Investment Thesis
TEN Holdings faces severe financial distress with only $79K in cash reserves while burning $1.1M in operating cash flow quarterly, providing less than one month of runway. Despite a healthy 64% gross margin, the company generates minimal revenue ($853K) insufficient to cover operating expenses, with net losses deteriorating 557% YoY and no revenue growth trajectory.
Strengths
- Gross margin of 64% indicates viable product/service model with pricing power
- Zero traditional debt burden limits refinancing risk
- Current ratio of 1.25x provides minimal working capital cushion
Risks
- Critical liquidity crisis: $79K cash against $1.1M quarterly cash burn (~1 month runway)
- Revenue severely insufficient to cover fixed operating expenses ($853K revenue vs $2.8M operating loss)
- Deteriorating profitability trend: net income down 557% YoY with negative 340% net margin
- Insolvency risk without immediate capital infusion or dramatic revenue scaling
- No growth momentum with flat YoY revenue
Key Metrics to Watch
- Monthly cash burn rate and path to cash runway depletion
- Revenue growth acceleration and return to operating profitability
- Capital raises or new financing activity
Financial Metrics
Revenue
853.0K
Net Income
-2.9M
EPS (Diluted)
$-0.73
Free Cash Flow
-1.1M
Total Assets
8.0M
Cash
79.0K
Profitability Ratios
Gross Margin
64.0%
Operating Margin
-333.3%
Net Margin
-340.3%
ROE
-174.7%
ROA
-36.4%
FCF Margin
-133.6%
Balance Sheet & Liquidity
Current Ratio
1.25x
Quick Ratio
1.25x
Debt/Equity
0.00x
Debt/Assets
79.2%
Interest Coverage
-46.61x
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: 2026-05-21T08:00:22.130389 |
Data as of: 2026-03-31 |
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