Investment Thesis
Sun Pacific is technically insolvent with negative stockholders equity of -$3.5M, unable to meet financial obligations. The company generates minimal declining revenue ($45.8K) while burning cash at -$725.5K annually, and carries $10.8M in debt with only $20.2K in liquidity reserves, creating an unsustainable financial structure.
Strengths
- High gross margin of 85.4% indicates potentially viable unit economics on products sold
- Modest total asset base of $44.8K provides some tangible foundation for restructuring
- Company remains operationally active despite financial distress
Risks
- Negative stockholders equity of -$3.5M indicates technical insolvency and balance sheet insolvency
- Negative free cash flow of -$725.5K with only $20.2K in cash reserves creates critical liquidity crisis
- Revenue collapsing at -29.7% YoY ($45.8K) while operating losses exceed revenue 14x
- Negative interest coverage of -17.5x shows inability to service $10.8M long-term debt from operations
- Current ratio of 0.01x indicates company cannot meet short-term obligations
Key Metrics to Watch
- Operating cash flow trajectory and path to positive cash generation
- Cash balance depletion rate and runway until insolvency
- Revenue stabilization and return to growth after -29.7% YoY decline
- Debt restructuring or refinancing negotiations given unsustainable capital structure
Financial Metrics
Revenue
45.8K
Net Income
-404.7K
EPS (Diluted)
$0.00
Free Cash Flow
-725.5K
Total Assets
44.8K
Cash
20.2K
Profitability Ratios
Gross Margin
85.4%
Operating Margin
-1,402.7%
Net Margin
-883.3%
ROE
N/A
ROA
-904.3%
FCF Margin
-1,583.6%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
-0.02x
Debt/Equity
N/A
Debt/Assets
7,923.3%
Interest Coverage
-17.49x
Long-term Debt
10.8M
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: 2026-04-16T06:21:25.009205 |
Data as of: 2023-09-30 |
Powered by Claude AI