Investment Thesis
Gold Rock Holdings is a micro-cap entity with negative stockholders' equity (-$2.3K) and deteriorating financial fundamentals despite 53% revenue growth. The company burns $57.5K in operating cash annually against only $211.5K in revenue, while maintaining a current ratio of 0.99x with liabilities exceeding assets. Absent dramatic operational turnaround, the company faces imminent cash depletion within months given its current burn rate.
Strengths
- Revenue growing 52.7% YoY ($211.5K absolute base)
- 100% gross margin indicates potential pricing power or service-based model
- Still maintains $152.1K cash position equivalent to total assets
Risks
- Stockholders' equity is negative (-$2.3K) - technically insolvent on balance sheet
- Operating cash flow negative at -$57.5K with -27.2% FCF margin; company burning cash
- Current ratio of 0.99x indicates liquidity stress; liabilities ($154.4K) exceed assets ($152.1K)
- Net loss of $180.6K exceeds total revenue - operating expenses far outpace revenue generation
- Micro-cap with minimal financial runway; at current burn rate, cash depleted within 3 months
Key Metrics to Watch
- Operating cash flow trend - critical indicator of business sustainability
- Path to operating profitability - when/if OPEX will align with revenue
- Cash balance depletion rate - number of months of runway remaining
- Gross margin sustainability - verify 100% margin is not accounting anomaly
Financial Metrics
Revenue
211.5K
Net Income
-180.6K
EPS (Diluted)
$0.00
Free Cash Flow
-57.5K
Total Assets
152.1K
Cash
152.1K
Profitability Ratios
Gross Margin
100.0%
Operating Margin
N/A
Net Margin
-85.4%
ROE
N/A
ROA
-118.7%
FCF Margin
-27.2%
Balance Sheet & Liquidity
Current Ratio
0.99x
Quick Ratio
0.99x
Debt/Equity
N/A
Debt/Assets
101.5%
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: 2026-04-10T18:18:19.044187 |
Data as of: 2025-12-31 |
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