Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 12, 2026

Adial Pharmaceuticals, Inc. (ADIL)

A forensic read on Adial Pharmaceuticals, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

C · Mixed — selective

Forensic grade

Distress

Financial health

-43.1

Distress distance

Clean

Earnings quality

Forensic signals

-151.2%

ROE

The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Adial Pharmaceuticals, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads -43.1, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 3 forensic signals were flagged in its latest SEC filings, led by shareholder returns.

What the filings flag

OCF ($7M)

FY2023

Shareholder returns. Returned $1,661 to shareholders (buybacks + dividends) in FY2023, while operating cash flow itself was ($7M) — zero or negative. Capex isn't disclosed for FY2023, but free cash flow can't have been positive when operating cash flow already isn't, so the entire return is coming from debt or cash reserves, not cash the business generated.

n/m (sign flip)

FY2024→FY2025

Accruals ratio (% of NOA). Net operating assets flipped from positive to negative FY2024→FY2025 (FY2024 $+0.3M to FY2025 $-0.6M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.

n/m (stock split)

FY2022–FY2025

Share count (stock split). Diluted share count changed -33% over the last 3 years to FY2025, but that includes a large one-time change around FY2024 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw -12.6%/yr figure isn't a real buyback/dilution read here.

Key fundamentals

Return on Equity-151.2%

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Data from SEC EDGAR public filings · metrics as of Sep 12, 2026. Forensic signals flag probability, not certainty.