Investment Thesis
Ezagoo Ltd exhibits severe financial distress with negative stockholders' equity of -$4.0M, indicating liabilities far exceed assets. The company is burning cash with operating losses of -$416.8K and negative free cash flow of -$341.7K while revenue has declined 24.8% YoY, suggesting deteriorating business fundamentals with no clear path to profitability.
Strengths
- Current ratio of 2.46x indicates adequate short-term liquidity relative to current liabilities
- Cash position of $174.2K provides minimal operational runway
- Low capital expenditure requirements suggest asset-light business model
Risks
- Negative stockholders' equity of -$4.0M indicates technical insolvency with liabilities exceeding assets by $4.0M
- Severe unprofitability with gross margin of -9.5% and operating margin of -621.7% indicates core business is value-destructive
- Negative operating and free cash flow of -$340.4K and -$341.7K respectively with minimal revenue of $67.0K suggests company is rapidly depleting capital reserves
- Revenue decline of 24.8% YoY combined with expanding losses indicates deteriorating business momentum
- No insider buying activity in last 90 days while company faces existential financial challenges
Key Metrics to Watch
- Cash burn rate and months of runway remaining before liquidity exhaustion
- Revenue trend reversal and path to positive gross margin
- Operating cash flow improvement and return to positive free cash flow
Financial Metrics
Revenue
67.0K
Net Income
-332.4K
EPS (Diluted)
$0.00
Free Cash Flow
-341.7K
Total Assets
195.0K
Cash
174.2K
Profitability Ratios
Gross Margin
-9.5%
Operating Margin
-621.7%
Net Margin
-495.9%
ROE
N/A
ROA
-170.5%
FCF Margin
-509.8%
Balance Sheet & Liquidity
Current Ratio
2.46x
Quick Ratio
2.46x
Debt/Equity
N/A
Debt/Assets
2,176.8%
Interest Coverage
-4.79x
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: 2026-03-24T17:18:11.371793 |
Data as of: 2025-09-30 |
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