Elutia Inc. — financial distress indicators
Financial-health summary
Elutia Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 44/100). The main indicators are ohlson o-score signals likely failure, losses in 2 of the last 3 years and steep revenue decline. Independently, the Ohlson accounting model puts its 1-year failure probability at 61% 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.
O-score 0.44 → model probability 61%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Revenue changed -15% year over year.
Falling sales reduce cash available for debt service.
Last price $0.83.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Operating margin fell from -123% to -219% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Operating cash flow negative in 3 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
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 (2.05).
📰 Recent news scan
- Elutia Receives $8 Million Payment from Boston Scientific; Company Now Fully Funded into 2029Yahoo Finance · 2026-10-01
- Elutia to Present at the H.C. Wainwright 28th Annual Global Investment Conference on September 15thYahoo Finance · 2026-09-10
- Elutia to Participate in the Lake Street Capital Markets 10th Annual Big Ideas Growth Conference & the H.C. Wainwright 28th Annual Global Investment ConferenceYahoo Finance · 2026-09-02
- Elutia (ELUT) Q2 2026 Earnings Call TranscriptYahoo Finance · 2026-08-20
- Elutia Completes SimpliDerm® Sale on Schedule, Adds $8 Million in Cash to Fund NXT-41x Through Full Commercial LaunchYahoo Finance · 2026-08-18
- Elutia Inc. Q2 2026 Earnings Call SummaryYahoo Finance · 2026-08-14
⚖️ 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 Elutia Inc.'s financial-health indicators show?
As of 2026-10-08, Elutia Inc.'s public financial data places it in the 'Watch' band with a distress score of 44/100, driven by ohlson o-score signals likely failure, losses in 2 of the last 3 years and steep revenue decline. 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 Elutia Inc.'s financial distress score?
44/100 ('Watch'). Ohlson O-score 0.44 (model 1-year failure probability 61%). Merton distance-to-default 3.59 σ (model default probability 0.0%).
What works in Elutia Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (2.05).
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 Healthcare & MedTech companies with distress indicators
- Adagio Medical Holdings, Inc. (ADGM)Very weak 100/100
- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
All Healthcare & MedTech companies with distress indicators →
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.