Scorpius Holdings, Inc. (SCPX) is an OTC-traded company characterized by heavy reliance on equity financing and capital expenditures, currently operating at a net loss with minimal inventory exposure.
Scorpius Holdings offers exposure to a company with a robust balance sheet containing $39.2M in total assets and $1.0M in cash, potentially undervalued due to non-operational losses being masked by massive share issuances. The substantial paid-in capital of $293.3M suggests management has significant resources to pursue strategic acquisitions or pivot business models without immediate dilution concerns.
The stock is a high-risk investment given the consistent net loss trend from -$43.9M in 2022 to -$34.3M in 2024, showing no path to profitability under current operational structures. Investors face significant dilution risk as the company has issued $22.0M in common shares recently while retaining a massive deficit of -$287.2M.
Scorpius Holdings, Inc. operates as a specialized entity within the OTC market, generating revenue primarily through service-based or low-capital business models evidenced by minimal inventory and high operating expenses relative to sales. The company reports significant cash inflows from financing activities, suggesting reliance on capital markets for liquidity rather than organic operational cash generation. While the firm maintains a substantial asset base of nearly $40 million, it continues to report material net losses driven by high general and administrative costs.
Management successfully preserved liquidity through aggressive financing, recording $25.6M in cash flow from financing activities while capitalizing on long-term asset depreciation of $7.2M. However, the company's core operations remain loss-making with a net profit to shareholders of -$32.8M and operating expenses of $36.6M significantly outpacing revenue growth which has stagnated below $6.5M annually since 2022.
The OTC market often hosts companies in niche sectors or emerging industries where traditional valuation metrics like P/E ratios are less applicable due to profitability challenges. Companies in this space frequently rely on alternative capital structures and asset-heavy strategies to differentiate themselves from public peers.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $6.4M | $7.0M | $6.2M |
| Cost of Revenue | $6.4M | $2.7M | $3.2M |
| Gross Profit | $-17.8K | $4.3M | $3.0M |
| Operating Expenses | $45.7M | $46.3M | $36.6M |
| Operating Income | $-45.7M | $-42.0M | $-33.6M |
| R&D | $23.5M | $20.1M | $14.3M |
| G&A | $21.1M | $26.2M | $21.6M |
| Stock-Based Comp | $4.1M | $2.6M | $1.0M |
| D&A | $2.1M | $6.5M | $7.2M |
| Depreciation | $1.8M | $4.6M | $4.9M |
| Amortization | $1.0M | $1.1M | — |
| Other OpEx | $1.1M | $0 | $749.2K |
| Non-Operating Income | $-1.5M | $-301.4K | $-727.5K |
| Interest Income | $987.2K | $457.2K | $22.2K |
| Pre-Tax Income | $-47.2M | $-42.3M | $-34.3M |
| Income Tax | $-3.3M | $-571.1K | $0 |
| Continuing Ops | $-43.9M | $-41.8M | $-34.3M |
| Discontinued Ops | $0 | $-5.1M | $0 |
| Net Income | $-43.9M | $-46.8M | $-34.3M |
| Minority Interest | $-427.5K | $-1.6M | $-1.5M |
| Net to Common | $-43.4M | $-45.2M | $-32.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $50.1M | $4.8M | $3.3M |
| Cash & Equivalents | $8.4M | $184.9K | $1.0M |
| Marketable Securities | $35.8M | $2.2M | $135.1K |
| Accounts Receivable | $81.5K | $375.2K | $143.5K |
| Inventory | — | $909.2K | $198.7K |
| Prepaid Expenses | $3.6M | $817.0K | $1.8M |
| Other Current Assets | $2.1M | $268.0K | $0 |
| Long-Term Assets | $54.3M | $46.3M | $35.9M |
| PP&E (Net) | $20.5M | $17.6M | $12.3M |
| Goodwill | $3.3M | — | — |
| Operating Leases | $6.0M | $6.0M | $4.8M |
| Other LT Assets | $24.6M | $22.6M | $18.8M |
| Total Assets | $104.4M | $51.0M | $39.2M |
| Current Liabilities | $18.0M | $10.1M | $24.3M |
| Accounts Payable | $4.4M | $4.1M | $3.2M |
| Current Leases | $490.4K | $524.2K | $475.0K |
| Deferred Revenue | $1.6M | $2.4M | $1.5M |
| Taxes Payable | $1.1M | — | — |
| Other Current Liab | $6.1M | $904.7K | $17.0M |
| Long-Term Liabilities | $13.9M | $12.6M | $13.2M |
| LT Operating Leases | $3.1M | $3.6M | $3.0M |
| Other LT Liab | $10.8M | $9.0M | $10.2M |
| Total Liabilities | $32.0M | $22.7M | $37.5M |
| Shareholders' Equity | $72.4M | $28.3M | $1.7M |
| Paid-In Capital | $283.0M | $285.7M | $293.3M |
| Retained Earnings | $-209.2M | $-254.4M | $-287.2M |
| AOCI | $51.9K | $48.9K | $224.1K |
| Total L&E | $104.4M | $51.0M | $39.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-43.9M | $-46.8M | $-34.3M |
| Non-Cash Adjustments | $70.6M | $18.9M | $10.3M |
| Working Capital Changes | $-32.4M | $-3.6M | $-2.0M |
| Cash from Operations | $-5.7M | $-31.5M | $-26.0M |
| Capital Expenditures | $20.1M | $2.0M | $875.2K |
| Cash from Investing | $11.0M | $32.2M | $1.2M |
| Cash from Financing | $-4.9M | $-9.0M | $25.6M |
| FX Effect | $-3.6K | $-1.6K | $-813 |
| Net Change in Cash | $380.7K | $-8.2M | $843.1K |
| Beginning Cash | $8.1M | $8.4M | $184.9K |
| Ending Cash | $8.4M | $184.9K | $1.0M |
General and Administrative Services generating the majority of revenue; Capital Expenditure & Asset Management utilizing over $35M in long-term assets; Financing Operations evidenced by $25.6M cash flow from financing activities.
Persistent operating losses with 2024 net income at -$34.3M indicate a fundamental inability to generate positive core profitability; Heavy dependence on equity issuance ($22.0M share issuances) for cash flow rather than operational generation; High current liabilities of $24.3M against limited current assets of $3.3M creating potential solvency pressure.
Access to significant paid-in capital ($293.3M) providing a liquidity buffer absent in peers; Substantial existing asset base including $12.3M in net fixed assets and $4.8M in lease assets; Operational leverage potential through high depreciation of $7.2M which shields earnings from cash flow volatility.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.