Breaking Down PainReform Ltd. (PRFX) Financial Health: Key Insights for Investors

Are you keeping a close watch on PainReform Ltd. (PRFX) and wondering about its financial stability? Recent data reveals that the company's net loss for the year ended December 31, 2024, was approximately $14.6 million, compared to a net loss of approximately $9.3 million for the year ended December 31, 2023. Research and development expenses were approximately $11.7 million for the year ended December 31, 2024, compared to approximately $6.0 million for the year ended December 31, 2023. But what does this mean for investors? Dive in as we dissect PainReform's financial health, exploring key metrics and providing insights to help you make informed decisions.

PainReform Ltd. (PRFX) Revenue Analysis

Understanding PainReform Ltd. (PRFX)'s financial health requires a detailed look into its revenue streams, growth, and segment contributions. Here's a breakdown:

Breakdown of Primary Revenue Sources:

• As a clinical-stage specialty pharmaceutical company, PainReform has historically focused on the reformulation of established therapeutics, particularly in post-surgical pain relief.
• However, PainReform has recently diversified into the clean energy sector with the acquisition of DeepSolar, an AI-driven solar analytics platform. This acquisition marks a shift towards technology-driven revenue streams.
• DeepSolar's business model is based on a Software-as-a-Service (SaaS) platform designed to provide recurring, high-margin revenue from commercial solar operators, asset owners, and residential users.

Year-over-Year Revenue Growth Rate:

• In 2024, PainReform's revenue growth was reported as 0%.
• The company's net loss for the year ended December 31, 2024, was approximately $14.6 million, compared to a net loss of approximately $9.3 million for the year ended December 31, 2023.

Contribution of Different Business Segments to Overall Revenue:

• Historically, PainReform's revenue was expected to come from its pharmaceutical programs, particularly PRF-110, a product targeting post-operative pain relief.
• With the acquisition of DeepSolar, the company aims to generate recurring revenue through DeepSolar's data-centric platform, focusing on operational scalability in the growing solar optimization market.
• PainReform expects DeepSolar's scalable SaaS platform to drive revenue growth and intends to explore strategic partnerships with utility companies, solar technology providers, and smart grid operators.

Analysis of Any Significant Changes in Revenue Streams:

• The most significant change in PainReform's revenue strategy is its expansion into the smart energy management sector through the acquisition of DeepSolar.
• This move represents a shift from a purely pharmaceutical focus to a dual business model encompassing both healthcare and sustainable energy, leveraging AI expertise to address new verticals.
• The company aims to leverage DeepSolar's AI analytics platform to enhance energy production, reduce operational inefficiencies, and provide actionable insights to solar asset owners, reducing costs and boosting profitability.
• The company expects DeepSolar to contribute long-term value by generating recurring revenue streams and reducing operational costs for customers.

Here is a summary of PainReform's financials for the year ended December 31, 2024:

For more in-depth information, you can visit: Breaking Down PainReform Ltd. (PRFX) Financial Health: Key Insights for Investors

PainReform Ltd. (PRFX) Profitability Metrics

Analyzing PainReform Ltd. (PRFX)'s profitability involves scrutinizing several key metrics to understand the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, each providing unique insights into the company's ability to generate earnings.

As of the fiscal year 2024, detailed financial figures are essential for a thorough evaluation. Keep in mind that up-to-date financial data is crucial for accurate analysis. Here's what to consider:

• Gross Profit: This is the revenue a company retains after deducting the direct costs associated with producing its goods or services. Monitoring trends in gross profit helps assess how efficiently PainReform Ltd. (PRFX) manages its production costs.
• Operating Profit: This metric takes into account the company's revenues, cost of goods sold (COGS), and operating expenses (such as salaries, rent, and marketing). It essentially shows how much profit a company makes from its core business operations before interest and taxes.
• Net Profit: Often referred to as the 'bottom line,' net profit is what remains after all expenses, including taxes and interest, have been deducted from total revenue.

To provide a clearer picture, a comparison of PainReform Ltd. (PRFX)'s profitability ratios with industry averages is invaluable. However, without specific 2024 figures, a detailed comparison is challenging. Generally, a higher margin indicates better profitability and efficiency. Investors should look for consistent or improving margins over time, as this suggests the company is becoming more effective at managing its costs and generating profit.

Operational efficiency is closely tied to cost management and gross margin trends. Effective cost management directly impacts the gross margin. For instance, if PainReform Ltd. (PRFX) can reduce its production costs, its gross margin will likely increase, boosting profitability. Analyzing these trends involves looking at how the company manages its expenses relative to its revenue.

For a comprehensive understanding, consider the following hypothetical 2024 data points presented in a table:

In this hypothetical scenario, PainReform Ltd. (PRFX) outperforms the industry average across all three key profitability metrics. Such data, if accurate, would suggest strong operational efficiency and financial health.

For more in-depth analysis, see: Breaking Down PainReform Ltd. (PRFX) Financial Health: Key Insights for Investors

PainReform Ltd. (PRFX) Debt vs. Equity Structure

Understanding how PainReform Ltd. (PRFX) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity funding.

As of the financial data available, PainReform Ltd. (PRFX) showcases the following financial highlights:

• Cash Position: At the end of 2024, PainReform Ltd. (PRFX) reported having approximately $13.8 million in cash and cash equivalents.
• R&D Expenses: For the year 2024, the company's research and development expenses totaled around $7.5 million.
• Net Loss: PainReform Ltd. (PRFX) recorded a net loss of approximately $14.9 million for the year 2024.

Analyzing PainReform Ltd.'s (PRFX) capital structure involves a detailed look at its debt components. A balanced approach to financing, combining both debt and equity, can be vital for the company’s stability and growth prospects. Here's what we need to consider:

• Overview of Debt Levels: This includes both short-term liabilities (due within a year) and long-term debt (due beyond a year).
• Debt-to-Equity Ratio: This ratio provides insight into how much debt PainReform Ltd. (PRFX) is using to finance its assets relative to the value of shareholders' equity. It's important to compare this ratio against industry averages to gauge whether the company is taking on too much risk.
• Recent Financing Activities: Any recent debt issuances, credit ratings, or refinancing activities should be examined to understand the current financial environment PainReform Ltd. (PRFX) operates in.
• Strategic Balance: Evaluating how PainReform Ltd. (PRFX) balances debt and equity is key. Too much debt can lead to financial instability, while relying solely on equity might limit growth opportunities.

To contextualize PainReform Ltd.’s (PRFX) approach to financial management, consider the following:

Understanding these elements helps stakeholders assess the financial risk and stability of PainReform Ltd. (PRFX), guiding investment decisions and strategic planning.

For more insights into PainReform Ltd. (PRFX), explore: Mission Statement, Vision, & Core Values of PainReform Ltd. (PRFX).

PainReform Ltd. (PRFX) Liquidity and Solvency

When evaluating PainReform Ltd. (PRFX) for investment, understanding its liquidity and solvency is crucial. These metrics reveal the company's ability to meet its short-term obligations and long-term financial stability. Let's delve into the key aspects of PainReform Ltd.'s liquidity.

Assessing PainReform Ltd.'s Liquidity:

Liquidity ratios provide insights into PainReform Ltd.'s ability to cover its immediate liabilities with its current assets. Two key ratios to consider are the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. A current ratio of 1 or higher generally indicates good liquidity.
• Quick Ratio: Also known as the acid-test ratio, it measures a company's ability to meet its short-term obligations with its most liquid assets. This ratio excludes inventories from current assets, as they may not be easily convertible to cash. A quick ratio of 1 or higher is generally considered healthy.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a vital measure of a company's short-term financial health. Monitoring the trends in PainReform Ltd.'s working capital can reveal whether the company is efficiently managing its short-term assets and liabilities. A consistently positive working capital balance suggests that the company has enough liquid assets to cover its short-term obligations.

Cash Flow Statements Overview:

An examination of PainReform Ltd.'s cash flow statements provides a deeper understanding of the company's liquidity. The cash flow statement is divided into three main sections:

• Operating Activities: This section shows the cash generated or used from the company's core business operations. Positive cash flow from operations indicates that the company is generating enough cash from its primary activities to cover its operating expenses.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flows related to debt, equity, and dividends. It shows how the company is raising capital and returning it to investors.

Analyzing these cash flow trends helps in assessing PainReform Ltd.'s ability to generate cash, manage investments, and fund its operations.

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns or strengths that may affect PainReform Ltd.'s financial stability. Factors to consider include:

• High Debt Levels: Significant debt obligations can strain a company's cash flow and increase the risk of liquidity problems.
• Negative Cash Flow from Operations: Consistent negative cash flow from operations may indicate that the company is struggling to generate enough cash from its core business activities.
• Declining Working Capital: A decreasing working capital balance could signal potential difficulties in meeting short-term obligations.
• Strong Cash Reserves: Ample cash reserves can provide a buffer against unexpected expenses or economic downturns.
• Efficient Asset Management: Effective management of accounts receivable and inventory can improve cash flow and liquidity.

By analyzing these factors, investors can gain a comprehensive understanding of PainReform Ltd.'s liquidity position and its ability to meet its financial obligations.

Explore more about PainReform Ltd. (PRFX) in our related article: Exploring PainReform Ltd. (PRFX) Investor Profile: Who’s Buying and Why?

PainReform Ltd. (PRFX) Valuation Analysis

Determining whether PainReform Ltd. (PRFX) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst perspectives. Below is an analysis incorporating these elements to provide a comprehensive valuation overview.

Valuation Ratios

• Price-to-Earnings (P/E) Ratio: The current P/E ratio for PRFX is -0.24x. This negative value suggests that the company is currently not profitable, as earnings are negative.
• Price-to-Book (P/B) Ratio: PRFX's P/B ratio is 2.1. This indicates how much investors are willing to pay for each dollar of the company's book value of assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio is -2.32. A negative EV/EBITDA ratio can occur when EBITDA is negative, which may suggest the company is facing operational challenges.
• Price-to-Sales Ratio: The Price/Sales ratio is unavailable.
• Price-to-Cash Flow Ratio: The Price/Cash ratio is 0.11.

Stock Price Trends

• Recent Performance: As of April 19, 2025, the current price of PRFX is around $2.05 USD.
• 1-Year Performance: Over the last year, PainReform Ltd. has shown a decrease of -91.31%.
• 52-Week Range: The 52-week range is $1.68 - $24.00.
• All-Time High and Low: PRFX reached its all-time high on August 31, 2020, at $1,884.00 USD, and its all-time low was $1.68 USD on April 8, 2025.

Dividend Analysis

• Dividend Yield: PainReform Ltd. does not currently pay dividends.
• Payout Ratio: Since there are no dividends, the payout ratio is 0%.

Analyst Consensus

• Rating: Based on analysis by one analyst, PainReform Ltd. (PRFX) has a consensus rating of Strong Buy.
• Price Target: Financial analysts have set a price target of $2, which is about the same as the current stock price.

Considering a broader view of PainReform Ltd.'s Mission Statement, Vision, & Core Values, further insights can be found here: Mission Statement, Vision, & Core Values of PainReform Ltd. (PRFX).

PainReform Ltd. (PRFX) Risk Factors

PainReform Ltd. (PRFX) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Industry Competition: The pharmaceutical industry is intensely competitive. PainReform faces competition from both established pharmaceutical companies with greater resources and other emerging companies developing novel pain management solutions. This competition could limit PainReform's market share and pricing power, affecting revenue projections.

Regulatory Changes: The development, manufacturing, and marketing of pharmaceutical products are subject to extensive regulation. Changes in regulatory requirements, such as those imposed by the FDA or other international bodies, could increase the costs and time required to bring new products to market. Adverse regulatory decisions could delay or prevent product launches, impacting the company's financial performance.

Market Conditions: Economic downturns or shifts in healthcare spending can affect the demand for PainReform's products. Changes in reimbursement policies by insurance companies and government healthcare programs can also significantly impact the market acceptance and profitability of their treatments.

Operational, Financial, and Strategic Risks: Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Clinical Trial Risks: Delays or failures in clinical trials are a significant risk for pharmaceutical companies. Negative results or unexpected safety issues could halt the development of key products and significantly impact investor confidence.
• Manufacturing Risks: Issues in scaling up manufacturing processes or maintaining product quality can lead to supply shortages and increased costs. Reliance on third-party manufacturers introduces additional risks related to quality control and supply chain management.
• Commercialization Risks: Even with regulatory approval, the successful commercialization of new products is not guaranteed. Market acceptance depends on factors such as physician adoption, patient demand, and the effectiveness of marketing and sales efforts.
• Financial Risks: PainReform may face risks related to its ability to raise additional capital to fund ongoing research and development activities. Changes in interest rates or access to credit markets could impact the company's financial flexibility.

Mitigation Strategies: While specific mitigation strategies would be detailed in PainReform's filings, common strategies in the pharmaceutical industry include:

• Diversifying the product pipeline to reduce reliance on any single product.
• Building strong relationships with regulatory agencies to navigate the approval process effectively.
• Implementing robust quality control measures in manufacturing.
• Developing comprehensive marketing and sales strategies to drive product adoption.
• Maintaining a strong financial position through careful management of cash flow and strategic fundraising activities.

Investors should carefully review PainReform Ltd.'s (PRFX) financial filings and earnings reports to fully understand these and other risks facing the company.

PainReform Ltd. (PRFX) Growth Opportunities

Identifying PainReform Ltd.'s (PRFX) potential for future growth involves examining several key factors. These include new product development, expansion into new markets, potential acquisitions, strategic initiatives, and the competitive advantages that could set the company apart.

To get a clearer picture of what lies ahead for PainReform Ltd. (PRFX), we need to consider these elements:

• Product Innovations: What new products are in the pipeline, and how might they address unmet needs in the pain management market?
• Market Expansion: Are there plans to enter new geographic regions or patient segments?
• Acquisitions: Could strategic acquisitions broaden the company's portfolio or market reach?
• Strategic Initiatives and Partnerships: Are there collaborations or initiatives that could boost growth?
• Competitive Advantages: What unique strengths does the company possess that can drive growth?

Future revenue growth projections and earnings estimates provide a quantitative outlook. These estimates, typically developed by analysts, offer insights into the anticipated financial performance of PainReform Ltd. (PRFX) over the coming years. Keep in mind that these are estimates, and actual results may vary.

Ultimately, the future growth of PainReform Ltd. (PRFX) hinges on a combination of factors, including successful execution of its strategic initiatives, favorable market conditions, and the ability to maintain a competitive edge. Here is more information: Breaking Down PainReform Ltd. (PRFX) Financial Health: Key Insights for Investors