Investment Thesis
KMFG is in critical financial distress with negative stockholders' equity of -$287.7K (technically insolvent), combined with a -200.5% net margin and negative gross margin indicating core operations are unprofitable. The company is burning cash at -$48.0K annually with a 0.05x current ratio while revenue collapses 29.9% YoY, with no viable path to profitability.
Strengths
- Modest improvement in net income decline rate suggests operational stabilization at margin level
- Retains $22.7K in cash providing minimal short-term runway
- Recent financial data as of Jan 2026 reflects current state
Risks
- Negative stockholders' equity of -$287.7K indicates technical insolvency and acute bankruptcy risk
- Extreme liquidity crisis: 0.05x current ratio with negative cash burn of $48.0K annually
- Negative gross margin indicates company loses money on core operations; revenue of $15.1K cannot cover costs
Key Metrics to Watch
- Cash balance depletion timeline and solvency runway
- Gross margin recovery toward zero as profitability inflection point
- Revenue stabilization and return to growth
Financial Metrics
Revenue
15.1K
Net Income
-30.2K
EPS (Diluted)
$0.00
Free Cash Flow
-48.0K
Total Assets
322.6K
Cash
22.7K
Profitability Ratios
Gross Margin
0.0%
Operating Margin
-200.5%
Net Margin
-200.5%
ROE
N/A
ROA
-9.4%
FCF Margin
-318.2%
Balance Sheet & Liquidity
Current Ratio
0.05x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
189.2%
Interest Coverage
N/A
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: 2026-04-12T03:36:25.319751 |
Data as of: 2026-01-31 |
Powered by Claude AI