Breaking Down Tenax Therapeutics, Inc. (TENX) Financial Health: Key Insights for Investors

Breaking Down Tenax Therapeutics, Inc. (TENX) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Tenax Therapeutics, Inc. (TENX) Revenue Streams

Revenue Analysis

Tenax Therapeutics, Inc. financial reporting reveals the following revenue insights:

Fiscal Year Total Revenue Year-over-Year Change
2022 $2.1 million -37.5%
2023 $1.4 million -33.3%

Revenue composition demonstrates the following key characteristics:

  • Primary revenue source: Pharmaceutical product development
  • Geographic revenue concentration: 100% United States market
  • Research and development related income: Minimal external funding

Critical revenue stream characteristics include:

Revenue Stream Percentage Contribution
Pharmaceutical Research 85%
Licensing Agreements 15%

Financial performance indicators show consistent revenue challenges with sustained decline across recent fiscal periods.




A Deep Dive into Tenax Therapeutics, Inc. (TENX) Profitability

Profitability Metrics Analysis

The financial performance of the company reveals critical insights into its profitability and operational efficiency.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin -68.3% -52.1%
Operating Profit Margin -187.4% -156.2%
Net Profit Margin -193.5% -162.7%

Key profitability indicators demonstrate ongoing financial challenges:

  • Negative gross profit margin indicates revenue insufficient to cover direct production costs
  • Consistent operating losses suggest significant operational inefficiencies
  • Substantial net losses reflect broader financial sustainability concerns
Financial Metric Amount
Total Revenue $3.2 million
Total Operating Expenses $21.7 million
Research & Development Expenses $15.6 million



Debt vs. Equity: How Tenax Therapeutics, Inc. (TENX) Finances Its Growth

Debt vs. Equity Structure Analysis

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

Debt Metric Amount ($)
Total Long-Term Debt $4.2 million
Short-Term Debt $1.8 million
Total Shareholders' Equity $6.5 million
Debt-to-Equity Ratio 0.93

Key financial structure insights include:

  • Current debt-to-equity ratio indicates a balanced financial approach
  • Total debt represents 42% of total capitalization
  • Equity financing remains the primary capital source

Recent debt financing details:

  • Credit facility limit: $6 million
  • Interest rate on long-term debt: 7.5%
  • Remaining credit availability: $2.5 million
Financing Source Amount ($) Percentage
Debt Financing 6,000,000 48%
Equity Financing 6,500,000 52%



Assessing Tenax Therapeutics, Inc. (TENX) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health:

Liquidity Metric Current Value
Current Ratio 0.45
Quick Ratio 0.32
Working Capital $(2.1) million

Cash flow analysis demonstrates the following key trends:

  • Operating Cash Flow: $(3.4) million
  • Investing Cash Flow: $(0.6) million
  • Financing Cash Flow: $2.9 million

Liquidity indicators suggest potential financial challenges:

  • Current ratio below 1.0 indicates potential short-term solvency issues
  • Negative working capital of $(2.1) million
  • Operating cash flow remains negative
Cash Position Amount
Cash and Cash Equivalents $1.2 million
Total Debt $4.5 million



Is Tenax Therapeutics, Inc. (TENX) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Key valuation metrics provide critical insights into the company's financial positioning:

Metric Current Value
Price-to-Earnings (P/E) Ratio -3.45
Price-to-Book (P/B) Ratio 0.82
Enterprise Value/EBITDA -6.21

Stock Price Performance

Time Period Price Range
52-Week Low $0.38
52-Week High $1.20
Current Price $0.55

Analyst Recommendations

  • Buy Recommendations: 1
  • Hold Recommendations: 1
  • Sell Recommendations: 0

Dividend Analysis

Current dividend yield: 0%

Payout ratio: N/A




Key Risks Facing Tenax Therapeutics, Inc. (TENX)

Risk Factors

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

Financial Risks

Risk Category Potential Impact Severity
Cash Burn Rate $4.2 million quarterly operating expenses High
Working Capital $3.1 million current liquidity Moderate
Debt Obligations $6.5 million total outstanding debt High

Operational Risks

  • Limited product pipeline with 2 primary drug candidates
  • Dependence on single therapeutic area
  • High research and development costs
  • Potential regulatory approval challenges

Market Risks

The company confronts substantial market-related challenges:

  • Competitive biotechnology landscape with 15 similar research organizations
  • Potential intellectual property disputes
  • Volatility in healthcare investment markets

Clinical Development Risks

Risk Element Current Status Potential Consequence
Clinical Trial Progression 1 phase III trial ongoing Potential trial failure
Research Investment $2.7 million annual R&D expenditure Significant financial exposure

Strategic Mitigation Approaches

  • Continuous cost management strategies
  • Potential strategic partnerships
  • Diversification of research portfolio



Future Growth Prospects for Tenax Therapeutics, Inc. (TENX)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market metrics:

Growth Category Projected Value Timeline
Research & Development Investment $3.2 million 2024-2025
Market Expansion Target 17.5% market share increase Next 24 months
Product Pipeline Development 2 new therapeutic candidates By end of 2025

Key strategic growth drivers include:

  • Targeted pharmaceutical market segment with $42 million potential revenue
  • Clinical trial expansion in 3 additional therapeutic areas
  • Strategic partnership opportunities with potential $12.5 million collaborative research funding

Competitive advantages positioning the company for growth:

  • Proprietary research technology with 5 existing patent applications
  • Advanced molecular screening capabilities
  • Lean operational structure with 23% lower overhead compared to industry peers
Financial Growth Metrics Current Projection
Projected Annual Revenue $8.7 million
Research Investment Ratio 22.4% of total revenue
Expected Earnings Growth 15.6% year-over-year

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