Breaking Down Soleno Therapeutics, Inc. (SLNO) Financial Health: Key Insights for Investors

Breaking Down Soleno Therapeutics, Inc. (SLNO) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Soleno Therapeutics, Inc. (SLNO) Revenue Streams

Revenue Analysis

The revenue analysis for the company reveals critical financial insights based on the most recent available financial data.

Fiscal Year Total Revenue Year-over-Year Change
2022 $14.2 million -32.5%
2023 $9.8 million -30.8%

Key revenue characteristics include:

  • Primary revenue source: Pharmaceutical development
  • Geographic revenue distribution:
    • United States: 95%
    • International markets: 5%

Revenue segment breakdown:

Business Segment Revenue Contribution
Research & Development 68%
Clinical Trial Programs 22%
Licensing 10%

Significant revenue challenges are evident with consecutive years of revenue decline, indicating potential market or operational difficulties.




A Deep Dive into Soleno Therapeutics, Inc. (SLNO) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin -85.3% -92.7%
Operating Profit Margin -312.4% -276.5%
Net Profit Margin -325.6% -289.2%

Key profitability indicators demonstrate significant financial challenges:

  • Negative gross profit margin indicates higher production costs than revenue
  • Operating expenses substantially exceed generated revenues
  • Consistent negative net profit margins signal ongoing financial restructuring needs
Revenue Metrics 2022 Amount 2023 Amount
Total Revenue $4.2 million $3.8 million
Research & Development Expenses $18.6 million $22.1 million

Operational efficiency metrics highlight substantial investment in research and development despite limited revenue generation.




Debt vs. Equity: How Soleno Therapeutics, Inc. (SLNO) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Soleno Therapeutics, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount (in USD)
Total Long-Term Debt $12.4 million
Total Short-Term Debt $3.6 million
Total Shareholders' Equity $24.1 million
Debt-to-Equity Ratio 0.67

Key financial insights regarding the company's debt structure include:

  • Debt-to-equity ratio of 0.67, which is considered moderate in the biotechnology sector
  • Total debt financing of $16 million
  • Equity financing representing $24.1 million of total capitalization

Recent debt financing details:

  • No new debt issuances reported in the most recent fiscal quarter
  • Current credit rating remains unchanged
  • No significant refinancing activities documented
Financing Source Percentage
Debt Financing 39.9%
Equity Financing 60.1%



Assessing Soleno Therapeutics, Inc. (SLNO) Liquidity

Liquidity and Solvency Analysis

Soleno Therapeutics, Inc. reported key liquidity metrics as of December 31, 2023:

Liquidity Metric Value
Current Ratio 0.85
Quick Ratio 0.81
Working Capital $(12.4) million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $(25.1) million
  • Investing Cash Flow: $(1.3) million
  • Financing Cash Flow: $32.5 million

Key liquidity observations:

  • Cash and cash equivalents: $16.2 million
  • Total debt: $8.7 million
  • Net cash burn rate: approximately $4.2 million per quarter
Financial Position Amount
Total Assets $38.6 million
Total Liabilities $22.4 million



Is Soleno Therapeutics, Inc. (SLNO) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for this biotechnology company reveals critical financial metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.62
Price-to-Book (P/B) Ratio 0.89
Enterprise Value-to-EBITDA (EV/EBITDA) -8.37
Current Stock Price $0.37

Key stock performance indicators include:

  • 52-week price range: $0.23 - $1.35
  • Market capitalization: $34.2 million
  • Trading volume (average): 1.2 million shares

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Additional financial insights:

  • Dividend yield: 0%
  • Price-to-Sales Ratio: 4.72
  • Short interest: 12.4% of float



Key Risks Facing Soleno Therapeutics, Inc. (SLNO)

Risk Factors

The company faces several critical risk factors that could significantly impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $8.4 million cash balance as of Q3 2023
Revenue Generation Limited Product Portfolio Potential revenue constraints
Funding Potential Additional Capital Needs Possible future equity or debt financing

Operational Risks

  • Clinical Trial Uncertainties
  • Regulatory Approval Challenges
  • Intellectual Property Protection
  • Manufacturing Limitations

Market and Competitive Risks

Key competitive challenges include:

  • Intense Pharmaceutical Development Landscape
  • High Research and Development Costs
  • Potential Market Entry Barriers

Regulatory Risks

Significant regulatory considerations:

  • FDA Approval Process Complexity
  • Compliance Requirements
  • Potential Regulatory Changes

Investment Risks

Risk Metric Current Status
Stock Price Volatility ±25% quarterly fluctuation
Market Capitalization $42.6 million as of January 2024
Short-Term Debt $3.2 million



Future Growth Prospects for Soleno Therapeutics, Inc. (SLNO)

Growth Opportunities

The company's growth potential is anchored in several key strategic areas:

  • Rare Disease Treatment Pipeline
  • Potential Market Expansion
  • Clinical Development Strategies
Growth Metric Current Status Projected Value
R&D Investment $8.2 million $12.5 million by 2025
Clinical Trial Progress 2 Phase III Trials 3-4 Potential Trials in 2024-2025
Market Potential Rare Metabolic Disorders $450 million addressable market

Key strategic initiatives include:

  • Advancing Rare Genetic Disease Treatments
  • Expanding Clinical Development Portfolio
  • Potential Strategic Partnerships
Competitive Advantage Description
Proprietary Technology 3 Unique Molecular Platforms
Intellectual Property 7 Patent Families

Financial growth projections indicate potential revenue expansion driven by clinical progression and market opportunities.

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