Investment Thesis
Zivo Bioscience is technically insolvent with negative $3.3M equity and faces an acute liquidity crisis with only $57.2K cash against $2.2M annual operating losses. The company generates $119K revenue while burning $6.9M operationally, indicating a non-viable business model with critical going concern risk requiring immediate capital restructuring.
Strengths
- Gross margin of 32.9% demonstrates pricing power on products actually sold
- Operates in biological products sector with inherent long-term growth potential
- Recent insider activity (7 Form 4 filings) suggests management engagement
Risks
- Negative stockholders equity of -$3.3M indicates balance sheet insolvency
- Critical liquidity crisis with current ratio 0.08x and estimated 2-3 week cash runway
- Operating losses $6.9M versus revenue $119K creates immediate going concern threat
- Negative operating cash flow of -$2.2M annually with minimal revenue growth
- No viable path to profitability or break-even without transformational revenue growth or cost elimination
Key Metrics to Watch
- Cash position and burn rate runway to complete depletion
- Quarterly operating cash flow and cash consumption rate
- Revenue growth rate and ability to materially increase sales
- Debt restructuring, refinancing, or capital raise announcements
- Going concern assessment and audit opinion in next SEC filings
Financial Metrics
Revenue
119.0K
Net Income
-6.9M
EPS (Diluted)
$-1.82
Free Cash Flow
-2.2M
Total Assets
559.5K
Cash
57.2K
Profitability Ratios
Gross Margin
32.9%
Operating Margin
-5,763.5%
Net Margin
-5,784.1%
ROE
N/A
ROA
-1,230.6%
FCF Margin
-1,825.8%
Balance Sheet & Liquidity
Current Ratio
0.08x
Quick Ratio
0.08x
Debt/Equity
N/A
Debt/Assets
687.5%
Interest Coverage
-301.98x
Long-term Debt
131.9K
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: 2026-04-19T22:24:26.307036 |
Data as of: 2025-09-30 |
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