Olenox Industries Inc.

Olenox Industries presents a distressed capital structure characterized by severe liquidity constraints and negative equity returns. The company reports total assets of $36.0 million against total liabilities of $28.4 million, resulting in total equity of $7.6 million. Debt levels are elevated, with long-term debt of $5.1 million and short-term debt of $7.1 million, yielding a debt-to-equity ratio of 1.61. Liquidity is critically impaired, evidenced by a current ratio of 0.06, indicating that current liabilities significantly exceed current assets. Cash and equivalents stand at $3.0 million, which is insufficient to cover the $7.1 million in short-term debt obligations. Operating cash flow is negative at -$7.1 million, and free cash flow is -$7.7 million, driven by operating losses and capital expenditures of $90,374. The market capitalization is $626,494, reflecting a distressed valuation with an EV/Revenue multiple of 3.32 and a negative EV/EBITDA of -0.72.

Profitability metrics are deeply negative, reflecting operational challenges across the business. Net income for FY2025 is -$18.8 million, resulting in a return on equity (ROE) of -2.48 and a return on assets (ROA) of -0.52. Gross profit is negative at -$4.3 million, indicating that the cost of goods sold exceeds revenue, a significant deviation from industry norms where gross margins are typically positive. Operating income is -$14.1 million, highlighting substantial fixed cost burdens relative to revenue generation. The company’s revenue of $2.95 million is insufficient to cover operating expenses, leading to a net loss that erodes shareholder equity. The negative gross profit suggests either severe pricing pressure, high input costs, or significant inventory write-downs, particularly within the oil and gas segment where full-cost ceiling write-downs may be impacting results.

The company’s revenue mix is diversified across Oil & Gas, Construction, and SaaS segments, though specific revenue breakdowns by segment are not provided in the financial snapshot. The presence of segments such as "OilsAndGas," "Constructions," and "SaaS" indicates a multi-industry operational model. Geographic exposure is primarily domestic, with references to Oklahoma-based entities and U.S. GAAP reporting. Customer concentration risk is noted, with filings referencing specific customer members, suggesting that a significant portion of revenue may be derived from a limited number of clients. This concentration amplifies revenue volatility and credit risk, as the loss of a key customer could materially impact financial performance.

Growth trajectory is negative, with the company reporting a net loss of -$18.8 million in FY2025. The negative operating cash flow of -$7.1 million and free cash flow of -$7.7 million indicate that the company is burning cash to sustain operations. Capital expenditures of $90,374 are minimal, suggesting a lack of investment in growth initiatives or maintenance of existing assets. The company’s revenue of $2.95 million is low relative to its asset base, indicating underutilization of resources. The negative trend in profitability and cash flow suggests that the company is not generating sufficient internal funds to support growth, relying instead on external financing or asset sales to maintain liquidity.

Risk factors are elevated, with the company facing high liquidity risk and medium dilution risk. The current ratio of 0.06 signals an inability to meet short-term obligations, raising concerns about going-concern status. Filings reference going-concern or substantial-doubt language, indicating that

Operating income improved by 31.0% year-over-year in FY2025, indicating a potential stabilization in core operational efficiency despite ongoing losses.

Revenue grew by 68.6% year-over-year in FY2025, suggesting a rebound in top-line sales activity compared to the prior period.

Net income loss narrowed by 9.8% year-over-year in FY2025, reflecting a slight improvement in overall profitability metrics.

The company faces high liquidity risk with a critically low current ratio of 0.084 as of December 31, 2024.

Operating margin of -4.76% places the company in the bottom quartile compared to the Integrated Oil & Gas cohort median.

Return on equity of -2.48% ranks in the bottom quartile of the 125-company Integrated Oil & Gas cohort.

The company carries a medium dilution risk, which could negatively impact existing shareholder value through potential equity issuance.

Revenue $2.3M; Operating income -$8.0M.

• ▍Revenue $2.3M
• ▍Operating income -$8.0M
• ▍Net margin -540.3%

Revenue $1.3M; Operating income -$5.5M.

• ▍Revenue $1.3M
• ▍Operating income -$5.5M
• ▍Net margin -568.5%

Revenue $566.4k; Operating income -$1.8M.

• ▍Revenue $566.4k
• ▍Operating income -$1.8M
• ▍Net margin -485.0%

Revenue $3.0M; Operating income -$14.1M.

• ▍Revenue $3.0M
• ▍Operating income -$14.1M
• ▍Net margin -637.4%

Revenue $5.0M; Operating income -$9.7M.

• ▍Revenue $5.0M
• ▍Operating income -$9.7M
• ▍Net margin -341.2%

Revenue $5.0M; Operating income -$9.7M.

• ▍Revenue $5.0M
• ▍Operating income -$9.7M
• ▍Net margin -341.2%

Revenue $16.5M; Operating income -$24.8M.

• ▍Revenue $16.5M
• ▍Operating income -$24.8M
• ▍Net margin -159.1%

Revenue $16.5M; Operating income -$21.7M.

• ▍Revenue $16.5M
• ▍Operating income -$21.7M
• ▍Net margin -159.1%