The company exhibits a critical liquidity shortfall with a current ratio of 0.17 and a negative equity position of $7.6M as of 2024Q4.
| Total Current Assets | 1.75M | 1.12M | 2.13M | 1.57M | 6.19M |
| Cash & Short-Term Investments | 375.6K | 227.83K | 607.45K | 713.65K | 572.79K |
| Cash Only | 375.6K | 227.83K | 607.45K | 713.65K | 572.79K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 257.17K | 162.91K | 671.19K | 494.91K | 3.41M |
| Days Sales Outstanding | 2.31 | 2.94 | 12.37 | 14.1 | 109.39 |
| Inventory | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - |
| Other Current Assets | 563.53K | 15.64K | 48.7K | 42.18K | 100.92K |
| Total Non-Current Assets | 3M | 3.39M | 4.42M | 6.03M | 15.91M |
| Property, Plant & Equipment | 2.8M | 2.67M | 3.7M | 5.14M | 14.81M |
| Fixed Asset Turnover | 12.91x | 7.57x | 5.35x | 2.49x | 0.77x |
| Goodwill | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 109.07K | 608.76K | 609.73K | 660.38K | 685.36K |
| Long-Term Investments | 7.66K | 1.92K | 1.92K | 59.71K | 0 |
| Other Non-Current Assets | 90.08K | 105.55K | 110.13K | 170.07K | 416.37K |
| Total Assets | 4.75M | 4.51M | 6.55M | 7.61M | 22.1M |
| Asset Turnover | 7.67x | 4.48x | 3.02x | 1.68x | 0.51x |
| Asset Growth % | -63.31% | -31.1% | -13.9% | -65.58% | - |
| Total Current Liabilities | 10.16M | 9.24M | 9.34M | 8.44M | 9.96M |
| Accounts Payable | 502.5K | 560.06K | 1.07M | 495.1K | 152.71K |
| Days Payables Outstanding | 5.94 | 12.44 | 26.47 | 24.11 | 8.42 |
| Short-Term Debt | 3.89M | 3.39M | 3.3M | 2.45M | 6.25K |
| Deferred Revenue (Current) | 10.98M | 2.1M | 3.08M | 3.48M | 6.58M |
| Other Current Liabilities | 3.42M | 609.9K | 170.06K | 296.06K | 743.24K |
| Current Ratio | 0.17x | 0.12x | 0.23x | 0.19x | 0.62x |
| Quick Ratio | 0.17x | 0.12x | 0.23x | 0.19x | 0.62x |
| Cash Conversion Cycle | -3.63 | - | - | - | - |
| Total Non-Current Liabilities | 2.23M | 2.47M | 3.22M | 4.56M | 14.33M |
| Long-Term Debt | 0 | 0 | 0 | 43.22K | 464.76K |
| Capital Lease Obligations | 8.93M | 2.3M | 2.89M | 4.04M | 13.18M |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 25.95K | 43.72K | 53.49K | 88.23K | 338.83K |
| Total Liabilities | 12.39M | 11.71M | 12.56M | 13M | 24.29M |
| Total Debt | 5.87M | 6.27M | 7.04M | 7.37M | 15.39M |
| Net Debt | 5.49M | 6.05M | 6.43M | 6.66M | 14.81M |
| Debt / Equity | -0.77x | - | - | - | - |
| Debt / EBITDA | -2.06x | - | - | - | 165.69x |
| Net Debt / EBITDA | -1.93x | - | - | - | 159.52x |
| Interest Coverage | -6.50x | -11.76x | -18.12x | -56.13x | - |
| Total Equity | -7.64M | -7.2M | -6.01M | -5.39M | -2.19M |
| Equity Growth % | -54% | -19.72% | -11.52% | -146.15% | - |
| Book Value per Share | -15.96 | -15.02 | -10.98 | -9.85 | -4.00 |
| Total Shareholders' Equity | -7.64M | -7.2M | -6.01M | -5.39M | -2.19M |
| Common Stock | 1.92K | 1.92K | 1.92K | 639 | 639 |
| Retained Earnings | -19.35M | -18.86M | -17.66M | -16.58M | -13.17M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 552.83K | 513.03K | 496.37K | 37.63K | -166.02K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
Acute insolvency and liquidity
As reported in recent financial filings, EPWK's total assets have contracted from $7.6M in 2021Q4 to $4.8M by 2024Q4, reflecting a consistent downward trajectory that underscores the company's inability to stabilize its balance sheet amidst ongoing operational losses and a shrinking asset base.
The steady decline in total assets suggests that the company is liquidating or failing to replace its capital base, which may indicate a business model in terminal decline. Investors should monitor whether this contraction is a strategic pivot or a forced reduction due to the inability to fund ongoing operations.
Based on the most recent quarterly data, EPWK maintains a current ratio of 0.17, which, according to financial statements, highlights an extreme inability to cover short-term obligations with existing liquid assets, leaving the company with virtually no buffer against unexpected operational shocks or sudden creditor demands.
A current ratio well below 1.0 is a severe indicator of liquidity distress, suggesting that the company is likely relying on aggressive payables management or external financing to remain operational. This level of liquidity appears insufficient to support the company's stated business activities without immediate capital intervention.
As indicated by the company's balance sheet, EPWK has reported negative equity of $7.6M as of 2024Q4, a trend that has worsened from $5.4M in 2021Q4, primarily driven by the accumulation of $19.3M in retained losses over the observed period.
The persistent negative equity position suggests that the company has effectively exhausted its book value, which may imply that the business is currently operating on the goodwill of creditors rather than shareholder capital. This structural deficit warrants significant caution, as it limits the company's ability to absorb further losses.
According to reported figures, EPWK's asset base is heavily concentrated in property, plant, and equipment, with $2.8M in net PPE representing a significant portion of the $4.8M total assets, which may limit the company's flexibility in responding to changing market conditions.
The reliance on physical assets in a digital-first industry appears to be a strategic mismatch that ties up capital in depreciating infrastructure rather than scalable software. This asset-heavy profile may be a primary driver of the company's inability to generate meaningful cash flow or maintain a healthy liquidity position.
Analysis of the balance sheet reveals that deferred revenue of $2.6M represents a substantial liability relative to the company's $4.8M in total assets, suggesting that a significant portion of the balance sheet is comprised of future service obligations rather than unencumbered capital.
This high level of deferred revenue relative to total assets may imply that the company is effectively pre-selling services to fund current operations, creating a potential 'treadmill' effect. If the company fails to deliver on these obligations, it could face significant refund liabilities that would further exacerbate its already strained liquidity.
Quick answers to the most common questions about buying EPWK stock.
As of 2023, EPWK Holdings Ltd. (EPWK) had total assets of $4.5M including $1.1M in current assets.
EPWK Holdings Ltd. (EPWK) carries total debt of $6.3M, offset by $0.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
EPWK Holdings Ltd. (EPWK) has total shareholders' equity (book value) of $-7.2M ($-15.02 book value per share). Book value represents the net worth of the company belonging to common stock holders.
EPWK Holdings Ltd. (EPWK) reported a current ratio of 0.12x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.