Investment Thesis
Alset Inc. exhibits severe operational distress with revenue collapsing 97.9% year-over-year while burning significant cash with negative operating and net income. The company's negative operating margins of -292.7% and free cash flow of -5.7M indicate fundamental business failure despite adequate liquidity reserves. Without evidence of operational recovery or viable revenue generation, the company faces potential insolvency despite current cash position.
AEI Strengths
- Strong cash position of $25.5M provides runway for turnaround or liquidation
- Excellent liquidity ratios (current ratio 10.59x) indicate no immediate solvency risk
- Low debt burden with minimal leverage risk
- Substantial asset base of $169.1M in relation to liabilities
AEI Risks
- Catastrophic 97.9% revenue decline signals loss of business operations or major customer loss
- Persistent negative cash flow of -5.7M annually will deplete cash reserves within 4-5 years
- Negative operating margins of -292.7% demonstrate business model failure with costs far exceeding revenue
- Net loss of -$15.0M with negative ROE (-9.7%) and ROA (-8.9%) destroying shareholder value
- Minimal insider trading activity (1 Form 4 filing in 90 days) suggests lack of management confidence
Key Metrics to Watch
- Revenue stabilization and return to positive growth
- Operating cash flow trajectory and path to positive FCF
- Monthly cash burn rate and runway remaining
- New revenue initiatives or strategic developments
AEI Financial Metrics
AEI Profitability Ratios
AEI Balance Sheet & Liquidity
AEI 5-Year Financial Trend
5-Year Trend Summary: Alset Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $-6.52 indicates the company is currently unprofitable.
AEI Growth Metrics (YoY)
AEI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $998.8K | $1.5M | $0.05 |
| Q2 2025 | $1.1M | -$1.2M | $-0.13 |
| Q1 2025 | $1.1M | -$6.8M | $-0.73 |
| Q3 2024 | $990.2K | $1.7M | $0.19 |
| Q2 2024 | $1.1M | -$1.2M | $-0.13 |
| Q1 2024 | $926.9K | -$3.9M | $-0.46 |
| Q3 2023 | $721.9K | -$11.8M | $-1.58 |
| Q2 2023 | $926.3K | N/A | $-0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AEI Capital Allocation
AEI SEC Filings
Access official SEC EDGAR filings for Alset Inc. (CIK: 0001750106)