Investment Thesis
UMeWorld exhibits critical financial distress with negative stockholders' equity of -$462.6K, indicating technical insolvency. The company burns cash operationally while generating minimal revenue ($147.5K) and faces severe liquidity constraints with a current ratio of 0.79x and only $60.9K in cash against $2.2M liabilities.
Strengths
- Retains $60.9K in cash on balance sheet
- Still generating minimal revenue of $147.5K
- No long-term debt burden
Risks
- Negative stockholders' equity of -$462.6K indicates technical insolvency
- Current ratio of 0.79x signals imminent liquidity crisis; quick ratio of 0.03x is critically low
- Negative operating cash flow of -$93.5K at current burn rate will deplete cash within months
- Operating margin of -94.1% shows inability to control costs relative to minimal revenue
- Gross margin of only 3.1% provides insufficient buffer for operations
Key Metrics to Watch
- Quarterly cash balance and monthly burn rate to assess solvency runway
- Revenue stabilization or growth trajectory
- Achievement of operating profitability or restructuring announcements
Financial Metrics
Revenue
147.5K
Net Income
-138.7K
EPS (Diluted)
$0.00
Free Cash Flow
-93.5K
Total Assets
1.7M
Cash
60.9K
Profitability Ratios
Gross Margin
3.1%
Operating Margin
-94.1%
Net Margin
-94.1%
ROE
N/A
ROA
-7.9%
FCF Margin
-63.4%
Balance Sheet & Liquidity
Current Ratio
0.79x
Quick Ratio
0.03x
Debt/Equity
N/A
Debt/Assets
126.5%
Interest Coverage
-5.69x
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: 2026-04-18T06:03:18.131968 |
Data as of: 2025-12-31 |
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