Investment Thesis
Vemanti Group is technically insolvent with negative stockholders equity of -$8.9M and faces a critical liquidity crisis (0.04x current ratio). Despite modest positive operating cash flow, the company is unprofitable (-39.2% net margin), revenue is declining -11.3% YoY, and has minimal cash reserves of $21.4K against $9.1M in liabilities.
Strengths
- Positive operating income of $206.2K indicates core operations could be viable if restructured
- Positive operating cash flow of $309.9K and free cash flow provide some liquidity cushion
- Interest coverage ratio of 6443.2x suggests minimal debt service burden
Risks
- Negative stockholders equity of -$8.9M indicates balance sheet insolvency
- Extreme liquidity crisis with current ratio of 0.04x - cannot cover short-term obligations
- Declining revenue (-11.3% YoY) coupled with net losses (-$371.8K) signals deteriorating business viability
- Minimal cash reserves ($21.4K) insufficient for operational needs or debt obligations
- Zero gross margin indicates fundamental business model issues
Key Metrics to Watch
- Stockholders equity trend - critical to monitor solvency status
- Liquidity ratios and cash position - company needs immediate capital injection
- Revenue stabilization - must reverse declining trend
- Operating cash flow sustainability - verify positive FCF can be maintained
Financial Metrics
Revenue
948.6K
Net Income
-371.8K
EPS (Diluted)
$-0.02
Free Cash Flow
309.9K
Total Assets
203.9K
Cash
21.4K
Profitability Ratios
Gross Margin
0.0%
Operating Margin
21.7%
Net Margin
-39.2%
ROE
N/A
ROA
-182.4%
FCF Margin
32.7%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
4,448.9%
Interest Coverage
6,443.16x
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: 2026-04-18T18:21:18.944091 |
Data as of: 2024-09-30 |
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