Investment Thesis
Vocodia is in severe financial distress with negative stockholders' equity of -7.1M, indicating technical insolvency. The company burns -834K in free cash flow annually while generating only 66.5K in revenue, rendering it unable to service 3.7M in debt or fund ongoing operations without capital infusion or restructuring.
Strengths
- Company has not yet filed for bankruptcy despite insolvency
- Minimal revenue generation of 66.5K demonstrates some market activity
- Capital expenditure of 180.6K shows continued investment attempts
Risks
- Negative stockholders' equity of -7.1M indicates technical insolvency and liabilities exceeding assets
- Negative gross margin of -90.5% means core business is unprofitable before operating expenses
- Free cash flow burn of -834K annually will exhaust 4.1K cash position within weeks; insufficient liquidity to fund operations
- 3.7M long-term debt with interest coverage of -214.3x; company cannot service debt obligations
- Operating cash flow of -653.5K demonstrates business cannot sustain itself without external capital
- Zero insider Form 4 filings in 90 days indicates complete lack of insider confidence
Key Metrics to Watch
- Stockholders equity trajectory and path to positive equity
- Monthly cash burn rate and runway until capital depletion
- Revenue growth and path to positive gross margin
- Debt restructuring announcements or covenant negotiations
- Operating cash flow improvement and operating leverage
Financial Metrics
Revenue
66.5K
Net Income
-5.9M
EPS (Diluted)
$0.00
Free Cash Flow
-834.0K
Total Assets
51.8K
Cash
4.1K
Profitability Ratios
Gross Margin
-90.5%
Operating Margin
-1,929.6%
Net Margin
-8,928.6%
ROE
N/A
ROA
-11,459.4%
FCF Margin
-1,254.9%
Balance Sheet & Liquidity
Current Ratio
0.00x
Quick Ratio
0.00x
Debt/Equity
N/A
Debt/Assets
4,328.7%
Interest Coverage
-214.31x
Long-term Debt
3.7M
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: 2026-04-18T15:15:25.059043 |
Data as of: 2025-09-30 |
Powered by Claude AI