Investment Thesis
Q/C Technologies is a biodiagnostic company in severe financial distress with negative gross margins (-52.1%), indicating broken product economics. With only $1.1M cash and -$5.0M free cash flow, the company faces imminent liquidity pressure within months. Minimal and declining revenue ($361.6K, -5.3% YoY) combined with mounting losses signals bankruptcy risk without substantial capital injection or operational restructuring.
Strengths
- No long-term debt provides financial flexibility and restructuring options
- Stockholders' equity of $20.7M offers balance sheet cushion and asset value
- Net loss improved 22.4% YoY indicating some operational improvement trajectory
Risks
- Negative gross margin (-52.1%) demonstrates broken unit economics and fundamentally unsustainable business model
- Critical liquidity crisis with only $1.1M cash against -$5.0M annual free cash flow burn rate
- Minimal and declining revenue combined with operating losses indicates failed market commercialization and bankruptcy risk within 2-3 quarters
Key Metrics to Watch
- Quarterly cash position and estimated runway
- Gross margin improvement toward positive contribution
- Revenue acceleration and customer adoption trends
- Operating cash flow inflection to positive
Financial Metrics
Revenue
361.6K
Net Income
-1.2M
EPS (Diluted)
$-0.19
Free Cash Flow
-5.0M
Total Assets
38.3M
Cash
1.1M
Profitability Ratios
Gross Margin
-52.1%
Operating Margin
-513.0%
Net Margin
-343.7%
ROE
-6.0%
ROA
-3.2%
FCF Margin
-1,392.8%
Balance Sheet & Liquidity
Current Ratio
3.71x
Quick Ratio
3.66x
Debt/Equity
0.00x
Debt/Assets
38.1%
Interest Coverage
-1,914.54x
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: 2026-05-23T09:08:17.082040 |
Data as of: 2026-03-31 |
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