Investment Thesis
Yotta is technically insolvent with negative stockholders' equity of -$9.0M and liabilities exceeding assets by $3.4M. The company faces a critical liquidity crisis (current ratio 0.02x) with only $73.4K in cash reserves while burning cash at -$84K annually, leaving minimal runway before insolvency.
Strengths
- Blank-check/SPAC structure allows potential merger or acquisition opportunities
- Minimal absolute asset base limits realized losses if liquidated
- Zero insider selling activity suggests no additional shareholder value erosion from insiders
Risks
- Negative stockholders' equity of -$9.0M indicates technical insolvency and balance sheet deterioration
- Critical liquidity crisis with current ratio 0.02x and only $73.4K cash versus $9.1M liabilities
- Revenue collapsed 86.9% YoY to $57K while operating losses persist at -$354K with negative free cash flow
- Company is cash-flow negative and lacks sufficient reserves to fund operations or meet obligations
- No successful acquisition or merger announcement to justify continued existence
Key Metrics to Watch
- Stockholders' equity recovery and path to positive net worth
- Cash balance depletion rate and estimated runway before liquidity exhaustion
- Merger/acquisition announcement and transaction timeline
- Operating cash flow stabilization and path to positive cash generation
- Revenue stabilization following 86.9% decline
Financial Metrics
Revenue
57.0K
Net Income
-307.3K
EPS (Diluted)
$0.00
Free Cash Flow
-84.0K
Total Assets
5.7M
Cash
73.4K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-621.0%
Net Margin
-539.2%
ROE
N/A
ROA
-5.4%
FCF Margin
-147.3%
Balance Sheet & Liquidity
Current Ratio
0.02x
Quick Ratio
0.02x
Debt/Equity
N/A
Debt/Assets
161.2%
Interest Coverage
N/A
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: 2026-04-19T19:27:21.751282 |
Data as of: 2025-03-31 |
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