SLDC Solidus Communications, Inc.

OTC Telephone Communications (No Radiotelephone) NV CIK: 0001427644
AI RATING
STRONG_SELL
88% Confidence

Investment Thesis

Solidus Communications exhibits severe financial distress with negative stockholders' equity of -$5.5M, indicating technical insolvency, combined with minimal revenue generation of only $31.7K against substantial net losses. The company's balance sheet shows total liabilities vastly exceeding total assets, zero liquidity position, and the financial data is critically stale (from February 2017), making current viability assessment impossible.

Strengths

  • + Operating cash flow positive at $99.6K in reported period
  • + Free cash flow of $87.5K suggests minimal capital intensity
  • + Low capital expenditure requirements ($12.1K) reduce cash burn

Risks

  • ! Negative stockholders' equity of -$5.5M indicates insolvency
  • ! Revenue base of only $31.7K is insufficient to sustain operations
  • ! Total liabilities ($5.5M) vastly exceed total assets ($31.7K)
  • ! Zero liquidity with current and quick ratios at 0.00x
  • ! Negative operating margin of -209.3% indicates operational failure
  • ! Financial data is over 8 years stale (February 2017); current status unknown
  • ! Suspicious financial metrics (gross profit exceeds revenue) suggest data quality issues

Key Metrics to Watch

Financial Metrics

Revenue
31.7K
Net Income
-164.2K
EPS (Diluted)
$0.00
Free Cash Flow
87.5K
Total Assets
31.7K
Cash
9.4K

Profitability Ratios

Gross Margin 397.1%
Operating Margin -209.3%
Net Margin -518.2%
ROE N/A
ROA -518.3%
FCF Margin 276.3%

Balance Sheet & Liquidity

Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
17,336.9%
Interest Coverage
-1.25x
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: 2026-04-16T00:45:24.318915 | Data as of: 2017-02-28 | Powered by Claude AI