Investment Thesis
Onar Holding Corp is technically insolvent with negative stockholders equity of -4.7M and is burning cash at an unsustainable rate. The company is losing money at every level (operating loss of -3.0M on 2.7M revenue) while maintaining only 284.9K in cash reserves, indicating imminent financial distress or restructuring within months.
Strengths
- Minimal long-term debt burden of 56.4K limits financial obligations
- No capital expenditure requirements reducing cash burn components
- Positive gross profit of 168.6K demonstrates some ability to cover direct costs
Risks
- Negative stockholders equity of -4.7M indicates technical insolvency on a balance sheet basis
- Operating cash flow of -1.0M with only 284.9K cash creates severe liquidity crisis and runway of approximately 2.8 months
- Operating margin of -112.5% and net margin of -158.9% reveal fundamental business model failure
- Current ratio of 0.07x and quick ratio of 0.07x indicate inability to meet near-term obligations
- Negative interest coverage of -3.7x means company cannot service debt from operations
- No insider activity in last 90 days suggests loss of confidence from management
Key Metrics to Watch
- Monthly cash burn rate and remaining cash runway
- Operating cash flow trajectory and path to breakeven
- Revenue growth and gross margin sustainability
- Debt covenant compliance and restructuring announcements
Financial Metrics
Revenue
2.7M
Net Income
-4.3M
EPS (Diluted)
$-0.03
Free Cash Flow
-1.0M
Total Assets
4.3M
Cash
284.9K
Profitability Ratios
Gross Margin
6.2%
Operating Margin
-112.5%
Net Margin
-158.9%
ROE
N/A
ROA
-99.6%
FCF Margin
-38.0%
Balance Sheet & Liquidity
Current Ratio
0.07x
Quick Ratio
0.07x
Debt/Equity
N/A
Debt/Assets
7.4%
Interest Coverage
-3.67x
Long-term Debt
56.4K
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: 2026-04-13T16:09:21.329393 |
Data as of: 2025-09-30 |
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