Quality Industrial Corp.

Highly leveraged UAE LPG distributor in default on notes with a near-zero cash runway.

Strengths

• Revenue up 46% to $16.3M with full-year Al Shola Gas consolidation
• Established Dubai LPG distribution network (20,000+ cylinders/month)

Risks

• In default on convertible notes; cash runway 0.6 quarters (9th pct), current ratio 0.42
• Net margin -33%; $3.5M of write-offs (Buyback Reserve, related-party receivable)
• Dependent on parent Fusion Fuel for funding; Middle East geopolitical and governance risk

Notable findings

• Weak liquidityCurrent ratio 0.42 (<1)
• Net lossNet loss (net margin -33.4%)
• Cash burnNegative free cash flow (-2.9M)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Chronic dilutionShare count +12%/yr over 2y (dilution)
• Material weakness● If we fail to comply with the rules under the Sarbanes-Oxley Act related to accounting controls and procedures, or if material weaknesses or other deficiencies are discovered in our internal acc
• Revenue declineRevenue -29.0% YoY