Investment Thesis
Odysight.ai is a fundamentally distressed business experiencing severe operational deterioration with 23.9% YoY revenue decline and massive cash burn of $13.8M annually against only $3M in quarterly revenue. The company is unprofitable by every measure with negative operating margins of -601.5%, and despite adequate cash reserves, the deteriorating revenue trend and accelerating net losses suggest approximately 1.9 years of runway before insolvency.
Strengths
- Gross margin of 28.9% indicates some underlying business model viability in service delivery
- Strong balance sheet with $25.7M cash and no debt provides near-term survival runway
- Positive stockholders' equity of $25.4M provides theoretical asset cushion
Risks
- Revenue declining 23.9% YoY with no signs of stabilization represents fundamental demand problem
- Operating cash burn of $13.7M annually will exhaust $25.7M cash reserves within ~22 months if trend continues
- Net losses accelerating at -44.8% YoY while revenue contracts suggests operational leverage working in reverse and deteriorating unit economics
- Negative ROE of -67% and ROA of -58.8% indicate value destruction across the business
- Operating margin of -601.5% demonstrates severe cost structure misalignment with revenue base
Key Metrics to Watch
- Quarterly revenue growth rate - any further contraction signals terminal decline
- Operating cash flow burn rate - critical to assess remaining runway
- Gross margin sustainability - early indicator of business model viability if operations ever scale
- Cash balance depletion timeline - determines when financing or strategic alternatives become urgent
Financial Metrics
Revenue
3.0M
Net Income
-17.0M
EPS (Diluted)
$-1.07
Free Cash Flow
-13.8M
Total Assets
29.0M
Cash
25.7M
Profitability Ratios
Gross Margin
28.9%
Operating Margin
-601.5%
Net Margin
-565.0%
ROE
-67.0%
ROA
-58.8%
FCF Margin
-456.4%
Balance Sheet & Liquidity
Current Ratio
9.17x
Quick Ratio
9.16x
Debt/Equity
0.00x
Debt/Assets
12.3%
Interest Coverage
-2,254.76x
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: 2026-04-13T13:06:20.372522 |
Data as of: 2025-12-31 |
Powered by Claude AI