Restart Life Sciences (HEAL) AI Stock Analysis

• Market Cap: C$4.02M
• Dividend Yield: N/A
• Average Volume (3M): 3.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): >-0.01
• Shares Outstanding: 36,550,354
• 10 Day Avg. Volume: 5,146
• 30 Day Avg. Volume: 3,650
• PEG Ratio: -0.02
• Price to Book (P/B): -3.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.13 ▲(14.55% Upside)

The score is primarily held down by very weak financial performance (pre-revenue, persistent losses/cash burn, and negative equity). Technical indicators are only moderately supportive and largely neutral, while valuation metrics provide limited support due to the negative P/E and no dividend.

Positive Factors

Low absolute debt burden

Modest reported debt limits near-term interest and refinancing pressure, preserving some financial flexibility. For a pre-revenue biotech, low nominal leverage reduces fixed-cost strain and gives management more optionality to fund R&D or seek strategic capital without large debt service obligations.

Improving cash burn trend

A reduced cash burn rate is a durable operational improvement that can extend runway and lower near-term financing needs. If cost discipline or program prioritization is sustained, improved burn supports execution of development milestones and reduces dilution risk over the next several quarters.

Reported net income turned positive

Positive net income (driven by non-operating items) can reflect access to one-time gains or financing that improves reported profitability. While not proof of operating strength, it can temporarily strengthen credit or fundraising position and allow management to pursue near-term strategic actions.

Negative Factors

Pre-revenue status

Zero reported revenue means the firm lacks recurring top-line cash generation, leaving the business highly dependent on external funding. Without visible commercial traction, execution risk and dilution risk remain elevated until products or partnerships produce sustainable revenue.

Persistent operating losses

Ongoing negative operating profit indicates the core business isn't yet sustainable. Even with positive net income from non-operating sources, persistent operating losses mean the company must ultimately convert R&D into profitable operations or continually raise capital, raising medium-term viability risk.

Deeply negative shareholders' equity

Sustained negative equity signals accumulated losses and weak capitalization, which constrain borrowing, limit strategic flexibility, and increase insolvency risk. Negative equity complicates financing terms and can force dilutive equity raises, impairing long-term shareholder value.

Restart Life Sciences Business Overview & Revenue Model

Company Description

Restart Life Sciences Corp., through its subsidiaries, operates as a biotechnology company worldwide. It engages in developing natural remedies specifically tailored for individuals on the autism spectrum; health-related foods that promote both mind and body wellness for healthy living, as well as psilocybin clinical trial for fragile X syndrome. The company was formerly known as Nova Mentis Life Science Corp. and changed its name to Restart Life Sciences Corp. in November 2024. Restart Life Sciences Corp. was incorporated in 2004 and is based in Vancouver, Canada.

How the Company Makes Money

Restart Life Sciences Financial Statement Overview

Summary

Very weak fundamentals: the company is pre-revenue (revenue fell to zero), has persistent operating losses and ongoing cash burn, and shareholders’ equity is deeply negative (2023–2024), increasing balance-sheet risk despite modest stated debt.

Income Statement

The business remains pre-revenue, with revenue falling to zero in 2024 (from a small base in 2020) and no visible top-line traction. Profitability is weak: operating losses are persistent across the period, although the net result improved in 2024 due to non-operating items (net income turned positive despite negative operating profit). Overall, earnings quality is low because reported profitability is not supported by the core operating performance.

Balance Sheet

The balance sheet has deteriorated meaningfully: shareholders’ equity swung from positive in 2022 to deeply negative in 2023 and remained negative in 2024, signaling accumulated losses and a constrained capital position. Debt is still modest in absolute dollars (and only appears in 2024), but negative equity elevates financial risk and limits flexibility, even if headline leverage ratios look distorted due to the negative equity base.

Cash Flow

Cash generation is consistently negative, with operating cash burn every year and negative free cash flow throughout the period. The burn rate improved in 2024 versus 2023, but free cash flow remains below zero, indicating ongoing dependence on external funding. The fact that 2024 net income is positive while cash flow stays negative reinforces that cash earnings are weak and operating fundamentals have not yet turned.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	11.47K
Gross Profit	0.00	0.00	25.41K	-3.79K	-5.00K	1.73K
EBITDA	-1.27M	-656.20K	-1.20M	-1.84M	-2.68M	-25.23M
Net Income	-562.53K	224.75K	-1.22M	-3.76M	-2.68M	-25.23M
Balance Sheet
Total Assets	277.56K	190.40K	31.06K	296.79K	881.16K	3.05M
Cash, Cash Equivalents and Short-Term Investments	262.38K	169.95K	8.09K	266.52K	218.73K	2.14M
Total Debt	0.00	79.88K	0.00	0.00	0.00	0.00
Total Liabilities	214.89K	489.47K	841.66K	255.44K	422.06K	382.96K
Stockholders Equity	62.67K	-299.07K	-810.60K	41.34K	459.10K	2.66M
Cash Flow
Free Cash Flow	-328.58K	-71.77K	-277.53K	-1.44M	-1.95M	-422.11K
Operating Cash Flow	-328.58K	-71.77K	-277.53K	-1.44M	-1.95M	-856.53K
Investing Cash Flow	0.00	0.00	0.00	0.00	29.64K	2.90M
Financing Cash Flow	481.95K	75.00K	19.10K	1.49M	0.00	0.00

Restart Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ENBI	47 Neutral	C$1.39M	-3.36	-107.76%	―	―	34.22%
HEAL	44 Neutral	C$4.02M	-2.58	―	―	―	―