Investment Thesis
TOMI is in acute financial distress with severe operating losses (-68.4% margin), negative cash flow burn of -$1.2M, and critically low cash reserves of only $87.8K. The company's 5.33x debt-to-equity ratio and inability to cover interest from operations (-10.8x coverage) creates imminent solvency risk without dramatic operational turnaround or external capital injection.
Strengths
- Gross margin of 54.6% demonstrates underlying product economics are viable
- Minimal capital intensity (only $5.2K CapEx) reduces near-term cash burn requirements
- Current ratio of 1.32x provides marginal short-term liquidity cushion
Risks
- Negative operating cash flow of -$1.2M with only $87.8K cash on hand creates immediate solvency concern
- Debt-to-equity ratio of 5.33x paired with negative interest coverage (-10.8x) indicates inability to service debt obligations
- Revenue collapse of -27.2% YoY coupled with persistent losses suggests market deterioration or loss of competitive position
- Shareholder equity of $588.5K represents extremely thin cushion; further losses risk equity elimination and massive dilution
Key Metrics to Watch
- Monthly cash burn rate and runway to insolvency
- Operating cash flow stabilization and path to positive
- Revenue trajectory and evidence of market stabilization
- Debt restructuring announcements or refinancing activity
Financial Metrics
Revenue
5.6M
Net Income
-3.7M
EPS (Diluted)
$-0.19
Free Cash Flow
-1.2M
Total Assets
7.0M
Cash
87.8K
Profitability Ratios
Gross Margin
54.6%
Operating Margin
-68.4%
Net Margin
-66.5%
ROE
-637.0%
ROA
-53.3%
FCF Margin
-21.3%
Balance Sheet & Liquidity
Current Ratio
1.32x
Quick Ratio
0.40x
Debt/Equity
5.33x
Debt/Assets
91.6%
Interest Coverage
-10.81x
Long-term Debt
3.1M
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: 2026-04-17T16:36:18.044562 |
Data as of: 2025-12-31 |
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