Investment Thesis
Accredited Solutions exhibits severe financial distress with negative stockholders' equity of -$1.1M, indicating the company is technically insolvent. Operating losses of -$459.4K coupled with negative free cash flow of -$291.8K demonstrate the business cannot sustain operations independently. The anomalous 468% net margin driven by non-operating gains masks fundamental operational failure and insolvency risk.
Strengths
- Revenue growth of 42.6% YoY shows some commercial traction in beverage segment
- Positive net income of $2.1M likely driven by one-time non-operating items
- Minimal insider selling activity suggests limited insider concern about immediate dilution
Risks
- Negative stockholders' equity of -$1.1M indicates technical insolvency and bankruptcy risk
- Severe liquidity crisis with current ratio of 0.07x; liabilities of $1.3M exceed assets of $248.7K by 5x
- Negative operating cash flow of -$244.8K and free cash flow of -$291.8K demonstrate unsustainable burn rate
- Operating margin of -101.5% shows core business is deeply unprofitable despite revenue growth
- Cash position of only $12.1K is critically low relative to liabilities and burn rate
Key Metrics to Watch
- Stockholders equity trend - path to positive equity or further deterioration
- Operating cash flow - whether burn rate accelerates or stabilizes
- Liquidity position - ability to service $1.3M in liabilities with minimal cash
- Revenue sustainability - whether 42.6% growth can continue and eventually reach profitability
- Operating losses - timeline to breakeven on core operations
Financial Metrics
Revenue
452.8K
Net Income
2.1M
EPS (Diluted)
$0.00
Free Cash Flow
-291.8K
Total Assets
248.7K
Cash
12.1K
Profitability Ratios
Gross Margin
19.9%
Operating Margin
-101.5%
Net Margin
468.0%
ROE
N/A
ROA
852.0%
FCF Margin
-64.4%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
532.7%
Interest Coverage
-2.50x
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: 2026-03-20T05:50:11.542903 |
Data as of: 2024-09-30 |
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