Investment Thesis
Star Gold Corp exhibits critical financial distress with negative stockholders' equity of -$304.5K, indicating technical insolvency where liabilities exceed assets. The company generates negative revenue, persistent operating losses (-$337.1K), negative operating cash flow (-$271.2K), and severe liquidity constraints (current ratio 0.34x), leaving it vulnerable to imminent solvency failure.
Strengths
- Maintains minimal cash reserves of $266.1K providing short-term runway
- No long-term debt burden limiting forced restructuring obligations
- Position in metal mining sector with potential macro tailwinds if operational
Risks
- Negative stockholders' equity indicates technical insolvency and balance sheet underwater
- Current ratio of 0.34x reflects inability to cover current liabilities with current assets
- Negative operating cash flow of -$271.2K indicates active cash burn with no operating revenue generation
- Negative revenue suggests business is non-operational or in terminal decline
- Minimal insider activity over 90 days suggests lack of management confidence
Key Metrics to Watch
- Stockholders equity recovery above zero threshold
- Operating cash flow return to positive territory
- Current ratio improvement above 1.0x minimum threshold
Financial Metrics
Revenue
-159.0
Net Income
-389.8K
EPS (Diluted)
$0.00
Free Cash Flow
-271.2K
Total Assets
1.1M
Cash
266.1K
Profitability Ratios
Gross Margin
N/A
Operating Margin
212,028.3%
Net Margin
245,138.4%
ROE
N/A
ROA
-36.9%
FCF Margin
170,584.9%
Balance Sheet & Liquidity
Current Ratio
0.34x
Quick Ratio
0.34x
Debt/Equity
N/A
Debt/Assets
128.8%
Interest Coverage
-276.79x
Long-term Debt
0.0
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: 2026-04-16T13:45:19.105014 |
Data as of: 2026-01-31 |
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