Xenetic Biosciences, Inc. — financial distress indicators
Financial-health summary
Xenetic Biosciences, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 44/100). The main indicators are losses in each of the last 3 years, operations consume cash and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 93%. In its favour: strong current ratio (7.93).
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.
O-score 2.57 → model probability 93%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Price is -80% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Share count up +48% in a year.
Large issuance usually funds operating losses rather than growth.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (7.93).
- Revenue still growing (+19% YoY).
📰 Recent news scan
- Xenetic Biosciences Announces All-Stock Merger with Santersus, Leaving Existing Shareholders with 15% StakeYahoo Finance · 2026-09-16
- Micro Cap Xenetic Biosciences Expands Therapeutic Platform With Santersus AcquisitionYahoo Finance · 2026-09-16
- Xenetic Biosciences and Santersus AG Announce Definitive Share Exchange Agreement to Create Global Leader in NET-Targeting TherapeuticsYahoo Finance · 2026-09-16
- Xenetic Biosciences, Inc. Announces That Its Collaboration Partner Received Approval From the Israeli Ministry of Health to Conduct Exploratory, Investigator Initiated Study of DNase I In Combination With Anti-CD19 CAR TYahoo Finance · 2026-06-04
- Xenetic Biosciences Reports First Quarter 2026 Financial Results and Highlights Continued Advancement of DNase Oncology PlatformYahoo Finance · 2026-05-13
- Xenetic Biosciences, Inc. Announces Abstract Acceptance for Presentation at the 2026 ASCO Annual MeetingYahoo Finance · 2026-04-22
⚖️ 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 Xenetic Biosciences, Inc.'s financial-health indicators show?
As of 2026-10-08, Xenetic Biosciences, Inc.'s public financial data places it in the 'Watch' band with a distress score of 44/100, driven by losses in each of the last 3 years, operations consume cash and ohlson o-score signals likely failure. 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 Xenetic Biosciences, Inc.'s financial distress score?
44/100 ('Watch'). Ohlson O-score 2.57 (model 1-year failure probability 93%).
What works in Xenetic Biosciences, Inc.'s favour?
Strong current ratio (7.93). Revenue still growing (+19% 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
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- 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.