Investment Thesis
The company exhibits technical insolvency with negative stockholders' equity of -$3.0M while carrying $3.0M in liabilities against only $54.5K in assets. Liquidity crisis is evident with a 0.02x current ratio and merely $40.5K cash, making debt servicing impossible. Ten-year-old financial data (Sept 2016) compounds the investment risk substantially.
Strengths
- High gross margin of 78.5% indicates strong product pricing power or favorable unit economics
- Positive operating cash flow of $25.3K and free cash flow suggest core operations generate cash
- Strong revenue growth of 173.7% YoY demonstrates market demand despite small absolute size
Risks
- Negative stockholders' equity of -$3.0M indicates balance sheet insolvency and technical bankruptcy
- Catastrophic liquidity position with 0.02x current ratio and only $40.5K cash against $3.0M liabilities
- Financial data severely stale at September 2016 - actual company status unknown after 10 years
- Extreme leverage with $3.0M debt burden unsustainable relative to $409.1K revenue base
- OTC trading with zero insider Form 4 activity indicates minimal institutional or insider confidence
- Micro-cap operation with microscopic asset base suggests high bankruptcy or delisting probability
Key Metrics to Watch
- Whether company remains solvent and what current stockholders' equity position is
- Current ratio trajectory and working capital adequacy for debt service
- Latest available SEC filing date to assess if company still operates or has been delisted
Financial Metrics
Revenue
409.1K
Net Income
59.3K
EPS (Diluted)
$0.00
Free Cash Flow
25.3K
Total Assets
54.5K
Cash
40.5K
Profitability Ratios
Gross Margin
78.5%
Operating Margin
20.3%
Net Margin
14.5%
ROE
N/A
ROA
108.9%
FCF Margin
6.2%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.02x
Debt/Equity
N/A
Debt/Assets
5,581.2%
Interest Coverage
3.51x
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: 2026-04-15T23:00:23.228556 |
Data as of: 2016-09-30 |
Powered by Claude AI