How will ALT's expense structure impact future revenue?

**Altimmune's expense structure is currently unsustainable for generating revenue.** Here's the analysis: 1. **Negative Operating Margin**: Altimmune has an operating margin of -475535% as of December 31, 2024. This indicates that the company's expenses far exceed its revenues during this period. Such a negative operating margin is a clear sign of financial distress and suggests that the company is not profitable under its current business model. |code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code| |---|---|---|---|---|---|---|---| |ALT|ALT.O|Altimmune|2024 Q1|100|-487639.99999999994|-487880|185| |ALT|ALT.O|Altimmune|2024 Q2|100|-489460.00000000006|-490340|185| |ALT|ALT.O|Altimmune|2024 Q3|100|-478726.6666666666|-479193.3333|185| |ALT|ALT.O|Altimmune|2024 Q4|100|-475535.00000000006|-475295|185| 2. **Gross and Net Margins**: The company's gross margin is 100%, and net margin is -475295%. These figures are not indicative of a viable business model. A gross margin of 100% implies that the company is not generating any revenue to cover its costs, let alone make a profit. The negative net margin further emphasizes the company's inability to generate revenue to cover its expenses. 3. **Impact on Future Revenue**: The negative operating margin and the lack of revenue generation capacity pose significant challenges for Altimmune's future revenue prospects. The company needs to address its expense structure by reducing costs, increasing revenues, or a combination of both, to become profitable. Without a substantial improvement in its expense management, Altimmune's future revenue potential remains limited. In conclusion, Altimmune's current expense structure is not sustainable and is a major barrier to generating future revenue. The company needs to implement cost-saving measures and enhance its revenue streams to achieve profitability.