Investment Thesis
Accredited Solutions exhibits severe financial distress with negative stockholders' equity of -$1.1M, indicating the company is technically insolvent. Operating losses of -$459.4K coupled with negative free cash flow of -$291.8K demonstrate the business cannot sustain operations independently. The anomalous 468% net margin driven by non-operating gains masks fundamental operational failure and insolvency risk.
ASII Strengths
- Revenue growth of 42.6% YoY shows some commercial traction in beverage segment
- Positive net income of $2.1M likely driven by one-time non-operating items
- Minimal insider selling activity suggests limited insider concern about immediate dilution
ASII Risks
- Negative stockholders' equity of -$1.1M indicates technical insolvency and bankruptcy risk
- Severe liquidity crisis with current ratio of 0.07x; liabilities of $1.3M exceed assets of $248.7K by 5x
- Negative operating cash flow of -$244.8K and free cash flow of -$291.8K demonstrate unsustainable burn rate
- Operating margin of -101.5% shows core business is deeply unprofitable despite revenue growth
- Cash position of only $12.1K is critically low relative to liabilities and burn rate
Key Metrics to Watch
- Stockholders equity trend - path to positive equity or further deterioration
- Operating cash flow - whether burn rate accelerates or stabilizes
- Liquidity position - ability to service $1.3M in liabilities with minimal cash
- Revenue sustainability - whether 42.6% growth can continue and eventually reach profitability
- Operating losses - timeline to breakeven on core operations
ASII Financial Metrics
ASII Profitability Ratios
ASII Balance Sheet & Liquidity
ASII 5-Year Financial Trend
5-Year Trend Summary: Accredited Solutions, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline.
ASII Growth Metrics (YoY)
ASII Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $164.5K | -$73.3K | $0.00 |
| Q2 2024 | $102.3K | -$73.3K | $0.00 |
| Q1 2024 | $109.4K | -$31.7K | $0.00 |
| Q3 2023 | $164.5K | -$2.8K | $0.00 |
| Q2 2023 | $113.1K | -$2.8K | $0.00 |
| Q1 2023 | N/A | -$2.8K | N/A |
| Q3 2022 | N/A | N/A | $0.00 |
| Q2 2022 | $113.1K | -$15 | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASII Capital Allocation
ASII SEC Filings
Access official SEC EDGAR filings for Accredited Solutions, Inc. (CIK: 0001464865)