Lobe Sciences (LOBE) AI Stock Analysis

• Market Cap: $4.82M
• Dividend Yield: N/A
• Average Volume (3M): 27.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -100.00%
• EPS Growth: 0.36%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 192,652,130
• 10 Day Avg. Volume: 28,103
• 30 Day Avg. Volume: 27,703
• PEG Ratio: -0.10
• Price to Book (P/B): -1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 38 Underperform
• Price Target: ―

Lobe Sciences faces significant financial instability with declining revenues, consistent losses, and high reliance on external financing, which is the primary concern. While technical analysis shows some positive momentum, the negative valuation metrics significantly offset these positives. Recent corporate events indicate potential future growth, but the core financial challenges dominate the overall score.

Lobe Sciences Business Overview & Revenue Model

Company Description

Lobe Sciences Ltd., a life sciences company, focuses on the research and development of psychedelic medicines. It develops psilocybin-based therapeutics in combination with N-acetylcysteine for the treatment of mild traumatic brain injuries and post-traumatic stress disorder, as well as devices for the efficient application of medications. The company was formerly known as Greenstar Biosciences Corp. and changed its name to Lobe Sciences Ltd. in November 2020. Lobe Sciences Ltd. is headquartered in Vancouver, Canada.

How the Company Makes Money

Lobe Sciences generates revenue primarily through the development and commercialization of its proprietary therapeutic products. The company's revenue model is based on advancing its research and development pipeline to create marketable treatments for mental health disorders. It engages in partnerships and collaborations with other biotechnology firms, research institutions, and healthcare providers to enhance its research capabilities and facilitate the commercialization process. Additional revenue streams may include licensing agreements, joint ventures, and strategic alliances that enable the company to leverage its intellectual property and technological advancements. Significant factors contributing to Lobe Sciences' earnings include successful clinical trials, regulatory approvals, and the establishment of distribution channels for its therapeutic products.

Lobe Sciences Financial Statement Overview

Summary

Lobe Sciences is facing substantial financial challenges with declining revenues, consistent losses, and negative equity, indicating financial instability. The high reliance on external financing raises concerns about the company's ability to sustain operations without significant changes. Urgent measures are necessary to improve financial performance and stabilize the company's trajectory.

Income Statement

The income statement reflects significant challenges with decreasing revenue and persistent net losses. The TTM data indicates a negative net profit margin and declining EBIT and EBITDA margins, highlighting profitability issues. Revenue growth is negative, indicating a downward trend. The company is struggling with high operating losses and declining sales, which impacts overall financial stability.

Balance Sheet

The balance sheet shows concerning financial health with a negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is also negative, reflecting high leverage and financial instability. These factors suggest significant financial risk and potential liquidity issues.

Cash Flow

Cash flow analysis indicates persistent negative free cash flow and operating cash flow, which are not covered by net income. The cash flow from operations remains negative, and free cash flow growth is negative, raising concerns about cash management and sustainability. The company relies heavily on financing activities to cover cash shortfalls, which is unsustainable in the long term.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	136.21K	840.53K	0.00	0.00	884.84K
	Gross Profit
-28.24K	134.45K	772.83K	-10.22K	0.00	884.84K
	EBIT
-1.22M	-2.12M	-3.36M	1.37M	6.85M	-2.45M
	EBITDA
-4.30M	-4.12M	-4.40M	-11.96M	-6.16M	-2.71M
	Net Income Common Stockholders
-4.76M	-4.42M	-4.71M	-25.87M	-22.82M	-3.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.29K	237.77K	140.29K	907.54K	7.43M	172.11K
	Total Assets
49.10K	258.57K	2.30M	1.75M	12.10M	12.97M
	Total Debt
2.15M	1.75M	332.64K	0.00	0.00	302.02K
	Net Debt
2.13M	1.51M	192.35K	-907.54K	-1.14M	129.91K
	Total Liabilities
3.79M	3.37M	2.46M	1.30M	804.70K	897.09K
	Stockholders Equity
-3.74M	-3.11M	-160.13K	445.69K	11.29M	12.07M
Cash Flow		Free Cash Flow
-946.55K	-462.29K	-1.72M	-2.73M	-5.04M	-1.22M
	Operating Cash Flow
-946.55K	-462.29K	-1.72M	-2.73M	-5.04M	-1.22M
	Investing Cash Flow
0.00	0.00	0.00	1.74M	1.07M	198.74K
	Financing Cash Flow
992.42K	563.51K	950.01K	753.12K	4.92M	718.73K

Lobe Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOBE, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LOBE.

Lobe Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.22B	3.32	-45.04%	2.83%	16.81%	-0.27%
WLLW	51 Neutral	C$5.15M	―	-971.43%	―	571.23%	64.24%
AYUR	47 Neutral	C$4.87M	―	-271.33%	―	27.80%	31.16%
TGIF	44 Neutral	C$4.90M	―		―	-9.20%	93.62%
LOBE	38 Underperform	$4.82M	―	141.95%	―	-100.00%	0.36%
BBRRF		$3.60M	―	-112.06%	―	―	―
FFNTF		$3.33M	―		―	―	―

Lobe Sciences Corporate Events

Lobe Sciences Secures Funding for Conjugated Psilocin™ Development

Lobe Sciences Ltd. announced a non-brokered private placement of US$6 million to fund the development of its novel drug candidate, Conjugated Psilocin™, through its newly created subsidiary, Cynaptec Pharmaceuticals, Inc. The private placement includes an option for an additional US$20 million to support Phase 3 clinical trials for chronic cluster headache. This strategic move allows Lobe Sciences to advance its drug development plans, transferring necessary intellectual property to Cynaptec and securing funding for preclinical and clinical studies. The initiative positions Lobe Sciences to potentially strengthen its market presence in treating neurological and psychiatric conditions, with significant implications for stakeholders if the drug proves successful in clinical trials.

Spark’s Take on TSE:LOBE Stock

According to Spark, TipRanks’ AI Analyst, TSE:LOBE is a Underperform.

Lobe Sciences faces significant financial instability with declining revenues, consistent losses, and high reliance on external financing, which is the primary concern. While technical analysis shows some positive momentum, the negative valuation metrics and lack of earnings call data mitigate these positives. The appointment of a new CEO for Altemia, Inc. is a positive corporate event, but it does not offset the core financial challenges.

To see Spark’s full report on TSE:LOBE stock, click here.

Lobe Sciences Restructures Financials with Strategic Transactions

Lobe Sciences Ltd. has provided a corporate update detailing several financial transactions aimed at restructuring its debt and equity. The company issued convertible notes and common shares to settle outstanding debts and accounts payable, involving related parties and exempt from certain regulatory requirements. These moves are part of Lobe’s strategy to strengthen its financial position and comply with Canadian Securities Exchange policies, potentially impacting its market presence and stakeholder interests.

Lobe Sciences Appoints New CEO for Altemia, Inc. to Lead 2025 Product Launch

Lobe Sciences Ltd. has announced the appointment of Dr. Herman Williams as the CEO of its subsidiary, Altemia, Inc., which focuses on addressing dietary needs for Sickle Cell Disease patients. Dr. Williams, a seasoned healthcare executive, will lead the 2025 launch of Altemia®, a medical food product, under physician supervision, potentially enhancing the company’s market positioning in the biopharmaceutical industry.