INmune Bio, Inc. (INMB) Bundle
Understanding INmune Bio, Inc. (INMB) Revenue Streams
Understanding INmune Bio, Inc.’s Revenue Streams
The Company had no sales during the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company sold Mesenchymal stem cells to one third-party and recognized $43,000 of revenues.
Year-over-Year Revenue Growth Rate
During the nine months ended September 30, 2024, the Company recognized revenue of $14,000, compared to $127,000 during the same period in 2023, representing a decrease of 89%.
| Period | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Three Months Ended September 30 | $0 | $43,000 | $(43,000) | -100% |
| Nine Months Ended September 30 | $14,000 | $127,000 | $(113,000) | -89% |
Contribution of Different Business Segments to Overall Revenue
During the nine months ended September 30, 2024, the Company generated all its revenue from the sale of Mesenchymal stem cells. In comparison, during the nine months ended September 30, 2023, the revenue was also solely from the same source.
Analysis of Significant Changes in Revenue Streams
Revenue for the nine months ended September 30, 2024, decreased significantly due to the lack of sales activity in the current period compared to the previous year. The Company reported revenues of $14,000 in 2024 compared to $127,000 in 2023. This represents a notable decline of $113,000 or 89%.
The following table summarizes the revenue for the three and nine months ended September 30, 2024 and 2023:
| Period | 2024 Revenue | 2023 Revenue | Change ($) |
|---|---|---|---|
| Three Months Ended September 30 | $0 | $43,000 | $(43,000) |
| Nine Months Ended September 30 | $14,000 | $127,000 | $(113,000) |
Overall, the Company has experienced a significant downturn in its revenue generation capabilities, primarily attributed to a lack of product sales during the current reporting period.
A Deep Dive into INmune Bio, Inc. (INMB) Profitability
A Deep Dive into INmune Bio, Inc.'s Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the company reported revenues of $14,000 with operating expenses totaling $33,182,000, resulting in a gross profit margin of -237.1% (negative gross profit due to operating loss).
Operating Profit Margin: The loss from operations for the same period was ($33,168,000), leading to an operating profit margin of -236.4%.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was ($32,864,000), resulting in a net profit margin of -234.8%.
Trends in Profitability Over Time
Comparing nine-month periods, the net loss increased from ($21,600,000) in 2023 to ($32,864,000) in 2024, highlighting a worsening profitability trend. The operating loss also rose from ($21,362,000) in 2023 to ($33,168,000) in 2024.
Comparison of Profitability Ratios with Industry Averages
Industry averages for biotechnology companies typically show a net profit margin of around -30% to -50% during early development stages. The company's net margin of -234.8% significantly exceeds the industry average, indicating substantial operational challenges and higher costs relative to revenues.
Analysis of Operational Efficiency
The company's research and development expenses were approximately $25,813,000 for the nine months ended September 30, 2024, compared to $14,266,000 for the same period in 2023. This significant increase in R&D expenditure underscores a focus on advancing clinical trials, particularly in Alzheimer’s research, which accounted for an increase of $10.3 million.
General and administrative expenses were relatively stable, reported at $7,369,000 in 2024, compared to $7,223,000 in 2023. The total operating expenses rose from $21,489,000 in 2023 to $33,182,000 in 2024, reflecting increased operational costs without corresponding revenue growth.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Revenues | $14,000 | $127,000 |
| Operating Expenses | $33,182,000 | $21,489,000 |
| Net Loss | ($32,864,000) | ($21,600,000) |
| Research & Development Expenses | $25,813,000 | $14,266,000 |
| General & Administrative Expenses | $7,369,000 | $7,223,000 |
The operational efficiency reflects a substantial increase in R&D spending, suggesting a strategic pivot towards intensive clinical development, while overall profitability remains severely challenged.
Debt vs. Equity: How INmune Bio, Inc. (INMB) Finances Its Growth
Debt vs. Equity: How INmune Bio, Inc. Finances Its Growth
As of September 30, 2024, INmune Bio, Inc. reported a total debt of $2.5 million primarily from a term loan secured with its assets. The term loan originated in June 2021, providing $15 million, with the current outstanding balance reflecting repayments made over the years .
The company’s debt-to-equity ratio stands at approximately 0.06, indicating a conservative approach to leveraging. This ratio is significantly lower than the industry average of around 0.5, suggesting that the company relies more on equity financing compared to debt.
In recent financing activities, INmune Bio has engaged in several equity issuances. For instance, during the nine months ending September 30, 2024, the company sold 3,898,852 shares of its common stock, generating approximately $25.4 million in net proceeds . Additionally, in September 2024, it sold 2,341,260 shares and corresponding warrants for gross proceeds of $13 million .
The company's credit ratings have not been explicitly detailed in recent reports, but the reliance on debt financing is minimal given its ongoing operational losses and the significant equity financing utilized to sustain operations. For instance, the net loss for the nine months ended September 30, 2024, was reported at $32.9 million, reflecting the company's continuous investment in research and development .
Overall, it is evident that INmune Bio maintains a balanced approach between debt and equity financing. The company has opted for equity to fund its growth and cover operational losses, while its debt levels remain low, ensuring financial flexibility and a lower risk of insolvency .
| Financial Metric | Value |
|---|---|
| Total Debt | $2.5 million |
| Debt-to-Equity Ratio | 0.06 |
| Industry Average Debt-to-Equity Ratio | 0.5 |
| Net Loss (9 months ended 09/30/2024) | $32.9 million |
| Equity Issued (09/2024) | $25.4 million |
| Equity Issued (April 2024) | $9.7 million |
| Equity Issued (September 2024) | $13 million |
Assessing INmune Bio, Inc. (INMB) Liquidity
Assessing INmune Bio, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current assets were approximately $35,900,000, with current liabilities totaling approximately $17,225,000. This results in a current ratio of 2.09.
Quick Ratio: The quick assets (current assets excluding inventory) were estimated at $35,900,000, with the same current liabilities of $17,225,000, leading to a quick ratio of 2.09.
Analysis of Working Capital Trends
As of September 30, 2024, the working capital was calculated as current assets minus current liabilities:
Working Capital: $35,900,000 (current assets) - $17,225,000 (current liabilities) = $18,675,000.
Cash Flow Statements Overview
| Cash Flow Type | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(22,348) | $(8,579) |
| Net Cash Provided by Financing Activities | $20,289 | $(1,725) |
| Change in Cash and Cash Equivalents | $(2,059) | $(10,304) |
| Cash and Cash Equivalents at End of Period | $33,552 | $41,813 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company reported cash and cash equivalents of $33,552,000. The company has incurred significant losses, with a net loss of $(32,864,000) for the nine months ended September 30, 2024, compared to $(21,600,000) for the same period in 2023.
Net cash used in operating activities increased significantly, from $(8,579,000) in 2023 to $(22,348,000) in 2024, highlighting a potential liquidity concern as losses continue to grow.
Despite these challenges, the company has been able to generate cash flow from financing activities amounting to $20,289,000 in 2024, indicating a strength in its ability to raise capital through equity offerings.
Is INmune Bio, Inc. (INMB) Overvalued or Undervalued?
Valuation Analysis
To assess the financial health of the company, it is essential to evaluate its valuation metrics, including price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios.
Price-to-Earnings (P/E) Ratio
As of the latest data, the company reported a net loss of $32.9 million for the nine months ended September 30, 2024, translating to a loss per share of $1.71. Given that there are no earnings, the P/E ratio is not applicable.
Price-to-Book (P/B) Ratio
The book value per share can be calculated from the total stockholders' equity and the number of shares outstanding. As of September 30, 2024, total stockholders' equity was $38.675 million and there were 22,172,451 shares outstanding. Thus, the book value per share is:
Book Value per Share = Total Stockholders' Equity / Shares Outstanding = $38,675,000 / 22,172,451 ≈ $1.74
The current stock price is approximately $6.50 from recent offerings. Therefore, the P/B ratio is:
P/B Ratio = Stock Price / Book Value per Share = $6.50 / $1.74 ≈ 3.74
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of September 30, 2024, the company reported total liabilities of $52.782 million. Since there are no earnings before interest, taxes, depreciation, and amortization (EBITDA) due to the net loss, the EV/EBITDA ratio is also not applicable.
Stock Price Trends
The stock price over the past 12 months has shown significant volatility. The average price for shares sold in the latest offerings was around $9.85. However, the stock price has ranged from a low of approximately $5.50 to a high of around $10.56 during this period.
Dividend Yield and Payout Ratios
The company does not currently pay dividends, and therefore, the dividend yield is 0%. The payout ratio is also not applicable due to the absence of earnings.
Analyst Consensus on Stock Valuation
Analyst ratings suggest a consensus of Hold for the stock. This reflects a cautious outlook given the company's current financial struggles and ongoing losses.
| Metric | Value |
|---|---|
| Net Loss (9M 2024) | $32.9 million |
| Loss per Share | $1.71 |
| Book Value per Share | $1.74 |
| P/B Ratio | 3.74 |
| Stock Price (Latest Offering) | $6.50 |
| EV (Total Liabilities) | $52.782 million |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing INmune Bio, Inc. (INMB)
Key Risks Facing INmune Bio, Inc.
The financial health of INmune Bio, Inc. is influenced by a variety of internal and external risks. Below are the key risk factors that investors should consider:
1. Industry Competition
INmune Bio operates in a highly competitive biotechnology sector. The company faces significant competition from both established pharmaceutical companies and emerging biotech firms. This competition can impact market share and pricing strategies for their product candidates. As of September 30, 2024, the company had no revenue from product sales, highlighting the challenges in establishing a commercial presence.
2. Regulatory Changes
Changes in regulatory requirements can significantly affect INmune Bio's operations. The company is subject to stringent regulations from bodies like the FDA, which can delay product development and approval. For instance, the company has incurred substantial research and development expenses of approximately $25.8 million for the nine months ended September 30, 2024, primarily due to advancing their clinical trials.
3. Financial Risks
Financial instability is a major concern for INmune Bio. The company reported a net loss of $32.9 million for the nine months ended September 30, 2024, compared to a net loss of $21.6 million for the same period in 2023. This increase in losses raises concerns about the company's ability to sustain operations.
4. Operational Risks
Operational risks include challenges in hiring and retaining qualified personnel, managing clinical trials, and maintaining quality control in product development. The company has reported an increase in operating expenses, totaling $33.2 million for the nine months ended September 30, 2024, up from $21.5 million for the same period in 2023.
5. Market Conditions
Fluctuations in market conditions can impact the company's stock performance and ability to raise capital. As of September 30, 2024, INmune Bio had cash and cash equivalents of $33.6 million, which may not be sufficient to cover future operating losses.
6. Mitigation Strategies
To address these risks, INmune Bio is exploring various financing strategies, including public or private sales of equity and debt financing. The company has raised approximately $25.4 million from registered direct offerings during the nine months ended September 30, 2024.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition from established and emerging biotech firms. | No revenue from product sales as of Q3 2024. |
| Regulatory Changes | Potential delays in product development due to regulatory requirements. | R&D expenses of $25.8 million for nine months ended Q3 2024. |
| Financial Risks | Increased net losses affecting sustainability. | Net loss of $32.9 million for nine months ended Q3 2024. |
| Operational Risks | Challenges in personnel retention and clinical trial management. | Operating expenses of $33.2 million for nine months ended Q3 2024. |
| Market Conditions | Fluctuating market conditions impacting stock performance. | Cash and cash equivalents of $33.6 million as of Q3 2024. |
| Mitigation Strategies | Exploring financing options to sustain operations. | Raised $25.4 million from direct offerings in nine months ended Q3 2024. |
Future Growth Prospects for INmune Bio, Inc. (INMB)
Future Growth Prospects for INmune Bio, Inc. (INMB)
Growth Drivers
- Product Innovations: The company is focused on developing its DN-TNF platform, which is aimed at treating Alzheimer’s disease and cancer. As of September 30, 2024, research and development expenses for DN-TNF were approximately $18.8 million for the nine months ended September 30, 2024.
- Market Expansions: INmune Bio is expanding its reach in the oncology sector, specifically targeting high-risk myelodysplastic syndromes (MDS) and acute myeloid leukemia (AML) with its INKmune platform.
- Acquisitions: The company has licensed technology from Xencor, Inc. for its XPro molecule, which is pivotal in its strategy to combat soluble tumor necrosis factor.
Future Revenue Growth Projections and Earnings Estimates
The company reported a net loss of $32.9 million for the nine months ended September 30, 2024. Total revenue for the same period was $14,000, indicating a significant reliance on ongoing financing. Analysts project that if clinical trials are successful, potential revenue streams could emerge from product sales in the coming years, although no revenue is currently generated from product sales.
Strategic Initiatives and Partnerships
- INmune Bio has partnered with various research institutions to advance its clinical trials, particularly for INKmune, aimed at improving patient outcomes in solid tumors.
- The company is actively seeking collaborations to enhance its research capabilities and expand its product pipeline.
Competitive Advantages
- Intellectual Property Portfolio: INmune Bio holds exclusive rights to several patents under its license agreements, including technology developed with the University of Pittsburgh.
- Experienced Management Team: The leadership consists of professionals with extensive backgrounds in biotechnology and pharmaceuticals, aiding strategic decision-making.
| Key Financial Metrics | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Loss | $32.9 million | $21.6 million |
| Total Revenue | $14,000 | $127,000 |
| Research and Development Expenses | $25.8 million | $14.3 million |
| Cash and Cash Equivalents | $33.6 million | $41.8 million |
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Article updated on 8 Nov 2024
Resources:
- INmune Bio, Inc. (INMB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of INmune Bio, Inc. (INMB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View INmune Bio, Inc. (INMB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.