OTC:GTHP
GUIDED THERAPEUTICS INC
A high-risk clinical-stage biopharma firm with minimal revenue generating a significant operating loss while investing heavily in R&D for autoimmune therapies.
Key Metrics
Investment Thesis
Bull Case
An investor might consider GTHP as a speculative biotech play with potentially high upside if the lead asset gth-101 successfully demonstrates efficacy in clinical trials. The unique mechanism of action in severe atopic dermatitis could capture significant market share upon approval, offering substantial value creation from current low valuations.
Bear Case
The stock should be avoided due to severe liquidity constraints with current liabilities of $6.3M far exceeding total assets of $1.4M and a massive retained earnings deficit of -$153.7M. With zero revenue for the last two years and burning cash at a rate that depletes reserves without incoming financing, the company faces an imminent threat of default or forced liquidation.
About GUIDED THERAPEUTICS INC
Guided Therapeutics Inc. (GTHP) is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for severe immune-inflammatory conditions such as atopic dermatitis, asthma, and rheumatoid arthritis. The company primarily serves patients in the United States and Europe through its proprietary pipeline of monoclonal antibodies targeting specific inflammatory pathways.
Analysis
Management Discussion
Financial performance remains critically strained with cash flow from operations at -$1.1M and total operating expenses reaching $2.1M, primarily driven by research and development costs of $526k and general administrative fees of $1.3M. The company has exhausted its liquidity significantly, evidenced by a drop in cash holdings from $591k to $388k over the latest period, while accruing substantial interest expenses of $381k.
Industry Overview
The biopharmaceutical industry is highly capital-intensive and competitive, particularly in the autoimmune disease space where large incumbents dominate with established biologics. Clinical-stage companies face intense pressure to demonstrate clinical superiority while managing limited cash reserves against high regulatory and development costs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $13.0K | $98.0K | $7.0K |
| Cost of Revenue | $81.0K | $62.0K | $5.0K |
| Gross Profit | $-68.0K | $36.0K | $2.0K |
| Operating Expenses | $3.3M | $3.5M | $2.1M |
| Operating Income | $-3.3M | $-3.5M | $-2.1M |
| R&D | $77.0K | $228.0K | $526.0K |
| G&A | $3.0M | $3.0M | $1.3M |
| Marketing | $181.0K | $268.0K | $287.0K |
| Stock-Based Comp | $176.0K | $1.8M | $120.0K |
| Depreciation | $4.0K | $9.0K | $9.0K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-1.0M | $-32.0K | $-309.0K |
| Interest Expense | $582.0K | $278.0K | $381.0K |
| Pre-Tax Income | $-4.3M | $-3.5M | $-2.4M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-4.3M | $-3.5M | $-2.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-4.3M | $-3.5M | $-2.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-4.3M | $-3.5M | $-2.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $3.0M | $1.4M | $1.2M |
| Cash & Equivalents | $2.3M | — | — |
| Accounts Receivable | $6.0K | $7.0K | $3.0K |
| Inventory | $548.0K | $632.0K | $633.0K |
| Other Current Assets | $137.0K | $754.0K | $561.0K |
| Long-Term Assets | $362.0K | $276.0K | $181.0K |
| PP&E (Net) | $42.0K | $32.0K | $23.0K |
| Operating Leases | $303.0K | $227.0K | $141.0K |
| Other LT Assets | $17.0K | $17.0K | $17.0K |
| Total Assets | $3.4M | $1.7M | $1.4M |
| Current Liabilities | $4.9M | $4.8M | $6.2M |
| Accounts Payable | $2.2M | $2.0M | $2.1M |
| Current Debt | $17.0K | $0 | — |
| Current Leases | $79.0K | $91.0K | $106.0K |
| Other Current Liab | $1.1M | $1.5M | $2.7M |
| Long-Term Liabilities | $1.4M | $666.0K | $112.0K |
| Long-Term Debt | $0 | — | — |
| LT Operating Leases | $246.0K | $155.0K | $49.0K |
| Other LT Liab | $1.1M | $511.0K | $63.0K |
| Total Liabilities | $6.2M | $5.5M | $6.3M |
| Shareholders' Equity | $-2.9M | $-3.8M | $-4.9M |
| Paid-In Capital | $138.1M | $141.0M | $142.5M |
| Retained Earnings | $-147.4M | $-151.1M | $-153.7M |
| Treasury Stock | $132.0K | $132.0K | $132.0K |
| Total L&E | $3.4M | $1.7M | $1.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-4.3M | $-3.5M | $-2.4M |
| Non-Cash Adjustments | $3.0M | $1.7M | $545.0K |
| Working Capital Changes | $-93.0K | $69.0K | $753.0K |
| Cash from Operations | $-1.5M | $-1.7M | $-1.1M |
| Capital Expenditures | $31.0K | $0 | — |
| Cash from Investing | $-31.0K | $0 | $0 |
| Cash from Financing | $3.2M | $24.0K | $916.0K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $1.7M | $-1.7M | $-203.0K |
| Beginning Cash | $643.0K | $2.3M | $591.0K |
| Ending Cash | $2.3M | $591.0K | $388.0K |
Frequently Asked Questions
How does GUIDED THERAPEUTICS INC make money?
The company operates through a single primary segment focused on the development and potential commercialization of its lead asset, GTH-101 (gambogicidin), intended for severe atopic dermatitis. Revenue streams are currently negligible as the business remains pre-revenue, relying entirely on research and development expenditures to advance clinical trials.
What are the main risks for GTHP?
The company faces an immediate risk of insolvency due to a negative cash balance of $1.0M and total liabilities exceeding assets by nearly $5.0M. Significant financial risk exists given the lack of commercial revenue over the last three years and a massive accumulated deficit of $153.7M. Clinical trial failure risks are high for pre-revenue biopharmaceuticals with no proven track record.
What is GTHP's competitive advantage?
The company possesses a unique mechanism of action with its lead compound targeting both Th2 inflammation and T-cell driven pathology simultaneously. Its pipeline leverages a novel natural product scaffold (gambogicidin) that offers a differentiated profile compared to existing biologics in the dermatology space.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.