Investment Thesis
New Momentum Corp. is in severe financial distress with zero revenue, negative stockholders' equity of -$727.3K, and persistent operating losses. The company is technically insolvent with liabilities exceeding assets by over $700K and burn rate of nearly $48.8K in negative free cash flow, indicating imminent insolvency without immediate capital injection or operational turnaround.
Strengths
- Company retains minimal cash reserves of $4.3K
- No long-term debt obligations creating additional burden
- Company is still reporting and filing with SEC indicating legal entity remains active
Risks
- Complete revenue collapse (-100% YoY) indicates business has ceased operating
- Negative stockholders' equity of -$727.3K indicates technical insolvency
- Severe liquidity crisis with current ratio of 0.01x and only $4.3K cash against $738.1K liabilities
- Negative operating cash flow of -$47.1K demonstrates ongoing cash burn with no revenue generation
- Negative ROA of -42.4% reflects destruction of asset value
- Zero insider activity in last 90 days suggests management disengagement
Key Metrics to Watch
- Revenue generation - any return to positive revenue essential for viability
- Stockholders equity - movement toward positive territory required
- Cash burn rate and cash reserves depletion - company can only sustain months at current burn
- Debt restructuring or capital raise announcements - only path to survival
- Form 4 insider filings - indication of management commitment to turnaround
Financial Metrics
Revenue
0.0
Net Income
-4.6K
EPS (Diluted)
$0.00
Free Cash Flow
-48.8K
Total Assets
10.8K
Cash
4.3K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-42.4%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.01x
Debt/Equity
N/A
Debt/Assets
6,827.1%
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: 2026-04-03T15:14:10.646905 |
Data as of: 2025-09-30 |
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