Why did MBRX's EPS remain flat throughout 2024?

Moleculin Biotech's (MBRX) EPS remained flat throughout 2024 due to a combination of factors:

1. No Revenue Recognition: Although Moleculin Biotech reported earnings per share (EPS) of -$2.02 for Q1 2024 and -$1.70 for Q2 2024, the company did not report any revenue for these quarters. This indicates that the company's expenses, possibly including those related to research and development, were recognized but there was no corresponding revenue to contribute to the bottom line.

2. Institutional Investor Activity: Institutional investors and hedge funds own a significant portion of Moleculin Biotech's stock, with Armistice Capital LLC owning approximately 9.60% of the company's shares as of its most recent filing with the SEC. The presence of these long-term investors suggests a strategic investment rather than a speculative one, which may have influenced the company's financial decisions, including the recognition of expenses over revenue.
3. Clinical Development Costs: As a clinical-stage pharmaceutical company, Moleculin Biotech is likely investing heavily in the development of its pipeline of therapeutic candidates. The costs associated with clinical trials and drug development can be substantial and may not generate revenue until the drugs are approved and marketed.
4. Market Conditions: The pharmaceutical sector is subject to market conditions that can affect revenue recognition. For instance, the industry is often influenced by regulatory approvals, which can impact the timing of revenue generation from drug sales.

In summary, Moleculin Biotech's flat EPS in 2024 can be attributed to the company's strategic decisions regarding revenue recognition, the high costs associated with pharmaceutical research and development, and the absence of revenue in certain quarters.