Investment Thesis
Nocera is technically insolvent with negative stockholders' equity of -$1.4M, burning $583K quarterly from operations. The company generates only $2.3M revenue at a catastrophic 1.8% gross margin, indicating fundamental business model dysfunction rather than temporary scaling challenges. With negative cash flow and approximately 9 quarters of cash runway remaining, insolvency risk is severe without immediate operational turnaround.
Strengths
- Substantial cash balance of $5.4M provides short-term operational runway
- Minimal debt burden at $24.7K long-term debt reduces leverage risk
- Excellent liquidity ratios (8.0x current, 8.0x quick) eliminate immediate liquidity crisis risk
Risks
- Negative stockholders' equity of -$1.4M indicates technical insolvency and elevated bankruptcy risk
- Operating cash burn of -$583K per quarter with only ~9 quarters of cash runway at current rate
- Catastrophically low 1.8% gross margin suggests broken unit economics or fundamental business model failure
- Deeply unprofitable core operations with -55.9% operating margin and -$1.3M net loss on minimal revenue
- Absence of year-over-year growth metrics and unclear path to profitability
Key Metrics to Watch
- Gross margin expansion—critical indicator of whether business model is fixable
- Operating cash flow trajectory—must turn positive before cash depletion
- Revenue growth and customer concentration—assess whether revenue inflection is possible
- Cash burn rate relative to remaining capital—timeline to insolvency if operations don't improve
Financial Metrics
Revenue
2.3M
Net Income
-1.3M
EPS (Diluted)
$-0.09
Free Cash Flow
-583.0K
Total Assets
9.0M
Cash
5.4M
Profitability Ratios
Gross Margin
1.8%
Operating Margin
-55.9%
Net Margin
-55.9%
ROE
N/A
ROA
-14.2%
FCF Margin
-25.6%
Balance Sheet & Liquidity
Current Ratio
8.00x
Quick Ratio
7.97x
Debt/Equity
N/A
Debt/Assets
90.4%
Interest Coverage
N/A
Long-term Debt
24.7K
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: 2026-05-23T08:52:01.371257 |
Data as of: 2026-03-31 |
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