Investment Thesis
TMGI exhibits critical financial distress with negative stockholders equity (-5.4M), indicating technical insolvency. The company generates losses exceeding 13x annual revenue, operates with negative cash flow, and faces imminent liquidity failure with a current ratio of 0.09x. The fundamentals indicate a non-viable business requiring immediate restructuring or bankruptcy proceedings.
Strengths
- Positive gross margin of 30.7% indicates theoretical profitability at the operational level
- Minimal ongoing cash position of 349.2K provides short-term liquidity runway
- Operates in radio broadcasting sector with established market infrastructure
Risks
- Negative stockholders equity of -5.4M constitutes technical insolvency
- Catastrophic liquidity crisis with current ratio of 0.09x unable to meet obligations
- Negative operating cash flow of -1.3M with business unable to self-fund
- Operating losses 13x greater than revenue with -161.7% operating margin
- Negative interest coverage of -2.0x cannot service debt
- No insider purchases in 90 days reflects management loss of confidence
Key Metrics to Watch
- Stockholders equity trend and debt covenant compliance status
- Operating cash flow trajectory and monthly burn rate sustainability
- Revenue stabilization and operating margin improvement path
Financial Metrics
Revenue
475.4K
Net Income
-6.3M
EPS (Diluted)
$-0.97
Free Cash Flow
-1.3M
Total Assets
3.3M
Cash
349.2K
Profitability Ratios
Gross Margin
30.7%
Operating Margin
-161.7%
Net Margin
-1,316.3%
ROE
N/A
ROA
-188.1%
FCF Margin
-264.7%
Balance Sheet & Liquidity
Current Ratio
0.09x
Quick Ratio
0.09x
Debt/Equity
N/A
Debt/Assets
263.5%
Interest Coverage
-2.04x
Long-term Debt
150.0K
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: 2026-04-17T14:21:20.659681 |
Data as of: 2026-02-28 |
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