Investment Thesis
Amesite is a pre-revenue stage software company in severe financial distress with collapsing revenue (-33.8% YoY), massive negative profitability margins exceeding -679%, and deteriorating cash position. The company is burning cash at an unsustainable rate with negative operating cash flow of -1.0M annually on virtually no revenue base, creating an existential liquidity crisis.
Strengths
- Positive current ratio of 2.72x provides near-term liquidity cushion
- Zero long-term debt eliminates leverage risk
- Cash reserves of 1.2M provide limited runway for operations
Risks
- Revenue collapsed 33.8% YoY to only 202.3K, indicating failed commercialization
- Negative operating cash flow of -1.0M annually will deplete cash reserves within 12-14 months
- Operating margin of -695.5% and net margin of -679.4% demonstrate the business model is fundamentally broken
- Negative ROE of -91.2% and ROA of -68.8% indicate value destruction
- No gross profit data suggests inability to achieve unit economics
Key Metrics to Watch
- Quarterly revenue trend and burn rate acceleration/deceleration
- Cash balance trajectory and runway until insolvency
- Operating expense reduction progress and cost containment efforts
Financial Metrics
Revenue
202.3K
Net Income
-1.4M
EPS (Diluted)
$-0.30
Free Cash Flow
-1.0M
Total Assets
2.0M
Cash
1.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-695.5%
Net Margin
-679.4%
ROE
-91.2%
ROA
-68.8%
FCF Margin
-513.0%
Balance Sheet & Liquidity
Current Ratio
2.72x
Quick Ratio
2.72x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-03-19T18:10:48.305763 |
Data as of: 2025-12-31 |
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