Nocera, Inc.

Nocera’s capital structure is critically impaired, characterized by negative total equity of $-1.43 million against total assets of $8.98 million. The company holds substantial liquidity with $5.37 million in cash and equivalents, resulting in a current ratio of 8.0, which suggests short-term solvency despite the negative book value. Long-term debt is minimal at $24.7 million, leading to a debt-to-equity ratio of -0.02, a metric distorted by the negative equity base. The market capitalization stands at $26.9 million, implying a price-to-tangible-book ratio of 31.1, which reflects a significant premium over the negative accounting book value.

Profitability metrics indicate severe distress, with net income of $-1.27 million against revenue of $2.28 million in Q1 2026. The return on assets is -0.32, and return on equity is reported as 2.02, a figure that is mathematically anomalous given the negative equity and net loss, likely reflecting the inversion of standard ratio calculations in distressed states. Operating cash flow is negative at $-0.58 million, indicating that core operations are consuming cash rather than generating it. The gross profit of $42,000 is negligible relative to revenue, suggesting high operating costs or a business model with thin margins that are currently overwhelmed by expenses.

Segment and geographic data are not explicitly detailed in the provided financial snapshot, but filing observations reference an eel trading business initiated in October 2021 in response to domestic demand. The company states that its fish farming systems provide a controlled environment, reducing seasonal impact on revenue. This operational detail contrasts with the "Commercial Banks" classification, suggesting a potential misalignment between the reported activity and the economic sector classification, or a diversified business model not fully captured in the high-level classification.

Growth trajectory is obscured by the lack of historical period data in the input, but the current quarter shows a net loss exceeding revenue, indicating a contraction in value creation. The company’s plans to address liquidity include seeking additional capital through equity financing and pursuing strategic debt financing. These actions suggest that organic growth is insufficient to sustain operations, necessitating external capital injections to maintain the going-concern status.

Risk factors are elevated, with a high liquidity risk rating despite the cash position, likely due to the negative equity and substantial doubt about the company’s ability to continue as a going concern. Dilution risk is rated as medium, driven by the need for equity financing to address the going-concern issues. The filings explicitly state that these factors raise substantial doubt about the Company’s ability to continue as a going concern within one year.

Recent events include an 8-K filing with high severity items, indicating material changes or agreements that require immediate disclosure. The filing references forward-looking statements regarding financial performance and capital resource needs, highlighting the uncertainty surrounding the company’s future operations. The company is actively implementing cost control measures and expanding revenue-generating activities to mitigate the going-concern risks.

Revenue grew 24.8% year-over-year to $17.0 million in FY2025, demonstrating strong top-line expansion despite profitability challenges.

The company maintains a high current ratio of 11.93, indicating strong short-term liquidity to meet immediate obligations.

Return on equity stands at 2.02%, ranking in the best-in-class quartile compared to the bank cohort median.

Debt-to-equity ratio is -0.02, placing the company in the above-75th percentile for leverage efficiency within its peer group.

Equity increased by 575.2% year-over-year to $2.1 million, suggesting significant capital injection or retained earnings accumulation.

The company faces a high liquidity risk flag, raising concerns about its ability to manage cash flow obligations effectively.

Revenue $2.3M; Net margin -55.9%.

• ▍Revenue $2.3M
• ▍Net margin -55.9%

Revenue $10.1M; Operating income -$1.3M.

• ▍Revenue $10.1M
• ▍Operating income -$1.3M
• ▍Net margin -22.2%

Revenue $8.5M; Operating income -$487.3k.

• ▍Revenue $8.5M
• ▍Operating income -$487.3k
• ▍Net margin -8.7%

Revenue $13.6M; Net margin -21.1%.

• ▍Revenue $13.6M
• ▍Net margin -21.1%

Revenue $17.0M; Net margin -13.8%.

• ▍Revenue $17.0M
• ▍Net margin -13.8%

Revenue $17.0M; Net margin -26.4%.

• ▍Revenue $17.0M
• ▍Net margin -26.4%

Revenue $13.0M; Operating income -$977.2k.

• ▍Revenue $13.0M
• ▍Operating income -$977.2k
• ▍Operating margin -7.5%

Revenue $11.7M; Operating income -$676.2k.

• ▍Revenue $11.7M
• ▍Operating income -$676.2k
• ▍Net margin -1.8%