Investment Thesis
BioRegenx is a financially distressed company with negative stockholders' equity of -$3.6M, liabilities exceeding assets by over 4x, and severe liquidity constraints (current ratio of 0.07x). Despite a healthy 80.7% gross margin, the company is unprofitable at the operating level (-21% margin) and burning cash with negative operating and free cash flows, indicating fundamental business model challenges beyond cost of goods sold.
Strengths
- High gross margin of 80.7% suggests strong product pricing power or efficient production
- Small revenue base of $1.5M provides potential runway if business can stabilize
- Service sector positioning in computer programming may have growth potential if company survives
Risks
- Negative stockholders' equity of -$3.6M indicates technical insolvency and high bankruptcy risk
- Critical liquidity crisis with current ratio of 0.07x and only $46.9K cash against $4.8M liabilities
- Negative operating cash flow of -$30.7K and free cash flow of -$36.7K show unsustainable burn rate
- Operating losses of -$308.3K on $1.5M revenue demonstrate inability to scale profitably
- High long-term debt of $1.1M with negative interest coverage of -1.4x raises default risk
Key Metrics to Watch
- Stockholders' equity trend - any movement toward positive equity would signal turnaround
- Operating cash flow - must reach breakeven to demonstrate business sustainability
- Total liabilities vs total assets - current 4:1 ratio is critical distress indicator
- Quarterly revenue growth - needed to justify continued operations
- Cash runway - with current burn rate, assess months of remaining liquidity
Financial Metrics
Revenue
1.5M
Net Income
-525.8K
EPS (Diluted)
$0.00
Free Cash Flow
-36.7K
Total Assets
1.2M
Cash
46.9K
Profitability Ratios
Gross Margin
80.7%
Operating Margin
-21.0%
Net Margin
-35.8%
ROE
N/A
ROA
-45.0%
FCF Margin
-2.5%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
412.3%
Interest Coverage
-1.42x
Long-term Debt
1.1M
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: 2026-03-21T11:40:11.680410 |
Data as of: 2025-09-30 |
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