$AKER Loss-Making Akers Biosciences Inc (NASDAQ:AK

$AKER Loss-Making Akers Biosciences Inc (NASDAQ:AKER) Expected To Breakeven



Akers Biosciences Inc’s (NASDAQ:AKER): Akers Biosciences, Inc., together with its subsidiaries, develops, manufactures, and supplies rapid screening and testing products designed to deliver healthcare information to healthcare providers and consumers in the United States and internationally. The US$54.74M market-cap company announced a latest loss of -US$5.81M on 31 December 2017 for its most recent financial year result. Many investors are wondering the rate at which AKER will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for AKER.

See our latest analysis for Akers Biosciences

According to the industry analysts covering AKER, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of US$1.23M in 2018. AKER is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which AKER must grow year-on-year. It turns out an average annual growth rate of 200.13% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.



Given this is a high-level overview, I won’t go into detail the detail of AKER’s upcoming projects, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing I’d like to point out is that AKER has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. AKER currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.