Investment Thesis
Clean Vision Corp exhibits severe financial distress with negative stockholders' equity of -$15.8M, indicating the company is technically insolvent. The company burns cash at an alarming rate (-$5.8M FCF annually) while generating minimal revenue ($125.2K), with operating losses of -$4.2M far exceeding gross profits, suggesting fundamental business model failure.
Strengths
- High gross margin of 84.6% indicates reasonable product pricing or cost structure when products sell
- Minimal capital expenditure requirements suggest asset-light operations
- Cash position of $575.7K provides near-term runway for operations
Risks
- Negative stockholders' equity (-$15.8M) indicates technical insolvency and existential bankruptcy risk
- Severe cash burn of -$5.6M operating cash flow annually with only $575.7K cash creates critical liquidity crisis
- Revenue collapse (-10.2% YoY to $125.2K) and massive operating losses (-$4.2M) demonstrate business model failure
- Current ratio of 0.30x indicates inability to cover short-term obligations
- Total liabilities ($36.3M) exceed total assets ($20.8M) by $15.5M
- No insider buying activity in 90 days suggests lack of confidence from management
Key Metrics to Watch
- Cash depletion rate and runway until insolvency
- Revenue stabilization or continued decline trajectory
- Operating loss reduction path to viability
- Working capital deficit resolution strategy
- Debt restructuring or capital injection announcements
Financial Metrics
Revenue
125.2K
Net Income
-5.5M
EPS (Diluted)
$-0.01
Free Cash Flow
-5.8M
Total Assets
20.8M
Cash
575.7K
Profitability Ratios
Gross Margin
84.6%
Operating Margin
-3,334.6%
Net Margin
-4,374.3%
ROE
N/A
ROA
-26.3%
FCF Margin
-4,658.1%
Balance Sheet & Liquidity
Current Ratio
0.30x
Quick Ratio
0.30x
Debt/Equity
N/A
Debt/Assets
174.2%
Interest Coverage
-2.82x
Long-term Debt
1.8M
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: 2026-03-22T12:14:10.781580 |
Data as of: 2025-09-30 |
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