Investment Thesis
JRSS is technically insolvent with negative stockholders' equity of -$197.6K and critically depleted cash reserves of only $1.4K. Despite 101.4% revenue growth to $1.3M, the company burns -$826.1K in operating cash flow and -$1.1M in free cash flow annually, with an operating margin of -36.8% indicating unsustainable losses.
Strengths
- Strong top-line revenue growth of 101.4% YoY demonstrates market traction
- Positive gross profit of $270.2K shows some operational contribution
- Active in healthcare services sector with operational presence
Risks
- Negative stockholders' equity (-$197.6K) indicates technical insolvency and balance sheet deterioration
- Critically low liquidity: $1.4K cash with current ratio of 0.78x creates imminent solvency risk
- Massive operating losses (-$485.8K) and negative free cash flow (-$1.1M) indicate unsustainable cash burn
- Operating cash flow of -$826.1K and net margin of -33.0% show business model is unprofitable at scale
- No insider activity in past 90 days and liabilities exceed assets by $200K
Key Metrics to Watch
- Monthly cash burn rate and cash runway (critical given $1.4K position)
- Operating cash flow trend (currently -$826.1K annually)
- Path to stockholders' equity recovery above zero
- Debt covenant compliance and refinancing risk
Financial Metrics
Revenue
1.3M
Net Income
-435.9K
EPS (Diluted)
$-0.01
Free Cash Flow
-1.1M
Total Assets
2.1M
Cash
1.4K
Profitability Ratios
Gross Margin
20.5%
Operating Margin
-36.8%
Net Margin
-33.0%
ROE
N/A
ROA
-21.0%
FCF Margin
-80.1%
Balance Sheet & Liquidity
Current Ratio
0.78x
Quick Ratio
0.62x
Debt/Equity
N/A
Debt/Assets
111.3%
Interest Coverage
-40.80x
Long-term Debt
31.6K
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: 2026-04-11T22:45:22.270170 |
Data as of: 2024-09-30 |
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