Traws Pharma, Inc. — financial distress indicators
Financial-health summary
Traws Pharma, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 78/100). The main indicators are liabilities exceed assets (negative equity), severe working-capital shortfall and share price down >80% from 52-week high. Independently, the Ohlson accounting model puts its 1-year failure probability at 100%. In its favour: revenue still growing (+1135% 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 1.65× 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).
Current ratio is 0.43 (current assets cover 43% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Price is -85% 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 7.19 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +148% in a year.
Survival financing: repeated equity raises at depressed prices.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Last price $0.48.
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 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
- Revenue still growing (+1135% YoY).
📰 Recent news scan
- Traws Pharma shares rise after Q2 loss comes in better than expectedYahoo Finance · 2026-08-17
- Traws Pharma Reports Q2 2026 Financial Results and Provides Business HighlightsYahoo Finance · 2026-08-14
- Traws Pharma Provides Updated Guidance on Influenza Prophylaxis ProgramYahoo Finance · 2026-06-22
- Traws Pharma Shares Slide After UK Regulator Postpones Influenza StudyYahoo Finance · 2026-06-15
- Traws Pharma Provides Regulatory Update on Influenza ProgramYahoo Finance · 2026-06-12
- Traws Pharma Announces Antiviral Program Targeting Ongoing Hantavirus and Ebola Virus Disease OutbreaksYahoo Finance · 2026-05-27
⚖️ 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 Traws Pharma, Inc.'s financial-health indicators show?
As of 2026-10-08, Traws Pharma, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 78/100, driven by liabilities exceed assets (negative equity), severe working-capital shortfall 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 Traws Pharma, Inc.'s financial distress score?
78/100 ('Very weak'). Ohlson O-score 7.19 (model 1-year failure probability 100%).
What works in Traws Pharma, Inc.'s favour?
Revenue still growing (+1135% 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 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.