HPAIW maintains a conservative capital structure with a negligible debt-to-equity ratio of 0.37%, yet the balance sheet appears vulnerable due to a limited $2.58 million cash buffer.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Total Current Assets | 24.75M | 14.69M | 2.47M |
| Cash & Short-Term Investments | 2.58M | 142.4K | 8.4K |
| Cash Only | 2.58M | 142.4K | 8.4K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 21.32M | 14.55M | 2.46M |
| Days Sales Outstanding | 263.05 | 417.12 | 337.07 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 817.87K | 0 | 0 |
| Total Non-Current Assets | 2.43M | 4.08M | 6.42M |
| Property, Plant & Equipment | 0 | 0 | 0 |
| Fixed Asset Turnover | - | - | - |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 2.43M | 4.08M | 6.42M |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 27.18M | 18.77M | 8.89M |
| Asset Turnover | 1.09x | 0.68x | 0.30x |
| Asset Growth % | 44.79% | 111.18% | - |
| Total Current Liabilities | 14.13M | 13.09M | 8.02M |
| Accounts Payable | 284.07K | 10.16M | 7.61M |
| Days Payables Outstanding | 9.43 | 759.39 | 2.23K |
| Short-Term Debt | 4.89M | 151.6K | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 |
| Other Current Liabilities | 0 | -151.6K | 0 |
| Current Ratio | 1.75x | 1.12x | 0.31x |
| Quick Ratio | 1.75x | 1.12x | 0.31x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 0 | 0 | 0 |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 14.13M | 13.09M | 8.02M |
| Total Debt | 4.89M | 151.6K | 0 |
| Net Debt | 2.31M | 9.2K | -8.4K |
| Debt / Equity | 0.37x | 0.03x | - |
| Debt / EBITDA | 0.42x | 0.02x | - |
| Net Debt / EBITDA | 0.20x | 0.00x | -0.01x |
| Interest Coverage | 40.57x | 730.01x | 166.40x |
| Total Equity | 13.05M | 5.68M | 869.38K |
| Equity Growth % | 129.64% | 553.81% | - |
| Book Value per Share | 83674.35 | - | - |
| Total Shareholders' Equity | 13.05M | 5.68M | 869.38K |
| Common Stock | 156 | 156 | 156 |
| Retained Earnings | 13.05M | 5.68M | 861.82K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Tight liquidity and concentration
As reported in recent financial disclosures, HPAIW maintains a cash balance of only $2.58 million against $29.5 million in annual revenue, which suggests a precarious liquidity buffer that may struggle to support the company's aggressive 132% year-over-year growth trajectory without potential future capital raises.
The limited cash reserves relative to the scale of operations indicate that the company possesses minimal margin for error regarding working capital management. Investors should monitor whether this tight liquidity forces management to prioritize short-term cash preservation over the long-term R&D investments required to maintain their AI-driven competitive moat.
Based on the company's reported figures, HPAIW operates with a negligible debt-to-equity ratio of 0.37%, suggesting that the firm has largely avoided traditional debt financing to fund its rapid expansion, opting instead for an equity-heavy capital structure that minimizes interest rate sensitivity.
While the lack of debt insulates the balance sheet from rising interest costs, it also implies that the company may be relying heavily on operational cash flow or equity dilution to fund its infrastructure needs. This reliance warrants further investigation into whether the current capital structure is sufficient to sustain the high-touch, human-intensive BPO service delivery model.
According to the company's financial profile, the reliance on crowdsourced labor and proprietary AI software suggests that the balance sheet may be heavily weighted toward intangible assets, which are inherently difficult to value and prone to impairment if the underlying AI models lose their competitive edge.
The potential for aggressive capitalization of software development costs could be masking the true cash-burn nature of the business, potentially inflating the reported operating margins. Analysts should scrutinize the quality of these intangible assets to determine if they represent genuine long-term value or merely deferred expenses that could impact future earnings.
As indicated by the company's transition to a public entity, the balance sheet is currently in a state of flux, with recent SPAC-related activities likely introducing non-recurring costs that complicate the assessment of the firm's underlying financial health and long-term capital allocation strategy.
The shift toward public reporting provides greater transparency but also exposes the company to increased compliance costs and potential volatility in its equity base. Investors should monitor how management balances the need for rapid scaling with the requirement to maintain a stable and transparent balance sheet in a highly regulated environment.
Quick answers to the most common questions about buying HPAIW stock.
As of 2024, Helport AI Limited (HPAIW) had total assets of $27.2M including $24.8M in current assets.
Helport AI Limited (HPAIW) carries total debt of $4.9M, offset by $2.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Helport AI Limited (HPAIW) has total shareholders' equity (book value) of $13.1M ($83674.35 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Helport AI Limited (HPAIW) reported a current ratio of 1.75x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.