Investment Thesis
Vertical Data Inc. is in severe financial distress with operating losses exceeding 11x its minimal $57K annual revenue and negative operating cash flow of -$335K annually. At current burn rates, the company's $220K cash reserve provides less than a year of runway with no clear path to profitability or revenue growth. The business model is fundamentally unsustainable and the company faces imminent bankruptcy risk.
Strengths
- No long-term debt reduces immediate financial obligations
- Maintains $220K cash balance providing short-term liquidity buffer
- Recent insider Form 4 activity (3 filings) suggests management engagement with situation
Risks
- Operating losses of $652.6K on just $57K revenue indicates fundamentally broken business model with no sustainable path to profitability
- Negative operating cash flow of -$335K annually will deplete total cash reserves in less than 12 months, creating imminent insolvency risk
- Minimal stockholders equity of $62.6K combined with weak gross margins of 14.2% provides no financial cushion for operational recovery
Key Metrics to Watch
- Quarterly revenue trends and customer acquisition rates indicating business viability
- Operating cash flow burn rate relative to remaining cash balance
- Gross margin improvement and management's announced cost reduction or restructuring initiatives
Financial Metrics
Revenue
57.0K
Net Income
-652.6K
EPS (Diluted)
$-0.05
Free Cash Flow
-335.2K
Total Assets
421.8K
Cash
220.0K
Profitability Ratios
Gross Margin
14.2%
Operating Margin
-1,145.0%
Net Margin
-1,145.0%
ROE
-1,043.3%
ROA
-154.7%
FCF Margin
-588.0%
Balance Sheet & Liquidity
Current Ratio
1.17x
Quick Ratio
1.17x
Debt/Equity
0.00x
Debt/Assets
85.2%
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: 2026-04-18T13:30:25.980084 |
Data as of: 2025-12-31 |
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