Investment Thesis
Aqua Metals is in critical financial distress with zero revenue, massive operating losses of $18.8M, and negative free cash flow of $8.1M, indicating the company's core recycling business has completely ceased operations. With only $3.6M in cash reserves and persistent negative returns on assets (-173.3%) and equity (-279.1%), the company faces imminent liquidity challenges and potential viability concerns without significant operational restructuring or capital infusion.
Strengths
- Moderate balance sheet leverage with debt-to-equity of only 0.05x provides some financial flexibility
- Positive stockholders' equity of $6.5M provides some liquidation value cushion
- 11 insider Form 4 filings suggest ongoing corporate activity and potential restructuring efforts
Risks
- Complete revenue collapse to $0.00 indicates business operations have ceased or been suspended indefinitely
- Negative free cash flow of $8.1M with only $3.6M cash reserves suggests cash runway of less than 5 months at current burn rate
- Severely negative profitability metrics (ROE: -279.1%, ROA: -173.3%) with operating losses of $18.8M demonstrate fundamental operational failure
- Interest coverage ratio of -177.2x indicates inability to service debt from operations
- No gross profit data available, suggesting potential accounting or operational discontinuation
Key Metrics to Watch
- Revenue recovery or return to operational status
- Cash burn rate and remaining liquidity runway
- Resolution of operational shutdown and path to profitability
Financial Metrics
Revenue
0.0
Net Income
-18.2M
EPS (Diluted)
$0.00
Free Cash Flow
-8.1M
Total Assets
10.5M
Cash
3.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-279.1%
ROA
-173.3%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
1.15x
Quick Ratio
1.08x
Debt/Equity
0.05x
Debt/Assets
37.9%
Interest Coverage
-177.17x
Long-term Debt
332.0K
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: 2026-03-20T02:10:11.766373 |
Data as of: 2025-09-30 |
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