Investment Thesis
CPMD exhibits severe financial distress with negative stockholders' equity of -$22.5M, indicating the company is technically insolvent and liabilities exceed all assets. The company is burning cash at an alarming rate with -$1.9M operating cash flow against only $1.2K in cash reserves, creating an immediate liquidity crisis. Negative gross margins of -127.8% suggest fundamental business model failure with the company losing money on every dollar of revenue.
Strengths
- Minimal capital expenditure requirements suggest asset-light operations
- Some revenue generation of $1.2M indicates ongoing business activity
- No recent insider sales in last 90 days
Risks
- Negative stockholders' equity of -$22.5M indicates technical insolvency
- Critical liquidity crisis with $1.2K cash against $34.1M liabilities and $7.0M long-term debt
- Negative gross margin of -127.8% indicates fundamental business model failure
- Operating cash burn of -$1.9M per period with minimal cash runway
- All profitability metrics deeply negative with net margin of -292.7%
- Current ratio of 0.05x indicates severe inability to meet short-term obligations
Key Metrics to Watch
- Cash position and runway to insolvency
- Gross margin trajectory toward positive territory
- Operating cash flow stabilization
Financial Metrics
Revenue
1.2M
Net Income
-3.6M
EPS (Diluted)
$-0.01
Free Cash Flow
-1.9M
Total Assets
11.6M
Cash
1.2K
Profitability Ratios
Gross Margin
-127.8%
Operating Margin
-200.6%
Net Margin
-292.7%
ROE
N/A
ROA
-30.8%
FCF Margin
-151.2%
Balance Sheet & Liquidity
Current Ratio
0.05x
Quick Ratio
0.02x
Debt/Equity
N/A
Debt/Assets
293.8%
Interest Coverage
-1.38x
Long-term Debt
7.0M
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: 2026-03-22T21:12:11.130499 |
Data as of: 2025-12-31 |
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