Investment Thesis
Cannabis Bioscience International is a fundamentally distressed company with severe financial deterioration across all key metrics. The company exhibits negative stockholders' equity of $1.4M, massive operating losses, critically low liquidity (0.02x current ratio), and minimal revenue generation ($77.5K) insufficient to cover any operating expenses. The combination of insolvency, negative cash flows, and inability to generate profits makes this an extremely high-risk investment unsuitable for most portfolios.
Strengths
- High gross margin of 75.9% indicates strong product-level economics if revenue could scale
- Year-over-year revenue growth of 21.8% shows some demand for services
- Relatively low total debt of $291.2K in absolute terms
Risks
- Negative stockholders' equity of -$1.4M indicates technical insolvency and potential total loss of equity value
- Critical liquidity crisis with current ratio of 0.02x and only $132 in cash against $1.4M in liabilities
- Massive operating losses (-$170.7K) and negative free cash flow (-$4.7M) with negligible revenue ($77.5K) unable to sustain operations
- Severely negative operating margin (-220.3%) and net margin (-257.7%) indicating structural unprofitability
- Capital expenditure of $4.6M against only $77.5K in revenue demonstrates unsustainable spending patterns
- No insider activity in last 90 days suggesting potential loss of management confidence
Key Metrics to Watch
- Cash balance trend and runway to insolvency
- Revenue growth sustainability and operating expense reduction initiatives
- Debt refinancing or capital restructuring announcements to address negative equity
Financial Metrics
Revenue
77.5K
Net Income
-199.6K
EPS (Diluted)
$0.00
Free Cash Flow
-4.7M
Total Assets
22.1K
Cash
132.0
Profitability Ratios
Gross Margin
75.9%
Operating Margin
-220.3%
Net Margin
-257.7%
ROE
N/A
ROA
-902.0%
FCF Margin
-6,093.5%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
-0.39x
Debt/Equity
N/A
Debt/Assets
6,259.7%
Interest Coverage
-2.90x
Long-term Debt
291.2K
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: 2026-03-21T23:48:10.964897 |
Data as of: 2025-11-30 |
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