Investment Thesis
Infinite Group Inc faces critical financial distress with negative stockholders' equity of -$11.5M, indicating technical insolvency. The company exhibits a severe liquidity crisis (current ratio 0.05x with only $38.8K cash) while burning cash operationally, creating substantial restructuring or bankruptcy risk.
Strengths
- Gross margin of 43.3% demonstrates pricing power or cost control on direct costs
- Software/services sector positioning offers inherent growth potential if operations stabilize
- Small revenue base of $3.8M provides theoretical turnaround opportunity with operational restructuring
Risks
- Negative stockholders' equity of -$11.5M indicates balance sheet insolvency
- Severe liquidity crisis with current ratio of 0.05x unable to cover short-term obligations
- Persistent operating losses with negative operating margin of -21.7% and negative free cash flow of -$273.6K
- Negative interest coverage of -7.6x prevents debt service capability
- Debt burden of $925.5K unsustainable on negative equity base with minimal cash reserves
Key Metrics to Watch
- Cash balance trajectory and immediate liquidity position
- Achievement of operating cash flow breakeven
- Debt restructuring or refinancing activities
Financial Metrics
Revenue
3.8M
Net Income
-1.3M
EPS (Diluted)
$-2.53
Free Cash Flow
-273.6K
Total Assets
1.1M
Cash
38.8K
Profitability Ratios
Gross Margin
43.3%
Operating Margin
-21.7%
Net Margin
-34.4%
ROE
N/A
ROA
-114.7%
FCF Margin
-7.1%
Balance Sheet & Liquidity
Current Ratio
0.05x
Quick Ratio
0.05x
Debt/Equity
N/A
Debt/Assets
1,102.1%
Interest Coverage
-7.57x
Long-term Debt
925.5K
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: 2026-04-11T18:18:25.576448 |
Data as of: 2025-09-30 |
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