Investment Thesis
Pharmagreen Biotech exhibits catastrophic fundamental deterioration with negative stockholders equity of -$2.1M, revenue of merely $1.6K, and net losses of -$390.3K. The company faces critical insolvency with a current ratio of 0.02x and negative free cash flow of -$242.4K, indicating inability to sustain operations or meet obligations.
Strengths
- Positive gross margin of 11.9% demonstrates theoretical pricing capability despite operational collapse
- Minimal recent insider selling activity indicating no ongoing executive liquidation
- Long-term debt of only $31.8K is modest relative to larger liability base
Risks
- Negative stockholders equity of -$2.1M indicates technical insolvency and balance sheet impairment
- Critical liquidity crisis with current ratio of 0.02x and cash of only $5.3K against $2.3M liabilities
- Non-viable business model with $1.6K revenue insufficient to cover -$390.3K annual net loss
Key Metrics to Watch
- Stockholders equity trajectory from current -$2.1M to positive solvency threshold
- Operating cash flow stabilization from -$46.3K burn rate to cash flow breakeven
- Revenue materialization from immaterial $1.6K baseline to sustainable operational levels
Financial Metrics
Revenue
1.6K
Net Income
-390.3K
EPS (Diluted)
$0.00
Free Cash Flow
-242.4K
Total Assets
140.3K
Cash
5.3K
Profitability Ratios
Gross Margin
11.9%
Operating Margin
-14,574.1%
Net Margin
-25,018.4%
ROE
N/A
ROA
-278.2%
FCF Margin
-15,537.1%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.02x
Debt/Equity
N/A
Debt/Assets
1,633.0%
Interest Coverage
-0.34x
Long-term Debt
31.8K
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: 2026-04-14T06:57:26.697824 |
Data as of: 2023-06-30 |
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