Investment Thesis
AI Era Corp exhibits severe fundamental deterioration masked by accounting inconsistencies and unsustainable capital allocation. The company reports positive net income despite negative gross margins and faces imminent liquidity crisis with only $11.8K cash against $50M capex spending, creating a fundamentally broken business model.
AERA Strengths
- Revenue growth of 439.6% YoY demonstrates strong top-line expansion
- Operating margin of 26.1% shows operational efficiency at gross profit level
- Interest coverage ratio of 20.5x indicates ability to service debt obligations
AERA Risks
- Negative gross margin of -102.5% indicates core business model is unprofitable and losing money on every unit sold
- Critical liquidity crisis with current ratio of 0.04x and only $11.8K cash versus $50M capex spending
- Free cash flow of -$49.2M with FCF margin of -3232.2% reveals unsustainable capital spending exceeding operational cash generation
- Inconsistent profitability: negative gross profit of -$1.6M yet positive net income of $362.9K suggests accounting irregularities or non-operating gains masking operational losses
- Patent owner/licensor model with minimal tangible assets ($6.2M total) creates valuation and litigation risks
Key Metrics to Watch
- Gross margin trajectory and path to profitability at cost of goods sold level
- Cash position and burn rate given $50M capex commitment against $11.8K cash reserves
- Operating cash flow sustainability and capex spending rationalization
- Net income composition to identify whether profits derive from operations or one-time gains
AERA Financial Metrics
AERA Profitability Ratios
AERA Balance Sheet & Liquidity
AERA 5-Year Financial Trend
5-Year Trend Summary: AI Era Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.00 indicates the company is currently unprofitable.
AERA Growth Metrics (YoY)
AERA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $283.0K | -$50.0K | $-0.04 |
| Q3 2025 | $553.0K | $39.7K | $0.00 |
| Q2 2025 | $559.8K | $164.9K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AERA Capital Allocation
AERA SEC Filings
Access official SEC EDGAR filings for AI Era Corp. (CIK: 0001605331)