Executive Summary
King Resources Inc (KRFG) reported QQ1 2026 revenue of 19.221 (USD thousands, as reported) with a gross margin of 39.999% and gross profit of 7.688. While topline growth was modest YoY (0.21%) and QoQ (-0.09%), the quarter was characterized by a severe operating overhang: selling, general and administrative expenses (SG&A) totaled 315.299, driving EBITDA to a loss of 306.588 and an operating loss of 307.611. Net income matched the operating loss at -307.611, signaling a material gap between gross profitability and overall cost structure.
The company generated negative operating cash flow of -42.933 and only a small financing inflection of +40.544, resulting in a net cash change of -0.816 for the period. Cash at period-end stood at 1.601 with a modest beginning cash balance of 2.417. The balance sheet presents several red flags: liabilities appear significantly larger than reported assets, and stockholders’ equity is negative (-1.259). These numbers suggest solvency risk and potential data quality concerns in the filing. Despite a product portfolio aligned with the growing USB-C PD ecosystem (65W/45W/120W chargers, hubs, and power banks), the company’s near-term cash generation and profitability remain stressed, underscoring the need for cost discipline and a clearer path to sustainable operating leverage.
Management commentary (where available) emphasizes execution of the Powertech product line and online distribution, but the quarterly data provided in QQ1 2026 does not include explicit forward guidance in the materials supplied. Given the modest revenue growth backdrop and the outsized operating expense base, investors should monitor progress toward SG&A alignment with top-line growth, any capex or R&D investment timing, and the company’s ability to secure continued external financing if needed.
Key Performance Indicators
Key Insights
Revenue: 19,221 (USD thousands) | YoY: 0.21% | QoQ: -0.09%
Gross Profit: 7,688 | Gross Margin: 39.999%
EBITDA: -306,588 | EBITDA Margin: -15.95%
Operating Income: -307,611 | Operating Margin: -16.00%
Net Income: -307,611 | Net Margin: -16.00%
EPS: Not disclosed | Diluted EPS: Not disclosed
Weighted Avg Shares Out: 6,650,786,818
Operating Cash Flow: -42,933 | Free Cash Flow: -42,933
Net Cash Provided by Financing Activities: 40,544
Net Change in Cash: -816
Cash at End of Period: 1,601 |...
Financial Highlights
Revenue: 19,221 (USD thousands) | YoY: 0.21% | QoQ: -0.09%
Gross Profit: 7,688 | Gross Margin: 39.999%
EBITDA: -306,588 | EBITDA Margin: -15.95%
Operating Income: -307,611 | Operating Margin: -16.00%
Net Income: -307,611 | Net Margin: -16.00%
EPS: Not disclosed | Diluted EPS: Not disclosed
Weighted Avg Shares Out: 6,650,786,818
Operating Cash Flow: -42,933 | Free Cash Flow: -42,933
Net Cash Provided by Financing Activities: 40,544
Net Change in Cash: -816
Cash at End of Period: 1,601 | Cash at Beginning: 2,417
Total Assets: 60,275 | Total Liabilities: 1,319,347 | Total Stockholders’ Equity: -1,259,072
Note: Several balance sheet figures appear inconsistent (assets vs. liabilities) in the supplied dataset; the narrative assumes the numbers as reported and highlights data integrity concerns.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
19.22K |
0.21% |
-0.09% |
| Gross Profit |
7.69K |
0.21% |
-0.09% |
| Operating Income |
-307.61K |
7.14% |
-83.63% |
| Net Income |
-307.61K |
66.81% |
50.87% |
Management Commentary
Transcript highlights not provided in the data set. No earnings-call quotes are available for QQ1 2026. If a transcript becomes available, we will categorize quotes by themes (strategy, operations, market conditions) with context and significance for investors.
Forward Guidance
No explicit forward guidance was included in the provided materials for QQ1 2026. In a scenario where management maintains a similar cost structure, the near-term focus should be on achieving operating leverage as revenue scales and on stabilizing cash burn. Potential guidance anchors to watch for include: targeted SG&A reductions as a percentage of revenue, cadence of product introductions within the USB-C PD ecosystem, capex discipline, and a plan for additional financing if operating cash flow remains negative. Given the current negative EBITDA and net income despite a gross margin around 40%, the achievability of any timeline to breakeven hinges on significant cost discipline and faster top-line growth, ideally driven by scalable online distribution and expansion of Powertech product lines into higher-margin segments. Key factors investors should monitor: (i) progress on SG&A normalization relative to revenue; (ii) quarterly cash burn rate trajectory; (iii) cadence of financing or equity raises; (iv) any changes in working capital management and supplier terms; (v) competitive dynamics in the smart power and charging accessory market.