SOLSHIGH SIGNALRISK10-K

SOLS experienced a dramatic 5500% surge in total debt from $37M to $2.1B, severely deteriorating the company's financial position.

This massive debt increase has fundamentally weakened SOLS' balance sheet, cutting stockholders' equity by 57% and signaling either a major acquisition, financial distress, or significant capital structure change. The combination of soaring debt with plummeting profitability and cash generation creates substantial financial risk for investors.

Comparing 2026-02-19 vs 2026-02-19View on EDGAR →
FINANCIAL ANALYSIS

SOLS shows severe financial deterioration with total debt exploding 5500% while net income crashed 60% and operating cash flow declined 46%. Despite modest growth in current assets (+28%) and inventory (+28%), the company's financial foundation has been undermined by massive debt accumulation that doubled total liabilities and slashed equity by over half. This dramatic shift from a previously healthy balance sheet to a highly leveraged position, combined with weakening operational performance, signals significant financial distress or major strategic restructuring that poses substantial risks to shareholders.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+5500%
$37.0M$2.1B

Debt increased 5500% — substantial leverage increase; assess whether deployed for growth or covering losses.

Total Liabilities
Balance Sheet
+135.8%
$1.8B$4.3B

Liabilities grew 135.8% — significant increase in debt or obligations, assess impact on financial flexibility.

Net Income
P&L
-60.1%
$594.0M$237.0M

Net income declined 60.1% — review whether driven by operations, interest costs, or non-recurring items.

Current Liabilities
Balance Sheet
+58.2%
$1.1B$1.7B

Current liabilities surged 58.2% — significant near-term obligations; verify ability to meet short-term debt.

Stockholders Equity
Balance Sheet
-56.7%
$3.3B$1.4B

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Operating Cash Flow
Cash Flow
-46%
$842.0M$455.0M

Operating cash flow fell 46% — earnings quality concerns; investigate working capital changes and non-cash items.

Current Assets
Balance Sheet
+28.3%
$1.9B$2.4B

Current assets grew 28.3% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+28.1%
$558.0M$715.0M

Inventory built 28.1% — monitor whether demand supports this build or if write-downs may follow.

Cash & Equivalents
Balance Sheet
-19.2%
$661.0M$534.0M

Cash decreased 19.2% — monitor burn rate and upcoming capital needs.

R&D Expense
P&L
+16.9%
$83.0M$97.0M

R&D investment increased 16.9% — signals commitment to future product development, though near-term margin impact.

MORE RISK SIGNALS
CAPSHIGHCAPS underwent a major business expansion through acquisitions while experiencin...
2026-04-16
KALAHIGHKALA has undergone a dramatic business transformation with massive share dilutio...
2026-04-15
RAINHIGHRain Enhancement Technologies underwent a financial restatement revealing signif...
2026-04-15
POLAHIGHPOLA experienced severe financial deterioration with gross profit turning negati...
2026-04-15
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →