MeritValue

FENNEC PHARMACEUTICALS INC.

FENCdata completeness 75%28 fiscal years on file
The thesis, from the filings

FENNEC PHARMACEUTICALS INC. earns about -69% on equity, but has diluted owners by 10% 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—$1.77M1$23.8M1$47.5M2$44.6M2
Net income−$17.3M3−$23.7M4−$16M5−$436,0006−$9.74M6
Operating cash flow−$14.2M7−$18.1M8−$17.1M9$27M10−$12.5M10
Capital expenditure—————
Free cash flow (derived)—————
Total debt—$24.9M11$30.9M12$19.3M13—
Cash & equivalents$21.1M14$23.8M15$13.3M16$26.6M17$36.8M17
Diluted shares26.0M26.3M26.6M27.3M28.6M

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
$12.41
your share of equity
Profit it earned you last year
−$3.41
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $12.41 of net worth that earned you −$3.41 last year.

iii. Is this a good business?
Moat signal · return on equity
-69% avg · 5y
FY21 -110%FY22 —FY23 —FY24 —FY25 -27%

It earned an average -69% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 22% — deleveraging.

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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
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 2022-12-31 · accession 0001558370-24-004383 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0001104659-26-036182 (Revenues)
  3. 10-K · period ending 2021-12-31 · accession 0001558370-23-004948 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001558370-24-004383 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001558370-25-003710 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-31 · accession 0001104659-26-036182 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-23-004948 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-24-004383 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001558370-25-003710 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2024-12-31 · accession 0001104659-26-036182 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-23-004948 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001558370-24-004383 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001558370-25-003710 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001558370-23-004948 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001558370-24-004383 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001558370-25-003710 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001104659-26-036182 (CashAndCashEquivalentsAtCarryingValue)