Investment Thesis
TurnOnGreen is technically insolvent with -$32.8M stockholders' equity and faces a critical liquidity crisis with only $65K cash against $11.1M liabilities. Despite impressive 4,675% YoY revenue growth and 45.9% gross margins, the company is hemorrhaging -$3.0M in operating cash flow with -29.2% net margins, making bankruptcy or severe dilution a material near-term risk without significant capital injection or dramatic operational turnaround.
Strengths
- Exceptional YoY revenue growth of 4,674.7% demonstrates significant market traction and commercialization success
- Positive gross margin of 45.9% indicates core product economics are viable at the unit level
- Manageable absolute debt levels at $75K long-term debt reduces financial leverage pressure relative to liabilities
Risks
- Technical insolvency: negative stockholders' equity of -$32.8M means liabilities exceed assets; high bankruptcy risk without equity recapitalization
- Liquidity crisis: current ratio of 0.24x with only $65K cash against $11.1M total liabilities; insufficient runway to fund operations at current burn rate
- Unsustainable cash burn: operating cash flow of -$3.0M with $3.2M total assets implies only ~1 month of operating runway without external funding
- Profitability gap: despite massive revenue growth, company posts -$2.1M net income and -18.5% operating margin, indicating inability to control costs at scale
Key Metrics to Watch
- Operating cash flow trend and months of cash runway (current -$3.0M burn unsustainable)
- Path to and timing of operating profitability (need positive operating margin)
- Stockholders' equity recovery (from -$32.8M deficit)
- Gross margin sustainability as revenue scales (maintain above 45%)
- Capital raising activity and dilution (determine if equity injection occurs and at what terms)
Financial Metrics
Revenue
7.2M
Net Income
-2.1M
EPS (Diluted)
$-0.01
Free Cash Flow
-3.0M
Total Assets
3.2M
Cash
65.0K
Profitability Ratios
Gross Margin
45.9%
Operating Margin
-18.5%
Net Margin
-29.2%
ROE
N/A
ROA
-65.5%
FCF Margin
-42.0%
Balance Sheet & Liquidity
Current Ratio
0.24x
Quick Ratio
0.15x
Debt/Equity
N/A
Debt/Assets
343.0%
Interest Coverage
-60.64x
Long-term Debt
75.0K
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: 2026-04-17T16:18:25.666467 |
Data as of: 2025-12-31 |
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