Investment Thesis
Innovaro is a blank check company with severe financial distress, including negative stockholders' equity of -$728.1K, liabilities exceeding assets by $500K, and a negative net margin of -581.3%. The company is burning cash with operating cash flow of -$712.9K and free cash flow of -$773.3K, while generating only $414.2K in revenue, indicating a fundamentally broken business model with minimal operational viability.
Strengths
- Revenue growth of 21.9% year-over-year shows some top-line expansion
- Minimal operating expense base relative to assets suggests lean operations
- Data available from SEC filings provides transparency
Risks
- Negative stockholders' equity of -$728.1K indicates the company is technically insolvent
- Total liabilities of $7.0M exceed total assets of $6.5M by $500K
- Severe cash burn with operating cash flow of -$712.9K and zero operating cash generation capability
- Catastrophic negative net margin of -581.3% with operating losses of -$2.4M against only $414.2K revenue
- Critical liquidity crisis with current ratio of only 0.20x and minimal cash of $16.9K
- Long-term debt of $5.1M represents 79% of total assets with no ability to service debt
- Blank check company status with no clear business operations or revenue generation strategy
- Stale financial data from September 30, 2013 (over 12 years old) raises concerns about current status
Key Metrics to Watch
- Stockholders' equity trend toward positive territory
- Operating cash flow sustainability and path to positive cash generation
- Debt restructuring or refinancing outcomes given insolvency status
Financial Metrics
Revenue
414.2K
Net Income
-2.4M
EPS (Diluted)
$0.00
Free Cash Flow
-773.3K
Total Assets
6.5M
Cash
16.9K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
-581.3%
ROE
N/A
ROA
-37.2%
FCF Margin
-186.7%
Balance Sheet & Liquidity
Current Ratio
0.20x
Quick Ratio
0.20x
Debt/Equity
N/A
Debt/Assets
107.8%
Interest Coverage
N/A
Long-term Debt
5.1M
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: 2026-03-29T10:20:11.575630 |
Data as of: 2013-09-30 |
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