Company Overview
Scinai Immunotherapeutics Ltd. operates as a biopharmaceutical entity dedicated to the development, manufacturing, and commercialization of biological products designed to treat infectious and autoimmune diseases, specifically utilizing nanosized VHH antibodies or nanoAbs within the inflammation and immunology sector. The company functions within the Healthcare sector and the Biotechnology industry, a classification that defines its focus on scientific research to create novel therapies for complex medical conditions rather than traditional manufacturing goods. Currently, the firm employs 31 individuals to support its operations while maintaining a market capitalization of $1.92 million and reporting total annual revenue of $1.15 million. These financial metrics indicate that Scinai is a micro-cap entity with limited market presence, where the combination of modest revenue and a sub-$2 million market cap suggests a pre-commercialization or early-stage commercialization status typical for biotechnology firms in the nascent phases of product development.
Financial Health
The company reported revenue of $1.15 million for the trailing twelve months, net income of $347,000, and an EBITDA of $-6,745,000, revealing a distinct divergence where the bottom-line profit exists despite significant negative earnings before interest, taxes, depreciation, and amortization. The gap between the positive net income figure and the substantial negative EBITDA highlights a cost structure where non-operating items or significant depreciation and amortization expenses are inflating the bottom line relative to core operational profitability. Free cash flow stands at $-3,387,625, indicating that the company is consuming cash reserves to fund its research and development activities rather than generating liquidity from operations. This negative cash flow position limits immediate financial flexibility and suggests reliance on external capital sources or existing cash balances to sustain operations. Regarding profitability metrics, the gross margin is reported at -147.0%, the operating margin at -486.8%, while the profit margin stands at 448.4%; these contradictory figures reflect the accounting reality of early-stage biotech where high R&D costs and amortization depress gross and operating margins, yet the calculation of net income results in an anomalously high profit margin. The firm holds $989,000 in cash against total debt of $2.36 million, resulting in a debt-to-equity ratio of 29.98, which characterizes a leveraged balance sheet where liabilities significantly exceed liquid assets. Additionally, the current ratio is 0.71, indicating that the company possesses only 71 cents of liquid assets for every dollar of current liabilities, signaling potential short-term liquidity pressure. Return on equity is calculated at 1792.0% while return on assets is -39.6%, metrics that reveal extreme volatility in return calculations driven by low equity bases and negative asset performance typical of high-leverage, low-asset companies.
Valuation Assessment
The trailing twelve-month P/E ratio is 0.15, while the forward P/E is not available, implying that the market is currently pricing in significant uncertainty regarding future earnings stability and trajectory. The price-to-book ratio is 0.41, suggesting that the stock trades at a significant discount relative to its book value, which often occurs with speculative assets where future growth potential is valued differently than current asset holdings. Alternative valuation metrics show a price-to-sales ratio of 1.67 and an EV/EBITDA of -540.70; these figures suggest that traditional valuation multiples are less applicable due to negative earnings, forcing reliance on revenue multiples that still indicate a premium over sales given the company's minimal market cap. The stock has a 52-week high of $6.18 and a 52-week low of $0.60, placing the current price at a level that reflects high volatility within this trading range. With a beta of 1.90, the stock exhibits nearly double the volatility of the broader market, meaning price swings are significantly more pronounced than standard equities.
Growth & Income
Revenue growth year-over-year stands at 36.1%, whereas earnings growth is not available due to the irregular nature of net income in this specific reporting period, implying that top-line expansion is occurring even though bottom-line profitability metrics are not consistently growing in a traditional sense. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that the firm retains all earnings and cash flow to reinvest directly into research, development, and commercialization efforts rather than distributing income to shareholders. This reinvestment strategy aligns with the operational model of a biotechnology company that requires substantial capital allocation to advance its nanosized antibody pipeline before it can generate sustained commercial cash flows. Overall, the growth and income profile is characterized by rapid revenue expansion coupled with a complete absence of dividend income, relying entirely on capital appreciation potential and operational milestones to drive shareholder value.