Investment Thesis
Kisses From Italy is technically insolvent with negative stockholders equity of -$941.5K while burning $56.4K in operating cash annually on only $49.3K in revenue. The company's operating margins of -288.7% and liabilities exceeding assets by 181x render the business model fundamentally unsustainable.
Strengths
- Revenue growth of 115.5% YoY demonstrates strong product market demand
- Gross margin of 44.5% indicates viable unit economics for the product
- Asset-light business model with minimal capital expenditure requirements
Risks
- Technically insolvent: negative equity of -$941.5K with liabilities dwarfing assets 181x
- Acute liquidity crisis: current ratio of 0.01x with only $810 in cash reserves
- Unsustainable operations: -$56.4K operating cash burn on $49.3K revenue with -288.7% operating margin
Key Metrics to Watch
- Stockholders equity trajectory and path to solvency
- Operating cash flow trend toward breakeven sustainability
- Cash runway and ability to fund operations without capital infusion
Financial Metrics
Revenue
49.3K
Net Income
-199.2K
EPS (Diluted)
$0.00
Free Cash Flow
-56.4K
Total Assets
5.4K
Cash
810.0
Profitability Ratios
Gross Margin
44.5%
Operating Margin
-288.7%
Net Margin
-403.7%
ROE
N/A
ROA
-3,684.6%
FCF Margin
-114.4%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
18,129.9%
Interest Coverage
-0.81x
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: 2026-04-12T02:54:27.169425 |
Data as of: 2024-09-30 |
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