Investment Thesis
Basanite is in severe financial distress with negative stockholders' equity of -$10.0M, indicating the company is technically insolvent. The company generated only $67.5K in revenue while burning cash at -$765.4K free cash flow, with massive operating losses of -$944.3K and a net loss of -$1.4M. Without immediate capital restructuring or dramatic revenue growth, the company faces critical viability concerns.
Strengths
- Minimal long-term debt of only $50.0K limits debt servicing obligations
- Some capital expenditure activity ($178.1K) suggests limited operational attempts
- Company is still reporting some revenue generation despite losses
Risks
- Negative stockholders' equity of -$10.0M indicates technical insolvency and balance sheet is underwater
- Massive cash burn with negative free cash flow of -$765.4K and zero cash reserves
- Extreme operating losses with -1399.8% operating margin and -2036.1% net margin unsustainable
- Liabilities ($10.1M) exceed assets ($125.2K) by 80x, indicating high bankruptcy risk
- Zero insider activity and no liquidity metrics (0.00x current/quick ratios) signal liquidity crisis
- Negative operating cash flow of -$587.3K demonstrates inability to fund operations
Key Metrics to Watch
- Stockholders' equity trajectory and debt restructuring outcomes
- Quarterly revenue trends and path to profitability
- Cash burn rate and months of runway remaining
- Working capital position and ability to meet short-term obligations
Financial Metrics
Revenue
67.5K
Net Income
-1.4M
EPS (Diluted)
$0.00
Free Cash Flow
-765.4K
Total Assets
125.2K
Cash
0.0
Profitability Ratios
Gross Margin
-119.7%
Operating Margin
-1,399.8%
Net Margin
-2,036.1%
ROE
N/A
ROA
-1,096.7%
FCF Margin
-1,134.7%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
8,048.9%
Interest Coverage
-1.86x
Long-term Debt
50.0K
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: 2026-03-20T16:34:10.691337 |
Data as of: 2025-09-30 |
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