TULP

TULP (formerly Lendway) is a just-transformed micro-cap: it acquired majority control of Bloomia, a fresh-cut tulip grower, on Feb 22, 2024, and abandoned both a nascent non-bank lending business and an In-Store Marketing unit (now discontinued ops). That reshuffle makes the earnings history worthless as a guide — the FY2022 $10.0M and FY2023 $2.41M 'net income' came from businesses that no longer exist. The only clean read on the real company is FY2024: $37.8M of partial-year revenue, a 17.2% gross margin, and a $5.74M net loss. This is a single, seasonal, discretionary agricultural product with no track record under current ownership — genuinely unknowable, not merely risky.

The balance sheet is the disqualifier. Against just $9.84M of equity sit $38.5M of long-term debt plus $1.82M current, and management flags that the majority carries floating rates (Term SOFR + 3.0%). Interest expense already swung to $2.97M in 2024 — nearly half of the $6.51M gross profit — so rate moves flow straight through a thin equity cushion. Cash collapsed 89% to $1.76M while operating cash flow ran -$4.05M; the company is burning cash it doesn't have and depends on that same floating-rate credit facility. ROE is -58.4% and retained earnings are already negative at -$6.40M in year one.