Company Overview
Impact BioMedical Inc. operates within the healthcare sector, specifically focusing on the biotechnology industry to discover, develop, and commercialize products and technologies that address unmet needs in human healthcare and wellness. The company's strategic focus includes specialty biopharmaceuticals, antivirals, antimicrobials, consumer healthcare, and wellness products, with a specific operational presence in the United States. The organization currently maintains a very small workforce consisting of only 2 employees, reflecting a lean operational structure typical of early-stage or specialized biotechnology firms. Its current market capitalization stands at $61.98M, while its annual revenue (TTM) is reported at $32,000, indicating a significant disparity between its equity value and actual cash generation. These valuation figures suggest that the market prices the company based on potential future development milestones and intellectual property value rather than current profitability, a common characteristic for biotechnology entities in the discovery and development phases where capital is heavily invested in research before commercialization.
Financial Health
The company reported a trailing twelve-month revenue of $32,000 alongside a net income of $-11,838,000, revealing a profound disconnect between top-line activity and bottom-line profitability that highlights an aggressive cost structure or substantial one-time expenses not yet offset by earnings. This financial gap is further underscored by an EBITDA of $-3,125,000, indicating that even before interest and taxes, the operational cash generation is currently negative. The free cash flow stands at $-1,520,375, which signifies a continuous burn rate that limits the company's immediate financial flexibility and necessitates reliance on external capital sources to sustain operations. Margin analysis shows a gross margin of 0.0%, an operating margin of -16542.9%, and a profit margin of 0.0%, all of which indicate that the company is not generating profit from its sales and is operating at a significant loss relative to its revenue base. The balance sheet presents a stark contrast with $3,000 in cash and N/A for debt, though the debt-to-equity ratio is listed as N/A, suggesting a lack of traditional long-term leverage but also limited liquidity reserves. The current ratio is 0.35, which indicates that the company possesses less than half the current assets required to cover its current liabilities, pointing to potential short-term liquidity constraints. Furthermore, the return on equity is -104.2% and the return on assets is -14.2%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate positive returns.
Valuation Assessment
The trailing P/E ratio is N/A and the forward P/E is also N/A, implying that the absence of positive earnings prevents the use of traditional earnings-based valuation multiples and suggests the market is not pricing in immediate earnings growth. The price-to-book ratio is 4.75, indicating that the stock trades at a significant premium relative to its net asset value, a valuation often driven by speculative expectations of future drug approvals or technology breakthroughs rather than tangible book value. Alternative valuation metrics include a price-to-sales ratio of 1936.74 and an EV/EBITDA of -20.77, which suggest that the market values the company heavily on future revenue potential despite the negative enterprise value relative to earnings. The 52-week high is $4.50 and the 52-week low is $0.36, meaning the current price sits somewhere within a range of extreme volatility, though the exact current price is not provided to calculate the precise percentage relative to the high. The beta value is N/A, which means that the stock's price volatility relative to the broader market cannot be quantified using historical data, a common trait for micro-cap biotechnology stocks with limited trading volume.
Growth & Income
The revenue growth (YoY) is N/A and the earnings growth (YoY) is N/A, preventing a direct comparison of whether earnings are growing faster or slower than revenue due to the lack of historical data points in the provided facts. As the company does not pay a dividend, the dividend yield is N/A and the payout ratio is 0.0%, indicating that the company reinvests all available resources, including its cash reserves, into research and development rather than distributing income to shareholders. This approach aligns with the typical lifecycle of a biotechnology firm that must prioritize capital expenditure for clinical trials and product development over shareholder payouts. The overall growth and income profile is characterized by a complete absence of historical growth data and a total reliance on capital preservation and reinvestment rather than income generation for investors.