ZSPC

zSpace is a sub-$8M-market-cap AR/VR education hardware maker whose own 10-K states that recurring losses, negative operating cash flow and a working-capital deficiency 'raise substantial doubt about our ability to continue as a going concern.' The numbers confirm it: FY2025 revenue fell 27% to $27.9M (from $38.1M) as the federal government froze and delayed Department of Education grants, freezing the discretionary budgets zSpace depends on — and management explicitly warns results 'will continue to be sensitive to the cyclical nature of state and federal education budgets.' The net loss widened to $25.4M, operating margin is -79.5%, and the company burned $18.0M of operating cash while holding just $1.02M of cash — a runway measured in weeks, not quarters, absent fresh financing.

The balance sheet is already broken. Stockholders' equity is negative $22.5M against a $316M accumulated deficit, so liabilities/equity is a meaningless -1.34x. Total liabilities of $30.1M dwarf $7.59M of total assets, and current liabilities ($17.3M) are nearly triple current assets ($6.49M). Debt is climbing exactly when the company can least afford it: long-term debt up 63% to $10.1M and the current portion up 114% to $7.6M. zSpace has kept the lights on only by serially raising $41.1M through IPO proceeds, convertible notes, an equity line and secured loans — each of which dilutes the 38.7M shares or adds senior claims ahead of equity holders.