Investment Thesis
Atlantis Glory demonstrates severe financial distress with negative stockholders' equity of -$210.6K, indicating liabilities exceed assets by a significant margin. Despite a dramatic 1385.7% revenue increase, the company remains deeply unprofitable with -25.1% net margins and is consuming cash at an alarming rate (-$239.3K free cash flow). The combination of negative equity, minimal liquid assets ($0 cash), and operational losses makes this company fundamentally insolvent.
Strengths
- Exceptional revenue growth of 1385.7% YoY suggests significant new business activity
- Gross margin of 24.9% indicates some pricing power or operational efficiency at the gross profit level
- Low absolute asset base ($30K) suggests minimal capital requirements for the business model
Risks
- Negative stockholders' equity of -$210.6K indicates technical insolvency and balance sheet deterioration
- Operating losses of -$39.2K with negative operating margin of -25.1% show business cannot generate profit despite revenue growth
- Critical liquidity crisis with current ratio of 0.04x and zero cash equivalents; company cannot meet short-term obligations
- Free cash flow of -$239.3K and negative operating cash flow indicate the company is burning cash and unsustainable without external financing
- Long-term debt of $64.5K represents significant obligation relative to near-zero asset base
- No insider buying activity in last 90 days suggests lack of management confidence
Key Metrics to Watch
- Stockholders equity trend - critical to monitor if deficit continues expanding
- Operating cash flow - must turn positive to demonstrate business viability
- Cash balance - company currently has zero cash reserves creating imminent liquidity risk
- Revenue sustainability - determine if 1385% growth is repeatable or one-time event
- Debt refinancing capability - critical given insolvency status
Financial Metrics
Revenue
156.0K
Net Income
-39.2K
EPS (Diluted)
$0.00
Free Cash Flow
-239.3K
Total Assets
30.0
Cash
0.0
Profitability Ratios
Gross Margin
24.9%
Operating Margin
-25.1%
Net Margin
-25.1%
ROE
N/A
ROA
-130,663.3%
FCF Margin
-153.4%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
-0.76x
Debt/Equity
N/A
Debt/Assets
702,093.3%
Interest Coverage
N/A
Long-term Debt
64.5K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T17:23:43.562606 |
Data as of: 2025-12-31 |
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