APPlife Digital Solutions Inc (ALDS) reported a Q4 2024 that exhibits severe earnings deterioration and a precarious liquidity position. Reported revenue shows as negative USD 1,170, while cost of revenue is USD 45,373, generating a gross loss of USD 46,543 and a gross margin of 39.78%—a result that reflects sign conventions rather than true operating performance. The quarter delivered an operating loss of USD 3,220,467 and a net loss of USD 3,261,005, with an EBITDA of USD -3,024,905. Basic and diluted earnings per share stood at USD -0.0334, on 97,573,608 weighted-average shares. Free cash flow was negative (USD -83,346), and cash at period-end was a paltry USD 22,894, against total liabilities of USD 2.25 million and a debt load of USD 1.05 million.
The balance sheet presents an elevated risk profile: cash and cash equivalents of USD 22,894, total current assets USD 61,691, total current liabilities USD 2,254,187, and negative stockholders’ equity of USD -2,092,496. Retained earnings are deeply negative at USD -21,925,000. Liquidity metrics are unsustainably tight (current and quick ratios both at 0.0274 and cash ratio of 0.0102). The company’s JV/portfolio-focused business model (seed capital and incubation) implies that near-term performance may largely reflect portfolio accounting and timing of exits rather than current operating revenues, but the reported numbers indicate meaningful near-term cash-burn risks.
In the absence of management commentary or forward guidance, the investment thesis remains highly uncertain. Investors should monitor runway extension actions (cost controls, potential capital raises), portfolio performance and exit opportunities, and any strategic pivots that could unlock value from underlying portfolio companies. Overall, the QQ4 2024 results underscore a high-risk, high-uncertainty profile typical of early-stage tech incubators and venture investments.