Investment Thesis
Verses AI is in severe financial distress with a 92% revenue collapse, negative stockholders' equity of -$13.2M, and critical liquidity ratios (0.14x current ratio). The company is burning $21.8M in operating cash flow annually on minimal revenue of $818.6K, rendering it technically insolvent with no viable path to profitability.
Strengths
- Gross margin of 33.2% suggests underlying business economics could be viable if scaled
- Net loss improved 17.5% YoY, indicating some cost control efforts
- Company maintains positive gross profit of $271.5K despite revenue collapse
Risks
- Negative stockholders' equity of -$13.2M indicates technical insolvency and restructuring/bankruptcy risk
- Revenue declined 92% YoY to $818.6K, signaling fundamental business model failure
- Critical liquidity crisis with current ratio of 0.14x and only $292.5K cash against $15.5M liabilities
- Operating cash burn of -$21.8M annually is unsustainable with minimal revenue base
- Massive operating expenses ($24.9M loss on $818.6K revenue) suggest cost structure misaligned with business scale
Key Metrics to Watch
- Cash position and monthly burn rate for bankruptcy timeline
- Revenue stabilization or further contraction
- Debt restructuring announcements or covenant violations
Financial Metrics
Revenue
818.6K
Net Income
-25.0M
EPS (Diluted)
$0.00
Free Cash Flow
-21.9M
Total Assets
2.3M
Cash
292.5K
Profitability Ratios
Gross Margin
33.2%
Operating Margin
-3,042.1%
Net Margin
-3,051.7%
ROE
N/A
ROA
-1,090.7%
FCF Margin
-2,669.5%
Balance Sheet & Liquidity
Current Ratio
0.14x
Quick Ratio
0.14x
Debt/Equity
N/A
Debt/Assets
676.2%
Interest Coverage
-6,328.83x
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: 2026-04-18T20:51:17.230084 |
Data as of: 2025-12-31 |
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