Noile-Immune Biotech Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥5M
• Operating Income: ¥-608M
• Net Income: ¥-605M
• EPS: ¥-13.97

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Verdict: FY2025 Q3 results reflect a typical pre-revenue biotech profile with a sizable operating loss, small non-operating tailwinds, and ample cash runway; profitability remains deeply negative but the balance sheet is very strong. Revenue was 0.05 (100M JPY), down 8.2% YoY, highlighting that commercial contribution is still negligible relative to costs. Operating income was -6.08, indicating a core operating loss of roughly 608 million JPY year to date. Non-operating income totaled 1.08, mainly interest income of 0.01, suggesting most of the non-operating gain is from other items not detailed. Ordinary income came in at -6.02, implying that non-operating gains partially offset the operating loss. Profit before tax was -7.85, which implies an extraordinary loss of about -1.83 (difference between ordinary income and pretax). Net income was -6.05 (EPS -13.97 JPY), after a small tax expense of 0.02. With revenue of only 0.05, the ordinary margin is roughly -12,040%, and the net margin is approximately -12,100%, underscoring the absence of scale; YoY margin expansion/compression in basis points cannot be reliably measured due to minimal revenue and lack of comparable prior-period margin disclosure. DuPont shows ROE at -14.7%, driven by an extremely negative net margin (-12,100%), very low asset turnover (0.001x), and low financial leverage (1.02x). Balance sheet strength is a key positive: cash and deposits are 46.71 against total liabilities of only 0.75, yielding a current ratio of 6,876.9% and D/E of 0.02x. Retained earnings are -33.54, reflecting accumulated deficits typical for R&D-stage firms, but paid-in capital is robust (capital stock 40.47; capital surplus 40.25). Operating cash flow was not disclosed, so we cannot assess OCF vs. net income divergence; however, the reliance on non-operating income and implied extraordinary losses points to earnings dominated by non-core and one-off items. Liquidity risk appears low near term given the large net cash position and minimal liabilities. Forward-looking, the company’s cash runway appears comfortable relative to the current operating loss scale, supporting continued R&D investment absent unforeseen step-ups in spend. Key watchpoints include trajectories in R&D/SG&A (not disclosed), any extraordinary items, and clarity on pipeline milestones that could change spending cadence or justify additional financing. Overall, the quarter emphasizes balance-sheet resilience amid expected operating losses for a pre-commercial biotech.

Profitability Analysis

ROE decomposition (DuPont): ROE = Net Profit Margin × Asset Turnover × Financial Leverage ≈ (-12,100%) × 0.001 × 1.02 ≈ -14.7%. The component that changed the most vs. a typical profitable business is the net margin, which is deeply negative due to negligible revenue and ongoing R&D/overhead costs. Business reason: the company is in a pre-revenue development phase; costs (personnel, trials, G&A) are front-loaded while revenue is de minimis. Asset turnover is extremely low (0.001x) because assets are primarily cash with minimal sales activity; financial leverage is low (1.02x) due to virtually no debt. Sustainability: the negative net margin is likely to persist until commercialization or milestone income; asset turnover should remain low until meaningful revenue ramps. Concerning trends: SG&A and R&D breakdown were not disclosed, preventing verification of cost discipline; the presence of an implied extraordinary loss (-1.83) adds volatility to bottom-line results.

Growth Assessment

Revenue contracted 8.2% YoY to 0.05, reinforcing that commercial activities are not yet a growth driver. Profit metrics are dominated by operating losses (-6.08) and non-operating/extraordinary items, so growth quality is low from a profitability standpoint. No segment or product contribution was disclosed; hence, revenue sustainability cannot be assessed. Outlook hinges on clinical and regulatory milestones; in their absence, continued operating losses are likely. Non-operating income (1.08) provided partial cushioning, but this is not a sustainable growth lever. Key inflections would be partnerships, licensing income, or trial readouts that could unlock milestone/royalty revenue; these were not provided in the data.

Financial Health

Liquidity is very strong: current assets 47.75 vs. current liabilities 0.69 produce a current ratio of 68.8x (6876.9%). Quick ratio is effectively the same given cash/deposits of 46.71. Solvency is robust: total liabilities 0.75 vs. equity 41.20 imply D/E of 0.02x. There is no warning on Current Ratio (<1.0) or D/E (>2.0). Maturity mismatch risk is minimal given large net cash and tiny short-term obligations. Note: reported current assets (47.75) and cash (46.71) exceed reported total assets (41.94), suggesting XBRL classification or timing discrepancies; however, equity and liabilities reconcile (Assets ≈ Liabilities + Equity), so we rely on total assets and total liabilities/equity for ratio integrity. No off-balance sheet obligations were disclosed in the data.

Cash Flow Quality

Operating cash flow (OCF) was not reported; thus, OCF/Net Income cannot be assessed and we cannot flag earnings quality using that metric. Free cash flow was also not reported, so dividend/capex coverage cannot be evaluated. Given net losses and pre-revenue status, we infer cash burn at the operating level, but the sizable cash balance (46.71) suggests runway adequacy for near-term plans. No clear signs of working-capital manipulation can be assessed due to lack of AR/AP/inventory detail.

Dividend Sustainability

No dividends were reported, which is appropriate for a pre-revenue biotech with cumulative deficits (retained earnings -33.54). Payout ratios and FCF coverage are not calculable. Policy-wise, we expect continued earnings retention to fund R&D until commercialization or partnership cash flows materialize.

Risk Assessment

Business Risks:

• Pipeline execution risk: clinical trial delays or failures could prolong losses.
• Regulatory approval risk inherent to biotech development.
• Commercialization risk given negligible current revenue base.
• Partnering/licensing dependency for non-dilutive funding and market access.

Financial Risks:

• Earnings volatility from non-operating and extraordinary items (implied -1.83 in Q3 YTD).
• Negative retained earnings (-33.54) reflecting accumulated deficits.
• Potential future financing needs if burn accelerates despite current strong cash.

Key Concerns:

• Deeply negative net margin (~-12,100%) and ROE (-14.7%).
• Lack of disclosure on SG&A and R&D impedes assessment of cost trajectory.
• Data inconsistencies between total assets and current assets/cash suggest classification issues in reported tags, limiting precision.

Investment Implications

Key Takeaways:

• Core result is a sizable operating loss (-6.08) with limited revenue (0.05).
• Ordinary loss (-6.02) narrowed versus operating loss due to non-operating income (1.08).
• An implied extraordinary loss (-1.83) enlarged the pretax loss (-7.85).
• Balance sheet is exceptionally liquid (current ratio ~68.8x) with minimal leverage (D/E 0.02x).
• Cash of 46.71 provides a comfortable runway relative to the current loss scale.

Metrics to Watch:

• Operating expense trends (R&D and SG&A breakdown when available).
• Cash burn rate and OCF once disclosed.
• Extraordinary items and their recurrence.
• Any licensing/partner income or grant funding that could improve margins.
• Clinical milestone timing that could change revenue outlook.

Relative Positioning: Within Japan’s pre-revenue biotech cohort, the company exhibits stronger-than-average liquidity and low leverage, offset by deeply negative margins and limited revenue visibility; performance will remain milestone-driven rather than earnings-driven in the near term.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis