Right On Brands, Inc.
RTON · Retail-Miscellaneous Retail · 31.5M shares · +0%/yr ↓ buyback · EDGAR filings ↗
Grade
D42Going-concern CBD micro-cap whose razor-thin positive net income is an artifact of one-off liability-settlement gains.
Strengths
- Revenue grew ~14% (74th pct) with healthy gross margin 53% (65th pct)
- Reported ROA 68th pct and net income marginally positive
Risks
- Severe liquidity distress: current ratio 0.23 (17th pct), quick ratio 0.06 (4th pct), only $33K cash vs $685K current liabilities
- Explicit going concern with $15.8M accumulated deficit; net income positive only via gains on debt settlement, operating margin -12%
Notable findings
- No interest coverageInterest coverage -11.57 (cannot cover interest)
- Weak liquidityCurrent ratio 0.23 (<1)
Quarterly revenue
Last 4 quarters · from SEC filings.
Key metrics
Gross margin
53.3%
Operating margin
-12.0%
Net margin
0.8%
Return on equity
-1.7%
Return on assets
4.2%
Revenue growth (QoQ)
4.0%
Interest coverage
-11.6×
Current ratio
0.2×
EBITDA
-$130K
Tangible book value
-$521K
Notable events (8-K)
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 8-K | 2024-07-25 | 2024-07-25 | 0001477932-24-004365 ↗ |
| 8-K | 2024-07-16 | 2024-07-16 | 0001477932-24-004251 ↗ |
| 8-K | 2024-07-12 | 2024-07-12 | 0001477932-24-004178 ↗ |
| 10-Q | 2024-04-15 | 2023-12-31 | 0001477932-24-002113 ↗ |
| 8-K | 2024-03-01 | 2024-02-29 | 0001477932-24-000968 ↗ |
| 10-Q | 2023-11-14 | 2023-09-30 | 0001477932-23-008411 ↗ |
| 10-Q | 2023-09-06 | 2023-06-30 | 0001477932-23-006662 ↗ |
| 10-K | 2023-08-16 | 2023-03-31 | 0001477932-23-006220 ↗ |
| 10-Q | 2023-02-21 | 2022-12-31 | 0001477932-23-001185 ↗ |
| 8-K | 2022-12-27 | 2022-12-27 | 0001477932-22-009540 ↗ |
| 10-Q | 2022-11-18 | 2022-09-30 | 0001477932-22-008713 ↗ |
| 8-K | 2022-11-14 | 2022-11-08 | 0001477932-22-008350 ↗ |