Investment Thesis
AquaBounty faces severe financial distress with negative stockholders' equity (-2.1M), massive operating losses (-88.1% margin), and deteriorating cash position. The company is burning approximately 4M annually in free cash flow against only 441K in cash reserves and 3.8M in long-term debt, creating acute solvency risk within 12 months without capital intervention.
Strengths
- Company remains operational with revenue generation despite losses
- Current ratio above 1.0 indicates some short-term liquidity remains
- No insider selling activity suggests management hasn't abandoned ship
Risks
- Negative stockholders' equity indicates technical insolvency
- Operating cash burn of 1.0M annually with only 441K cash on hand
- Unable to service debt with negative interest coverage of -2.1x
- Revenue declining 21.2% YoY indicates deteriorating business fundamentals
- Insufficient cash runway; likely requires dilutive capital raise or restructuring
- Going concern risks apparent with liabilities exceeding assets
Key Metrics to Watch
- Operating cash flow - trajectory toward positive or accelerating burn
- Cash balance depletion rate and runway to insolvency
- Revenue stabilization or reversal of YoY decline
- Debt refinancing announcements or covenant violations
- Capital raise announcements and dilution impact
Financial Metrics
Revenue
705.3K
Net Income
-1.2M
EPS (Diluted)
$-0.26
Free Cash Flow
-4.0M
Total Assets
10.2M
Cash
440.7K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-88.1%
Net Margin
-170.2%
ROE
N/A
ROA
-11.7%
FCF Margin
-560.1%
Balance Sheet & Liquidity
Current Ratio
1.19x
Quick Ratio
1.14x
Debt/Equity
N/A
Debt/Assets
120.7%
Interest Coverage
-2.07x
Long-term Debt
3.8M
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: 2026-05-23T07:44:02.823893 |
Data as of: 2026-03-31 |
Powered by Claude AI