Investment Thesis
Sativus Tech is in severe financial distress with negative stockholders' equity of -$3.2M, indicating technical insolvency. The company operates at negative gross margins (-62.4%), burning cash operationally while maintaining only $159K in liquid reserves and facing a critical liquidity crisis with a current ratio of 0.06x. With flat revenue and unsustainable cash burn of -$482K annually, the company faces imminent solvency concerns.
Strengths
- Net loss improved 33.3% year-over-year (demonstrating some cost management, though still deeply unprofitable)
- Minimal long-term debt of $20K relative to total liabilities reduces leverage risk
- No insider selling in past 90 days (insiders not abandoning position)
Risks
- Technical insolvency: negative stockholders' equity of -$3.2M with liabilities exceeding assets by 6.5x
- Critical liquidity crisis: current ratio of 0.06x with only ~4 months cash runway at current burn rate
- Fundamental business model failure evidenced by negative gross margin of -62.4% and zero revenue growth
Key Metrics to Watch
- Cash balance depletion timeline and potential covenant violations or bankruptcy filing
- Gross margin recovery and revenue stabilization (currently -62.4% and flat YoY)
- Operating cash flow path to breakeven or restructuring/refinancing announcements
Financial Metrics
Revenue
703.0K
Net Income
-599.0K
EPS (Diluted)
$-0.14
Free Cash Flow
-482.0K
Total Assets
569.0K
Cash
159.0K
Profitability Ratios
Gross Margin
-62.4%
Operating Margin
-112.8%
Net Margin
-85.2%
ROE
N/A
ROA
-105.3%
FCF Margin
-68.6%
Balance Sheet & Liquidity
Current Ratio
0.06x
Quick Ratio
-0.08x
Debt/Equity
N/A
Debt/Assets
642.9%
Interest Coverage
-2.15x
Long-term Debt
20.0K
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: 2026-04-15T09:57:24.082028 |
Data as of: 2025-09-30 |
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