ROC

ROC has the makings of a real software business: FY2025 revenue of $17.0M grew +23.9% YoY at a 77.2% gross margin, with the 10-K describing trusted U.S./international military, law-enforcement and fintech customers and 'over 300 million annual identity verification transactions for major financial institutions.' The geopolitical pitch — displacing Chinese/Russian vendors, winning ABIS contracts, and its 'Poison AI' data-integrity angle for national-security buyers — is genuinely differentiated for a U.S.-built, U.S.-operated provider. On the top line and margin alone, this looks like a credible Vision-AI growth name.

The balance sheet, however, overrides the story. The company reports $0.00 in cash and equivalents (down 100% YoY), negative stockholders' equity of -$292K, and negative working capital ($4.88M current assets vs. $6.33M current liabilities, a 0.77 current ratio). Total liabilities jumped +57.9% to $7.26M against just $6.97M of total assets. A firm with no cash, negative book equity, and a -$998K operating cash burn cannot self-fund — it must raise capital imminently, and on a 19.1M-share base any equity raise is materially dilutive. The MD&A excerpt is conspicuously silent on liquidity or going-concern, framing the cash drain instead as 'strategic investments… aimed at driving future growth' — a generous read of a company that has run its cash to zero.