Spectral Medical (EDT) AI Stock Analysis

• Market Cap: $236.98M
• Dividend Yield: N/A
• Average Volume (3M): 43.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 26.15%
• EPS Growth: -30.29%
• Country: CA
• Employees: 29
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.04
• Shares Outstanding: 285,519,680
• 10 Day Avg. Volume: 30,888
• 30 Day Avg. Volume: 43,560
• PEG Ratio: 0.22
• Price to Book (P/B): -6.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.50
• 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: $1.00
• Price Target Upside: 23.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$1.00 ▲(23.46%Upside)

The low overall score reflects significant financial challenges and poor valuation metrics, which are partially offset by technical indicators showing some positive trends and promising corporate developments. The successful completion of trials and secured funding are critical to potential future success, though current financial instability remains a major concern.

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 makes money through the sale and distribution of its medical devices, primarily the Toraymyxin PMX-20R, to hospitals and healthcare facilities. The company generates revenue by supplying these devices for use in critical care settings where patients with endotoxemia and septic shock are treated. Additionally, Spectral Medical may engage in strategic partnerships and collaborations with other healthcare organizations to expand its market reach and enhance its product offerings. Revenue is also supported by ongoing research and development efforts which may lead to the introduction of new products and enhancements to existing solutions.

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

Spectral Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDT, the sentiment is Neutral. The current price of 0.81 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.84, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EDT.

Spectral Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	68 Neutral	C$90.97M	22.43	5.27%	―	-1.14%	―
PRN	54 Neutral	C$235.32M	―	-66.14%	―	51.21%	15.33%
MDNA	53 Neutral	C$59.77M	―	-97.22%	―	―	-67.03%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
EDT	51 Neutral	$236.98M	―	80.28%	―	26.15%	-30.29%
EBM	44 Neutral	C$33.41M	―		―	-2.84%	16.88%
ARCH	26 Underperform	C$113.70M	―	90.17%	―	―	-78.59%

Spectral Medical Corporate Events

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.

Spectral Medical Completes Tigris Trial Enrollment and Secures Funding for PMX Commercialization

Spectral Medical has completed enrollment for its Phase III Tigris trial, which evaluates PMX for endotoxic septic shock, with results expected in August 2025. The company has secured up to US$10 million in funding from Vantive to support PMX commercialization, positioning Spectral closer to potential U.S. FDA approval and market launch, which could significantly impact its operations and market presence.

Spectral Medical Secures $10 Million Non-Dilutive Financing for PMX Commercialization

Spectral Medical Inc. has secured a non-dilutive financing agreement of up to $10 million with Vantive US Healthcare LLC to support the commercialization of its blood filtration therapy, Toraymyxin™ (PMX). This funding is expected to fully support Spectral’s path to commercialization, including key milestones such as the release of topline results and U.S. FDA submission. The agreement signifies a strong partnership with Vantive, providing Spectral with financial stability and confidence in advancing PMX through regulatory phases.