Investment Thesis
Cell Source is in severe financial distress with negative stockholders' equity of -$18.9M, indicating liabilities exceed assets by nearly $19M. The company is cash-flow negative with operating losses of $3.2M against minimal revenue of -$124.8K, suggesting either business model failure or accounting issues. With only $23K in cash against $19.2M in total liabilities and a current ratio of 0.03x, the company faces imminent solvency risk.
Strengths
- No recent insider selling (0 Form 4 filings in last 90 days suggests limited insider confidence)
Risks
- Negative stockholders' equity of -$18.9M indicates technical insolvency
- Negative revenue of -$124.8K suggests business failure or significant accounting adjustments
- Severe liquidity crisis with current ratio of 0.03x and only $23K cash against $19.2M liabilities
- Operating losses of $3.2M with no meaningful revenue generation
- High leverage with $3.5M long-term debt and -28.3x interest coverage ratio
- Negative operating cash flow of -$1.9M demonstrates inability to fund operations
Key Metrics to Watch
- Stockholders' equity trend and path to solvency
- Operating cash flow and runway to cash depletion
- Revenue stabilization and return to positive sales
Financial Metrics
Revenue
-124.8K
Net Income
-4.2M
EPS (Diluted)
$-0.13
Free Cash Flow
-1.9M
Total Assets
264.7K
Cash
23.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
2,535.3%
Net Margin
3,351.1%
ROE
N/A
ROA
-1,579.9%
FCF Margin
1,553.5%
Balance Sheet & Liquidity
Current Ratio
0.03x
Quick Ratio
0.03x
Debt/Equity
N/A
Debt/Assets
7,256.6%
Interest Coverage
-28.31x
Long-term Debt
3.5M
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: 2026-03-22T11:22:10.034903 |
Data as of: 2024-09-30 |
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