Investment Thesis
AppYea demonstrates severe financial distress with massive operating losses, negative equity of -$7.7M, and critically low liquidity (0.07x current ratio). The company is technically insolvent with liabilities exceeding assets by $7.7M, and despite a revenue spike, is burning cash rapidly with -$353K free cash flow while generating extreme negative margins.
Strengths
- Revenue increased 8305.8% YoY from minimal base
- Maintained $468K in cash reserves despite losses
- No insider selling activity in last 90 days
Risks
- Negative stockholders equity of -$7.7M indicates technical insolvency
- Current ratio of 0.07x indicates acute liquidity crisis and inability to meet short-term obligations
- Operating cash flow of -$350K and free cash flow of -$353K show business cannot sustain itself
- Gross margin of -50% indicates fundamental business model problems
- Total liabilities of $8.4M versus total assets of $636K leaves minimal cushion
- Operating margin of -11883.3% reflects extreme operational inefficiency
Key Metrics to Watch
- Cash burn rate and runway to insolvency
- Path to positive gross margin and operating profitability
- Restructuring or debt modification negotiations
Financial Metrics
Revenue
6.0K
Net Income
-4.9M
EPS (Diluted)
$0.00
Free Cash Flow
-353.0K
Total Assets
636.0K
Cash
468.0K
Profitability Ratios
Gross Margin
-50.0%
Operating Margin
-11,883.3%
Net Margin
-80,833.3%
ROE
N/A
ROA
-762.6%
FCF Margin
-5,883.3%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.06x
Debt/Equity
N/A
Debt/Assets
1,319.8%
Interest Coverage
N/A
Long-term Debt
299.3K
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: 2026-03-20T02:04:10.461329 |
Data as of: 2025-09-30 |
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