OBAI

Our Bond is an AI 'preventative personal security' micro-cap whose financial structure is broken at every level. FY2025 revenue of $9.97M grew just 2.4%, but the business barely functions as a business: gross profit was only $566K (a 5.7% gross margin, itself down 20.2% YoY), meaning the service model does not meaningfully cover its own direct costs before a dollar of overhead. That drives a -$9.25M operating loss (-92.8% margin) and a -$10.5M net loss (-105.8% margin). The improvement in EPS (+40.5%) is a share-count artifact, not real progress — the company is losing more per revenue dollar than it takes in.

The balance sheet is the disqualifier. Stockholders' equity is -$22.7M and worsening (-37.2% YoY), total liabilities ($13.8M) dwarf total assets ($2.5M), and accumulated deficit sits at -$139M — this company has consumed roughly fourteen times its current market cap over its life. Most acute is liquidity: $599K of cash against -$6.92M of annual operating cash burn implies barely a month of runway, while current liabilities ($8.12M, up 12.7%) exceed current assets ($2.42M) by more than 3x. This is a textbook going-concern situation, and survival almost certainly requires highly dilutive financing at a $0.71 stub price — or bankruptcy. Bizarrely, management paid $88K of dividends while insolvent and out of cash, a red flag on capital discipline.