MeritValue

Biofrontera Inc.

BFRIdata completeness 88%6 fiscal years on file
The thesis, from the filings

Biofrontera Inc. earns about -141% on invested capital, but has diluted owners by 15% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$24.1M1$28.7M2$34.1M3$37.3M4$41.7M4
Net income−$37.7M5−$640,0006−$20.1M7−$17.8M8−$10.5M8
Operating cash flow−$26.7M9−$16.2M10−$24.9M11−$10.3M12−$13.4M12
Capital expenditure—$38,00013$5,00014$10,00015$2,00015
Free cash flow (derived)—−$16.2M10−$24.9M11−$10.3M12−$13.4M12
Total debt——$3.9M16——
Cash & equivalents$24.5M17$17.2M18$1.34M19$5.91M20$6.39M20
Diluted shares8.8M1.1M1.5M5.5M10.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$10.3
your share of equity
Profit it earned you last year
−$10.36
Free cash flow it threw off
−$13.14
Debt you’d be carrying
—

10 shares is a claim on $10.3 of net worth that earned you −$10.36 and generated −$13.14 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-141% avg · 5y
FY21 —FY22 -7%FY23 -214%FY24 —FY25 -203%

It earned an average -141% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+15% shares · 5y

Share count is up 15% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-007472 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-010133 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-011625 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-007472 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001493152-24-010133 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001493152-26-011625 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001493152-23-007472 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001493152-24-010133 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001493152-26-011625 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-12-31 · accession 0001493152-24-010133 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0001493152-26-011625 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (ShortTermBorrowings)
  17. 10-K · period ending 2021-12-31 · accession 0001493152-23-007472 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001493152-24-010133 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001493152-25-011052 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001493152-26-011625 (CashAndCashEquivalentsAtCarryingValue)