Investment Thesis
Q/C Technologies exhibits severe operational distress with negative gross margins (-52.1%) indicating fundamental business model failure—the company loses money on every unit sold. Operating losses of -$6.1M against minimal revenue of $361.6K combined with negative cash burn of -$5.9M annually creates an unsustainable runway of approximately 12-14 months, while declining revenue (-5.3% YoY) and collapsing shareholder value (ROE -40%) signal deteriorating business fundamentals.
Strengths
- Adequate short-term liquidity with current ratio of 1.71x
- No long-term debt providing balance sheet flexibility
- Net income loss improving 14% YoY from severely negative base
Risks
- Negative gross margin of -52.1% indicates fundamental business model failure (losing money on sales)
- Negative operating cash flow of -$5.9M annually with only ~12-14 months of cash runway at current burn rate
- Revenue declining YoY (-5.3%) with massive operating losses of -$6.1M against $361.6K revenue
- Severe destruction of shareholder value with ROE of -40% and ROA of -15.4%
- Minimal insider activity (1 Form 4 filing in 90 days) suggesting low insider confidence
- Pre-turnaround status with unsustainable cash burn profile
Key Metrics to Watch
- Gross margin trend—must turn positive to indicate viable business model
- Operating cash flow—critical indicator of sustainability with current ~$6M cash position
- Revenue trajectory—reversal of declining trend essential for business viability
- Monthly cash burn rate—determines actual runway before capital raise requirement
- Insider transaction activity—positive signal if management/directors begin buying shares
Financial Metrics
Revenue
361.6K
Net Income
-5.7M
EPS (Diluted)
$-14.77
Free Cash Flow
-5.9M
Total Assets
37.2M
Cash
6.9M
Profitability Ratios
Gross Margin
-52.1%
Operating Margin
-1,696.0%
Net Margin
-1,585.1%
ROE
-40.0%
ROA
-15.4%
FCF Margin
-1,640.9%
Balance Sheet & Liquidity
Current Ratio
1.71x
Quick Ratio
1.68x
Debt/Equity
0.00x
Debt/Assets
42.7%
Interest Coverage
-6,329.32x
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: 2026-04-14T20:00:23.859509 |
Data as of: 2025-09-30 |
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