Investment Thesis
New ERA Energy & Digital is in severe financial distress with negative stockholders' equity of -$2.6M, indicating the company is technically insolvent. The company is burning cash rapidly with -$13.4M free cash flow while generating minimal revenue of $885.4K, and the -3341.5% net margin reflects fundamental operational failure.
Strengths
- Maintains positive cash balance of $10.0M providing short-term liquidity buffer
- Current ratio of 1.57x suggests adequate short-term asset coverage of liabilities
- Low revenue base ($885.4K) provides minimal downside if operations cease
Risks
- Negative stockholders' equity of -$2.6M indicates technical insolvency and potential equity wipeout
- Negative free cash flow of -$13.4M with only $10.0M cash on hand creates 12-month cash runway concern
- Catastrophic operating margins of -2767.5% and net margins of -3341.5% demonstrate fundamental business model failure
- Operating losses of -$24.5M on revenue of $885.4K show severe cost structure issues
- Total liabilities of $16.7M exceed total assets of $14.1M by $2.6M, creating negative net worth
Key Metrics to Watch
- Cash burn rate and remaining cash runway
- Path to profitability or timeline to restructuring/bankruptcy
- Changes in stockholders' equity trajectory
Financial Metrics
Revenue
885.4K
Net Income
-29.6M
EPS (Diluted)
$-1.04
Free Cash Flow
-13.4M
Total Assets
14.1M
Cash
10.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-2,767.5%
Net Margin
-3,341.5%
ROE
N/A
ROA
-209.3%
FCF Margin
-1,509.5%
Balance Sheet & Liquidity
Current Ratio
1.57x
Quick Ratio
1.57x
Debt/Equity
N/A
Debt/Assets
118.5%
Interest Coverage
N/A
Long-term Debt
6.7M
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: 2026-04-03T22:18:10.585375 |
Data as of: 2026-01-16 |
Powered by Claude AI