Investment Thesis
Fusemachines demonstrates severe financial distress with negative stockholders' equity of -42.6M, indicating the company's liabilities exceed assets. The company is burning cash at an alarming rate with -240.8K operating cash flow and -22.1M net loss, while maintaining minimal liquidity (0.28x current ratio) with only 9.3K in cash. Without demonstrated revenue generation or a clear path to profitability, the company faces imminent solvency risk.
Strengths
- Recent Form 4 insider filings (6 in last 90 days) suggest some ongoing management activity
- Company still maintains listing on Nasdaq exchange
- Total assets of 12.4M provide minimal asset base for restructuring
Risks
- Negative stockholders' equity of -42.6M indicates technical insolvency
- Critical liquidity crisis with only 9.3K cash against 43.9M total liabilities
- Severe cash burn with -240.8K operating cash flow and -22.1M net loss
- Revenue data unavailable, suggesting either immaterial or negative operational performance
- Current ratio of 0.28x indicates inability to meet near-term obligations
- ROA of -179% demonstrates severe asset inefficiency
- No disclosed long-term debt structure suggests distressed financial position
Key Metrics to Watch
- Quarterly operating cash flow trend and path to positive cash generation
- Revenue recognition and gross margin if operations resume
- Stockholders' equity recovery and debt restructuring announcements
- Cash balance changes and liquidity management actions
- Operating loss reduction trajectory
Financial Metrics
Revenue
N/A
Net Income
-22.1M
EPS (Diluted)
$0.00
Free Cash Flow
-240.8K
Total Assets
12.4M
Cash
9.3K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-179.0%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.28x
Quick Ratio
0.28x
Debt/Equity
N/A
Debt/Assets
355.5%
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: 2026-03-25T10:36:10.380438 |
Data as of: 2025-09-30 |
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