PRAX

Praxis Precision Medicines is a clinical-stage biopharmaceutical company developing CNS/neurology drug candidates, and by its own description in the 10-K, 'investing in our common stock involves a high degree of risk' and 'you might lose all or part of your investment.' It has no approved products and generated $0 of revenue in FY2025 (after token $2.45M and $8.55M in the prior two years from collaboration/grant income), while net loss widened to -$303M and R&D spending jumped 75.3% to $267M as it advanced trials. The accumulated deficit is now $1.1B, and operating cash burn was -$249M for the year.

The balance sheet is the one source of comfort: the company raised capital (equity nearly doubled to $878M, shares up 38.1%), holds $357M of cash, and carries almost no debt (liabilities/equity 0.07x). Current assets of $611M dwarf the $59.8M of current liabilities. That funds a couple of years of runway at the current burn, but the 10-K is explicit that losses 'may increase' as it pushes candidates through clinical development and toward potential commercialization — so further dilutive raises are likely.