Investment Thesis
Flywheel Advanced Technology faces severe financial distress with negative stockholders' equity of -$976.9K, indicating the company is technically insolvent. The company generates minimal revenue of $2.0M with flat growth, operating losses of -$46K, and negative free cash flow of -$50.4K, signaling inability to fund operations or growth. Critical liquidity crisis is evident with cash of $0 and current ratio of 0.01x, creating immediate solvency risk.
Strengths
- Maintains positive gross margin of 45.6% on limited revenue base
- Modest revenue of $2.0M suggests some operational activity continues
- Operating losses relatively small in absolute terms despite negative margins
Risks
- Negative stockholders' equity of -$976.9K indicates technical insolvency and bankruptcy risk
- Zero cash reserves with current ratio of 0.01x creates immediate liquidity crisis
- Negative free cash flow of -$50.4K demonstrates inability to sustain operations without external funding
- Flat revenue growth with declining profitability suggests no path to recovery
- Total liabilities of $936.7K exceed total assets of $7.3K by wide margin
- No insider activity in last 90 days may reflect lost confidence in company
Key Metrics to Watch
- Stockholders' equity trend toward positive territory
- Cash position and ability to secure financing
- Revenue growth acceleration and operating margin improvement
- Operating cash flow return to positive territory
- Debt restructuring or capital recapitalization activities
Financial Metrics
Revenue
2.0M
Net Income
-46.0K
EPS (Diluted)
$0.00
Free Cash Flow
-50.4K
Total Assets
7.3K
Cash
0.0
Profitability Ratios
Gross Margin
45.6%
Operating Margin
-2.3%
Net Margin
-2.3%
ROE
N/A
ROA
-634.1%
FCF Margin
-2.6%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.01x
Debt/Equity
N/A
Debt/Assets
12,913.4%
Interest Coverage
-8.87x
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: 2026-03-25T11:20:10.720630 |
Data as of: 2025-12-31 |
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