Investment Thesis
New Horizon Aircraft exhibits critical financial distress with negative stockholders' equity of -$16.1M, rendering it balance sheet insolvent with liabilities exceeding assets by $16.2M. Negative operating cash flow of -$760K and free cash flow of -$918K combined with -$6.5M net losses demonstrate an unsustainable burn rate incompatible with business continuity in a capital-intensive aircraft manufacturing sector.
Strengths
- Maintains $4.4M in cash reserves providing near-term liquidity buffer
- Current ratio of 2.85x indicates adequate short-term asset coverage
- Ongoing operations with active insider trading activity
Risks
- Negative stockholders' equity of -$16.1M indicates balance sheet insolvency and structural financial failure
- Negative operating cash flow of -$760K and free cash flow of -$918K demonstrate unsustainable cash burn in capital-intensive sector
- Total liabilities exceed assets by $16.2M, creating acute solvency risk and likely restructuring or bankruptcy trajectory
Key Metrics to Watch
- Cash runway depletion rate - at current burn, limited months of operations remain
- Operating cash flow inflection - must achieve positive OCF for survival
- Debt restructuring announcements - Form 8-K filings for material agreements or covenant violations
Financial Metrics
Revenue
N/A
Net Income
-6.5M
EPS (Diluted)
$-0.80
Free Cash Flow
-918.0K
Total Assets
6.8M
Cash
4.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-94.8%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
2.85x
Quick Ratio
2.85x
Debt/Equity
N/A
Debt/Assets
336.8%
Interest Coverage
-12.64x
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: 2026-04-11T07:18:25.446945 |
Data as of: 2025-11-30 |
Powered by Claude AI