Investment Thesis
Mentor Capital demonstrates severe operational distress with massive operating losses (-409.9% margin) and negative free cash flow (-$406.3K) despite marginal revenue growth. The company is burning cash with only $109.9K in liquid assets against $545.7K in liabilities, indicating limited runway without capital infusion. Persistent unprofitability and operational cash burn present substantial solvency risk.
Strengths
- Exceptional liquidity position with 29.07x current ratio providing near-term financial flexibility
- Minimal leverage with 0.02x debt-to-equity ratio reducing bankruptcy risk from debt
- Revenue growth of 143.7% YoY showing top-line expansion from very low base
Risks
- Severe operating losses with -$481.4K operating income despite $117.4K revenue indicating structural unprofitability
- Negative free cash flow of -$406.3K with only $109.9K cash reserves suggests potential liquidity crisis within months without intervention
- Deteriorating operational efficiency with net margin of -356.6% and persistent inability to achieve profitability despite revenue growth
Key Metrics to Watch
- Operating cash flow trend and cash runway at current burn rate
- Path to operating profitability and revenue sustainability
- Capital adequacy and potential dilutive financing needs
Financial Metrics
Revenue
117.4K
Net Income
-418.7K
EPS (Diluted)
$-0.02
Free Cash Flow
-406.3K
Total Assets
3.0M
Cash
109.9K
Profitability Ratios
Gross Margin
100.0%
Operating Margin
-409.9%
Net Margin
-356.6%
ROE
-16.9%
ROA
-13.9%
FCF Margin
-346.0%
Balance Sheet & Liquidity
Current Ratio
29.07x
Quick Ratio
29.07x
Debt/Equity
0.02x
Debt/Assets
18.1%
Interest Coverage
-30.38x
Long-term Debt
39.1K
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: 2026-04-02T03:30:12.291079 |
Data as of: 2025-09-30 |
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