Overview of QQ4 2024 results shows a modest sequential decline in revenue with a notable improvement in gross profitability versus the prior-year period, but the company continues to post operating and net losses amid tight liquidity and a leveraged balance sheet. Revenue for the quarter was $1.0935 million, down 44.8% QoQ and down approximately 26.9% YoY, reflecting continued volatility in the crypto mining segment. Gross profit reached $0.372 million with a gross margin of 34.0%, an improvement versus Q4 2023, while operating income remained negative at -$2.369 million and net income was -$2.382 million. EBITDA stood at -$1.706 million and free cash flow was -$0.929 million, underscoring ongoing cash burn.
The balance sheet signals material near-term liquidity risk: cash on hand was $57,815 at period end, and total liabilities of $7.81 million exceed total assets of $3.94 million, resulting in negative shareholders’ equity of -$3.87 million. The current ratio is 0.706, underscoring limited near-term liquidity. Debt remains modest at $0.5 million, with net debt of approximately $0.44 million, but the lack of readily available liquidity and negative equity heighten funding and solvency concerns.
Looking ahead, investors should monitor crypto price cycles, mining efficiency, energy costs, and the company’s ability to stabilize or restructure its balance sheet. Management commentary (where available) and forward guidance will be crucial to assess the trajectory of margins, cost discipline, and potential liquidity improvements. In the absence of explicit forward guidance in the data provided, the investment thesis remains cautious given the earnings trajectory, balance sheet pressures, and macro crypto-market volatility.