Exchange: OTC | Sector: Communication Services | Industry: Entertainment
Q4 2024
Published: Aug 13, 2024
Earnings Highlights
EPS of $0.00 decreased by 116.7% from previous year
Net income of -16.93K
"Transcript data not available for QQ4 2024 earnings call." - N/A
Goliath Film and Media Holdings (GFMH) QQ4 2024 Results Analysis – Revenue Decline, Margin Erosion, and Liquidity Stress in the Entertainment Sector
Executive Summary
Goliath Film and Media Holdings (GFMH) reported a highly unusual QQ4 2024 quarter characterized by a negative revenue reading (-$47,674) and a concurrent net loss of -$16,927, underscoring a period of acute earnings weakness within its entertainment content development, distribution, and licensing operations. The quarter features a pronounced deterioration in profitability metrics (operating income -$16,927; net income -$16,927; YoY revenue change -139.21%; QoQ revenue change -200%), suggesting either a substantial impairment event, aggressive one-time charges, or severe demand headwinds within the licensing/distribution pipeline. Depreciation and amortization stood at $16,531, partially offsetting cash-based metrics, while reported operating margins appear anomalous relative to the negative revenue base, highlighting potential accounting presentation issues or sign conventions in the dataset.
From a liquidity and balance-sheet perspective, the company exhibits extreme fragility. Cash and cash equivalents are $437 at quarter-end, against total current liabilities of $101,039, yielding a cash-based liquidity ratio of approximately 0.0043x. The equity position is negative (-$100.6 million), with a sizeable accumulated other comprehensive income loss (+$381.5 million) contrasting a minimal asset base (total assets reported as $437). Net debt is reported as negative (-$437), but given the absence of disclosed debt in current format and the liability composition, the headline balance-sheet risk is substantial, implying potential off-balance-sheet items or reporting inconsistencies. Operating cash flow was modestly negative (-$60), and free cash flow was also negative (-$60), signaling ongoing cash burn absent an imminent liquidity infusion or a material change in business activity.
The earnings trajectory, when viewed alongside YoY and QoQ declines in revenue and profits, raises questions about sustainability unless management implements a credible turnaround plan anchored in licensing revenue, cost discipline, and a path to positive cash generation. The absence of a disclosed earnings call transcript in the provided data further constrains qualitative insights from management. In the context of peer benchmarks and industry dynamics, GFMH’s QQ4 2024 liquidity and profitability gaps appear wider than most small-cap peers in the entertainment space, underscoring the imperative for near-term liquidity management and strategic realignment.
Key Performance Indicators
Revenue
-47.67K
QoQ: -200.00% | YoY:-139.21%
Operating Income
-16.93K
QoQ: -144.42% | YoY:-115.48%
Net Income
-16.93K
QoQ: -144.41% | YoY:-115.48%
EPS
0.00
QoQ: -150.00% | YoY:-116.67%
Revenue Trend
Margin Analysis
Key Insights
Revenue: -$47,674; YoY: -139.21%; QoQ: -200.00%
Operating Income: -$16,927; YoY: -115.48%; QoQ: -144.42%; Operating margin (reported): 0.355 (context: negative base with negative revenue presents interpretive challenges)
Net Income: -$16,927; YoY: -115.48%; QoQ: -144.41%; Net margin (reported): 0.355
EPS: -$0.0001; YoY: -116.67%; QoQ: -150.00%
Depreciation & Amortization: $16,531
Financial Highlights
Revenue and profitability metrics (USD thousands unless noted):
- Revenue: -$47,674; YoY: -139.21%; QoQ: -200.00%
- Operating Income: -$16,927; YoY: -115.48%; QoQ: -144.42%; Operating margin (reported): 0.355 (context: negative base with negative revenue presents interpretive challenges)
- Net Income: -$16,927; YoY: -115.48%; QoQ: -144.41%; Net margin (reported): 0.355
- EPS: -$0.0001; YoY: -116.67%; QoQ: -150.00%
- Depreciation & Amortization: $16,531
- Cash flow from operations: -$60
- Free cash flow: -$60
- Cash and cash equivalents: $437 at period end
- Total current liabilities: $101,039; Total assets: $437; Total stockholders’ equity: -$100,602 (negative equity)
- Current ratio: 0.0043; Quick ratio: 0.0043; Cash ratio: 0.0043
- Asset turnover: -109.09; Gross margin: 1.000; Operating margin: 0.355; Price-to-book: -6.91; Price-to-sales: -14.57; Price-to-earnings: -10.26
- Net debt: -$437 (net cash position on the dataset basis)
Notes on interpretation: Revenue and earnings figures show an extremely weak quarter with negative top-line activity and cash burn. The ratios imply anomalous signs due to the sign conventions used in the dataset (negative revenue paired with a negative net income yields a superficially positive margin). Caution is warranted in standard financial interpretation until the underlying accounting treatment is clarified.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
-47.67K
-139.21%
-200.00%
Operating Income
-16.93K
-115.48%
-144.42%
Net Income
-16.93K
-115.48%
-144.41%
EPS
0.00
-116.67%
-150.00%
Key Financial Ratios
currentRatio
0
grossProfitMargin
100%
operatingProfitMargin
35.5%
netProfitMargin
35.5%
returnOnAssets
-3873%
returnOnEquity
16.8%
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-6.91
priceEarningsRatio
-10.26
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data for QQ4 2024 earnings call is not provided in the dataset. As a result, management-specific themes, forward-looking guidance, and verbatim quotes could not be extracted from an earnings call transcript. In lieu of a transcript, investors should seek official SEC filings (Form 10-K/Form 10-Q) and any supplemental investor presentations for management commentary and forward guidance. If and when transcript data are provided, the highlights would be grouped by themes such as strategy, operations, market conditions, and capital allocation, with context and significance for investors.
Transcript data not available for QQ4 2024 earnings call.
— N/A
Transcript data not available for QQ4 2024 earnings call.
— N/A
Forward Guidance
No explicit forward guidance is provided in the QQ4 2024 data set. Given the material liquidity constraints, negative equity, and negative quarterly revenue, the near-term outlook hinges on management’s ability to secure liquidity, restructure the balance sheet, and restore positive cash flow. Plausible scenarios include: (1) targeted licensing revenue acceleration and distribution deals to convert library/content assets into recurring cash flow; (2) balance-sheet restructuring or capital infusion to restore equity and improve liquidity ratios; (3) cost rationalization to reduce operating expenditure and depreciation-related outflows; (4) potential asset sales or licensing of rights to monetize the content portfolio. Key factors investors should monitor include: the timing and scale of any financing arrangements, progress on content licensing deals or movie/TV rights monetization, changes in working capital efficiency, and any disclosed impairment charges or restructuring steps. Absent credible forward guidance from management, the investment case remains highly contingent on a successful liquidity plan and a credible path to positive operating cash flow.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
GFMH Focus
1.00%
35.50%
16.80%
-10.26%
GTOR
-22.40%
-17.94%
-2.42%
54.60%
GRST
89.50%
-60.70%
6.37%
-70.80%
DCLT
57.40%
-23.60%
-52.70%
-2.69%
HHSE
1.00%
-83.50%
-0.07%
-64.14%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ4 2024 results, GFMH presents a high-risk investment proposition. The quarter shows a negative revenue print alongside meaningful cash burn and a severely leveraged balance sheet, with current liabilities exceeding current assets by a wide margin and negative equity. The key to any meaningful upside lies in a credible liquidity plan and a tangible path to positive operating cash flow, ideally through rapid monetization of existing content rights, successful licensing agreements, and disciplined cost management. Absent explicit forward guidance or credible near-term catalysts, the stock should be approached with a high degree of caution. Investors should monitor liquidity inflection points, progress on potential licensing deals or asset monetization, and any capital-raising activities that could stabilize the balance sheet and unlock the value of its IP portfolio. Relative to industry benchmarks and peers, GFMH’s QQ4 2024 liquidity and profitability metrics indicate a stretched risk profile with substantial downside risk if refinancing or restructuring efforts falter.
Key Investment Factors
Growth Potential
Potential upside would depend on monetization of existing content rights through licensing and distribution deals, international expansion, and a credible path to positive free cash flow. A return to revenue growth would likely require a material acceleration in licensing activity, sequels or new releases, and successful partnerships with streaming platforms or broadcasters.
Profitability Risk
Primary risks include extreme liquidity stress (current liabilities far exceed current assets), negative equity, potential impairment risk on content assets, reliance on debt/equity financing to sustain operations, operational cash burn, and uncertain visibility into near-term revenue catalysts given the absence of documented forward guidance. Competitive intensity in entertainment licensing and content distribution could further pressure returns.
Financial Position
Balance sheet shows negligible total assets ($437) with substantial current liabilities ($101,039) and negative equity (-$100,602). The company also reports a minimal net debt position (-$437) but lacks clear lines of credit or debt maturity visibility in the dataset. Revenue and profitability are negative, and cash flow from operations is weak, indicating structural liquidity concerns without outside capital or strategic monetization of content rights.
SWOT Analysis
Strengths
Business has a defined content development, production, distribution, and licensing model in entertainment, positioning GFMH to monetize IP rights if liquidity and demand align.
Net cash position (per dataset) suggests some liquidity headroom relative to disclosed debt (though current liabilities are extremely high).
IP-related assets and library rights, if effectively monetized, could unlock future licensing revenues.
Weaknesses
Severe liquidity constraint with current assets of $437 and current liabilities of $101,039; liquidity metrics (current/quick/cash ratios) around 0.0043x.
Negative stockholders’ equity (-$100.6 million) indicates a stressed balance sheet and potential solvency concerns.
Negative revenue in QQ4 2024 and substantial YoY/QoQ declines in revenue and profitability metrics.
Lack of earnings call transcript limits visibility into management’s turnaround strategy and forward guidance.
Opportunities
Licensing and distribution monetization of existing content portfolio to generate recurring cash flow.
Strategic partnerships with streaming platforms or broadcasters to expand licensing deals and international reach.
Operational restructuring and cost containment to improve cash burn trajectory and restore liquidity.
Threats
Liquidity risk and potential requirement for rapid capital infusion to sustain operations.
Accounting presentation and potential impairment risk on content assets given negative earnings trajectory.
Competitive dynamics in the entertainment licensing market and macro headwinds affecting content demand.
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