Forensic Analysis · Pharmaceuticals & Biotechnology · as of Nov 8, 2026
Korsana Biosciences, Inc. (KRSA)
A forensic read on Korsana Biosciences, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-88.7
Distress distance
Clean
Earnings quality
6
Forensic signals
-39.3%
ROE
3.7%
Revenue growth
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 (auditor quality, say on pay, board independence, going concern). 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.
Korsana Biosciences, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -88.7, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
176d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 101 to 176 days FY2024→FY2025 (receivables +80% vs revenue +4%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. There's no FY2023 figure on file for receivables, so FY2024 has no opening balance to average against — both figures are measured on period-end balances rather than the beginning-plus-ending average, since averaging only the current year would make the move track balance-sheet growth rather than the business.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
-68.5%
FY2025
Return on invested capital.Return on invested capital is -68.5% in the latest fiscal year, against -275.3% in FY2023, having run between -275.3% and -61.4% across FY2023–FY2025 with no direction held. After-tax operating profit was ($10M) in FY2023 and ($4M) in FY2025, with operating income at -181.4% of revenue in FY2024 and -239.8% in FY2025. The capital base behind it grew +54% across FY2023–FY2025, from $4M to $6M, and the return did not fall doing it, so the dollars added over that window earned at least the -275.3% the older base was already earning. FY2023's operating profit carried a $3M asset write-down and a $565,000 restructuring charge that alone took about 82.2 points off that year's return, so about 82.2 of the 206.8-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more. A non-cash write-down lowers the reported return in the year it lands.
+16.6%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +36% over the last 2 years to FY2025 (+16.6%/yr). The count is growing — 2.3M shares in FY2023, 3.2M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~16.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~27%.
21% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 21% of revenue in FY2025 — about $0.14 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 16.6% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
-$28.9M
FY2023–FY2025
Cash burn vs. reported loss.Over FY2023–FY2025, the company reported a cumulative net loss of $11.8M against operating cash flow of -$28.9M. Cash burn ran heavier than the reported loss — something outside net income (working capital, a cash item not in the P&L) is consuming cash faster than the loss alone implies.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from positive to negative FY2024→FY2025 (FY2024 $+5.6M to FY2025 $-6.3M) — 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.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
Key fundamentals
Latest Revenue$2.1M
Revenue Growth YoY+3.7%
Net Margin-170.1%
Return on Equity-39.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Korsana Biosciences, Inc.'s actual 10-K/10-Q/8-K filings?