CLIR executed a reverse stock split while suffering a dramatic 285% increase in net losses despite growing gross profit, signaling severe operational inefficiencies and potential distress.
The reverse stock split (reducing shares from 52.4M to 5.4M) is typically a red flag indicating management's attempt to boost share price amid poor performance. The quadrupling of net losses to $5.5M despite tripling gross profit suggests massive increases in operating expenses or one-time charges that severely impacted profitability.
CLIR shows mixed signals with accounts receivable surging 724% and gross profit increasing 287%, indicating strong revenue growth, but these positives are overwhelmed by net losses exploding to $5.5M from $1.4M. The company burned through $4.8M in cash reserves while total assets declined 24%, creating a concerning picture of rapid cash consumption despite revenue improvements. The dramatic deterioration in profitability combined with declining cash position and reverse stock split suggests significant operational challenges that outweigh the revenue growth story.
Receivables surged 724.2% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.
Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.
Net income declined 284.6% — review whether driven by operations, interest costs, or non-recurring items.
Capex reduced 89.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.
Cash declined 34.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.
Current liabilities rose 26.7% — increased short-term obligations, watch current ratio.
Current assets declined 24.4% — monitor working capital adequacy and short-term liquidity.
Total assets contracted 23.5% — asset sales, write-downs, or balance sheet optimization underway.
Liabilities increased 23.2% — monitor debt-to-equity ratio and interest coverage.
Equity decreased 13.2% — buybacks or losses reducing book value, monitor solvency ratios.
See what changed in your portfolio's filings
500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.
Try Tracenotes free →