Ontrak, Inc.

Ontrak, Inc. (NASDAQ: OTRK) (formerly, Catasys, Inc.) operates as an Artificial Intelligence (AI), and telehealth-enabled healthcare company focused on identifying, engaging, and offering care pathways to treatment relating to behavioral health for those dealing with anxiety, depression, substance use disorder and other chronic diseases.

Key Highlights

• OTRK reported a 23% decline in revenue to USD 18.6 million in Q3FY21 (ended September 30, 2021) from USD 24.0 million in Q3FY20.
• Its Q3FY21 net loss was USD 7.9 million vs. USD 5.7 million reported in Q3FY20, owing to higher R&D, sales & marketing, and general & administrative expenses.
• On December 07, 2021, OTRK signed a contract with its largest employer customer for enhanced mental health and wellness support for employees in 39 countries. The 3-year contract will add the Ontrak program's flexible features to the LifeDojo wellbeing solution.
• It reported a negative net margin of -42.4% in Q3FY21, compared to the industry median of 4.9%. Its operating and EBITDA margins for the quarter were negative, at -29.4% and -18.8%, respectively.
• The stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, and its RSI Index is at 38.03.
• It is trading close to the lower end of its 52-week range of USD 5.20 to USD 99.89.
• OTRK's stock fell 46.80% and 88.11% in the past one and twelve months, respectively.

Technical Price Chart (as of December 07, 2021). Analysis by Kalkine

Conclusion: Considering the technical indicators, disappointing profit margins and lackluster fundamentals, we recommend an "Avoid" rating on the stock at the current price of USD 6.23, up 4.01%, as of December 07, 2021, at 11:33 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.

First Wave BioPharma, Inc.

First Wave BioPharma, Inc. (NASDAQ: FWBI) is a clinical-stage biopharmaceutical company engaged in developing targeted, non-systemic therapies for gastrointestinal (GI) diseases. It is currently working on various therapeutic development projects relating to its two signature technologies - niclosamide, a small oral molecule with anti-viral and anti-inflammatory properties, and the biologic adrulipase, a recombinant lipase enzyme that aids in the digestion of fats and other nutrients.

Key Highlights

• The company is yet to generate any revenues.
• Its net loss for Q3FY21 (ended September 30, 2021) increased to USD 30.40 million from USD 5.31 million reported in Q3FY20, primarily due to higher R&D expenses.
• As of September 30, 2021, its current ratio was 0.39x, much lower than the industry average of 6.57x. This implies that its short-term obligations are growing faster than its resources to cover them.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, and its RSI Index is at 27.05.
• It is leaning towards the lower end of its 52-week range of USD 1.27 to USD 26.30.
• FWBI's stock price corrected 43.06% and 80.80% in the past one and twelve months, respectively.

Technical Price Chart (as of December 07, 2021). Analysis by Kalkine

Conclusion: Considering the company's loss-making status, weak liquidity profile, and other technical indicators, we recommend an "Avoid" rating on the stock at the current price of USD 1.4804, up 5.74%, as of December 07, 2021, at 12:10 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.