Investment Thesis
Dalrada Technology faces severe financial distress with negative stockholders' equity of -$16.8M, indicating liabilities exceed assets. The company is operationally insolvent with -$10.5M net loss on only $7.4M revenue, negative operating cash flow of -$3.3M, and critically low liquidity (0.32x current ratio with only $70.1K cash).
Strengths
- Positive gross margin of 22.9% indicates some pricing power or production efficiency at the product level
- Long-term debt relatively modest at $600K compared to total liabilities
- Data completeness with 25 metrics available for analysis
Risks
- Negative stockholders' equity of -$16.8M represents balance sheet insolvency and significant solvency risk
- Operating losses of -$8.9M on limited revenue base indicates unsustainable business model
- Severe liquidity crisis with only $70.1K cash against $34.5M total liabilities and current ratio of 0.32x
- Persistent negative free cash flow of -$3.6M draining remaining capital reserves
- No insider buying activity in past 90 days suggests limited confidence from management
Key Metrics to Watch
- Cash balance depletion rate and months of runway remaining
- Path to operating profitability or evidence of revenue growth acceleration
- Restructuring or debt refinancing announcements to address negative equity
- Changes in cash burn rate and operating cash flow trends
Financial Metrics
Revenue
7.4M
Net Income
-10.5M
EPS (Diluted)
$-0.10
Free Cash Flow
-3.6M
Total Assets
17.6M
Cash
70.1K
Profitability Ratios
Gross Margin
22.9%
Operating Margin
-120.8%
Net Margin
-142.4%
ROE
N/A
ROA
-59.6%
FCF Margin
-49.4%
Balance Sheet & Liquidity
Current Ratio
0.32x
Quick Ratio
0.20x
Debt/Equity
N/A
Debt/Assets
196.1%
Interest Coverage
N/A
Long-term Debt
600.0K
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: 2026-03-23T13:14:10.735757 |
Data as of: 2025-12-31 |
Powered by Claude AI