Revenue Analysis
For KRTX, Total Revenue and Operating Revenue have been consistently reported as $0 for all quarters except for the first quarter of 2023, where Operating Revenue was recorded at $654,000. This nominal revenue indicates that KRTX is not generating significant operational income.
Cost Management
Operating Expenses and Total Expenses are significant, showing substantial recurring expenses. Operating Expenses have ranged from $109,720,000 in Q1 2023 to $136,218,000 in Q3 2023. The high level of expenses, with no corresponding revenue, reflects a financially strained operational structure.
Profitability Analysis
EBITDA and Operating Income have been negative across all quarters, indicating that KRTX is not profitable at its operational level. For instance, EBITDA in Q3 2023 was -$129,139,000 and Operating Income was also negative at -$129,586,000. Net Income and Pretax Income followed a similar pattern, suggesting an inability to cover expenses through operations alone.
Cash Flow Indicators
Reconciled Depreciation expenses ranged from $327,000 in Q1 2023 to $469,000 in Q2 2023. These figures indicate modest capital expenditure relative to other operational costs. Interest Income provided some financial cushion, ranging from $11,345,000 in Q1 2023 to $16,985,000 in Q2 2023, demonstrating reliance on non-operational income to support cash flows.
Taxation
Tax Provisions were recorded only in two quarters: $670,000 in Q3 2023 and $0 in other periods, with a Tax Rate for Calculations at 0.21 in Q3 2023 and zero otherwise. This suggests a minimal tax liability, consistent with the negative profitable state of the company.
Shareholder Metrics
Diluted and Basic EPS have been consistently negative, indicating losses per share. For example, Diluted EPS was -3.01 in Q3 2023 and -2.75 in Q2 2023. The average shares outstanding were approximately 37 million in 2023. Net Income Available to Common Stockholders mirrored Net Income, showing comprehensive losses across all quarters analyzed.
Conclusion
KRTX has struggled significantly with profitability, reflected in persistent operational losses and an inability to generate substantial revenue. The financial health of the company is concerning, with heavy reliance on non-operational income to sustain cash flows. Immediate strategic revisions in operational management and cost structure are critical to steer towards potential profitability.