Investment Thesis
Company is operationally insolvent with negative stockholders equity of -6.2M, generating losses on minimal revenue of 87.2K while burning cash at -397.6K annually. Negative gross margin of -94.1% indicates the business model is fundamentally broken, with cost of goods sold exceeding revenue by 94%, making turnaround highly unlikely without radical restructuring.
Strengths
- Modest 13% YoY revenue growth showing some market traction
- No long-term debt limiting creditor pressure
- Minimal insider selling pressure (0 Form 4 filings in 90 days)
Risks
- Negative stockholders equity of -6.2M indicates technical insolvency
- Negative gross margin of -94.1% means company loses money on every sale
- Severe liquidity crisis with current ratio of 0.02x and only 79.8K cash against 6.4M liabilities
- Negative operating cash flow of -257.1K and free cash flow of -397.6K indicate unsustainable cash burn
- Net margin of -418.5% demonstrates company cannot operate profitably at any scale
Key Metrics to Watch
- Gross margin trajectory - needs to turn positive immediately for viability
- Monthly cash burn rate and runway before insolvency
- Revenue growth sustainability - whether 13% growth can continue without losses widening
Financial Metrics
Revenue
87.2K
Net Income
-364.8K
EPS (Diluted)
$0.00
Free Cash Flow
-397.6K
Total Assets
223.3K
Cash
79.8K
Profitability Ratios
Gross Margin
-94.1%
Operating Margin
-472.2%
Net Margin
-418.5%
ROE
N/A
ROA
-163.3%
FCF Margin
-456.2%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.01x
Debt/Equity
N/A
Debt/Assets
2,854.3%
Interest Coverage
-0.97x
Long-term Debt
0.0
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: 2026-03-21T10:04:10.663239 |
Data as of: 2025-09-30 |
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