Investment Thesis
CXJ Group is a fundamentally distressed company with severe operational losses, negative equity, and critical liquidity constraints that threaten near-term viability. Despite modest revenue of $156.4K and a healthy 70.6% gross margin, operating losses of $144.9K and total liabilities of $2.1M against only $383.7K in assets create an untenable financial position.
Strengths
- Strong gross margin of 70.6% indicates reasonable product/pricing structure
- Positive free cash flow of $14.6K suggests operational cash generation despite accounting losses
- Minimal capital expenditure requirements ($1.6K) reduce cash burn pressure
Risks
- Negative stockholders equity of -$1.7M indicates technical insolvency with liabilities exceeding assets
- Current ratio of 0.16x and quick ratio of 0.13x signal imminent liquidity crisis and inability to meet short-term obligations
- Operating margin of -92.6% and net margin of -92.8% demonstrate severe operational dysfunction; operating losses ($144.9K) exceed total revenue ($156.4K)
- Minuscule cash position of $57.5K provides minimal runway; company will exhaust liquidity within weeks at current burn rates
- Stagnant revenue growth (0.0% YoY) with no evidence of business expansion or market traction
Key Metrics to Watch
- Quarterly cash balance trend and runway to depletion
- Operating cash flow sustainability and path to GAAP profitability
- Revenue growth acceleration and operating expense rationalization
Financial Metrics
Revenue
156.4K
Net Income
-145.1K
EPS (Diluted)
$0.00
Free Cash Flow
14.6K
Total Assets
383.7K
Cash
57.5K
Profitability Ratios
Gross Margin
70.6%
Operating Margin
-92.6%
Net Margin
-92.8%
ROE
N/A
ROA
-37.8%
FCF Margin
9.3%
Balance Sheet & Liquidity
Current Ratio
0.16x
Quick Ratio
0.13x
Debt/Equity
N/A
Debt/Assets
546.7%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-03-24T01:10:11.461520 |
Data as of: 2025-11-30 |
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