Insight Molecular Diagnostics Inc. — financial distress indicators
Financial-health summary
Insight Molecular Diagnostics Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 61/100). The main indicators are liabilities exceed assets (negative equity), cash runway under 12 months and losses in each of the last 3 years. In its favour: revenue still growing (+116% yoy).
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.
Total liabilities are 1.72× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
At the current free-cash-flow burn, cash covers ~8 months.
Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.
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 -61% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Revenue still growing (+116% YoY).
📰 Recent news scan
- IMDX Oct 2026 4.000 put (IMDX261016P00004000) Stock Historical Prices & Data - Yahoo! Finance CanadaGoogle News · 2026-10-07
- IMDX Nov 2026 10.000 put (IMDX261120P00010000) stock historical prices and data - Yahoo Finance AustraliaGoogle News · 2026-10-07
- $IMDX stock is down 15% today. Here's what we see in our data. - Quiver QuantitativeGoogle News · 2026-09-28
- $IMDX stock is down 13% today. Here's what we see in our data. - Quiver QuantitativeGoogle News · 2026-08-13
- IMDX Forecast — Price Target — Prediction for 2027 - TradingViewGoogle News · 2026-06-26
- Insight Molecular Diagnostics Inc. 2026 Q1 - Results - Earnings Call Presentation (NASDAQ:IMDX) 2026-05-17 - Seeking AlphaGoogle News · 2026-05-17
⚖️ 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 Insight Molecular Diagnostics Inc.'s financial-health indicators show?
As of 2026-10-08, Insight Molecular Diagnostics Inc.'s public financial data places it in the 'Weak' band with a distress score of 61/100, driven by liabilities exceed assets (negative equity), cash runway under 12 months and losses in each of the last 3 years. 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 Insight Molecular Diagnostics Inc.'s financial distress score?
61/100 ('Weak').
What works in Insight Molecular Diagnostics Inc.'s favour?
Revenue still growing (+116% YoY).
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
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- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
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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.