SABS

SABS is not an operating business you can value on fundamentals — it is a single-asset clinical wager. FY2025 revenue is $0.00 (down -100% and the tail of a multi-year collapse from $60.9M in 2021), and the $13.3M reported net income is an accounting mirage: operating income was -$49.0M and operating cash flow was -$44.8M. The positive bottom line comes from non-operating items (warrant/derivative marks or the Australian R&D tax credit the MD&A flags as a dependency), not from anything the drug franchise earned. The reported 8.8% ROE is therefore meaningless. Retained earnings sit at -$111M accumulated deficit, and the company itself opens Item 1A stating it is clinical-stage, has 'incurred significant losses since our inception,' and 'may not be able to generate sufficient revenue to maintain profitability' — with every product candidate still in preclinical or clinical development.

The balance sheet looks superficially clean — liabilities/equity of just 0.14x, current assets $101M vs. current liabilities $10.7M, equity up 483% to $151M — but read how they got there: shares outstanding jumped +448% to 51.0M. Equity grew by diluting existing holders roughly five-fold, not by earning it. And the truly liquid line, cash & equivalents, is only $10.5M against a $45M annual operating burn. Even if the ~$90M gap between cash and current assets is short-term investments funding a couple years of runway, the $34.4M and growing R&D spend plus a pivotal Phase 2b guarantees more capital raises and further dilution ahead.