MannKind Corporation ( MNKD ) stock has never looked so bleak. Shares of the small-cap biotech are down 25% on Tuesday after reporting a steep first-quarter loss, and more devastatingly, a MNKD stock offering that will further dilute shares.

I myself was once a devout MannKind believer. But after Monday’s results, it has become clearer than ever that MNKD stock owners need to cut and run before this thing becomes the next SUNE — the former ticker symbol for SunEdison Inc ( SUNEQ ), the now-bankrupt solar power company.

It’s likely that there still are some MannKind investors out there sitting on a cost basis of around $10 — near where shares peaked in 2014 — meaning at 99 cents a share, MNKD stock has lost them 90% of their investment.

I understand the psychological reasons for wanting to ride that out: “I’ve lost this much, what else do I have to lose?”

Well, the simple answer is that you have 100% of your remaining investment still on the table, and that investment could be put to work somewhere more productive.

Holding MannKind right now is the same thing as buying it: You’re making a bet it’ll outperform the markets going forward. But that is not going to happen, just like SUNE never made the miraculous comeback many called for.

I beg you to get out while you still can.

MNKD Stock: Debt-Loaded, Diluted, and Donezo

I’ve been singing a different, far more bearish tune on MNKD stock since it became apparent last year that sales of its flagship inhalable diabetes treatment, Afrezza, were dramatically underperforming. The decision to unload and call it a day was made all the more clear in January when Sanofi SA (ADR) ( SNY ) canceled its deal with MannKind to market Afrezza for the tiny company.

Last week, I warned that MannKind’s debt, the passing of visionary founder Al Mann, the death of the Sanofi deal and a dunce of a new CEO spelled big trouble for MNKD stock owners. The warning signs were similarly ominous for SUNE investors.

If you’re more of a dollars-and-cents kinda person, though, I hear you. I’ll spell out why the situation is so bleak for MannKind shares in the language of business.

The small-cap biotech is issuing an additional 48.54 million shares of MannKind stock and warrants to institutional investors at an aggregate price of $1.03 per share. Currently, there are 428.86 million MNKD shares outstanding, so this represents a dilution of about 11.3%.

The issuance will raise $50 million, or $47.5 million after fees. The company says it’ll spend those proceeds on “working capital and general corporate purposes.”

Those general corporate purposes had better include paying off debt, or creditors will come rushing in to liquidate the company and get back their investment before shareholders get a penny (see: SUNE). At the end of Q1, MannKind had just $27.7 million in cash on hand, and owed Sanofi an outrageous $68.8 million.

It has a laundry list of other liabilities as well, and with current assets of $44.1 million against current liabilities of $249.2 million, MNKD is in a tough spot. I’m not making comparisons to the bankrupt SunEdison out-of-hand.

The MannKind play is over. Things can only get worse from here on out, and eventually this company will be forced to liquidate and shut down shop.

If you’re a MNKD stock owner, make sure you’re not there when that day comes.

As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid or email him at editor@investorplace.com.

More From InvestorPlace