Investment Thesis
UC Asset LP exhibits severe financial distress with a -26.8% net margin, negative operating cash flow of -$348.9K, and critically low 2% gross margins indicating fundamental business model deterioration. The company burned $354.9K in free cash flow while generating only $2.1M in revenue, leaving inadequate runway on $826K cash reserves. Data staleness (September 2021) creates additional uncertainty regarding current viability.
Strengths
- Maintains $826.1K cash position providing near-term liquidity buffer
- Asset base of $8.6M indicates some underlying collateral value
- Revenue generation of $2.1M demonstrates ongoing operational activity
Risks
- Extreme data staleness (September 2021, nearly 5 years old) obscures current financial condition
- Negative net income of -$568K on $2.1M revenue with -26.8% net margin shows severe unprofitability
- Negative operating and free cash flows indicate capital consumption unsustainable at current burn rate relative to cash reserves
- Critically low 2% gross margin suggests structural pricing or cost issues
- Incomplete financial disclosure with N/A values for liabilities, equity, and debt creates transparency concerns
Key Metrics to Watch
- Current operating cash flow trend and monthly burn rate
- Gross margin expansion or contraction trends
- Cash reserves depletion timeline at current burn rates
- Revenue stabilization or growth patterns
Financial Metrics
Revenue
2.1M
Net Income
-568.0K
EPS (Diluted)
$0.00
Free Cash Flow
-354.9K
Total Assets
8.6M
Cash
826.1K
Profitability Ratios
Gross Margin
2.0%
Operating Margin
N/A
Net Margin
-26.8%
ROE
N/A
ROA
-6.6%
FCF Margin
-16.7%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-04-18T02:57:19.591831 |
Data as of: 2021-09-30 |
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