Dogwood Therapeutics, Inc. — financial distress indicators
Financial-health summary
Dogwood Therapeutics, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 42/100). The main indicators are losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. Independently, the Ohlson accounting model puts its 1-year failure probability at 84% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -82% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 1.65 → model probability 84%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (5.86).
- High insider/promoter ownership (73%) aligns management with survival.
📰 Recent news scan
- Dogwood to Participate in the 2026 Maxim Growth SummitYahoo Finance · 2026-10-06
- Dogwood Announces Completion of Enrollment in Ongoing Halneuron® Phase 2b TrialYahoo Finance · 2026-09-14
- Dogwood Therapeutics Nears Phase 2b Readout for Halneuron Neuropathic Pain TreatmentYahoo Finance · 2026-09-01
- Dogwood to Host Virtual KOL Event to Discuss Halneuron® for the Treatment of Chemotherapy Induced Neuropathic Pain on September 1, 2026Yahoo Finance · 2026-08-17
- Dogwood Therapeutics Announces Second Quarter 2026 Financial ResultsYahoo Finance · 2026-08-13
- Dogwood Enrolls First 200 Patients in Ongoing Halneuron® Phase 2b Chemotherapy Induced Neuropathy Trial; Top-line Data Expected in Fall 2026Yahoo Finance · 2026-07-20
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Dogwood Therapeutics, Inc.'s financial-health indicators show?
As of 2026-10-08, Dogwood Therapeutics, Inc.'s public financial data places it in the 'Watch' band with a distress score of 42/100, driven by losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Dogwood Therapeutics, Inc.'s financial distress score?
42/100 ('Watch'). Ohlson O-score 1.65 (model 1-year failure probability 84%). Merton distance-to-default 5.43 σ (model default probability 0.0%).
What works in Dogwood Therapeutics, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (5.86). High insider/promoter ownership (73%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.