VSTD shows a dramatic 90% collapse in stockholders' equity to just $255K despite 39% revenue growth, signaling severe financial distress.
The company's equity has virtually evaporated from $2.7M to $255K while total liabilities surged 67% to $17.3M, creating an extremely precarious capital structure. This represents a fundamental deterioration in the company's financial foundation that threatens its ability to continue operations and access capital markets.
While VSTD achieved strong 39% revenue growth to $12.8M and dramatically improved operating cash flow from -$4.6M to positive $875K, the company faces a severe balance sheet crisis with stockholders' equity collapsing 90% to just $255K and total liabilities ballooning 67% to $17.3M. Current liabilities nearly doubled to $6.0M while interest expense increased 147%, indicating mounting debt service pressure. Despite operational improvements in cash generation and reduced capital expenditures, the balance sheet deterioration suggests the company may struggle to meet its obligations and finance future growth.
Interest expense surged 147.1% — significant debt increase or rising rates materially impacting earnings.
Operating cash flow surged 119.1% — exceptional cash generation, highest quality earnings signal.
Inventory surged 90.9% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.
Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.
Current liabilities surged 84.8% — significant near-term obligations; verify ability to meet short-term debt.
Liabilities grew 67.1% — significant increase in debt or obligations, assess impact on financial flexibility.
Capex reduced 48.2% — investment cycle winding down or capital discipline; may improve near-term free cash flow.
Strong top-line growth of 39.3% — accelerating demand or successful expansion into new markets.
Asset base grew 35% — expansion through organic growth, acquisitions, or capital deployment.
Operating income improving — cost discipline or growing revenue base absorbing fixed costs.
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