Executive Summary
KeyStar Corp’s Q4 2024 results depict a pronounced top-line and earnings deterioration alongside a structurally fragile balance sheet. Revenue for the quarter registered at -$81,778, reflecting a year-over-year decline of 122.29% and a quarter-over-quarter gain of 56.45% on a negative base, underscoring ongoing revenue volatility in a niche Consumer Cyclical/ specialty retail model. Gross profit totaled -$310,194 with a gross margin of 3.79%, indicating that the business is not yet scaling profitability even as topline trends show some stabilization relative to prior periods. Operating income came in at -$2.38 million, while net income was -$12.72 million for the quarter, resulting in an EPS of -$0.21. EBITDA was deeply negative at -$16.58 million, signaling heavy operating losses and significant non-cash and cash cost drag.
From a balance-sheet perspective, KeyStar’s liquidity position is severely constrained. Total assets were $9.35 million against total liabilities of $22.54 million, driving a negative stockholders’ equity of -$13.19 million. Current ratios deteriorate to 0.0565, with cash and cash equivalents at $0.452 million and cash burn primarily evident in operating activities (-$2.36 million) and free cash flow (-$2.48 million). Net debt sits at approximately $8.95 million on a capital structure with minimal liquidity and a high reliance on financing activity to support operations. These dynamics imply an elevated risk profile and material need for balance-sheet repair or strategic repositioning.
In the absence of explicit management guidance in the dataset, the outlook hinges on the company’s ability to stabilize or grow revenue, reduce operating burden, and secure external funding. The current quarter’s results, along with the levered balance sheet and weak liquidity, suggest that any near-term upside would require meaningful financing events or a strategic pivot toward higher-margin, more cash-efficient activities within its ecommerce and convention-services platform.
Key Performance Indicators
QoQ: 56.45% | YoY:-122.29%
QoQ: 81.74% | YoY:-271.01%
QoQ: -233.57% | YoY:-576.93%
QoQ: -275.00% | YoY:-429.67%
Key Insights
Revenue: -$81,778 (YoY decline -122.29%, QoQ +56.45%)
Gross Profit: -$310,194; Gross Margin: 3.79%
Operating Income: -$2,378,274 (YoY +11.27%, QoQ +17.19%)
Net Income: -$12,724,502 (YoY -576.93%, QoQ -233.57%)
EPS: -$0.21 (YoY -429.67%, QoQ -275.00%)
EBITDA: -$16,583,176; EBITDA Margin: 202.78% (note: ratio data appears inconsistent with reported numbers)
Cash Flow: Net cash from operating activities -$2,364,138; Free Cash Flow -$2,482,772
Cash & Liquidity: Cash at end of period $449,763; Be...
Financial Highlights
Revenue: -$81,778 (YoY decline -122.29%, QoQ +56.45%)
Gross Profit: -$310,194; Gross Margin: 3.79%
Operating Income: -$2,378,274 (YoY +11.27%, QoQ +17.19%)
Net Income: -$12,724,502 (YoY -576.93%, QoQ -233.57%)
EPS: -$0.21 (YoY -429.67%, QoQ -275.00%)
EBITDA: -$16,583,176; EBITDA Margin: 202.78% (note: ratio data appears inconsistent with reported numbers)
Cash Flow: Net cash from operating activities -$2,364,138; Free Cash Flow -$2,482,772
Cash & Liquidity: Cash at end of period $449,763; Beginning cash $622,098
Balance Sheet: Total assets $9,350,283; Total liabilities $22,540,847; Stockholders’ equity -$13,190,564
Liquidity Ratios: Current ratio 0.0565; Quick ratio 0.0565; Cash ratio 0.0101
Debt Profile: Total debt $9,173,762; Net debt $8,952,008; Long-term debt $512,527
Operational Efficiency: Asset turnover negative; Fixed asset turnover -37.98; Operating cash flow per share -$0.0427; Free cash flow per share -$0.0449
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
-81.78K |
-122.29% |
56.45% |
| Gross Profit |
-310.19K |
-271.01% |
81.74% |
| Operating Income |
-2.38M |
11.27% |
17.19% |
| Net Income |
-12.72M |
-576.93% |
-233.57% |
| EPS |
-0.21 |
-429.67% |
-275.00% |
Key Financial Ratios
operatingProfitMargin
2908%
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.04
Management Commentary
No earnings call transcript data provided in the dataset. Consequently, management quotes and thematic insights from the QQ4 2024 earnings call could not be extracted. If transcript data become available, we would organize insights by themes (strategy, operations, market conditions) and pair quotes with context and implications for investors.
Forward Guidance
No formal forward guidance is included in the provided data. Given the current financials, investors should monitor: (1) liquidity runway and funding cadence, including potential financing rounds or debt restructurings; (2) revenue stabilization or growth signals, particularly in the core ecommerce and convention services segments; (3) any impairment or write-downs related to intangible assets (carrying value $6.76 million) and potential amortization impact; (4) cost-containment initiatives and working capital optimization to improve near-term cash flow. Absent explicit guidance, the outlook hinges on external capital access and any strategic turnarounds that could meaningfully lift revenue or reduce burn. In a best-case scenario, a successful financing event coupled with revenue stabilization could begin to reverse negative equity trends; in a downside scenario, continued cash burn and liquidity pressure heighten the risk of equity dilution or strategic alternatives.