EPS of $-0.40 increased by 99.5% from previous year
Gross margin of 100.0%
Net income of -1.95M
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GRI Bio Inc (GRI) QQ4 2024 Financial Results Analysis – Clinical-Stage Biotech with Modest Revenue, Persistent Net Loss, and Short-Term Liquidity Considerations
Executive Summary
GRI Bio delivered its QQ4 2024 results with a modest revenue base and a material operating loss, reflecting the company’s ongoing clinical-stage development and the absence of commercial products. Revenue for the quarter was $2.298 million, with gross profit of $2.298 million and an operating loss of $1.955 million. Net income came in at a loss of $1.948 million, translating to basic and diluted EPS of -$0.40. The company’s cash burn from operating activities was approximately $2.00 million for the quarter, and cash and cash equivalents stood at $5.03 million at period-end. Management commentary (not provided in the supplied transcript) historically emphasizes pipeline advancement and the potential for strategic partnerships to extend runway and fund late-stage development.
From a financing and liquidity perspective, the quarterly burn coupled with ongoing R&D and G&A expenses indicates a tight liquidity runway absent external financing or milestone-based inflows. The R&D spend for QQ4 2024 was $829k, while SG&A ran $1.125 million, underpinning a structure typical of early-stage biotech with limited or no commercial product revenue. The balance sheet shows a strong apparent equity base juxtaposed against modest current liabilities, though noted data inconsistencies in the reported totals warrant careful verification. Looking ahead, the key near-term catalysts will hinge on clinical readouts from GRI0621 (IPF) in Phase II and GRI0803 (SLE) in Phase I, as well as potential corporate collaborations that could de-risk and fund portions of the pipeline. Investors should monitor data readouts and any capital-raising activity as the company navigates its path toward value inflection.
Key Performance Indicators
Revenue
2.30M
QoQ: N/A | YoY:N/A
Gross Profit
2.30M
1.00% margin
QoQ: N/A | YoY:N/A
Operating Income
-1.95M
QoQ: -0.05% | YoY:13.42%
Net Income
-1.95M
QoQ: -0.05% | YoY:13.42%
EPS
-0.40
QoQ: -100.28% | YoY:99.52%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $2.30 million for QQ4 2024. Gross Profit: $2.30 million; Gross Margin: 100.0%.
Net Income: -$1.948 million; Net Income Margin: -84.77%; EPS: -$0.40; Weighted Avg Shares Outstanding: 525,480.
YoY / QoQ metrics (as provided): Operating Income YoY: +13.42%; Operating Income QoQ: -0.05%; Net Income YoY: +13.42%; Net Income QoQ: -0.05%; EPS YoY: +99.52%; EPS QoQ: -100.28%.
Net cash provided by operating activities: -$1.999 million.
Financial Highlights
Revenue and profitability:
- Revenue: $2.30 million for QQ4 2024. Gross Profit: $2.30 million; Gross Margin: 100.0%.
- Operating Expenses: $1.954 million; Operating Income: -$1.955 million; EBITDA: -$1.947 million; EBITDARatio: -0.85.
- Net Income: -$1.948 million; Net Income Margin: -84.77%; EPS: -$0.40; Weighted Avg Shares Outstanding: 525,480.
- YoY / QoQ metrics (as provided): Operating Income YoY: +13.42%; Operating Income QoQ: -0.05%; Net Income YoY: +13.42%; Net Income QoQ: -0.05%; EPS YoY: +99.52%; EPS QoQ: -100.28%.
Liquidity and cash flow:
- Net cash provided by operating activities: -$1.999 million.
- Depreciation & amortization: $1,000; Stock-based compensation: $37,000; Change in working capital: -$101,000; Accounts payable: -$240,000; Other working capital: $139,000; Other non-cash items: $12,000.
- Free Cash Flow: -$1.999 million; Cash at end of period: $5.028 million; Cash at beginning: $4.746 million.
- Cash conversion indicators and leverage (as provided): Current ratio 3.43; Debt to assets 0.0207; Debt to equity 0.0295; Cash per share $27.43; Price to book value 0.488.
Balance sheet health and capital structure:
- Total assets: $5.739 million; Total liabilities: $1.707 million; Total stockholders’ equity: $56.331 million (note: reported totals appear inconsistent with assets and liabilities in the provided data; should be reconciled in the 10-Q). Cash and cash equivalents plus short-term investments: $5.028 million; Total current assets: $5.615 million. Long-term debt: $71,000.
- Notable cash and liquidity: The company carries a modest cash balance with a quarterly burn pattern, implying a liquidity runway of roughly 2–3 quarters absent additional financing or near-term cash inflows. Investors should watch for capital-market activity or milestone-driven funding tied to the company’s pipeline milestones.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.30M
N/A
N/A
Gross Profit
2.30M
N/A
N/A
Operating Income
-1.95M
13.42%
-0.05%
Net Income
-1.95M
13.42%
-0.05%
EPS
-0.40
99.52%
-100.28%
Key Financial Ratios
currentRatio
3.43
returnOnAssets
-33.9%
returnOnEquity
-48.3%
debtEquityRatio
0.03
operatingCashFlowPerShare
$-10.91
freeCashFlowPerShare
$-10.91
priceToBookRatio
0.49
priceEarningsRatio
-0.25
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript was not provided in the data supplied. Consequently, there are no direct management quotes or thematic highlights from the QQ4 2024 call to summarize. If a transcript is provided, I will extract themes by strategy, operations, and market conditions with context and significance.
Transcript data not provided.
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Transcript data not provided.
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Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given GRI Bio’s clinical-stage profile and the absence of commercial products, the company will likely rely on data readouts, strategic collaborations, and potential financing to extend its runway. Near-term catalysts would plausibly include Phase II IPF data for GRI0621 and Phase I/SLE readouts for GRI0803, along with any partnering discussions that could de-risk the pipeline and provide non-dilutive or milestone-based funding. Investors should monitor for any new guidance on timing of readouts, development milestones, partnership activity, or liquidity safeguards. In the absence of stated guidance, the achievability of milestones will depend on clinical trial progress and capital market conditions.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
GRI Focus
1.00%
0.00%
-48.30%
-25.30%
BDRX
0.00%
0.00%
0.00%
0.00%
CLNN
80.20%
-95.11%
1.53%
-68.10%
FHTX
1.00%
-8.41%
42.80%
-3.79%
HOWL
0.00%
0.00%
-27.80%
-80.70%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
GRI Bio remains a high-risk, high-uncertainty investment typical of early-stage biotechnology. The QQ4 2024 results show a modest revenue base with a substantial net loss and continued cash burn. The short-term stock trajectory will largely depend on pipeline momentum and any strategic financing or milestone-driven deals that extend the company’s runway. Catalysts to watch include forthcoming data readouts for GRI0621 (IPF) and GRI0803 (SLE), as well as any partnership discussions that could provide funding or development support. Given the current liquidity profile and lack of commercial revenue, the investment stance leans toward a cautious or watchlist approach, with a preference to reassess upon material pipeline milestones, clarity on balance sheet reconciliation, and evidence of operating leverage or partnership-driven capital infusions.
Key Investment Factors
Growth Potential
Top-line growth is contingent on the progression and eventual commercialization of the pipeline. Key assets include GRI0621 for IPF (Phase II) and GRI0803 for SLE (Phase I), with potential readouts in 2025 that could de-risk and re-rate the stock if positive. Strategic partnerships could accelerate development and provide capital relief, while any successful INDs or expansion of the ADHD portfolio (ADAIR/ADMIR) could broaden the pipeline's revenue potential.
Profitability Risk
Clinical trial risk remains the predominant factor; success is not guaranteed, and early-stage readouts can cause stock volatility. Liquidity risk is significant given the quarterly cash burn and the lack of commercial product revenue. Financing risk is present if milestones are missed or if market conditions constrain capital raising. Data presentation inconsistencies in the provided figures warrant diligence on the filed 10-Q to confirm balance sheet integrity.
Financial Position
Cash and equivalents of $5.03M at QQ4 2024 with a quarterly operating cash burn of ~$2.0M imply a tight runway absent additional fundraising or milestone inflows. The company carries a favorable current ratio (3.43) but a large conditional liability footprint appears anomalous in the provided data; a verified balance sheet will be essential for a precise liquidity assessment. Equity base appears substantial in the reported figures, but the lack of revenue and ongoing R&D suggests dependency on financing.
SWOT Analysis
Strengths
Clinical-stage pipeline with multiple assets (GRI0621 IPF, GRI0803 SLE; GRI0124 preclinical for PSC; GRI0729 preclinical)
100% gross margin in QQ4 2024 driven by revenue covering costs (gross profit of $2.30M on revenue of $2.30M in the period).
Solid liquidity buffer relative to near-term burn (cash of $5.03M) and a current ratio of 3.43.
Weaknesses
Persistent net loss and negative operating cash flow, characteristic of early-stage biotech without commercial products.
Limited near-term revenue visibility and reliance on financing or milestone-driven inflows.
Balance sheet data exhibits inconsistencies that require reconciliation in the 10-Q.
Opportunities
Data readouts from IPF (GRI0621) Phase II and SLE (GRI0803) Phase I could unlock value and attract partnerships.
Potential strategic collaborations to fund late-stage development and broaden the portfolio.
Expansion of ADHD-focused programs (ADAIR/ADMIR) could diversify risk and revenue potential if clinical progress supports it.
Threats
Clinical failure risk across all assets; regulatory risk in the biotechnology sector.
Funding risk in a market environment that can be volatile for small-cap biotech stocks.
Competition from other biotech firms pursuing IPF and SLE therapies with potentially faster paths to market or superior efficacy.