Moleculin Biotech, Inc. (MBRX) Bundle
Understanding Moleculin Biotech, Inc. (MBRX) Revenue Streams
Understanding Moleculin Biotech, Inc.’s Revenue Streams
The financial performance of Moleculin Biotech, Inc. (MBRX) is critical for investors looking to assess the company's viability and growth potential. This section provides an in-depth analysis of the company’s revenue streams, historical growth rates, and the contributions of various segments to overall revenue.
Breakdown of Primary Revenue Sources
As of September 30, 2024, Moleculin Biotech reported total revenues of $0 for both the three and nine months ended September 30, 2024 and 2023. The absence of revenue reflects the company's focus on research and development rather than immediate product sales.
| Period | Revenues (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $0 |
| Three Months Ended September 30, 2023 | $0 |
| Nine Months Ended September 30, 2024 | $0 |
| Nine Months Ended September 30, 2023 | $0 |
Year-over-Year Revenue Growth Rate
The company has not generated any revenue in the last two years, indicating a consistent trend of 0% growth in revenues year-over-year for the periods analyzed. This scenario is typical for clinical-stage biotech firms that are heavily invested in R&D.
Contribution of Different Business Segments to Overall Revenue
Given the lack of revenue from product sales, the contributions to overall revenue from various segments are not applicable. All operational focus is directed towards clinical trials and product development rather than generating immediate revenue.
Analysis of Significant Changes in Revenue Streams
Throughout 2024, Moleculin Biotech has maintained a strategy focused on advancing its clinical programs. The company’s revenues have remained at zero, which is consistent with its model of prioritizing R&D over immediate revenue generation. The operating expenses for the nine months ended September 30, 2024, were reported as follows:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Research and Development | $4,932 | $3,280 | $13,274 | $12,855 |
| General and Administrative | $2,172 | $2,635 | $6,629 | $7,765 |
| Depreciation and Amortization | $31 | $32 | $95 | $92 |
| Total Operating Expenses | $7,135 | $5,947 | $19,998 | $20,712 |
The operating expenses have increased year-over-year, reflecting the company’s ongoing investment in clinical trials and operational overhead. The increase in R&D expenses by $1.6 million from Q3 2023 to Q3 2024 is noteworthy and indicates a commitment to advancing its drug candidates.
In summary, Moleculin Biotech's financial health concerning revenue generation remains stagnant as the company continues to operate without revenue, focusing its resources on research and development initiatives.
A Deep Dive into Moleculin Biotech, Inc. (MBRX) Profitability
A Deep Dive into Moleculin Biotech, Inc.'s Profitability
Gross Profit Margin: The company reported revenues of $0 for the three and nine months ended September 30, 2024, resulting in a gross profit margin of 0% for both periods.
Operating Profit Margin: For the three months ended September 30, 2024, the operating loss was $(7,135,000), leading to an operating profit margin of 0%. For the nine-month period, the operating loss was $(19,998,000), maintaining an operating profit margin of 0%.
Net Profit Margin: The net loss for the three months ended September 30, 2024, was $(10,592,000), translating to a net profit margin of 0%. For the nine months ended September 30, 2024, the net loss was $(19,881,000), also reflecting a net profit margin of 0%.
Trends in Profitability Over Time
Over the past year, the company has consistently reported no revenues, resulting in a steady net loss. The net loss for the three months ended September 30, 2023, was $(5,609,000), indicating a deterioration in financial performance compared to the same period in 2024. For the nine months ended September 30, 2023, the net loss was $(19,500,000), slightly less than the current year's loss.
Comparison of Profitability Ratios with Industry Averages
As of September 30, 2024, the company’s profitability ratios are considerably below industry averages, which typically see companies in the biotech sector reporting gross profit margins ranging from 40% to 70%. The lack of revenue has resulted in a net loss margin significantly below the industry standard, which may vary but often hovers around 10% to 20%.
Analysis of Operational Efficiency
The company’s operational efficiency can be assessed through its operating expenses, which totaled $(19,998,000) for the nine months ended September 30, 2024. This figure includes:
- Research and Development Expense: $(13,274,000)
- General and Administrative Expense: $(6,629,000)
- Depreciation and Amortization: $(95,000)
The trend in gross margin has been negative, with total operating expenses increasing from $(20,712,000) in the nine months ended September 30, 2023, to $(19,998,000) for the same period in 2024, suggesting improved cost management despite consistent losses.
| Metric | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Revenues | $0 | $0 |
| Operating Expenses | $(19,998,000) | $(20,712,000) |
| Net Loss | $(19,881,000) | $(19,500,000) |
| Gross Profit Margin | 0% | 0% |
| Operating Profit Margin | 0% | 0% |
| Net Profit Margin | 0% | 0% |
Debt vs. Equity: How Moleculin Biotech, Inc. (MBRX) Finances Its Growth
Debt vs. Equity: How Moleculin Biotech, Inc. Finances Its Growth
Overview of the company's debt levels:
As of September 30, 2024, the total liabilities of Moleculin Biotech, Inc. amounted to $15.9 million, with a breakdown of current liabilities being $5.6 million and long-term liabilities including a warrant liability of $9.9 million.
Debt-to-equity ratio and comparison to industry standards:
The company's debt-to-equity ratio as of September 30, 2024, is approximately 2.12 (calculated as total liabilities of $15.9 million divided by total stockholders' equity of $7.5 million). The biotechnology industry average debt-to-equity ratio is typically around 0.5 to 1.0, indicating that Moleculin's ratio is significantly above industry standards.
Recent debt issuances, credit ratings, or refinancing activity:
In August 2024, the company completed a public offering, raising gross proceeds of $5.5 million before fees. This offering included 283,000 shares of common stock and 2,183,368 pre-funded warrants. As of now, there are no established credit ratings available for Moleculin Biotech, Inc.
How the company balances between debt financing and equity funding:
Moleculin Biotech has primarily relied on equity funding to support its operations, as evidenced by the recent public offering and the issuance of common stock. In the nine months ended September 30, 2024, the company provided $4.6 million from financing activities. The company aims to balance its funding strategy by seeking additional equity or debt financing of approximately $15 million to support ongoing operations.
| Financial Metric | Amount |
|---|---|
| Total Liabilities | $15.9 million |
| Current Liabilities | $5.6 million |
| Long-term Warrant Liability | $9.9 million |
| Debt-to-Equity Ratio | 2.12 |
| Recent Public Offering Proceeds | $5.5 million |
| Additional Funding Needed | $15 million |
Assessing Moleculin Biotech, Inc. (MBRX) Liquidity
Assessing Liquidity
As of September 30, 2024, the company's liquidity position can be evaluated through its current and quick ratios, along with an analysis of its working capital trends.
Current and Quick Ratios
The current ratio, which measures the ability to cover short-term liabilities with short-term assets, is calculated as follows:
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| $11,606,000 | $5,593,000 | 2.07 |
The quick ratio, a more stringent measure that excludes inventory from current assets, is calculated as:
| Quick Assets (Cash + Prepaids) | Current Liabilities | Quick Ratio |
|---|---|---|
| $11,606,000 - $0 = $11,606,000 | $5,593,000 | 2.07 |
Working Capital Trends
Working capital, defined as current assets minus current liabilities, is a critical indicator of financial health. As of September 30, 2024, the working capital stands at:
| Current Assets | Current Liabilities | Working Capital |
|---|---|---|
| $11,606,000 | $5,593,000 | $6,013,000 |
Cash Flow Statements Overview
The cash flow statement provides insight into the cash generated or consumed in operating, investing, and financing activities:
| Cash Flow Activity | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | ($18,779,000) | ($18,694,000) |
| Net Cash Used in Investing Activities | ($13,000) | ($43,000) |
| Net Cash Provided by Financing Activities | $4,634,000 | $186,000 |
| Net Decrease in Cash and Cash Equivalents | ($14,145,000) | ($18,566,000) |
| Cash and Cash Equivalents (End of Period) | $9,405,000 | $24,579,000 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company reported an accumulated deficit of ($151,485,000) since inception and had not yet generated any revenues from operations. The cash on hand of $9,405,000 is considered insufficient to fund planned operations for at least one year from the date of the financial statements. Management anticipates needing additional funding of approximately $15 million to support operations through the third quarter of 2025.
Is Moleculin Biotech, Inc. (MBRX) Overvalued or Undervalued?
Valuation Analysis
The following sections provide a detailed valuation analysis of the company, focusing on key financial metrics and trends as of 2024.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, the company's net loss per common share, basic and diluted, was $2.85. Given that there are no earnings reported, the P/E ratio is not applicable at this time.
Price-to-Book (P/B) Ratio
The book value per share can be calculated from the latest stockholders' equity figures. As of September 30, 2024, total stockholders' equity was $7.479 million with 3,001,895 shares outstanding. Thus, the book value per share is:
Book Value Per Share = Total Stockholders' Equity / Total Shares Outstanding
Book Value Per Share = $7,479,000 / 3,001,895 = $2.49
The current stock price as of the same date was $2.23, leading to a P/B ratio of:
P/B Ratio = Stock Price / Book Value Per Share
P/B Ratio = $2.23 / $2.49 = 0.89
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of September 30, 2024, the company reported an EBITDA of $(19.998 million). Given that EBITDA is negative, the EV/EBITDA ratio is not applicable.
Stock Price Trends
The stock price over the last 12 months has shown volatility. The stock price started at approximately $3.00 in October 2023 and decreased to $2.23 by September 30, 2024. This represents a decrease of approximately 25.67%.
Dividend Yield and Payout Ratios
The company has not declared any dividends, thus the dividend yield is 0%. Consequently, the payout ratio is also not applicable.
Analyst Consensus on Stock Valuation
According to the latest analyst ratings, the consensus is a Hold recommendation. Analysts have noted concerns surrounding the company's ongoing losses and the need for additional funding, estimated at $15 million to sustain operations into the third quarter of 2025.
Key Financial Metrics Summary
| Metric | Value |
|---|---|
| Net Loss Per Share (Basic and Diluted) | $2.85 |
| P/E Ratio | N/A |
| Book Value Per Share | $2.49 |
| P/B Ratio | 0.89 |
| EBITDA | $(19.998 million) |
| EV/EBITDA Ratio | N/A |
| Current Stock Price | $2.23 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
| Additional Funding Needed | $15 million |
Key Risks Facing Moleculin Biotech, Inc. (MBRX)
Key Risks Facing Moleculin Biotech, Inc.
Understanding the potential risks that can impact the financial health of a company is crucial for investors. Below are the internal and external risks identified for this firm as of 2024.
Industry Competition
The biotechnology sector is highly competitive, with numerous companies vying for market share in developing innovative treatments. The presence of larger pharmaceutical companies with greater resources poses a significant threat. As of September 30, 2024, the firm reported a total operating expense of $19.998 million, reflecting the high costs associated with R&D in a competitive landscape.
Regulatory Changes
Regulatory scrutiny remains a constant challenge. The company has been subject to investigations, including a subpoena from the SEC regarding prior public disclosures and drug candidate developments. This regulatory uncertainty could lead to delays in product development and increased compliance costs, as evidenced by $0.2 million in general and administrative fees related to the SEC inquiry during the nine months ended September 30, 2024.
Market Conditions
The overall market conditions can significantly affect the company's fundraising capabilities. For instance, the firm's recent public offering on August 19, 2024, generated gross proceeds of $5.5 million, but the need for additional funding of approximately $15 million to sustain operations into 2025 is evident.
Operational Risks
Operational risks include reliance on third-party manufacturers for drug production, which can lead to disruptions if these partners face challenges. The firm reported $13.3 million in R&D expenses for the nine months ended September 30, 2024, indicating heavy investment in clinical trials that depend on external vendors.
Financial Risks
Financial risks are highlighted by the company's net loss of $19.881 million for the nine months ended September 30, 2024, compared to $19.500 million in the same period of the previous year. The loss per common share for the same period was $6.83. These figures underscore the ongoing financial strain and the need for effective cash flow management.
Strategic Risks
The strategic direction of the company could be jeopardized by unsuccessful clinical trials or failure to secure necessary partnerships for drug commercialization. The total cash and cash equivalents declined to $9.405 million as of September 30, 2024, from $23.550 million at the beginning of the year.
Mitigation Strategies
To address these risks, the company focuses on securing additional funding through various avenues, including equity offerings and potential collaborations. They are also actively managing operational costs, reducing general and administrative expenses to $6.629 million for the nine months ended September 30, 2024.
| Risk Type | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition from larger firms | Operating expenses: $19.998 million |
| Regulatory Changes | Subject to SEC investigations | G&A fees related to SEC: $0.2 million |
| Market Conditions | Dependence on fundraising | Need for $15 million in additional funding |
| Operational Risks | Reliance on third-party manufacturers | R&D expenses: $13.3 million |
| Financial Risks | Ongoing net losses | Net loss: $19.881 million |
| Strategic Risks | Risk from unsuccessful trials | Cash and cash equivalents: $9.405 million |
Future Growth Prospects for Moleculin Biotech, Inc. (MBRX)
Future Growth Prospects for Moleculin Biotech, Inc.
Analysis of key growth drivers includes:
- Product Innovations: The company is advancing its lead program, Annamycin, which completed a Phase 2 trial and is preparing for a Phase 3 trial. This program focuses on treating hard-to-treat cancers.
- Market Expansions: The company has reacquired intellectual property rights in certain territories, including parts of the European Union, enhancing its market reach.
- Acquisitions: While no specific acquisition details are available, the company continues to seek partnerships that can bolster its research and development capabilities.
Future Revenue Growth Projections and Earnings Estimates
Revenue growth projections remain conservative as the company currently reports no revenues. However, the anticipated clinical developments, particularly with Annamycin, may lead to future revenue streams once products are commercialized. The net loss for the nine months ended September 30, 2024, was $19.9 million, compared to $19.5 million for the same period in 2023.
| Period | Net Loss (in millions) | Cash and Cash Equivalents (in millions) |
|---|---|---|
| Q3 2024 | $10.6 | $9.4 |
| Q3 2023 | $5.6 | $24.6 |
| 9M 2024 | $19.9 | $9.4 |
| 9M 2023 | $19.5 | $24.6 |
Strategic Initiatives or Partnerships that May Drive Future Growth
The company executed a public offering in August 2024, raising approximately $5.5 million before expenses. These funds are earmarked for advancing Annamycin and other drug portfolios through clinical development. Additionally, strategic collaborations with institutions like MD Anderson Cancer Center continue to play a vital role in their research initiatives.
Competitive Advantages that Position the Company for Growth
The company benefits from:
- Strong Research Base: Collaborations with leading research institutions enhance its drug development capabilities.
- Intellectual Property: The reacquisition of rights in key territories provides a competitive edge in expanding its market presence.
- Qualified Leadership: Experienced management with a focus on clinical development positions the company favorably in the biotech sector.
As of September 30, 2024, total assets were $23.4 million, down from $38.2 million at the end of 2023, indicating a significant reduction in financial resources. The company also has a long-term warrant liability of $9.9 million, which reflects the financial obligations tied to previous equity offerings.
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Resources:
- Moleculin Biotech, Inc. (MBRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Moleculin Biotech, Inc. (MBRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Moleculin Biotech, Inc. (MBRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.