Investment Thesis
Byrn, Inc. is in severe financial distress with negative stockholders' equity of -$85.2K, indicating the company is technically insolvent. The company generated only $21K in revenue while burning $39.4K in operating cash flow, demonstrating an unsustainable business model with massive operating losses (-$28.6K) and negative margins exceeding -130%. Without immediate operational turnaround or external capital injection, the company faces existential risk.
Strengths
- Revenue grew 105.5% year-over-year from a very low base
- Gross margin of 100% suggests pricing power if revenue scales
- Minimal capital expenditure requirements
Risks
- Negative stockholders' equity indicates technical insolvency and asset erosion
- Operating losses exceed revenue; business is destroying value at scale
- Critical liquidity crisis with current ratio of 0.09x and zero cash on hand
- Negative free cash flow of -$39.4K consuming capital at unsustainable rate
- Liabilities ($85.2K) exceed assets ($19.7K) by more than 4x
- No insider activity suggests management disengagement or lack of confidence
Key Metrics to Watch
- Path to positive operating cash flow and operating profitability
- Stockholders' equity recovery above zero threshold
- Revenue sustainability and ability to reach operating break-even scale
- Debt restructuring or capital raise plans
- Working capital management and inventory efficiency
Financial Metrics
Revenue
21.0K
Net Income
-28.6K
EPS (Diluted)
$0.00
Free Cash Flow
-39.4K
Total Assets
19.7K
Cash
0.0
Profitability Ratios
Gross Margin
100.0%
Operating Margin
-136.1%
Net Margin
-136.1%
ROE
N/A
ROA
-145.4%
FCF Margin
-187.6%
Balance Sheet & Liquidity
Current Ratio
0.09x
Quick Ratio
0.09x
Debt/Equity
N/A
Debt/Assets
433.2%
Interest Coverage
N/A
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: 2026-03-21T12:44:10.884351 |
Data as of: 2025-09-30 |
Powered by Claude AI