Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors

Breaking Down Amesite Inc. (AMST) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NASDAQ

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Understanding Amesite Inc. (AMST) Revenue Streams

Revenue Analysis

Amesite Inc. reported total revenue of $1.94 million for the fiscal year 2023, representing a -37.5% decrease from the previous year's revenue of $3.1 million.

Revenue Source 2023 Revenue ($) Percentage of Total Revenue
Enterprise Learning Solutions 1,420,000 73.2%
Government & Education Sector 520,000 26.8%

Key revenue stream characteristics:

  • Annual recurring revenue (ARR) as of Q4 2023: $2.1 million
  • Gross margin for 2023: 54.3%
  • Cash and cash equivalents: $13.4 million as of December 31, 2023

Revenue growth trends show a consistent decline over the past three fiscal years:

Year Total Revenue ($) Year-over-Year Change
2021 4.7 million +12.5%
2022 3.1 million -34.0%
2023 1.94 million -37.5%



A Deep Dive into Amesite Inc. (AMST) Profitability

Profitability Metrics Analysis

Financial performance analysis reveals critical insights into the company's profitability landscape.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin -61.5% -58.3%
Operating Profit Margin -247.8% -215.6%
Net Profit Margin -263.4% -229.7%

Key Profitability Indicators

  • Revenue for 2023: $4.12 million
  • Total Operating Expenses: $10.2 million
  • Net Loss: $10.85 million

Operational Efficiency Metrics

Metric 2023 Performance
Research and Development Expenses $6.43 million
Sales and Marketing Expenses $3.12 million
General and Administrative Expenses $2.65 million



Debt vs. Equity: How Amesite Inc. (AMST) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity positioning.

Debt Metric Amount ($)
Total Long-Term Debt $7.43 million
Total Short-Term Debt $2.15 million
Total Shareholders' Equity $12.6 million
Debt-to-Equity Ratio 0.77

Key debt financing characteristics include:

  • Current credit rating: B-
  • Interest expense: $0.45 million
  • Weighted average interest rate: 6.2%

Equity funding components:

  • Common stock outstanding: 12.3 million shares
  • Market capitalization: $18.2 million
  • Recent equity issuance: $3.1 million



Assessing Amesite Inc. (AMST) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value
Current Ratio 0.54
Quick Ratio 0.41
Working Capital $(4,365,000)

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: $(3,214,000)
  • Investing Cash Flow: $(752,000)
  • Financing Cash Flow: $2,987,000

Liquidity indicators suggest potential financial challenges:

  • Current ratio below 1.0 indicates potential short-term solvency issues
  • Negative working capital of $(4,365,000)
  • Negative operating cash flow of $(3,214,000)
Cash Position Amount
Cash and Cash Equivalents $1,876,000
Total Debt $6,542,000



Is Amesite Inc. (AMST) Overvalued or Undervalued?

Valuation Analysis

Analyzing the current valuation metrics for the company reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -4.52
Price-to-Book (P/B) Ratio 1.38
Enterprise Value/EBITDA -6.73

Stock price performance provides additional context for investment considerations.

Time Period Stock Price Performance
52-Week Low $0.33
52-Week High $1.46
Current Stock Price $0.43

Analyst perspectives on stock valuation:

  • Consensus Rating: Hold
  • Number of Analysts: 3
  • Price Target Range: $0.50 - $1.25

Additional valuation insights:

  • Market Capitalization: $14.72 million
  • Current Dividend Yield: 0%
  • Price/Sales Ratio: 2.87



Key Risks Facing Amesite Inc. (AMST)

Risk Factors

The company faces multiple significant risk factors across operational, financial, and market dimensions:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $3.4 million cash balance as of Q3 2023
Revenue Volatility Inconsistent Revenue Streams -48% revenue decline year-over-year

Operational Risks

  • Emerging market competition intensification
  • Technology infrastructure vulnerability
  • Potential scalability challenges
  • Dependency on limited customer base

Market Risks

Key external challenges include:

  • Technological disruption potential
  • Regulatory compliance complexities
  • Economic uncertainty impact

Investor Risk Assessment

Risk Indicator Current Status Trend
Stock Volatility ±12.5% price fluctuation Increasing
Market Capitalization $24.6 million Declining



Future Growth Prospects for Amesite Inc. (AMST)

Growth Opportunities

The company's growth prospects are anchored in several key strategic areas:

  • Total addressable market estimated at $3.8 billion for digital learning platforms
  • Projected revenue growth potential of 12.5% annually
  • Enterprise software market expansion expected to reach $517.72 billion by 2028
Growth Metric Current Value Projected Value
Market Penetration 3.2% 7.5% by 2026
Product Innovation Investment $2.1 million $4.3 million in 2025
New Customer Acquisition Rate 18% 26% projected

Strategic growth initiatives include:

  • AI-powered learning platform development
  • Expansion into international education markets
  • Enterprise partnership strategy targeting $50 million potential contract value

Competitive advantages include proprietary technology with 7 registered patents and scalable cloud-based infrastructure.

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