Breaking Down Kiromic BioPharma, Inc. (KRBP) Financial Health: Key Insights for Investors

You're looking at Kiromic BioPharma, Inc. (KRBP) because you're trying to map the risk-reward profile of clinical-stage biotech, but honestly, the financial health picture here is already crystal clear: the company is in liquidation. The harsh reality is that Kiromic BioPharma filed for Chapter 7 Bankruptcy in March 2025, which means the company is being dissolved, not restructured, so any potential upside from their promising Deltacel-01 Phase 1 clinical trial is essentially gone for equity holders. This outcome was foreshadowed by the fiscal year 2024 report, filed in February 2025, which showed a net loss of $26.9 million, up from $20.9 million the prior year, and a stark warning that cash resources were insufficient to meet obligations beyond March 2025. The core issue wasn't just the burn rate-it was the inability to secure the next round of financing after raising only $18.4 million via convertible notes, a classic biotech funding cliff realized. We need to look past the clinical milestones and focus on the cold, hard capital structure to understand what this means for the ticker, which is now trading as KRBPQ.

Revenue Analysis

The direct takeaway here is stark: Kiromic BioPharma, Inc. (KRBP) did not generate any commercial revenue in the 2025 fiscal year, which is typical for a clinical-stage biotechnology company focused solely on research and development. The most critical financial event of the year was the company's voluntary petition for Chapter 7 liquidation in March 2025, which fundamentally ended its operational life and any future revenue potential. This is a crucial distinction: a biotech's financial health is often measured by its cash runway, not its sales.

Breakdown of Primary Funding Sources

Since Kiromic BioPharma, Inc. had no approved products to sell, its primary source of capital was not revenue in the traditional sense, but external financing. For the fiscal year ended December 31, 2024, the company raised a total of $18.4 million through financing activities, primarily from issuing convertible notes. This capital was the lifeblood, funding the development of its allogeneic Gamma Delta T-cell therapy products, like Deltacel-01, which was in a Phase 1 clinical trial. Honestly, the financing is the only number that mattered for operations.

• Funded operations with $18.4 million from financing.
• No product or service sales revenue reported.
• Capital was directed to clinical trials and R&D.

Year-over-Year Financial Trend

You can't calculate a meaningful year-over-year revenue growth rate when the revenue is zero. Instead, we look at the burn rate-how fast the company is losing money. The net loss for the year ended December 31, 2024, actually increased to $26.9 million, up from a net loss of $20.9 million in the previous year. This 28.7% increase in net loss was largely driven by higher clinical trials expenses, which rose to $8.1 million from $2.7 million due to the activation of the Deltacel-01 clinical trial. Here's the quick math on the negative trend:

The Significant Change: Liquidation

The most significant change in Kiromic BioPharma, Inc.'s financial structure was its decision to file for Chapter 7 liquidation on March 21, 2025, in the U.S. Bankruptcy Court for the District of Delaware. This action highlights the company's inability to secure sufficient additional funding to continue operations beyond March 2025, as cash resources were defintely insufficient. What this estimate hides is the total loss of investor principal, as the company moved from a going concern to a liquidation process, meaning the business segment contribution to overall revenue has permanently ceased. If you want to dive deeper into the investor landscape before this event, you can check out Exploring Kiromic BioPharma, Inc. (KRBP) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking at Kiromic BioPharma, Inc. (KRBP) profitability, and the blunt truth is that the traditional metrics are irrelevant for the 2025 fiscal year. The company, a clinical-stage biotech, had no commercial product revenue, which means its core profitability ratios were effectively zero or deeply negative, culminating in a Chapter 7 liquidation filing in March 2025.

For a pre-revenue company like Kiromic BioPharma, Inc., Gross Profit, Operating Profit, and Net Profit Margins are all technically 0.0% because there is no sales revenue to start the calculation. This is typical for a company focused entirely on research and development (R&D) and clinical trials, but the trend leading into 2025 showed a rapid acceleration of losses, which is the real story here.

Here's the quick math on the last full-year financial picture before the 2025 liquidation event:

• Gross Profit Margin: 0.0% (Zero revenue, zero cost of goods sold).
• Operating Profit Margin: Negative (Operating loss of $-23.77 million in 2024).
• Net Profit Margin: Negative (Net loss of $-26.9 million in 2024).

The net loss of $26.9 million for the year ended December 31, 2024, was a significant jump from the $20.9 million net loss in the prior year, showing the burn rate was accelerating, not slowing down. That's a 28.7% increase in net loss year-over-year, and that trend is defintely what led to the 2025 financial collapse.

Operational Efficiency and Industry Comparison

Operational efficiency for a clinical-stage firm isn't about managing cost of goods sold (COGS); it's about managing the R&D burn rate. Kiromic BioPharma's operational expenses were driven by clinical trial costs, which rose sharply to $8.1 million in 2024 from $2.7 million in the previous year, specifically due to the activation of the Deltacel-01 clinical trial. General and administrative (G&A) expenses did see a reduction to $8.9 million from $10.3 million, but that savings was overwhelmed by the R&D spend.

What this estimate hides is the fundamental difference between a development-stage company and a commercial one. When you compare Kiromic BioPharma, Inc.'s profitability ratios to the broader, established Biotechnology industry, the contrast is stark. The industry is projected to generate an estimated $258.4 billion in revenue in 2025, with profitable companies showing strong margins.

The company simply ran out of runway, acknowledging in its filings that it had substantial doubt about its ability to continue as a going concern beyond March 2025 without additional financing. This is the ultimate risk in clinical-stage biotech: if you can't secure funding to cover the R&D burn, the business model fails, regardless of clinical progress. For a deeper look at the financial position leading up to this, check out the full post: Breaking Down Kiromic BioPharma, Inc. (KRBP) Financial Health: Key Insights for Investors.

Next step: Understand how the cash burn translated to the balance sheet and liquidity position.

Debt vs. Equity Structure

The core takeaway for Kiromic BioPharma, Inc. (KRBP)'s financing is simple: the company was overwhelmingly debt-reliant, which ultimately led to its filing for Chapter 7 liquidation in March 2025. This wasn't a growth-fueled capital structure; it was a desperate attempt to fund operations and clinical trials, and it failed.

You need to see the balance sheet for what it was-a distressed structure. As of the fiscal year ending December 31, 2024, the company's total liabilities were approximately $21.13 million, with the vast majority, $20.90 million, classified as current liabilities. That's a huge short-term burden for a clinical-stage biotech. The company had essentially no long-term debt, which sounds good until you realize all its debt was short-term, high-pressure financing.

The company's debt-to-equity (D/E) ratio tells the real story of insolvency. With total debt estimated around $14.57 million and a shareholders' equity figure of approximately -$12.59 million as of the end of 2024, the D/E ratio was a negative number, around -1.16 (or -115.74%). A negative D/E ratio means the company has negative shareholders' equity, or a deficit. This is the financial definition of insolvency, and it's a red flag that dwarfs any industry comparison.

Here's the quick math: when your liabilities exceed your assets, your equity is negative. That's a death spiral, not a capital structure.

Kiromic BioPharma, Inc. (KRBP) was balancing its funding on a knife's edge, relying heavily on high-cost debt financing. In 2024, the company raised $18.4 million, primarily through the issuance of senior secured convertible promissory notes. These notes were not cheap, including one new note issued in June 2024 for $1,239,703 that carried a punitive 25% annual interest rate and matured in June 2025. This is not standard commercial debt; it's emergency capital.

Their strategy to balance this was through repeated debt-to-equity conversions, which is a common, though often dilutive, lifeline for struggling biotechs. For instance, in late 2024, the company converted $2.4 million of debt into newly designated Series E Preferred Stock. This move reduced the immediate debt load but created new preferred equity with liquidation preferences, complicating the capital stack for common shareholders.

• Debt-to-Equity Conversions: Reduced debt but increased preferred stock complexity.
• High-Interest Notes: Issued notes with interest rates as high as 25%.
• Liquidation Event: The debt/equity imbalance culminated in a March 2025 Chapter 7 filing.

The constant need to seek short-term financing, coupled with the high burn rate, led management to state publicly that there was 'substantial doubt about its ability to continue as a going concern' beyond March 2025, which proved defintely true. For a deeper look at who was funding this high-risk strategy, you should read Exploring Kiromic BioPharma, Inc. (KRBP) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know the hard truth about Kiromic BioPharma, Inc. (KRBP)'s financial health, and the most critical 2025 data point is the company's ultimate liquidity outcome: a voluntary petition for liquidation under Chapter 7, filed on March 21, 2025. This filing signals a complete failure of the firm's liquidity and solvency strategy, moving the investment conversation from risk to loss mitigation.

The company acknowledged substantial doubt about its ability to continue as a going concern without additional financing beyond March 2025, which the Chapter 7 filing confirms was not secured. Let's look at the financial snapshot from the fiscal year ending December 31, 2024, which directly preceded this event.

Assessing Kiromic BioPharma, Inc. (KRBP)'s Liquidity

The liquidity position for Kiromic BioPharma, Inc. (KRBP) was defintely weak heading into 2025. The Current Ratio, which measures the ability to cover short-term obligations with short-term assets, was a dismal 0.16 for the fiscal year ending 2024. A ratio below 1.0 means current liabilities-the bills due within a year-are greater than current assets, which is a major red flag.

The Quick Ratio (Acid-Test Ratio), which is an even stricter measure as it excludes inventory, was even lower at just 0.05 for the most recent quarter. This means for every dollar of immediate debt, the company only held about five cents in highly liquid assets like cash and receivables. That's a huge shortfall.

Here's the quick math on the working capital (Current Assets minus Current Liabilities) for the 2024 fiscal year:

• Current Assets: $3.30 million
• Current Liabilities: $20.90 million
• Working Capital: $-17.60 million

A negative working capital of $17.60 million shows the company was deeply underwater on its short-term obligations, a trend that proved unsustainable into 2025.

Cash Flow: The Burn Rate Problem

The cash flow statement for the fiscal year ending 2024 clearly shows where the money went and how the company tried to stay afloat. The core issue was a massive cash burn from operations, typical for a clinical-stage biotech but ultimately fatal without consistent financing.

Cash Flow from Operating Activities (CFO) was a negative $-19.46 million. This is the cash needed just to run the business-research, development, and administrative costs-and it was a relentless drain. Cash Flow from Investing Activities (CFI) was a minor outflow of $-0.37 million.

The only reason the company survived as long as it did was the Cash Flow from Financing Activities (CFF), which brought in $18.41 million, primarily from the issuance of convertible notes. This is the classic biotech model: fund operations by selling debt or equity. But when that financing tap runs dry, or the market loses confidence, the negative operating cash flow quickly leads to insolvency.

For more on the strategic goals that drove this spending, you can review the Mission Statement, Vision, & Core Values of Kiromic BioPharma, Inc. (KRBP).

Near-Term Risks and Actionable Insights

The ultimate liquidity concern materialized in March 2025 with the Chapter 7 filing, which means the company is liquidating its assets to pay creditors. For investors, the risk has already converted to a loss event, and the focus shifts entirely to the bankruptcy process.

The key takeaway is that the 0.16 Current Ratio and the negative $17.60 million working capital were clear, pre-existing indicators of the going concern risk that ultimately played out in the first quarter of 2025. The reliance on financing cash flow (CFF) to offset a significant operating cash burn (CFO) is a high-stakes strategy that failed here.

Action for Investors: Track the Chapter 7 proceedings for any potential distribution to shareholders, though in a liquidation, common equity holders are typically the last to receive funds, if any.

Valuation Analysis

You're looking at Kiromic BioPharma, Inc. (KRBP) and trying to figure out if there's any value left, but honestly, the most critical piece of data isn't a ratio-it's the Chapter 7 bankruptcy filing from March 21, 2025. This isn't a restructuring; it's a liquidation, which means the stock is almost certainly overvalued at any price above zero. The stock now trades as KRBPQ on the OTC market, and its valuation metrics reflect a company in a dire financial state, not a going concern.

The traditional valuation ratios are deeply negative and, frankly, don't tell the real story. Here's the quick math on the trailing twelve months (TTM) data for the 2025 fiscal year, which shows the financial collapse that led to the filing:

• Price-to-Earnings (P/E) Ratio: -0.09
• Price-to-Book (P/B) Ratio: -0.18
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: -0.83

All three ratios are negative because the company has negative earnings and negative book value. Net Income (TTM) stood at around -$26.98 million, and EBITDA (TTM) was also negative at approximately -$21.54 million. A negative P/B ratio, for instance, means that the company's liabilities exceed its assets, making the equity value, and thus your shares, theoretically worthless. That's a defintely bad sign.

The stock price trends over the last 12 months show extreme volatility and a catastrophic decline. While the 52-week high reached $1.80, the 52-week low plunged to just $0.0003. As of late 2025, the stock price is trading near $0.00, with a tiny market capitalization of around $459.98. This price action is a clear reflection of the market pricing in the liquidation risk.

Kiromic BioPharma, Inc. is a pre-revenue clinical-stage biotherapeutics company, so it has never paid a dividend. Accordingly, the dividend yield and payout ratio are both 0.00%. You should not expect any shareholder return from dividends here.

Formal analyst consensus on a 'Buy, Hold, or Sell' rating has effectively ceased following the Chapter 7 filing. The most concrete 'analyst consensus' is the bankruptcy court's decision to liquidate the company. Any remaining trading in KRBPQ is highly speculative, often driven by retail investors hoping for a miracle or a quick flip, but the fundamental reality is that common stockholders are last in line for any remaining assets after creditors are paid. The probability of a meaningful recovery is extremely low.

For a deeper dive into the company's journey to this point, you can read the full post here: Breaking Down Kiromic BioPharma, Inc. (KRBP) Financial Health: Key Insights for Investors

Risk Factors

You need to understand the most critical risk for Kiromic BioPharma, Inc. (KRBP) is no longer market competition or trial delays-it is liquidation. The company filed for a voluntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code on March 21, 2025, which means the business is ceasing operations and liquidating its assets. For investors, this risk is now a reality, and it fundamentally changes the investment thesis from a growth play to a potential total loss of capital.

Operational and Financial Collapse

The Chapter 7 filing was the culmination of severe operational and financial strain. In its annual report filed in February 2025, Kiromic BioPharma, Inc. (KRBP) disclosed substantial doubt about its ability to continue as a going concern (a business that can meet its financial obligations and continue operating). The company's net loss for the fiscal year ended December 31, 2024, had already widened to $26.9 million, compared to a $20.9 million net loss the year prior. This burn rate was unsustainable.

The cost of advancing its lead candidate, Deltacel, was a major driver of losses. Clinical trials expenses alone jumped to $8.1 million in 2024 from $2.7 million in the previous year. They raised $18.4 million in 2024 through financing, mostly from convertible notes, but this capital was insufficient to bridge the gap past March 2025. The quick math showed they were running out of cash fast. The bankruptcy filing immediately triggered the resignation of the entire Board of Directors and the termination of key executives, including the Chief Financial Officer and Chief Operating Officer, on March 21, 2025, eliminating the company's leadership structure.

Regulatory and Governance Risks

Beyond the immediate financial crisis, Kiromic BioPharma, Inc. (KRBP) faced material governance and regulatory risks that eroded investor confidence. In December 2024, the company settled charges with the U.S. Securities and Exchange Commission (SEC) over the non-disclosure of clinical holds placed on its Investigational New Drug (IND) applications by the FDA back in 2021. This highlights a significant internal control failure on disclosure.

• Failure to disclose material FDA communications.
• Prior executive misconduct leading to SEC charges.
• Diminished investor trust due to governance strain.

While the company resolved the SEC investigation without a civil penalty due to its cooperation, the incident underscored the risk of relying on a biotech company with a history of disclosure issues. You can review the foundational goals that were ultimately derailed by these risks at Mission Statement, Vision, & Core Values of Kiromic BioPharma, Inc. (KRBP).

Mitigation Strategies and Current Action

The primary mitigation strategy for the going concern risk-securing additional financing-failed, leading to the Chapter 7 filing. There are no ongoing mitigation strategies for operational continuity because the company is in the process of liquidation. The focus shifts entirely to the bankruptcy court process. The risks are now centered on the recovery rate for creditors and shareholders, which in a Chapter 7 filing, especially for a clinical-stage biotech with limited hard assets, is typically near zero for common stockholders.

Your action now is to monitor the bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware to understand the timeline for asset disposition and final resolution. This is not a situation where you wait for a turnaround.

Growth Opportunities

You need to look at Kiromic BioPharma, Inc. (KRBP) not as a growth stock today, but as a case study in high-risk, high-reward biotech. The future growth prospects, which were once tied to a promising drug pipeline, are now definitively curtailed by the March 21, 2025, Chapter 7 liquidation filing. To be fair, the company's potential growth drivers were real, but the capital ran out.

The core of the growth opportunity was the company's product innovation in allogeneic Gamma Delta T-cell therapy. This is a complex way of saying they were developing off-the-shelf cancer treatments that don't need to be custom-made for each patient. That's a huge market advantage if it works. Their lead candidate, Deltacel-01, was in a Phase 1 clinical trial for non-small cell lung cancer and even received Fast-Track Designation from the FDA in August 2024, which is defintely a positive signal for expedited development.

Here's the quick math on why the growth thesis failed to launch:

• Product Innovation: The proprietary DIAMOND® artificial intelligence (AI) 2.0 target discovery engine was their competitive edge, designed to speed up identifying new targets for cancer therapy.
• Market Expansion: The vision was global, with aspirations to expand the availability of their cancer therapies worldwide, collaborating with international research institutions.
• Strategic Initiatives: The plan centered on leveraging AI and establishing strategic partnerships to access cutting-edge technologies.

Financial Reality and Earnings Estimates

The cold reality of a clinical-stage biopharma company is that revenue projections are zero until a drug is approved, and earnings estimates are deeply negative. For the fiscal year ended December 31, 2024, Kiromic BioPharma, Inc. reported a net loss of $26.9 million, up from a $20.9 million loss the year before. This is a critical number. It shows a burn rate that outpaced their financing efforts.

Clinical trial expenses rose sharply to $8.1 million in 2024, compared to $2.7 million in the previous year, a necessary cost for advancing Deltacel-01 but one that severely strained their cash reserves. The company's focus on its allogeneic approach-using non-engineered and engineered Gamma Delta T (GDT) cell technologies-was its competitive advantage, but it was incredibly capital-intensive.

The near-term risk became the ultimate event. The company's own 10-K filing in February 2025 noted substantial doubt about its ability to continue as a going concern beyond March 2025 without additional funding. The lack of successful financing, despite raising $18.4 million through convertible notes in 2024, led directly to the Chapter 7 filing on March 21, 2025.

What this estimate hides is the binary nature of biotech: clinical success or failure, and successful financing or bankruptcy. The growth opportunity, while scientifically compelling, was ultimately suffocated by the financial structure. You can read more about their original aspirations here: Mission Statement, Vision, & Core Values of Kiromic BioPharma, Inc. (KRBP).

The lesson here for investors is simple: in clinical-stage biotech, a Fast-Track Designation is good, but a strong balance sheet is defintely better. The financing risk is the biggest risk of all.