Simply Wall Street April 2020 With just US$158,699 worth of revenue in twelve months, we don’t think the market considers StageZero Life Sciences to have proven its business plan. This state of affairs suggests that venture capitalists won’t provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that StageZero Life Sciences has the funding to invent a new product before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that the company needed to issue more shares recently so that it could raise enough money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some StageZero Life Sciences investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Our data indicates that StageZero Life Sciences had more in total liabilities than it had cash, when it last reported. That made it extremely high risk, in our view. But with the share price diving 20% per year, over 5 years , it’s probably fair to say that some shareholders no longer believe the company will succeed or they are worried about dilution with the recent cash injection. The image below shows how StageZero Life Sciences’s balance sheet has changed over time; if you want to see the precise values, simply click on the image