MeritValue

Processa Pharmaceuticals, Inc.

PCSAdata completeness 63%14 fiscal years on file
The thesis, from the filings

Processa Pharmaceuticals, Inc. earns about -6771% on invested capital, and has bought back 91% of its shares over 5 years. 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$01$02———
Net income−$11.4M3−$27.4M4−$11.1M5−$11.9M6−$13.6M6
Operating cash flow−$8.72M7−$9.61M8−$8.06M9−$11.2M10−$11.4M10
Capital expenditure——$2,77611$3,24411—
Free cash flow (derived)——−$8.07M9−$11.2M10—
Total debt—————
Cash & equivalents$16.5M12$6.5M13$4.71M14$1.19M15$5.54M15
Diluted shares15.3M805,4771.3M122,4381.3M

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
$42.6
your share of equity
Profit it earned you last year
−$103.6
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $42.6 of net worth that earned you −$103.6 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-6771% avg · 5y
FY21 -105%FY22 -2240%FY23 -3105%FY24 -1854%FY25 -26550%

It earned an average -6771% 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
−91% shares · 5y

Share count is down 91% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 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 2021-12-31 · accession 0001493152-22-008156 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-23-009730 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0001493152-23-009730 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001493152-24-011976 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001641172-25-000070 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-31 · accession 0001493152-26-011204 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001493152-23-009730 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001493152-24-011976 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001641172-25-000070 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2024-12-31 · accession 0001493152-26-011204 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001641172-25-000070 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2021-12-31 · accession 0001493152-23-009730 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001493152-24-011976 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001641172-25-000070 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-12-31 · accession 0001493152-26-011204 (CashAndCashEquivalentsAtCarryingValue)