VERDE BIO HOLDINGS, INC.

Distressed oil & gas royalty micro-cap with a working-capital deficit and reliance on dilutive financing to survive.

Strengths

• Royalty revenue grew to ~$926k and operating losses narrowed YoY
• Asset-light royalty model with no direct drilling capex

Risks

• Current/quick ratio 0.05 (7th pct) with only ~$26k cash and a $1.74M working-capital deficit
• Negative ROE -0.84 (8th pct), ROA -0.45 (14th pct) and negative interest coverage
• Survival depends on convertible notes and ongoing share dilution

Notable findings

• No interest coverageInterest coverage -24.89 (cannot cover interest)
• Cash burnNegative free cash flow (-0.9M)
• Weak liquidityCurrent ratio 0.05 (<1)
• Chronic dilutionShare count +241%/yr over 4y (dilution)