Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors

Are you keeping a close watch on Genprex, Inc. (GNPX) and wondering about its financial stability? As of its latest 10-K report in March 2025, the company, focusing on gene therapies for cancer and diabetes, presents a mixed financial landscape. While Genprex holds $4.12 million in total assets against $2.5 million in total liabilities, resulting in a stockholders equity of $1.62 million, it's crucial to note they are currently debt free. However, the company's short-term assets of $2.1 million do not cover its short-term liabilities of $2.5 million. Furthermore, the company's free cash flow stands at -$17.15 million, with a concerningly low cash runway, based on current free cash flow. With these figures in mind, let's delve deeper to reveal key insights for investors.

Genprex, Inc. (GNPX) Revenue Analysis

Genprex, Inc. is a clinical-stage gene therapy company focused on developing therapies for cancer and diabetes. As a clinical-stage company, it is important to note that Genprex, Inc. currently does not have products on the market that generate consistent revenue. The company's financial health is largely dependent on its ability to secure funding through collaborations, grants, and financing activities.

Given that Genprex, Inc. is in the development phase, traditional revenue stream analysis doesn't directly apply. Instead, understanding the company's financial status involves examining its sources of funding and how effectively it manages its resources to advance its clinical programs.

For Genprex, Inc., revenue is primarily derived from:

• Collaboration Agreements: Income from partnerships with other companies or institutions to develop and commercialize its technologies.
• Grants: Funding received from government agencies or non-profit organizations to support research and development activities.
• Financing Activities: Proceeds from the issuance of stock or debt to fund operations.

Since Genprex, Inc. is not generating revenue from product sales, the traditional year-over-year revenue growth rate is not applicable. Instead, investors should focus on the company's ability to secure funding to sustain operations and advance its clinical programs.

As a clinical-stage company, Genprex, Inc. does not have different business segments contributing to overall revenue in the same way a commercial-stage company would. The company's focus is on research and development, and its financial performance is closely tied to its ability to raise capital and achieve clinical milestones.

Significant changes in Genprex, Inc.'s financial status typically involve:

• New Funding Rounds: Successful completion of equity or debt financings.
• Partnership Agreements: Entering into collaborations with other companies to develop and commercialize its technologies.
• Clinical Trial Results: Positive or negative results from clinical trials, which can impact the company's valuation and ability to raise capital.

For more detailed insights, you can explore: Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors

Genprex, Inc. (GNPX) Profitability Metrics

Analyzing Genprex, Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. Trends in these metrics over time provide insights into the company's performance and ability to generate profits.

As of the fiscal year 2024, detailed profitability metrics for Genprex, Inc. (GNPX) reveal the following:

• Gross Profit: The company reported a gross profit of $0 for the year ended September 30, 2024.
• Operating Profit: Genprex, Inc.'s operating loss was $24.71 million for the same period.
• Net Profit Margin: The net loss was $27.13 million, reflecting a challenging period in terms of profitability.

A comparison of profitability ratios with industry averages would typically provide context, but in Genprex's case, the focus remains on managing operational costs and improving gross margins to drive future profitability. The company's operational efficiency is closely tied to its ability to manage costs and improve gross margin trends, which are critical for achieving sustainable profitability.

The following table summarizes Genprex, Inc.'s financial performance:

For further insights, you can explore: Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors

Genprex, Inc. (GNPX) Debt vs. Equity Structure

Understanding how Genprex, Inc. (GNPX) manages its debt and equity is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity financing.

As of the fiscal year ended December 31, 2023, Genprex, Inc. reported having a total cash and cash equivalents of approximately $24.5 million. This suggests the company maintains a moderate liquidity position to cover short-term obligations and operational expenses.

While specific details on long-term and short-term debt for 2024 are not available, examining previous financial statements can provide insights. For instance, the company has previously utilized debt financing, including convertible notes, to fund its operations. However, recent filings would be needed to ascertain the current outstanding amounts and terms.

The debt-to-equity ratio is a key metric for assessing financial leverage. Unfortunately, without precise 2024 figures, a direct comparison to industry standards is challenging. Generally, a lower debt-to-equity ratio indicates less reliance on debt and lower financial risk. Investors should seek the most recent data to evaluate Genprex, Inc.'s current standing.

To provide a clearer picture, a comparison of key financial metrics from past years is useful. The following table illustrates selected data points (note: 2024 data would be required for an up-to-date analysis):

Genprex, Inc. has historically balanced debt and equity financing. Recent activities, such as registered direct offerings, indicate a strategy of raising capital through equity markets. Monitoring these trends helps assess the company's approach to funding its operations and clinical trials.

Key considerations for investors include:

• The company's ability to manage its cash burn rate.
• The success of its clinical trials, which can significantly impact its valuation and financing options.
• Overall market conditions and investor sentiment toward biotechnology companies.

For further insights, you can read more at: Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors

Genprex, Inc. (GNPX) Liquidity and Solvency

Analyzing Genprex, Inc.'s (GNPX) financial health, especially its liquidity and solvency, is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here’s a breakdown of key liquidity measures for Genprex:

• Current Ratio: As of the latest data, the current ratio is 0.83. A current ratio of less than 1 suggests potential difficulties in meeting short-term obligations with its current assets.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, is 0.64 for fiscal year 2024. This indicates that Genprex may face challenges in meeting its immediate liabilities using its most liquid assets.

These ratios suggest that Genprex may have liquidity concerns, as its current and quick ratios are below the generally accepted benchmark of 1.0.

Working capital, which is the difference between a company's current assets and current liabilities, provides a more detailed view of liquidity. For 2024, Genprex's working capital is negative -$426,703.

An overview of Genprex's cash flow statements, focusing on operating, investing, and financing activities, provides insights into how the company generates and uses cash.

• Cash from Operating Activities: For the year 2024, Genprex's cash flow from operating activities was -$17.15 million. This negative value indicates that the company is using cash to fund its operations.
• Net Loss: The company reported a net loss of approximately $21.1 million for the year ended December 31, 2024, compared to a net loss of approximately $31.0 million in the previous year.
• Cash and Cash Equivalents: As of December 31, 2024, Genprex's cash and cash equivalents were approximately $1.6 million.

Potential liquidity concerns for Genprex include:

• Nasdaq Compliance: Genprex was notified by the Nasdaq Stock Market that it did not meet the minimum stockholders' equity requirement for continued listing. As of September 30, 2024, stockholders' equity was $1,664,971, below the required $2.5 million threshold.
• Short-Term Obligations: Short-term obligations exceed liquid assets, suggesting potential liquidity challenges that may complicate efforts to boost stockholders' equity.
• Stable Cash Runway: Genprex has less than a year of cash runway based on its current free cash flow.

However, there are also some strengths:

• Cash Position: Genprex holds more cash than debt on its balance sheet, which could be a positive factor as the company works to address its compliance issues.

For more detailed insights, you can refer to Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors.

Genprex, Inc. (GNPX) Valuation Analysis

Determining whether Genprex, Inc. (GNPX) is overvalued or undervalued involves analyzing various financial metrics and market indicators. These include relative valuation ratios, stock price trends, and analyst opinions. Given that Genprex, Inc. is a clinical-stage gene therapy company, traditional metrics like price-to-earnings (P/E) and dividend yield may not be applicable due to the company's current lack of consistent revenue and earnings.

Here’s a breakdown of key valuation considerations:

• Price-to-Book (P/B) Ratio: The Price-to-Book ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio might suggest undervaluation, while a higher ratio could indicate overvaluation. However, this metric should be used cautiously for biotech companies, as their value is often tied to intangible assets like patents and intellectual property, which may not be fully reflected on the balance sheet.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s useful for assessing valuation relative to operational cash flow. However, for companies like Genprex, Inc. that are not yet generating significant revenue or have negative EBITDA, this metric may not be meaningful.
• Stock Price Trends: Analyzing the stock price trends over the last 12 months (or longer) can provide insights into market sentiment and investor confidence. Significant price volatility may reflect the high-risk, high-reward nature of biotech investments, especially those dependent on clinical trial outcomes and regulatory approvals.

Given the nature of Genprex, Inc.'s business, assessing its valuation requires a more nuanced approach:

• Clinical Trial Progress: The success or failure of clinical trials significantly impacts the company's valuation. Positive trial results can lead to a substantial increase in stock price, while setbacks can have the opposite effect.
• Regulatory Milestones: Approval from regulatory bodies such as the FDA is a critical value driver. The anticipated timelines and likelihood of approval play a crucial role in investor sentiment.
• Cash Burn Rate and Runway: Investors often focus on the company's cash burn rate (the rate at which it spends its cash reserves) and its cash runway (how long it can sustain operations before needing additional funding). A healthy cash runway is essential for maintaining investor confidence.

Analyst consensus on Genprex, Inc.'s stock valuation can provide additional insights. These ratings typically range from 'buy' to 'sell' and reflect the collective opinion of financial analysts covering the company. However, it's important to consider that analyst ratings are not always accurate and should be used as just one factor in your overall assessment.

In conclusion, determining whether Genprex, Inc. is overvalued or undervalued requires a comprehensive analysis that goes beyond traditional financial ratios. Investors should focus on clinical trial progress, regulatory milestones, cash runway, and analyst opinions to make an informed decision.

For more detailed information, you can refer to: Breaking Down Genprex, Inc. (GNPX) Financial Health: Key Insights for Investors

Genprex, Inc. (GNPX) Risk Factors

Investing in Genprex, Inc. (GNPX) involves navigating a landscape of potential risks that could significantly impact its financial health. These risks span internal operational challenges and external market forces, requiring investors to stay informed about the factors that could influence the company's performance.

Here's an overview of key risks:

• Industry Competition: The biotechnology sector is characterized by intense competition. Genprex, Inc. (GNPX) faces competition from other companies developing similar gene therapies and cancer treatments. Successful development and commercialization depend on staying ahead of competitors.
• Regulatory Changes: The development and marketing of gene therapies are subject to strict regulatory oversight by agencies such as the FDA in the United States. Changes in regulatory requirements or delays in obtaining regulatory approvals can significantly affect Genprex, Inc.'s (GNPX) timelines and financial prospects.
• Market Conditions: Market volatility and economic downturns can impact investor sentiment and the availability of capital. Unfavorable market conditions may make it more difficult for Genprex, Inc. (GNPX) to raise capital or commercialize its products.

Operational, financial, and strategic risks are often detailed in Genprex, Inc.'s (GNPX) earnings reports and filings. These documents provide insights into the challenges the company faces and its strategies for addressing them. Reviewing these reports is essential for investors seeking to understand the company's risk profile.

Examples of specific risks include:

• Clinical Trial Risks: Genprex, Inc.'s (GNPX) product pipeline relies on the successful completion of clinical trials. Unexpected adverse events, delays in enrollment, or failure to meet endpoints can jeopardize the development of its therapies.
• Manufacturing Risks: Manufacturing gene therapies is a complex process. Genprex, Inc. (GNPX) may face challenges in scaling up production, ensuring product quality, and managing supply chain disruptions.
• Commercialization Risks: Even if Genprex, Inc. (GNPX) receives regulatory approval for its therapies, there is no guarantee that they will be commercially successful. Factors such as market acceptance, pricing pressures, and competition from other treatments can affect sales and profitability.

Mitigation strategies or plans are crucial for managing these risks. Genprex, Inc. (GNPX) may implement strategies such as:

• Diversifying its product pipeline to reduce reliance on a single therapy.
• Establishing partnerships with other companies to share development costs and risks.
• Investing in manufacturing capabilities to ensure a reliable supply of its products.

Here is a hypothetical table illustrating potential risks, their impact, and possible mitigation strategies:

Understanding these risks and mitigation strategies is essential for investors seeking to make informed decisions about Genprex, Inc. (GNPX). For further insights into Genprex, Inc.'s (GNPX) mission, vision, and core values, consider reviewing: Mission Statement, Vision, & Core Values of Genprex, Inc. (GNPX).

Genprex, Inc. (GNPX) Growth Opportunities

Genprex, Inc. is focused on developing new therapies for cancer, with a particular emphasis on using gene therapy to target the mechanisms of cancer and related diseases. The company's future growth prospects are closely tied to the success of its key clinical programs and strategic initiatives.

Key growth drivers for Genprex, Inc. (GNPX) include:

• Product Innovations: Genprex's lead drug candidate, Reqorsa™ (quisinostat + cisplatin), is being evaluated in clinical trials for non-small cell lung cancer (NSCLC). Positive results from these trials could lead to regulatory approval and commercialization, driving significant revenue growth.
• Market Expansions: Expanding the clinical development of Reqorsa™ to other cancer types or geographic regions could open up new market opportunities.
• Strategic Partnerships: Collaborations with other pharmaceutical companies or research institutions could provide access to new technologies, funding, or expertise, accelerating the development and commercialization of Genprex's pipeline.

Future revenue growth projections and earnings estimates for Genprex, Inc. (GNPX) are dependent on several factors, including the timing and outcome of clinical trials, regulatory approvals, and market adoption of its therapies. As a clinical-stage company, Genprex, Inc. (GNPX) is currently not generating substantial revenue from product sales. However, if Reqorsa™ or other pipeline candidates are successfully commercialized, the company's revenue could increase significantly.

Strategic initiatives that may drive future growth include:

• Advancing Reqorsa™ through clinical development: Completing ongoing clinical trials and initiating new trials to expand the potential use of Reqorsa™ in different cancer settings.
• Expanding the pipeline: Developing new gene therapy candidates to target other cancer-related pathways or diseases.
• Securing partnerships and collaborations: Partnering with other companies or institutions to leverage their resources and expertise.

Genprex, Inc. (GNPX) competitive advantages that position the company for growth include:

• Proprietary technology: Genprex's gene therapy platform and drug candidates are protected by patents and other intellectual property rights, providing a competitive advantage.
• Experienced management team: Genprex's management team has a proven track record of success in drug development and commercialization.
• Strong investor support: Genprex, Inc. (GNPX) has a strong base of investors who are committed to supporting the company's growth.

To gain more insights into the investors of Genprex, Inc. (GNPX), consider reading: Exploring Genprex, Inc. (GNPX) Investor Profile: Who’s Buying and Why?