Investment Thesis
Legend Spices exhibits severe financial distress despite 19.5% revenue growth, with negative stockholders' equity of -$13.4K indicating technical insolvency. The company is burning cash at an unsustainable 60.4% of revenue with zero liquidity and $61.8K in long-term debt against a negative equity base, presenting existential risk to equity holders.
Strengths
- Revenue growing 19.5% year-over-year demonstrates market demand
- Gross margin of 44.3% indicates reasonable product pricing power
- Company maintains operational activity with recent SEC reporting
Risks
- Negative stockholders' equity of -$13.4K represents technical insolvency and zero equity cushion
- Operating cash burn of -$389K represents 60.4% of revenue, rendering operations unsustainable without capital injection
- Zero reported total assets and cash with $61.8K long-term debt creates acute balance sheet insolvency
- Negative operating margin (-1760%) and net margin (-2272%) indicate severe operational dysfunction
- Zero liquidity (0.00x current ratio) with no ability to fund operations or service debt
Key Metrics to Watch
- Path to operating cash flow positive and profitability timeline
- Stockholders' equity recovery and debt restructuring execution
- Monthly cash burn rate and available cash runway
Financial Metrics
Revenue
644.0
Net Income
-14.6K
EPS (Diluted)
$0.00
Free Cash Flow
-389.0
Total Assets
0.0
Cash
0.0
Profitability Ratios
Gross Margin
44.3%
Operating Margin
-1,760.6%
Net Margin
-2,272.8%
ROE
N/A
ROA
N/A
FCF Margin
-60.4%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
61.8K
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: 2026-04-12T14:06:21.597288 |
Data as of: 2025-09-30 |
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