Investment Thesis
Verde Bio Holdings is in severe financial distress with collapsing revenues ($2.3K), massive operating losses (-$1.0M), and critically weak liquidity (0.06x current ratio). The company is burning cash (-$943.2K operating cash flow) with minimal equity cushion ($119.0K) and near-zero available capital, indicating imminent solvency risk.
Strengths
- No long-term debt obligations reducing refinancing risk
- Positive stockholders equity remaining ($119.0K) though minimal
- Data available for analysis with 28 metrics reported
Risks
- Revenue collapse of 100% YoY indicating business failure or operational shutdown
- Critically low current ratio of 0.06x with insufficient liquid assets to cover liabilities
- Negative cash flow generation (-$943.2K) unsustainable with only $11.6K cash on hand
- Extreme negative margins (operating margin -44,880%, net margin -92,359%) indicating operational non-viability
- Minimal equity base ($119.0K) provides negligible buffer for continued losses
- No insider activity in 90 days suggesting potential abandonment or distress
Key Metrics to Watch
- Quarterly revenue trends and operational status
- Cash position depletion rate and runway remaining
- Quarterly operating cash flow and path to profitability or restructuring
- Changes in liabilities and covenant violations
- Any material events, bankruptcy filings, or going concern disclosures
Financial Metrics
Revenue
2.3K
Net Income
-2.1M
EPS (Diluted)
$0.00
Free Cash Flow
-943.2K
Total Assets
1.9M
Cash
11.6K
Profitability Ratios
Gross Margin
-71.8%
Operating Margin
-44,880.2%
Net Margin
-92,358.8%
ROE
-1,799.6%
ROA
-113.8%
FCF Margin
-40,673.1%
Balance Sheet & Liquidity
Current Ratio
0.06x
Quick Ratio
0.06x
Debt/Equity
0.00x
Debt/Assets
84.8%
Interest Coverage
-90.02x
Long-term Debt
0.0
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: 2026-03-20T00:48:11.896636 |
Data as of: 2024-01-31 |
Powered by Claude AI