Investment Thesis
Cardio Diagnostics is in critical financial distress with near-zero revenue generation ($14.8K), massive operating losses (-$6.5M), and zero cash reserves despite $7.8M in total assets. The company is burning cash rapidly with negative free cash flow of -$5.9M, indicating it is not operationally viable and faces imminent liquidity crisis without immediate capital infusion.
Strengths
- Low debt burden with 0.00x debt-to-equity ratio indicating no financial leverage risk
- High current and quick ratios (9.79x) suggest sufficient short-term liquid assets relative to current liabilities
- Modest liabilities of $793.1K represent only 10.1% of total assets
Risks
- Revenue collapse of 57.5% YoY with only $14.8K in latest period indicating complete commercial failure
- Zero cash and equivalents with -$5.9M free cash flow burn rate means company has weeks to months of runway remaining
- Net loss of $6.5M per period on negligible revenue results in unsustainable -43,832.5% net margin and -83.7% ROA
- Negative operating cash flow of -$5.7M indicates core business operations are destroying rather than generating value
- Severely diluted shareholder equity with -3.71 diluted EPS and -93.2% ROE showing persistent value destruction
Key Metrics to Watch
- Cash burn rate and remaining runway before insolvency
- Whether company achieves any meaningful revenue growth or secures capital infusion
- Operating expense reduction and path to cash flow breakeven
Financial Metrics
Revenue
14.8K
Net Income
-6.5M
EPS (Diluted)
$-3.71
Free Cash Flow
-5.9M
Total Assets
7.8M
Cash
0.0
Profitability Ratios
Gross Margin
N/A
Operating Margin
-43,737.5%
Net Margin
-43,832.5%
ROE
-93.2%
ROA
-83.7%
FCF Margin
-39,893.1%
Balance Sheet & Liquidity
Current Ratio
9.79x
Quick Ratio
9.79x
Debt/Equity
0.00x
Debt/Assets
10.2%
Interest Coverage
-438.08x
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: 2026-03-22T02:42:11.813088 |
Data as of: 2025-12-31 |
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