Investment Thesis
IMA Tech is technically insolvent with negative stockholders' equity of -$68.4K and critically low cash of $598, creating immediate bankruptcy risk. Despite impressive 412.7% revenue growth, the company is unprofitable with -32.5% operating margins and negative operating cash flow of -$24.6K, indicating unsustainable burn with insufficient runway.
Strengths
- High revenue growth rate of 412.7% YoY demonstrates strong market demand
- Modest total asset base of $210.5K presents potential for restructuring or acquisition
- Presence in software services sector offers scalability potential if operational model improves
Risks
- Negative stockholders' equity of -$68.4K indicates technical insolvency and balance sheet distress
- Critical liquidity crisis with only $598 cash and current ratio of 0.10x creates near-term bankruptcy risk
- Severe operating cash burn of -$24.6K combined with minimal cash means insolvency within weeks at current burn rate
- Unprofitable operations with -32.5% net margins and inability to scale efficiently
- Massive dilution or forced liquidation highly probable to avoid bankruptcy
- Revenue growth from extremely small base ($70.1K) provides limited operating leverage
Key Metrics to Watch
- Cash balance trend and runway remaining at current burn rate
- Operating cash flow trajectory toward profitability or sustainability
- Revenue sustainability and path to positive unit economics
- Financing activities and potential equity dilution announcements
Financial Metrics
Revenue
70.1K
Net Income
-22.8K
EPS (Diluted)
$0.00
Free Cash Flow
-24.6K
Total Assets
210.5K
Cash
598.0
Profitability Ratios
Gross Margin
N/A
Operating Margin
-32.5%
Net Margin
-32.5%
ROE
N/A
ROA
-10.8%
FCF Margin
-35.1%
Balance Sheet & Liquidity
Current Ratio
0.10x
Quick Ratio
0.10x
Debt/Equity
N/A
Debt/Assets
132.5%
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: 2026-04-11T17:57:20.904159 |
Data as of: 2025-10-31 |
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