Investment Thesis
Applied Energetics exhibits severe financial distress with negative stockholders' equity of -$730.2K, indicating liabilities exceed assets. The company is burning cash at an alarming rate (-$7.8M free cash flow) while generating minimal revenue ($389.1K) that cannot cover operating expenses, making near-term solvency a critical concern.
AERGP Strengths
- Positive gross margin of 57.6% suggests some unit economics are viable if revenue scaled
- Adequate short-term liquidity with current ratio of 1.97x provides temporary operational buffer
- Moderate cash balance of $1.3M provides limited runway for operations
AERGP Risks
- Negative stockholders' equity indicates technical insolvency and high bankruptcy risk
- Operating cash burn of -$6.6M with minimal revenue is unsustainable without capital injection
- Operating loss of -$10.9M on revenue of only $389.1K demonstrates complete unprofitability at current scale
- Declining revenue (-7.8% YoY) combined with fixed operating costs worsens financial deterioration
- Negative free cash flow of -$7.8M will deplete cash reserves within months without intervention
Key Metrics to Watch
- Monthly cash burn rate and remaining cash runway
- Revenue growth trajectory and ability to achieve profitability
- Stockholders' equity recovery and path to positive book value
- Operating expense reduction and cost structure optimization
AERGP Financial Metrics
Revenue
$389.1K
Net Income
$-10.9M
EPS (Diluted)
$-0.05
Free Cash Flow
$-7.8M
Total Assets
$4.0M
Cash Position
$1.3M
AERGP Profitability Ratios
Gross Margin
57.6%
Operating Margin
-2,791.9%
Net Margin
-2,791.9%
ROE
N/A
ROA
-270.5%
FCF Margin
-2,004.6%
AERGP Balance Sheet & Liquidity
Current Ratio
1.97x
Quick Ratio
1.96x
Debt/Equity
N/A
Debt/Assets
118.2%
Interest Coverage
-2,845.85x
Long-term Debt
$189.3K
AERGP Growth Metrics (YoY)
Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-2,004.6%
Free cash flow / Revenue
AERGP Capital Allocation
Operating Cash Flow
-$6.6M
Cash generated from operations
Capital Expenditures
$1.2M
Investment in assets
Dividends Paid
$3.4M
Returned to shareholders
AERGP SEC Filings
Access official SEC EDGAR filings for APPLIED ENERGETICS, INC. (CIK: 0000879911)
Disclaimer: This analysis is generated by Claude 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 and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: Mar 19, 2026 |
Data as of: 2025-09-30 |
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