USBC

USBC is not an operating business you can underwrite — it's a pre-launch story stock. It generates no revenue (FY2024 and FY2025 revenue is blank; the only revenue in the five-year history is a single $4.36M print in FY2022), yet loses money every year: net income of -$22.1M in FY2025 actually widened 33.4% from the prior year, operating income was -$18.0M, and the accumulated deficit sits at -$163M. Management's own MD&A confirms the core product — the 'USBC tokenized deposit' — 'has not yet been commercially launched,' with March 2026 'Phase 1' testing limited to internal employees using 'company-provided funds.' There is no customer, no revenue model in the numbers, and management explicitly flags that timing, scope, and commercial impact 'remain subject to uncertainty.'

The balance sheet looks superficially healthy — $125M total assets, $97.1M equity, liabilities/equity of just 0.29x — but this is an illusion created by a Bitcoin treasury and a massive equity issuance (equity up 4,604% YoY, assets up 3,313%), not by earnings. Actual cash is only $4.10M against a -$7.60M operating cash burn, meaning the company cannot self-fund even one more year. To bridge the gap it signed a March 2026 secured facility with Payward (Kraken) for up to $25M at 8.5%, collateralized by its Bitcoin holdings and carrying 'customary margin maintenance provisions' — i.e., a BTC drawdown could force liquidation of the very treasury that constitutes most of the asset base. So the equity is levered to crypto price risk it does not control.