Investment Thesis
WYTEC is technically insolvent with negative stockholders' equity of -$3.7M and a critically weak current ratio of 0.04x, indicating inability to meet short-term obligations. The company generated only $24.1K in revenue (down 48.7% YoY) while incurring -$1.8M net losses and negative operating cash flow, with no viable path to profitability absent significant restructuring or capital injection.
Strengths
- Gross margin of 59.3% demonstrates core product/service can achieve profitability if scaled
- Minimal capital requirements ($1.4K capex) suggests asset-light operational model
- Company remains generating revenue despite extreme financial distress
Risks
- Negative stockholders' equity of -$3.7M represents technical insolvency; liabilities exceed assets 19x
- Current ratio of 0.04x with cash of only $128.9K against liabilities of $3.9M indicates imminent default risk on short-term obligations
- Operating margin of -6882.2% on collapsing revenue (-48.7% YoY) with -$1.1M operating cash flow indicates unsustainable burn rate
- Long-term debt of $1.3M cannot be serviced with negative interest coverage of -13.4x
- Extreme bankruptcy risk or forced restructuring likely without external capital injection
Key Metrics to Watch
- Quarterly revenue trend - stabilization and growth required for survival
- Operating cash flow - must return to positive to sustain operations without external funding
- Total assets and stockholders equity - need to reverse negative equity position
- Cash runway at current burn rate given $128.9K cash and -$1.1M quarterly operating cash flow
Financial Metrics
Revenue
24.1K
Net Income
-1.8M
EPS (Diluted)
$-0.11
Free Cash Flow
-1.1M
Total Assets
201.9K
Cash
128.9K
Profitability Ratios
Gross Margin
59.3%
Operating Margin
-6,882.2%
Net Margin
-7,397.5%
ROE
N/A
ROA
-884.6%
FCF Margin
-4,741.2%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
1,913.7%
Interest Coverage
-13.36x
Long-term Debt
1.3M
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: 2026-04-19T12:12:22.354280 |
Data as of: 2025-09-30 |
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