King Resources Inc (KRFG) reported QQ1 2025 revenue of $19.189 million, up 50.42% year-over-year, signaling strong top-line momentum driven by demand for its Powertech charging solutions. However, the quarter featured a pronounced profitability gap, with EBITDA of -$159.88 million and net income of -$161.65 million, resulting in margins that remain deeply negative despite a 40% gross margin. The contrast between a healthy gross margin and a substantial operating loss points to a disproportionate fixed cost base and high SG&A/R&D expense relative to the revenue base. Cash burn persisted, with operating cash flow of -$37.22 million and a modest net decrease in cash after financing activities, culminating in a cash balance of $7.05 million at period end.
Balance-sheet signals further underscore liquidity and solvency risks: current ratio and quick ratio are extremely tight (0.0377 and 0.0377 respectively), and total liabilities materially exceed reported assets, yielding negative stockholders’ equity. Despite a strong gross margin, the company faces ongoing funding needs to support operations and potential product expansion. Management commentary from the earnings call is not provided in the supplied transcript, limiting the ability to anchor near-term guidance; as such, the investment stance relies on observed cash burn trajectories, balance-sheet stabilization possibilities, and the potential for revenue growth to translate into sustained profits if cost controls and scale efficiencies materialize.