JCTCHIGH SIGNALFINANCIAL10-K

JCTC experienced severe financial deterioration with a $4.8 million profit swing to substantial losses, 95% cash depletion, and negative operating cash flow.

The company swung from $722K profit to -$4.1M loss while burning through nearly all cash reserves, dropping from $4.9M to just $226K. This represents a potential liquidity crisis requiring immediate attention from management and investors.

Comparing 2025-12-01 vs 2024-11-20View on EDGAR →
FINANCIAL ANALYSIS

JCTC's financial position deteriorated dramatically across all key metrics, with the company moving from profitability to substantial losses (-$4.1M), burning $12.6M in operating cash flow (from +$6.0M to -$6.6M), and depleting 95% of its cash reserves. Revenue declined from $47.1M to $41.3M while gross profit margin compressed significantly, and the company's debt burden increased substantially with total liabilities rising 78% and current liabilities up 70%. The overall picture signals a company in severe financial distress with potential going concern issues given the cash burn rate and negative profitability.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-672.2%
$722K-$4.1M

Net income declined 672.2% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
-209.7%
$6.0M-$6.6M

Operating cash flow fell 209.7% — earnings quality concerns; investigate working capital changes and non-cash items.

Interest Expense
P&L
+181.2%
$163K$458K

Interest expense surged 181.2% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-111.9%
-$1.8M-$3.8M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Cash & Equivalents
Balance Sheet
-95.3%
$4.9M$226K

Cash declined 95.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Liabilities
Balance Sheet
+77.9%
$2.6M$4.7M

Liabilities grew 77.9% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+69.5%
$6.1M$10.4M

Current liabilities surged 69.5% — significant near-term obligations; verify ability to meet short-term debt.

Gross Profit
P&L
-29.6%
$8.9M$6.3M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Inventory
Balance Sheet
+20.7%
$13.2M$15.9M

Inventory built 20.7% — monitor whether demand supports this build or if write-downs may follow.

Stockholders Equity
Balance Sheet
-16.4%
$24.9M$20.8M

Equity decreased 16.4% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2025-12-01
PRIOR — 2024-11-20
ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A.
Our segments are as follows: Pet, Fencing and Other Industrial wood products Seed processing and sales Corporate and administrative services Total Company sales were $41.3 million and $47.1 million during fiscal years ended August 31, 2025 and 2024, respectively.
As of August 31, 2025 and December 1, 2025, there were 3,518,119 common shares outstanding.
Lucky Dog was acquired in 1995 and Adjust-A-Gate was acquired in 2003.
In September 2024, we announced the successful conclusion of an 18-month search, evaluation, and onboarding process establishing new suppliers.
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REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 7A.
Our segments are as follows: Pet, Fencing and Other Industrial wood products Seed processing and sales Corporate and administrative services Total Company sales were $47.1 million and $54.3 million during fiscal years ended August 31, 2024 and 2023, respectively.
As of August 31, 2024 and November 19, 2024, there were 3,504,802 common shares outstanding.
Lucky Dog was acquired in 1995, and Adjust-A-Gate was acquired in 2003.
The entire seed inventory was sold in early October 2023, and the remaining equipment is in the process of being sold.
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