Zelira Therapeutics (ZLD) AI Stock Analysis

• Market Cap: AU$4.88M
• Dividend Yield: N/A
• Average Volume (3M): 2.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -85.34%
• EPS Growth: 86.74%
• Country: AU
• Employees: 8
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -0.21
• Shares Outstanding: 11,897,155
• 10 Day Avg. Volume: 1,084
• 30 Day Avg. Volume: 2,222
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: AU$0.51
• Price Target Upside: 23.51% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: AU$0.50 ▲(21.95% Upside)

Zelira Therapeutics has a low overall stock score primarily due to its poor financial performance indicated by persistent losses, negative equity, and cash flow inefficiencies. Technical analysis suggests continued bearish momentum, and the valuation is unattractive due to the lack of profitability.

Zelira Therapeutics Business Overview & Revenue Model

Company Description

Zelira Therapeutics (ZLD) is a global biopharmaceutical company focused on the development and commercialization of clinically validated cannabinoid-based medicines. Operating primarily in the healthcare and biotechnology sectors, Zelira is dedicated to advancing innovative therapies for chronic conditions such as insomnia, autism, and chronic non-cancer pain. The company leverages its proprietary technology platforms and extensive research to deliver high-quality, targeted medical cannabis products to patients worldwide.

How the Company Makes Money

Zelira Therapeutics generates revenue through the development, commercialization, and licensing of its cannabinoid-based therapeutic products. The company collaborates with pharmaceutical partners to distribute its products globally, creating additional revenue through strategic partnerships and licensing agreements. Zelira's revenue streams are primarily derived from product sales, licensing fees, and royalties from its proprietary drug formulations. The company's focus on research and development enables it to create innovative therapies, which it then brings to market or licenses to other pharmaceutical companies, contributing to its earnings. Significant partnerships with healthcare and pharmaceutical companies also play a crucial role in expanding its market reach and increasing profitability.

Zelira Therapeutics Financial Statement Overview

Summary

Zelira Therapeutics faces significant financial challenges with declining revenue, negative profit margins, and negative equity. Persistent losses and cash flow issues indicate poor financial health.

Income Statement

Zelira Therapeutics has demonstrated declining revenue over the years, with the latest revenue significantly lower than previous years. Gross and net profit margins are negative, indicating unprofitable operations. EBIT and EBITDA margins are also negative, showing operational inefficiency and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a concerning financial structure, with a negative stockholders' equity in the latest period, indicating liabilities exceed assets. The debt-to-equity ratio is unfavorable due to negative equity, and the equity ratio is negative, highlighting financial instability.

Cash Flow

Cash flow analysis shows negative free cash flow and operating cash flow, indicating cash outflows in operations. Despite some financing inflows, the free cash flow to net income ratio suggests poor cash conversion. The operating cash flow to net income ratio is also negative, reflecting inefficiencies.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	94.95K	301.12K	1.54M	663.32K	0.00
Gross Profit	10.28K	-3.22M	-5.72M	-39.16K	-275.05K
EBITDA	-36.44M	-6.87M	-12.83M	-9.18M	-7.71M
Net Income	-36.57M	-5.57M	-11.95M	-8.55M	-7.02M
Balance Sheet
Total Assets	5.18M	33.89M	37.70M	39.37M	35.79M
Cash, Cash Equivalents and Short-Term Investments	586.16K	146.21K	2.75M	4.97M	1.70M
Total Debt	5.95M	437.90K	500.91K	551.08K	632.32K
Total Liabilities	9.36M	2.18M	2.01M	1.54M	1.24M
Stockholders Equity	-4.51M	31.80M	35.20M	37.83M	34.55M
Cash Flow
Free Cash Flow	-4.39M	-7.25M	-9.43M	-8.62M	-6.95M
Operating Cash Flow	-4.39M	-7.25M	-9.43M	-8.62M	-6.94M
Investing Cash Flow	919.74K	2.83M	-207.78K	1.38M	1.11M
Financing Cash Flow	3.92M	1.77M	7.10M	10.53M	4.50M

Zelira Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ZLD, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.04 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 AU:ZLD.

Zelira Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IXC	57 Neutral	AU$6.76M	60.00	-8.72%	―	―	71.10%
NSB	54 Neutral	AU$64.85M	23.78	26.99%	―	―	51.85%
Sector *	51 Neutral	$7.35B	-0.20	-44.86%	2.33%	28.96%	-1.05%
1AD	46 Neutral	AU$3.34M	―	-392.18%	―	―	34.26%
AVE	46 Neutral	AU$14.28M	―	-64.72%	―	139.19%	33.33%
ZLD	40 Underperform	AU$4.88M	―	-263.02%	―	-85.34%	86.74%

Zelira Therapeutics Corporate Events

Zelira Therapeutics Advances Diabetic Neuropathy Study and Strengthens Financial Position

Zelira Therapeutics has announced significant progress in its diabetic neuropathy study, with its proprietary cannabinoid-based therapy, ZLT-L-007, outperforming Lyrica® in reducing pain and improving quality of life for patients. This advancement, alongside the conversion of US$3.25 million in convertible notes into equity, strengthens Zelira’s financial position and supports its clinical and regulatory development efforts. The company is poised to continue its momentum with upcoming FDA trials and the optimization of its Zyraydi™ technology, aiming to unlock value across its product lines.

Zelira Therapeutics Secures $650,000 R&D Loan Facility to Advance Clinical Trials

Zelira Therapeutics has secured a $650,000 R&D loan facility from RH Capital Finance Co., LLC, which is backed by the anticipated R&D Tax incentive rebate for FY25. This non-dilutive funding will enhance Zelira’s short-term cash position, supporting the advancement of the HOPE SPV clinical trial and general working capital needs. The agreement is expected to bolster Zelira’s operational capabilities and strengthen its industry positioning by enabling further research and development activities.

Zelira Therapeutics’ ZLT-L-007 Shows Promising Results in Diabetic Neuropathy Study

Zelira Therapeutics announced the publication of a clinical study demonstrating the efficacy and safety of its proprietary cannabinoid-based therapy, ZLT-L-007, in treating diabetic neuropathy. The study showed that ZLT-L-007 significantly outperformed Lyrica® (Pregabalin) in reducing pain and improving quality of life for patients, marking a potential shift in the standard-of-care treatment for diabetic neuropathy. The study, conducted under rigorous clinical standards, reported no serious adverse events, suggesting a promising future for ZLT-L-007 in the market.