Investment Thesis
Xeriant is technically insolvent with negative stockholders equity of -2.8M and faces an acute liquidity crisis (current ratio 0.02x). The company is experiencing catastrophic revenue collapse (-1091% YoY), negative operating cash flow of -383.3K, and operates at a loss on core operations (negative gross margin). Fundamental financial distress indicators suggest imminent bankruptcy risk without immediate restructuring or capital infusion.
Strengths
- Minimal long-term debt burden ($508K) reduces creditor pressure
- Positive reported net income of $1.9M suggests potential non-operating gains or asset sales
- Aircraft manufacturing sector could offer recovery upside if company restructures and stabilizes operations
Risks
- Negative stockholders equity (-$2.8M) indicates technical insolvency and liabilities exceed assets by 55x
- Severe liquidity crisis with current ratio of 0.02x unable to meet short-term obligations from $76.5K cash
- Revenue collapse of 1091% YoY indicates loss of core business and market viability
- Negative operating cash flow of -$383.3K demonstrates ongoing cash burn from operations
- Negative gross margin (-2.2%) indicates business loses money on every unit sold
- Bankruptcy or liquidation risk is material given technical insolvency and cash depletion trajectory
Key Metrics to Watch
- Stockholders equity recovery trajectory from negative position
- Operating cash flow return to positive
- Revenue stabilization and positive YoY growth
- Current ratio improvement from 0.02x
- Cash burn rate and runway to insolvency
- Debt restructuring or capital raise announcements
Financial Metrics
Revenue
-2.6M
Net Income
1.9M
EPS (Diluted)
$0.00
Free Cash Flow
-385.1K
Total Assets
103.4K
Cash
76.5K
Profitability Ratios
Gross Margin
-2.2%
Operating Margin
20.7%
Net Margin
-74.7%
ROE
N/A
ROA
1,864.3%
FCF Margin
14.9%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.02x
Debt/Equity
N/A
Debt/Assets
5,549.6%
Interest Coverage
-6.64x
Long-term Debt
508.0
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: 2026-04-19T13:30:21.325008 |
Data as of: 2025-12-31 |
Powered by Claude AI