Serina Therapeutics, Inc. — financial distress indicators
Financial-health summary
Serina Therapeutics, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 42/100). The main indicators are operations consume cash, ohlson o-score signals likely failure and cash runway under 24 months. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 3.1%. 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.
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.
O-score 4.70 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~16 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Price is -64% 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
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (4.18).
- High insider/promoter ownership (51%) aligns management with survival.
📰 Recent news scan
- Registration Is Now Open For Tribe Public’s CEO Presentation and Q&A Webinar Event "A New Approach to Advanced Parkinson’s Disease: Serina Discusses SER-252’s Clinical Progress"Yahoo Finance · 2026-09-23
- Serina Therapeutics to Present at the H.C. Wainwright 28th Annual Global Investment ConferenceYahoo Finance · 2026-09-10
- Serina Therapeutics Reports Cohort 1 Observations from SER-252 Registrational Study in Advanced Parkinson’s Disease and Advances to Cohort 2Yahoo Finance · 2026-09-09
- Serina Therapeutics Reports Second Quarter 2026 Financial Results and Provides Business UpdatesYahoo Finance · 2026-08-13
- Serina Therapeutics Announces Completion of Enrollment and Dosing in Cohort 1 of Registrational Trial of SER-252 for Advanced Parkinson’s DiseaseYahoo Finance · 2026-07-23
- Serina Therapeutics Appoints Farrell Simon to its Board of DirectorsYahoo Finance · 2026-07-22
⚖️ 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 Serina Therapeutics, Inc.'s financial-health indicators show?
As of 2026-10-08, Serina Therapeutics, Inc.'s public financial data places it in the 'Watch' band with a distress score of 42/100, driven by operations consume cash, ohlson o-score signals likely failure and cash runway under 24 months. 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 Serina Therapeutics, Inc.'s financial distress score?
42/100 ('Watch'). Ohlson O-score 4.7 (model 1-year failure probability 99%). Merton distance-to-default 1.87 σ (model default probability 3.1%).
What works in Serina Therapeutics, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (4.18). High insider/promoter ownership (51%) 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.