Investment Thesis
Intellinetics faces critical operational and liquidity challenges with persistent operating losses (-30.3% margin), negative free cash flow (-$253K), and declining revenue (-8% YoY). The current ratio of 0.90x signals immediate liquidity stress, with cash burn unsustainable relative to the $2.1M cash position despite a healthy 63.5% gross margin indicating structural cost control issues.
Strengths
- Gross margin of 63.5% indicates viable unit economics and pricing power
- Debt-to-equity ratio of 0.32x is moderate, limiting leverage risk
- Stockholders' equity of $10.5M provides a modest equity buffer above liabilities
Risks
- Operating cash flow negative at -$228K with no path to profitability visible
- Current ratio of 0.90x and quick ratio of 0.87x indicate acute short-term liquidity stress
- Revenue contraction of 8% YoY combined with operating losses creates unsustainable cash burn trajectory
- Free cash flow deeply negative at -$253K with limited cash runway at current burn rate
- ROE of -11.3% and ROA of -7.2% show value destruction for shareholders and asset base
Key Metrics to Watch
- Operating cash flow stabilization and path to positive territory
- Revenue growth inflection point or arrest of decline
- Monthly cash burn rate and estimated runway
- Operating margin improvement toward breakeven
- Current ratio recovery above 1.0x threshold
Financial Metrics
Revenue
3.9M
Net Income
-1.2M
EPS (Diluted)
$-0.27
Free Cash Flow
-253.4K
Total Assets
16.5M
Cash
2.1M
Profitability Ratios
Gross Margin
63.5%
Operating Margin
-30.3%
Net Margin
-30.1%
ROE
-11.3%
ROA
-7.2%
FCF Margin
-6.5%
Balance Sheet & Liquidity
Current Ratio
0.90x
Quick Ratio
0.87x
Debt/Equity
0.32x
Debt/Assets
36.4%
Interest Coverage
N/A
Long-term Debt
3.3M
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: 2026-05-15T08:08:59.331077 |
Data as of: 2026-03-31 |
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