Investment Thesis
NEXTNRG faces imminent financial distress with negative stockholders' equity of -$19.6M, critical liquidity crisis (0.18x current ratio, $208K cash, -$2.1M operating burn rate), and catastrophic profitability deterioration (-51% net margin on $21.1M revenue). The company is technically insolvent, burning cash across all metrics, and incapable of servicing $9.2M debt, making bankruptcy or forced restructuring highly probable.
Strengths
- Company maintains revenue generation of $21.1M demonstrating residual business activity
- Limited insider selling pressure in recent 90-day period suggests insiders not fleeing
- Sector presence in auto retail provides tangible assets that may have liquidation value
Risks
- Negative stockholders' equity of -$19.6M indicates technical insolvency with liabilities exceeding assets by $22M
- Critical liquidity crisis with current ratio of 0.18x and only $208K cash against $34.3M liabilities (estimated 1-month cash runway)
- Massive operating losses of -$10.1M and negative free cash flow of -$6.1M indicating operational failure and inability to sustain
- High leverage with $9.2M long-term debt against negative equity; negative earnings prevent interest coverage
- Negative operating cash flow of -$2.1M while still investing $3.9M in capex indicates severe operational distress
- Imminent bankruptcy/covenant default risk given insolvency and liquidity position
Key Metrics to Watch
- Monthly cash balance and runway to insolvency
- Operating cash flow trend and ability to reach cash flow breakeven
- Debt covenant compliance and refinancing negotiations
- Revenue sustainability (is $21.1M baseline recoverable or deteriorating further)
- Gross margin recovery and path to operating profitability
Financial Metrics
Revenue
21.1M
Net Income
-10.7M
EPS (Diluted)
$-0.07
Free Cash Flow
-6.1M
Total Assets
12.3M
Cash
208.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-47.9%
Net Margin
-51.0%
ROE
N/A
ROA
-87.5%
FCF Margin
-28.9%
Balance Sheet & Liquidity
Current Ratio
0.18x
Quick Ratio
0.15x
Debt/Equity
N/A
Debt/Assets
279.8%
Interest Coverage
-5,200.33x
Long-term Debt
9.2M
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: 2026-05-21T07:51:52.916518 |
Data as of: 2026-03-31 |
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