OLOX

OLOX is a distressed shell-like conglomerate (construction, oil & gas, technology) whose top line has imploded from $38.3M in FY2021 to just $2.95M in FY2025 — down another 40.7% year-over-year, which management attributes to a 2025 'restructuring.' The company doesn't just lose money at the bottom line; it loses money on the product itself: gross profit is NEGATIVE $4.29M, a -145.3% gross margin, meaning revenue does not even cover cost of sales before any overhead. Operating margin is -476.5% and net margin -637.4% on an $18.8M net loss. This is not a growth story hitting a rough patch — it is a business model that has not worked for five straight years (cumulative losses have driven retained earnings to -$117M).

Management itself flags the terminal risk: the 10-K states negative operating cash flows 'raised substantial doubt about our ability to continue as a going concern,' with only $427,866 of cash against $7.84M of annual operating cash burn. The balance sheet is a liquidity trap — $1.46M of current assets against $25.8M of current liabilities (a ~$24M working-capital deficit), plus $9.72M of long-term debt. The reported swing to positive equity ($7.59M from -$12.5M) is not operational healing; the MD&A shows it came from financing gymnastics — a $4.65M loss on debt extinguishment, $4.28M embedded-derivative loss on convertible notes, offset by derivative and legal-settlement gains. These convertible notes and the explicit warning that 'any equity financing would be dilutive' point to relentless dilution ahead.