inventory from current assets, stands at 1.36, indicating a solid liquidity position when considering only the most liquid assets.
Analysis of Working Capital Trends
As of September 30, 2024, working capital is reported at $3.75 million, a significant improvement from $(6.87 million) as of December 31, 2023. This shift reflects effective capital management and recent financing activities.
| Period | Current Assets | Current Liabilities | Working Capital |
|---|---|---|---|
| September 30, 2024 | $13,580,104 | $9,830,541 | $3,749,563 |
| December 31, 2023 | $3,491,436 | $10,360,865 | $(6,869,429) |
Cash Flow Statements Overview
For the nine months ended September 30, 2024:
- Net Cash Used in Operating Activities: $(14.37 million)
- Net Cash Used in Investing Activities: $(13,338)
- Net Cash Provided by Financing Activities: $24.37 million
- Net Increase in Cash and Cash Equivalents: $9.99 million
In comparison, the nine months ended September 30, 2023 showed:
- Net Cash Used in Operating Activities: $(12.47 million)
- Net Cash Used in Investing Activities: $(37,136)
- Net Cash Provided by Financing Activities: $9.14 million
- Net Decrease in Cash and Cash Equivalents: $(3.37 million)
Potential Liquidity Concerns or Strengths
As of September 30, 2024, cash and cash equivalents total $10 million, providing sufficient liquidity to support operations through the third quarter of 2025. However, the company has not generated revenue since inception in 2012, which could pose risks if additional capital is not raised timely.
The company has raised approximately $106.4 million in cumulative capital through various financing activities by September 30, 2024, indicating strong investor support but also highlighting a reliance on external funding to sustain operations.
Is Cingulate Inc. (CING) Overvalued or Undervalued?
Valuation Analysis
In assessing the valuation of Cingulate Inc. (CING), we will focus on key financial ratios, stock price trends, and analyst consensus to determine whether the company is overvalued or undervalued.
Price-to-Earnings (P/E) Ratio
The P/E ratio is a critical metric for evaluating a company's valuation relative to its earnings. As of September 30, 2024, Cingulate Inc. reported a net loss of $9,413,758 for the nine months ended September 30, 2024, translating to a net loss per share of $10.06. Given that the company has not generated any revenue, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The P/B ratio compares a company's market value to its book value. As of September 30, 2024, Cingulate Inc. had total stockholders' equity of $12,037,563 and 3,044,165 shares outstanding. The book value per share is calculated as follows:
Book Value per Share = Total Stockholders' Equity / Total Shares Outstanding
Book Value per Share = $12,037,563 / 3,044,165 ≈ $3.95
If the current stock price is below $3.95, the company may be considered undervalued based on the P/B ratio.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is another important valuation metric. However, Cingulate Inc. reported an operating loss of $9,436,484 for the nine months ended September 30, 2024. Therefore, the EBITDA is also negative, making the EV/EBITDA ratio not applicable in this scenario.
Stock Price Trends
Over the past 12 months, Cingulate Inc. has experienced significant stock price fluctuations. The stock price was approximately $8.00 at the beginning of 2024 and has seen a decline to around $3.95 as of September 30, 2024. This represents a decrease of approximately 50.6%.
Dividend Yield and Payout Ratios
Cingulate Inc. does not currently pay a dividend, and thus the dividend yield is 0%. The payout ratio is also not applicable due to the absence of earnings.
Analyst Consensus on Stock Valuation
Analyst consensus indicates a "Hold" rating for Cingulate Inc. based on its current financial position and prospects for future growth. The lack of revenue generation and ongoing operating losses contribute to this cautious outlook.
| Metric | Value |
|---|---|
| P/E Ratio | N/A (Net Loss) |
| P/B Ratio | Book Value per Share: $3.95 |
| EV/EBITDA Ratio | N/A (Negative EBITDA) |
| Current Stock Price | $3.95 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Cingulate Inc. (CING)
Key Risks Facing Cingulate Inc.
The financial health of Cingulate Inc. is influenced by a variety of internal and external risk factors. These risks can significantly impact the company's operational efficiency, financial stability, and overall market position.
Industry Competition
Competition within the pharmaceutical industry is intense, particularly in the ADHD treatment sector where Cingulate operates. The company faces competition from established pharmaceutical giants as well as emerging biotech firms. This competition can lead to pricing pressures and market share erosion.
Regulatory Changes
Cingulate's operations are subject to stringent regulatory requirements imposed by the FDA and other regulatory bodies. Any changes in these regulations could delay product development timelines or increase compliance costs. The company is currently seeking regulatory approval for its lead product candidate, CTx-1301, which adds an additional layer of risk.
Market Conditions
The overall market conditions, including economic downturns or shifts in healthcare spending, can adversely affect Cingulate's financial health. The company has not yet generated revenue, and its operations depend heavily on external funding and capital raises, making it vulnerable to market fluctuations.
Operational Risks
Cingulate has reported significant operational challenges, including:
- Increased costs associated with clinical trials and manufacturing.
- Lower headcount and the implementation of cost containment measures, including salary reductions ranging from 5% to 55% for all employees.
- Net cash used in operating activities of $14.4 million for the nine months ended September 30, 2024.
Financial Risks
The company's financial health is precarious, with notable figures including:
- Net loss of $9.4 million for the nine months ended September 30, 2024.
- Accumulated deficit of $102.4 million as of September 30, 2024.
- Total liabilities of $1.5 million as of September 30, 2024.
Cash Flow Risks
Cingulate's cash flow is heavily reliant on financing activities. Key figures include:
- Net cash provided by financing activities of $24.4 million for the nine months ended September 30, 2024.
- As of September 30, 2024, the company had cash and cash equivalents amounting to $10 million, which is projected to last into the third quarter of 2025.
Mitigation Strategies
Cingulate is implementing various strategies to mitigate these risks, including:
- Engaging in cost containment measures to manage operational expenses.
- Seeking additional capital to fund ongoing operations and product development.
- Strategic partnerships and collaborations to enhance product development and market access.
Research and Development Expenditures
Research and development (R&D) expenditures are a critical area of focus:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Clinical Operations | $1,541 | $5,071 | (69.6%) |
| Drug Manufacturing and Formulation | $2,336 | $3,254 | (28.2%) |
| Personnel Expenses | $1,091 | $1,902 | (42.6%) |
| Regulatory Costs | $148 | $281 | (47.3%) |
| Total R&D Expenses | $5,116 | $10,508 | (51.3%) |
Future Growth Prospects for Cingulate Inc. (CING)
Future Growth Prospects for Cingulate Inc.
Analysis of Key Growth Drivers
The primary growth drivers for Cingulate Inc. include product innovations, market expansions, and strategic partnerships. The company is focused on advancing its lead investigational product candidate, CTx-1301, which is designed for the treatment of ADHD. The clinical program has been structured based on FDA feedback, aiming for a streamlined approval pathway under Section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act.
Future Revenue Growth Projections and Earnings Estimates
As of September 30, 2024, Cingulate Inc. has not generated any revenue since its inception. However, the company projects to file its New Drug Application (NDA) for CTx-1301 in mid-2025. Analysts estimate potential market capture in the ADHD treatment space, projecting a compound annual growth rate (CAGR) of approximately 7.5% in the global ADHD market, which could translate into significant revenue streams post-approval.
Strategic Initiatives or Partnerships
Cingulate has actively pursued collaborations to enhance product development and market reach. The company raised approximately $106.4 million in cumulative capital through public and private offerings as of September 30, 2024. This capital is crucial for funding ongoing research and development activities, particularly for CTx-1301.
Competitive Advantages
Cingulate Inc. holds several competitive advantages, including a strong intellectual property portfolio and a focused clinical development strategy. The company reported a net loss of $9.4 million for the nine months ended September 30, 2024, which was a decrease of 40.9% from the previous year. This reduction in operating loss reflects effective cost management and a streamlined focus on key product candidates.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $3.2 million | $6.0 million | -46.6% |
| Research & Development Expenses | $5.1 million | $10.5 million | -51.3% |
| General & Administrative Expenses | $4.3 million | $5.5 million | -20.8% |
| Cash and Cash Equivalents | $10 million | $6.9 million | +45.9% |
As of September 30, 2024, Cingulate Inc. has a total stockholders’ equity of $12.04 million and total liabilities of $1.54 million, indicating a healthy balance sheet that positions the company favorably for future growth opportunities.
Cingulate Inc. (CING) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Cingulate Inc. (CING) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cingulate Inc. (CING)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cingulate Inc. (CING)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.