California Nanotechnologies Corp

The company's capital structure shows a debt-to-equity ratio of 0.7, indicating moderate leverage. With total liabilities of $3.19 million and total equity of $2.32 million, the firm maintains a current ratio of 0.97, suggesting limited short-term liquidity cushion. Operating cash flow of $2.92 million contrasts with free cash flow of -$1.71 million, driven by capital expenditures of -$2.13 million, reflecting ongoing investment in production capabilities. Profitability metrics reveal mixed performance. Gross profit of $4.59 million represents 73.8% of revenue, exceeding typical machinery sector margins. However, net income of -$158,330 and negative returns on equity (-6.84%) and assets (-2.88%) indicate operational inefficiencies despite strong gross margins. This divergence suggests rising operating expenses or asset write-downs may be eroding profitability. The company operates as a single-segment entity with no disclosed geographic revenue breakdown. Its toll service model implies client concentration risk, though specific customer exposure is not quantified in the financial data. The absence of segment or geographic diversification data limits assessment of operational risk. Growth trajectory analysis shows revenue of $6.22 million in the latest period, but no prior-year comparison is available to assess growth rates. Capital expenditures of -$2.13 million suggest expansion of production capacity, which could support future revenue growth if demand for SPS and Cryogenic Milling services increases. However, the net loss and negative ROIC indicate current capital deployment is not generating value. Risk factors include medium liquidity risk due to the current ratio below 1 and negative net cash position after debt. The risk assessment flags dilution as low, but the -$158,330 net loss and -$1.71 million free cash flow suggest potential need for future capital raises. No dilution sources are explicitly cited in the input data. Recent events include the latest financial filing disclosing the -$158,330 net loss and -$1.71 million free cash flow. No specific filings or transcripts are cited in the input data to explain operational performance or strategic direction.