Investment Thesis
Amesite operates with fundamentally broken unit economics: $285.7K revenue against a $2.1M operating loss creates a -732% operating margin, indicating no viable business model. With $1.5M in total assets, negative cash flow of -$1.5M, and only ~5 months of cash runway at current burn rates, the company faces imminent solvency crisis absent major revenue acceleration or capital injection.
Strengths
- Zero debt/leverage eliminates financial amplification risk
- Strong liquidity position with 4.33x current ratio provides short-term cushion
- EPS losses improving 40.5% YoY suggests trend toward profitability, though still deeply negative
Risks
- Revenue of $285.7K is operationally non-viable for a software company with multi-million dollar cost structure
- Negative operating cash flow of -$1.5M creates existential cash runway crisis of <5 months
- Operating margin of -732% and ROE of -157.6% indicate business model fundamentally broken or pre-product-market-fit
- Minimal capex ($1.2K) suggests limited growth investment, indicating distressed financial position
Key Metrics to Watch
- Quarterly revenue growth rate and path to positive unit economics
- Monthly cash burn and remaining runway before capital need
- Gross margin realization and operating expense rationalization
Financial Metrics
Revenue
285.7K
Net Income
-2.1M
EPS (Diluted)
$-0.45
Free Cash Flow
-1.5M
Total Assets
1.5M
Cash
640.7K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-732.1%
Net Margin
-718.6%
ROE
-157.6%
ROA
-137.6%
FCF Margin
-520.6%
Balance Sheet & Liquidity
Current Ratio
4.33x
Quick Ratio
4.33x
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: 2026-05-23T07:41:36.283275 |
Data as of: 2026-03-31 |
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