Investment Thesis
Mobiquity Technologies exhibits severe financial distress with massive operating losses (-$6.1M on $160.8K revenue), negative cash flow (-$4.1M operating), and critical liquidity crisis (0.29x current ratio). Despite 142.5% revenue growth, the company is burning cash unsustainably with negative margins exceeding -3,700%, indicating fundamental business model failure.
Strengths
- Significant year-over-year revenue growth of 142.5% shows demand for services
- Strong gross margin of 62.1% indicates viable product pricing before operating costs
- Insider activity with 8 Form 4 filings suggests management engagement
Risks
- Critical liquidity crisis with current ratio of 0.29x - unable to cover short-term obligations
- Massive operating losses of -$6.1M dwarf revenue of $160.8K, indicating severe cost structure problems
- Negative operating cash flow of -$4.1M with only $361.9K cash reserves; company burning through capital at unsustainable rate
- Negative operating and net margins exceeding -3,700% demonstrate fundamental business model failure
- Long-term debt of $1.5M with negative interest coverage (-106.1x) indicates inability to service debt
- Poor Return on Equity (-346.3%) and Return on Assets (-120.1%) show shareholder value destruction
Key Metrics to Watch
- Cash burn rate and runway to insolvency
- Operating expense reduction or revenue acceleration to profitability
- Current ratio improvement and working capital management
- Operating cash flow return to positive territory
Financial Metrics
Revenue
160.8K
Net Income
-6.7M
EPS (Diluted)
$-0.32
Free Cash Flow
-4.1M
Total Assets
5.6M
Cash
361.9K
Profitability Ratios
Gross Margin
62.1%
Operating Margin
-3,767.0%
Net Margin
-4,158.0%
ROE
-346.3%
ROA
-120.1%
FCF Margin
-2,567.4%
Balance Sheet & Liquidity
Current Ratio
0.29x
Quick Ratio
0.28x
Debt/Equity
0.78x
Debt/Assets
65.3%
Interest Coverage
-106.10x
Long-term Debt
1.5M
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: 2026-04-02T04:08:10.079410 |
Data as of: 2025-09-30 |
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