Investment Thesis
QPRC exhibits terminal financial distress with negative stockholders' equity of -$5.6M, indicating technical insolvency. Revenue has collapsed 78.7% YoY to $2.8M while the company generates negative gross margins (-145.7%), and operating losses of -$7.7M with free cash flow deteriorating to -$14.9M. The company lacks sufficient liquidity (0.01x current ratio) and is burning cash rapidly with only $192.6K in cash equivalents, creating imminent solvency risk.
Strengths
- Manageable long-term debt of $190K represents minimal leverage obligation
- Company maintains operating presence with reportable revenue stream
- Potential restructuring opportunity if core business can be salvaged
Risks
- Negative stockholders' equity indicates insolvency and potential total equity wipeout
- Revenue collapse of 78.7% YoY suggests fundamental business deterioration or loss of major contracts
- Severe liquidity crisis with current ratio of 0.01x and only $192.6K cash versus $27.6M liabilities
- Negative gross margins indicate products sold at loss or massive inventory writedowns
- Operating cash flow negative -$5.9M with capital expenditures of $9.0M consuming remaining resources
- No insider buying activity in 90 days suggests management lacks confidence
Key Metrics to Watch
- Stockholders' equity trajectory and path to positive equity restoration
- Revenue stabilization and gross margin recovery to positive territory
- Cash burn rate and timeline to liquidity exhaustion
- Debt covenant compliance and refinancing ability
- Operating cash flow return to positive
Financial Metrics
Revenue
2.8M
Net Income
-500.7K
EPS (Diluted)
$-1.59
Free Cash Flow
-14.9M
Total Assets
10.4M
Cash
192.6K
Profitability Ratios
Gross Margin
-145.7%
Operating Margin
-275.1%
Net Margin
-17.9%
ROE
N/A
ROA
-4.8%
FCF Margin
-533.8%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.01x
Debt/Equity
N/A
Debt/Assets
264.7%
Interest Coverage
-64.67x
Long-term Debt
190.0K
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: 2026-04-14T21:24:18.103082 |
Data as of: 2029-06-30 |
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