Investment Thesis
Endexx Corp exhibits severe financial distress with negative stockholders' equity of -$14.9M, indicating the company is technically insolvent. The company is burning cash with operating losses of -$2.4M on minimal revenue of $3.4M, generating negative operating cash flow of -$1.1M with critically low liquidity (current ratio 0.09x) and substantial long-term debt of $20.0M.
Strengths
- Maintains minimal cash position of $23.7K to cover immediate needs
- Gross margin of 15.4% suggests some revenue-generating capability before operating expenses
- Low capital expenditure requirements indicate asset-light business model
Risks
- Negative stockholders' equity of -$14.9M indicates technical insolvency and balance sheet deterioration
- Severe liquidity crisis with current ratio of 0.09x and quick ratio of 0.07x insufficient for near-term obligations
- Persistent operating losses with -68.6% operating margin and negative free cash flow of -$1.1M create unsustainable cash burn
- High leverage with $20.0M long-term debt against only $12.2M in total assets
- Negative interest coverage of -2.6x indicates inability to service debt from operations
- No insider activity in last 90 days suggests lack of management confidence or engagement
Key Metrics to Watch
- Stockholders' equity trend and path to solvency
- Operating cash flow improvement and break-even timeline
- Cash balance and runway given current burn rate
- Debt restructuring or covenant compliance status
Financial Metrics
Revenue
3.4M
Net Income
-3.9M
EPS (Diluted)
$0.00
Free Cash Flow
-1.1M
Total Assets
12.2M
Cash
23.7K
Profitability Ratios
Gross Margin
15.4%
Operating Margin
-68.6%
Net Margin
-112.2%
ROE
N/A
ROA
-31.8%
FCF Margin
-32.5%
Balance Sheet & Liquidity
Current Ratio
0.09x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
214.5%
Interest Coverage
-2.62x
Long-term Debt
20.0M
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: 2026-03-24T02:10:10.850715 |
Data as of: 2023-06-30 |
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