Investment Thesis
E-Smart Corp exhibits severely distressed fundamentals with negative stockholders' equity of -$79.3K, indicating liabilities exceed assets and shareholder capital has been eroded. Despite 145.4% revenue growth to $9.6K, the company burns cash with -$22.0K net loss, -$10.1K operating cash flow, and a catastrophic -229.1% net margin, suggesting the revenue growth is not sustainable or economically viable.
Strengths
- Strong revenue growth of 145.4% year-over-year demonstrates market traction
- 100% gross margin indicates products/services have theoretical pricing power
- Minimal cash burn rate in absolute terms due to tiny revenue base
Risks
- Negative stockholders' equity of -$79.3K indicates technical insolvency and capital impairment
- Liabilities of $220.2K exceed assets of $140.9K by $79.3K, creating structural balance sheet crisis
- Operating losses of -$19.6K on only $9.6K revenue with -229.1% net margin indicates business model is fundamentally unprofitable
- Current ratio of 0.16x signals severe liquidity crisis with insufficient current assets to cover current obligations
- Negative operating cash flow of -$10.1K despite positive gross profit indicates cash burn and inability to fund operations
- Near-zero cash position of $4.0K provides minimal runway for operations or debt service
Key Metrics to Watch
- Path to positive operating cash flow and operating profitability
- Stockholders' equity recovery and balance sheet restructuring
- Revenue sustainability and gross profit growth quality
- Cash runway and liquidity position deterioration rate
Financial Metrics
Revenue
9.6K
Net Income
-22.0K
EPS (Diluted)
$0.00
Free Cash Flow
-10.1K
Total Assets
140.9K
Cash
4.0K
Profitability Ratios
Gross Margin
100.0%
Operating Margin
-203.8%
Net Margin
-229.1%
ROE
N/A
ROA
-15.6%
FCF Margin
-105.1%
Balance Sheet & Liquidity
Current Ratio
0.16x
Quick Ratio
0.16x
Debt/Equity
N/A
Debt/Assets
156.3%
Interest Coverage
-8.04x
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: 2026-03-24T12:24:10.683966 |
Data as of: 2025-11-30 |
Powered by Claude AI