Investment Thesis
Quest Water Global is technically insolvent with negative stockholders equity of -$2.9M against minimal assets of $72.8K and crushing liabilities of $3.0M. The company is generating only $150K in revenue while burning $575.9K in free cash flow, with virtually no cash reserves ($9), making immediate solvency and operations unsustainable.
Strengths
- Positive gross margin of 24.8% demonstrates basic product economics on sales generated
- Company remains operational and filing with SEC
- Minimal capital intensity with low CapEx requirements
Risks
- Negative stockholders equity (-$2.9M) indicates technical insolvency and liabilities far exceed assets
- Severe liquidity crisis: current ratio 0.00x with only $9 cash against $3.0M liabilities
- Operating losses of $630.9K against revenue of just $150K; company burning cash at 3.8x annual revenue rate
- Free cash flow of -$575.9K annually with no path to profitability visible; unsustainable burn rate
- High bankruptcy and dissolution risk without immediate capital injection or dramatic revenue acceleration
Key Metrics to Watch
- Stockholders equity trajectory and path to positive equity
- Operating cash flow and free cash flow improvement toward breakeven
- Revenue growth rate and gross profit expansion to cover operating expenses
- Cash position and working capital availability to sustain operations
- Debt restructuring or refinancing activity to address liability overhang
Financial Metrics
Revenue
150.0K
Net Income
-630.9K
EPS (Diluted)
$-0.01
Free Cash Flow
-575.9K
Total Assets
72.8K
Cash
9.0
Profitability Ratios
Gross Margin
24.8%
Operating Margin
-420.6%
Net Margin
-420.6%
ROE
N/A
ROA
-866.7%
FCF Margin
-383.9%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
4,134.5%
Interest Coverage
-101.66x
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: 2026-04-14T23:09:21.448664 |
Data as of: 2025-09-30 |
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