Investment Thesis
Ocean Thermal Energy Corp faces severe financial distress with negative stockholders' equity of -$212.3M, indicating the company is technically insolvent. The company is unprofitable with a net margin of -11,729.5%, negative operating cash flow of -$321.7K, and minimal revenue of $1.4M unable to cover its $213M in liabilities. With only $56.1K in cash and no discernible path to profitability, the company appears to be in existential financial crisis.
Strengths
- Positive gross margin of 25.6% suggests core operations could theoretically be profitable if scaled
Risks
- Negative stockholders' equity of -$212.3M indicates technical insolvency and balance sheet collapse
- Liabilities of $213M vastly exceed assets of $705.3K - company cannot meet obligations
- Operating losses of -$659.3K with minimal revenue generation and negative operating cash flow
- Cash position of only $56.1K is critically low and insufficient for operations
- Net margin of -11,729.5% demonstrates severe value destruction
- Current and quick ratios of 0.00x indicate inability to meet short-term obligations
- Zero insider transactions in last 90 days suggests lack of confidence from management
Key Metrics to Watch
- Stockholders' equity recovery trajectory and path to solvency
- Revenue growth and operating cash flow improvement
- Total liabilities reduction and debt restructuring developments
Financial Metrics
Revenue
1.4M
Net Income
-168.1M
EPS (Diluted)
$-0.89
Free Cash Flow
-321.7K
Total Assets
705.3K
Cash
56.1K
Profitability Ratios
Gross Margin
25.6%
Operating Margin
-46.0%
Net Margin
-11,729.5%
ROE
N/A
ROA
-23,831.0%
FCF Margin
-22.5%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
30,204.1%
Interest Coverage
-0.32x
Long-term Debt
177.8K
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: 2026-03-22T21:54:12.601029 |
Data as of: 2025-09-30 |
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