Investment Thesis
Impact Biomedical faces an imminent liquidity crisis with only $20K in cash while burning $464K in operating losses per period against negligible $7K revenue. The company shows a fundamentally broken business model with operating margins exceeding -32,000% and a current ratio of 0.22x, indicating inability to meet near-term obligations.
Strengths
- Minimal debt burden with Debt/Equity ratio of 0.00x reduces insolvency risk from leverage
- Positive stockholders' equity of $11.5M provides some remaining asset backing
- Slight improvement in net loss metrics YoY (-0.3% reduction in net losses suggests marginal operational efficiency gains)
Risks
- Critical liquidity crisis: $20K cash with $2.4M liabilities and current ratio of 0.22x indicates imminent insolvency
- Revenue collapse of 36% YoY to only $7K coupled with $2.3M operating losses signals complete operational failure
- Negative operating cash flow of $464K per period suggests cash runway exhaustion within weeks at current burn rate
- Company requires immediate dilutive financing or revenue generation to avoid bankruptcy
- Negative interest coverage of -2.9x indicates inability to service any debt obligations
Key Metrics to Watch
- Cash position and burn rate (critical - company may be insolvent within 1-2 quarters)
- Quarterly revenue trends (must show immediate reversal from $7K base to demonstrate viability)
- Operating cash flow improvement (currently -$464K and unsustainable)
Financial Metrics
Revenue
7.0K
Net Income
-2.3M
EPS (Diluted)
$-0.02
Free Cash Flow
-464.0K
Total Assets
17.1M
Cash
20.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-32,700.0%
Net Margin
-32,671.4%
ROE
-19.9%
ROA
-13.4%
FCF Margin
-6,628.6%
Balance Sheet & Liquidity
Current Ratio
0.22x
Quick Ratio
0.19x
Debt/Equity
0.00x
Debt/Assets
13.9%
Interest Coverage
-2.89x
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: 2026-05-15T09:29:11.639463 |
Data as of: 2026-03-31 |
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