Investment Thesis
Sow Good Inc. is in critical financial distress with zero revenue, negative equity of -$1.5M, and negative operating cash flow of -$1.7M. The company is technically insolvent with liabilities exceeding assets and insufficient liquidity to cover short-term obligations. At current burn rates, existing cash reserves provide limited runway for recovery.
Strengths
- Maintains $2.3M in cash providing short-term liquidity buffer
- Manageable long-term debt of $699.2K allows potential restructuring
- Recent insider activity suggests management engagement
Risks
- Zero revenue indicates non-operational or failed business model
- Negative stockholders' equity of -$1.5M represents technical insolvency
- Negative operating cash flow of -$1.7M with limited runway before cash depletion
- Current ratio of 0.68x indicates inability to cover short-term liabilities
- Negative operating income prevents debt service from business operations
- ROA of -81.7% shows severe asset efficiency deterioration
Key Metrics to Watch
- Revenue generation and path to commercial operations
- Operating cash flow trajectory toward positive territory
- Stockholders' equity movement above zero threshold
- Cash burn rate and remaining runway
- Gross profit margin stabilization if revenue resumes
Financial Metrics
Revenue
0.0
Net Income
-2.5M
EPS (Diluted)
$-0.13
Free Cash Flow
-1.7M
Total Assets
3.0M
Cash
2.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
N/A
ROA
-81.7%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.68x
Debt/Equity
N/A
Debt/Assets
147.6%
Interest Coverage
-1.66x
Long-term Debt
699.2K
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: 2026-05-21T07:26:42.984340 |
Data as of: 2026-03-31 |
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