Spectral Medical (EDT) AI Stock Analysis

• Market Cap: C$388.71M
• Dividend Yield: N/A
• Average Volume (3M): 232.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 33.19%
• EPS Growth: -13.73%
• Country: CA
• Employees: 29
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.00
• Shares Outstanding: 285,819,700
• 10 Day Avg. Volume: 566,534
• 30 Day Avg. Volume: 232,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$1.00
• Price Target Upside: -30.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$1.00 ▼(-30.07% Downside)

Spectral Medical's overall stock score is primarily influenced by its challenging financial performance, which poses significant risks. However, recent positive corporate events, including promising trial results and progress towards FDA approval, provide potential upside. Technical analysis and valuation factors offer a neutral to slightly negative outlook.

Spectral Medical Business Overview & Revenue Model

Company Description

Spectral Medical Inc., together with its subsidiaries, focuses on the development and commercialization of products for the treatment of septic shock and renal disease in North America. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops platform for renal replacement therapy. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.

How the Company Makes Money

Spectral Medical generates revenue primarily through the sale of its medical devices, including the Toraymyxin™ system. The company has established partnerships with healthcare providers and distributors, which facilitate the adoption and integration of its technology into clinical practices. Additionally, revenue is supplemented through collaborations and licensing agreements with pharmaceutical companies and research institutions aimed at advancing the development of new therapeutic solutions. The company may also receive funding through grants and research contracts focused on critical care innovations.

Spectral Medical Financial Statement Overview

Summary

Spectral Medical faces significant financial challenges, characterized by consistent losses and negative cash flows. Increasing total debt and negative equity raise concerns about financial stability and solvency. The company's ability to improve its financial health is uncertain without a strategic turnaround.

Income Statement

Revenue has shown volatility with a decline from 2019 to 2020, followed by fluctuations in subsequent years. The company has consistently reported negative net income, leading to negative net profit margins. EBITDA margin is also negative, indicating operational challenges. Despite a slight increase in gross profit in 2024, profitability remains a concern.

Balance Sheet

The company shows a negative stockholders' equity position since 2020, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but total debt has increased significantly, raising leverage concerns. Total liabilities have grown, impacting financial stability.

Cash Flow

Operating cash flow remains negative, with no positive free cash flow reported in the past years. While financing cash flow has been positive, it primarily supports operating activities, not growth. The negative free cash flow to net income ratio indicates cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.53M	2.29M	1.60M	1.67M	2.00M	2.10M
Gross Profit	1.51M	1.02M	662.00K	983.00K	1.16M	1.47M
EBITDA	-16.90M	-11.97M	-13.96M	-7.18M	-6.38M	-8.76M
Net Income	-21.38M	-15.40M	-15.66M	-11.28M	-8.79M	-9.10M
Balance Sheet
Total Assets	5.50M	5.32M	5.21M	12.00M	11.55M	8.16M
Cash, Cash Equivalents and Short-Term Investments	3.10M	2.99M	2.95M	8.41M	8.89M	5.81M
Total Debt	17.60M	14.93M	8.56M	7.57M	582.00K	667.00K
Total Liabilities	45.67M	32.87M	21.76M	14.55M	7.47M	8.83M
Stockholders Equity	-40.18M	-27.55M	-16.55M	-2.55M	4.08M	-669.00K
Cash Flow
Free Cash Flow	-10.72M	-8.85M	-10.91M	-9.93M	-9.18M	-639.00K
Operating Cash Flow	-9.35M	-8.82M	-10.72M	-9.90M	-8.70M	-324.00K
Investing Cash Flow	-170.00K	-27.00K	-185.00K	-33.00K	-325.00K	-297.00K
Financing Cash Flow	5.08M	8.88M	5.44M	9.46M	12.16M	5.18M

Spectral Medical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDT, the sentiment is Positive. The current price of 1.43 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.91, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 87.56 is Negative, neither overbought nor oversold. The STOCH value of 75.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EDT.

Spectral Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	60 Neutral	C$91.94M	69.34	1.88%	―	0.03%	-17.30%
PRN	54 Neutral	C$186.93M	―	-106.37%	―	64.42%	-21.09%
MDNA	53 Neutral	C$76.97M	―	-69.80%	―	―	55.80%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
EDT	51 Neutral	C$388.71M	―	80.28%	―	33.19%	-13.73%
EBM	44 Neutral	C$21.01M	―		―	0.78%	2.86%
ARCH	26 Underperform	C$109.74M	―	90.17%	―	―	-37.72%

Spectral Medical Corporate Events

Spectral Medical’s Tigris Trial Shows Promising Results for Septic Shock Therapy

Spectral Medical and Vantive announced positive topline results from the Tigris trial, a Phase 3 study evaluating PMX Hemoadsorption Therapy for endotoxic septic shock. The trial demonstrated a significant reduction in 28-day and 90-day mortality rates, exceeding the prespecified primary endpoint with a high probability of benefit, which could enhance Spectral’s positioning in the sepsis treatment market.

Spectral Medical Advances Towards FDA Approval with Tigris Trial Progress

Spectral Medical announced significant progress in its clinical and operational efforts during the second quarter of 2025, particularly with the completion of patient enrollment in the Tigris trial. The company is on track to release topline results for this Phase III trial, which evaluates PMX for endotoxic septic shock, by mid-August 2025. These results are crucial for the company’s Premarket Approval submission to the FDA. Spectral has also secured non-dilutive funding from its partner Vantive, aiding its financial stability and readiness for potential FDA approval and commercialization. The company’s efforts are aligned with market readiness and regulatory timelines, indicating a strategic focus on execution across regulatory, clinical, and commercial fronts.

Spectral Medical Files Base Shelf Prospectus for Financial Flexibility

Spectral Medical Inc. has filed a preliminary short form base shelf prospectus with Canadian securities regulators, excluding Québec, to qualify the distribution of up to $100 million in various securities over a 25-month period. This move is intended to provide the company with financial flexibility as it approaches significant milestones, though it is not an immediate indication of capital raising. The filing underscores Spectral’s strategy to optimize its balance sheet and maintain operational agility amid its ongoing efforts to secure FDA approval for its septic shock treatment.

Spectral Medical Inc. Secures Shareholder Approval for Key Resolutions

Spectral Medical Inc. announced the successful results of its Annual Meeting of Shareholders, where all proposed resolutions were approved, including the election of seven directors and the re-appointment of MNP LLP as auditors. This outcome reinforces the company’s governance structure and supports its ongoing efforts to advance its flagship product, Toraymyxin™ (PMX), towards FDA approval. The confirmation of these resolutions and the continued support from shareholders are crucial as Spectral progresses with its Tigris Trial, a pivotal study for PMX, potentially strengthening its position in the biomedical industry.

Spectral Medical to Present at BioConnect Conference Amidst FDA Approval Efforts

Spectral Medical Inc. announced its participation in the 3rd Annual H.C. Wainwright BioConnect Investor Conference, highlighting its ongoing efforts to secure U.S. FDA approval for its septic shock treatment, Toraymyxin™. The company’s involvement in the conference underscores its strategic initiatives to engage with investors and stakeholders, potentially impacting its market positioning and future growth in the biomedical industry.