Investment Thesis
Helio Corp exhibits severe financial distress with negative stockholders equity of -$3.9M, liabilities exceeding assets by $3.9M, and a critical liquidity crisis (0.11x current ratio). The company is burning cash operationally (-$290.6K FCF), experiencing accelerating losses (net income down 116.4% YoY), and declining revenue (-43.8% YoY), indicating deteriorating business fundamentals despite marginal gross margins.
Strengths
- Gross margin of 50.6% demonstrates some pricing power and unit economics in core operations
- Operates in potentially high-margin aerospace sector (SIC 3760)
- Still generating $495.6K in revenue
Risks
- Negative stockholders equity of -$3.9M indicates technical insolvency with no equity cushion
- Critical liquidity crisis: current ratio of 0.11x with only $282.1K cash; liabilities $5.0M vs assets $1.1M
- Accelerating losses: net income collapsed 116.4% YoY; operating margin -539.9% indicates severe operational dysfunction
- Negative operating cash flow (-$290.6K) means company is burning cash from core operations with limited runway
- Revenue declining sharply at -43.8% YoY with no recovery path evident
- Zero insider purchases in 90 days; no management confidence signal
Key Metrics to Watch
- Monthly revenue trends and customer retention rate
- Months of cash runway remaining before depletion
- Ability to secure additional capital or achieve profitability immediately
- Operating expense reduction progress and path to cash flow breakeven
Financial Metrics
Revenue
495.6K
Net Income
-3.7M
EPS (Diluted)
$-0.21
Free Cash Flow
-290.6K
Total Assets
1.1M
Cash
282.1K
Profitability Ratios
Gross Margin
50.6%
Operating Margin
-539.9%
Net Margin
-753.5%
ROE
N/A
ROA
-327.0%
FCF Margin
-58.6%
Balance Sheet & Liquidity
Current Ratio
0.11x
Quick Ratio
0.11x
Debt/Equity
N/A
Debt/Assets
440.4%
Interest Coverage
-446.66x
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: 2026-04-11T04:48:22.583492 |
Data as of: 2026-01-31 |
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