Investment Thesis
QS Energy is in critical financial distress with zero revenue, -$15.3M net losses, and negative $5.9M stockholders' equity indicating technical insolvency. The company is burning $4M annually in operating cash flows with only $6K in cash reserves, creating immediate liquidity and going-concern risks.
Strengths
- Company remains registered with SEC and has not yet been delisted
- Long-term debt of only $16K limits additional leverage obligations
- Oil & gas sector could provide future operational opportunities if pivot occurs
Risks
- Zero revenue with no apparent business operations or customer base
- Negative stockholders' equity of -$5.9M indicates technical insolvency and balance sheet deterioration
- Severe liquidity crisis: current ratio of 0.01x with only $6K cash against $5.9M liabilities
- Negative $4M operating cash flow indicates company cannot fund operations from core business
- Total liabilities exceed total assets by 107x, creating imminent solvency risk
- Interest coverage of -102.2x shows inability to service debt from earnings
- Negative ROA of -27,827% reflects destructive asset utilization
Key Metrics to Watch
- Revenue generation and returning to profitable operations
- Cash burn rate and timeline to liquidity exhaustion
- Debt restructuring or bankruptcy proceedings announcement
- Stockholders' equity stabilization and return to positive territory
Financial Metrics
Revenue
0.0
Net Income
-15.3M
EPS (Diluted)
$-0.03
Free Cash Flow
-4.0M
Total Assets
55.0K
Cash
6.0K
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-27,827.3%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.01x
Debt/Equity
N/A
Debt/Assets
10,789.1%
Interest Coverage
-102.21x
Long-term Debt
16.0K
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: 2026-04-14T21:45:23.628971 |
Data as of: 2025-12-31 |
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