Investment Thesis
Vivakor faces a critical financial crisis with only $4.5K in cash and a 0.15x current ratio, indicating severe liquidity distress. The company is burning $5.7M annually in free cash flow while operating at a -23.5% net margin with negative operating income, creating an immediate solvency risk absent significant capital injection or restructuring.
Strengths
- Gross margin of 29.4% indicates core business can generate product-level profitability
- Asset base of $111.8M provides potential recovery value in distressed scenario
- Zero long-term debt (Debt/Equity 0.00x) limits debt servicing burden
Risks
- Critical liquidity crisis: $4.5K cash with 0.15x current ratio signals imminent inability to meet obligations
- Unsustainable cash burn: -$3.3M operating cash flow and -$5.7M free cash flow with minimal cash reserves
- Structural unprofitability: -$2.4M operating loss on $19.5M revenue with -23.5% net margin indicates business model distress
- No insider confidence: zero Form 4 filings in 90 days suggests stakeholder disengagement
Key Metrics to Watch
- Cash balance and monthly burn rate - survival metric
- Operating cash flow trend - path to cash generation
- Revenue and gross margin stability - business viability
- Working capital changes and liquidity ratios - distress indicators
- Debt restructuring or capital raise announcements
Financial Metrics
Revenue
19.5M
Net Income
-4.6M
EPS (Diluted)
$-2.32
Free Cash Flow
-5.7M
Total Assets
111.8M
Cash
4.5K
Profitability Ratios
Gross Margin
29.4%
Operating Margin
-12.5%
Net Margin
-23.5%
ROE
-12.1%
ROA
-4.1%
FCF Margin
-29.2%
Balance Sheet & Liquidity
Current Ratio
0.15x
Quick Ratio
0.14x
Debt/Equity
0.00x
Debt/Assets
69.9%
Interest Coverage
-0.12x
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: 2026-05-21T07:58:50.031821 |
Data as of: 2026-03-31 |
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