📊 CANN Key Takeaways
Investment Thesis
TREES Corp demonstrates severely deteriorated financial health with negative stockholders' equity of -$2.6M, critical liquidity crisis (0.16x current ratio), and persistent unprofitability despite 34.9% revenue growth. The company is burning cash with -$527.6K free cash flow and -$481.9K operating cash flow, indicating the revenue growth is not translating to operational viability and the business model is fundamentally broken.
CANN Strengths
- Revenue growth of 34.9% YoY shows market demand and top-line expansion
- Operating losses narrowing slightly with -$3.0M net income showing marginal improvement
- Retail drug store sector provides essential consumer products with recurring demand
CANN Risks
- Negative stockholders' equity of -$2.6M indicates insolvency and liabilities exceed assets
- Critical liquidity crisis with current ratio of 0.16x and only $245.4K cash against $23.8M liabilities
- Negative gross profit at 0.0% and -28.4% net margin demonstrate the business cannot achieve profitability even at current revenue scale
- Consistent negative operating and free cash flow of -$481.9K and -$527.5K respectively indicates ongoing value destruction
- Long-term debt of $15.2M with negative interest coverage of -1.0x creates debt service sustainability concerns
- Zero insider Form 4 filings suggest lack of insider confidence in company direction
Key Metrics to Watch
- Quarterly gross margin trends - must turn positive to validate business model viability
- Operating cash flow trajectory - critical indicator of whether revenue growth has real cash generation
- Stockholders' equity recovery path - company must eliminate negative equity to avoid potential bankruptcy
- Cash runway and access to additional capital - with current burn rate, solvency timeline is urgent
- Debt restructuring or refinancing activities - indicator of lender confidence and financial distress
CANN Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CANN Profitability Ratios
CANN vs Consumer Sector
How TREES Corp (Colorado) compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CANN Balance Sheet & Liquidity
CANN 5-Year Financial Trend
5-Year Trend Summary: TREES Corp (Colorado)'s revenue has grown significantly by 127% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.10 indicates the company is currently unprofitable.
CANN Growth Metrics (YoY)
CANN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $3.3M | -$509.0K | $0.00 |
| Q2 2024 | $3.7M | -$1.1M | $-0.01 |
| Q1 2024 | $3.7M | -$1.4M | $-0.01 |
| Q3 2023 | $3.2M | -$815.1K | $-0.01 |
| Q2 2023 | $3.2M | -$182.9K | $0.00 |
| Q1 2023 | $3.6M | -$861.1K | $-0.01 |
| Q3 2022 | $1.7M | -$1.3M | $-0.02 |
| Q2 2022 | $698.6K | -$182.9K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CANN Capital Allocation
CANN SEC Filings
Access official SEC EDGAR filings for TREES Corp (Colorado) (CIK: 0001477009)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CANN
What is the AI rating for CANN?
TREES Corp (Colorado) (CANN) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CANN's key strengths?
Revenue growth of 34.9% YoY shows market demand and top-line expansion. Operating losses narrowing slightly with -$3.0M net income showing marginal improvement.
What are the risks of investing in CANN?
Negative stockholders' equity of -$2.6M indicates insolvency and liabilities exceed assets. Critical liquidity crisis with current ratio of 0.16x and only $245.4K cash against $23.8M liabilities.
What is CANN's revenue and growth?
TREES Corp (Colorado) reported revenue of $10.7M.
Does CANN pay dividends?
TREES Corp (Colorado) does not currently pay dividends.
Where can I find CANN SEC filings?
Official SEC filings for TREES Corp (Colorado) (CIK: 0001477009) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CANN's EPS?
TREES Corp (Colorado) has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.