Investment Thesis
Waste Energy Corp. is technically insolvent with negative stockholders' equity of -$3.5M and exhibits a critical liquidity crisis with a current ratio of 0.03x. The company is burning cash from operations with only $47.4K in reserves, making imminent financial distress highly probable without immediate capital injection or dramatic operational turnaround.
Strengths
- Minimal insider selling activity suggests no management loss of confidence
- Company retains operating license and continues generating marginal revenue
- Long-term debt represents only portion of total liabilities, providing some refinancing potential if solvency issue resolved
Risks
- Negative stockholders' equity of -$3.5M indicates technical insolvency and balance sheet impairment
- Critical liquidity crisis with 0.03x current ratio—current liabilities exceed current assets by ~33x
- Negative operating cash flow of -$50K with only $47.4K cash reserves creates acute bankruptcy risk
- Massive net margin of -329.3% indicates business model fundamentally unprofitable at current scale
- Inability to service debt with negative operating income and negative interest coverage ratio
Key Metrics to Watch
- Stockholders' equity trajectory and capital raise announcements
- Operating cash flow turnaround and monthly cash burn rate
- Revenue growth acceleration and gross margin expansion
- Debt restructuring announcements or covenant violations
- Insider buying activity and management confidence signals
Financial Metrics
Revenue
299.2K
Net Income
-985.0K
EPS (Diluted)
$-0.01
Free Cash Flow
-50.0K
Total Assets
881.6K
Cash
47.4K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-52.2%
Net Margin
-329.3%
ROE
N/A
ROA
-111.7%
FCF Margin
-16.7%
Balance Sheet & Liquidity
Current Ratio
0.03x
Quick Ratio
0.03x
Debt/Equity
N/A
Debt/Assets
514.4%
Interest Coverage
-2.23x
Long-term Debt
735.0K
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: 2026-04-19T00:27:24.825313 |
Data as of: 2025-09-30 |
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