Investment Thesis
Rainmaker Worldwide is technically insolvent with negative stockholders equity of -$13.2M against assets of only $104.2K, indicating liabilities exceed assets. The company is burning cash with a -$83.1K free cash flow while generating only $34.2K in revenue, resulting in a catastrophic -2713.9% net margin. Zero cash position combined with a 0.01x current ratio indicates severe liquidity distress and imminent insolvency risk.
Strengths
- Gross margin of 25.3% indicates potential product economics if company survives
- Revenue showed 82.1% YoY growth from near-zero base
- Recent insider trading activity (5 Form 4 filings) shows some stakeholder engagement
Risks
- Negative stockholders equity of -$13.2M - company is technically insolvent
- Zero cash position with 0.01x current ratio - immediate liquidity crisis
- Operating losses of -$334.9K dwarf revenue of $34.2K - unsustainable burn rate
- Negative free cash flow of -$83.1K burning capital while scaling revenue is stalled
- Total liabilities ($13.1M) 125x larger than total assets ($104.2K) - structural balance sheet failure
Key Metrics to Watch
- Cash position - any replenishment critical for survival
- Operating cash flow - path to positive operating cash required
- Revenue trajectory - current $34.2K run rate insufficient to support operations
Financial Metrics
Revenue
34.3K
Net Income
-929.5K
EPS (Diluted)
$-0.02
Free Cash Flow
-83.1K
Total Assets
104.2K
Cash
0.0
Profitability Ratios
Gross Margin
25.3%
Operating Margin
-977.7%
Net Margin
-2,713.9%
ROE
N/A
ROA
-892.1%
FCF Margin
-242.7%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
12,550.4%
Interest Coverage
-190.80x
Long-term Debt
4.7K
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: 2026-04-15T00:03:20.322430 |
Data as of: 2025-09-30 |
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