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Harrys Manufacturing Inc (TSE:HARY)
:HARY

Harrys Manufacturing (HARY) AI Stock Analysis

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TSE:HARY

Harrys Manufacturing

(HARY)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
C$0.07
▲(0.00% Upside)
The score is held down primarily by high financial risk: persistent losses, structurally negative gross profit, negative free cash flow, and negative equity. Technicals are notably stronger with a clear uptrend and positive MACD, but overbought indicators temper the benefit. Valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Revenue growth trend
Sustained top-line expansion through 2025 shows the company is scaling demand and market penetration. Over a 2-6 month horizon, continued revenue momentum increases the odds management can leverage scale to improve unit economics and supports investment in product or distribution to drive durable recovery.
Debt reduced to zero
Elimination of interest-bearing debt materially lowers fixed financial obligations and default risk. With zero reported debt, the company gains durable financial flexibility and reduced cash outflows for interest, improving ability to allocate future cash toward operations, restructuring, or strategic initiatives.
Improving cash burn in 2025
A meaningful reduction in cash burn represents progress toward stabilizing operations and extending runway without immediate refinancing. If the trend persists, it lessens reliance on external funding and increases the probability of reaching positive operating cash flow within the medium term.
Negative Factors
Structurally negative gross profit
Negative gross profit indicates unit economics are fundamentally broken: costs to produce exceed revenues. This is a durable structural issue that cannot be fixed by cutting SG&A alone; it requires pricing, product, or cost-of-goods-sold changes to achieve sustainable margins and long-term viability.
Consistent negative free cash flow
Persistent negative free cash flow erodes liquidity and forces reliance on external financing or asset sales. Over months, this constrains investment, raises refinancing and dilution risk, and limits management’s ability to execute long-term plans without meaningful operational or capital-structure changes.
Negative shareholders' equity
Negative equity reflects accumulated losses exceeding net assets, reducing borrowing capacity and investor confidence. This structural balance-sheet weakness raises recapitalization and solvency risk over the medium term and may force dilutive financing, asset disposals, or restructuring to restore financial stability.

Harrys Manufacturing (HARY) vs. iShares MSCI Canada ETF (EWC)

Harrys Manufacturing Business Overview & Revenue Model

Company DescriptionHarrys Manufacturing Inc., together with its subsidiaries, manufactures, sells, and distributes tobacco products. It offers tobacco cigarettes and ingredients. The company was formerly known as Westridge Resources Inc. and changed its name to Harrys Manufacturing Inc. in October 2018. Harrys Manufacturing Inc. was incorporated in 2007 and is based in Vancouver, Canada.
How the Company Makes Moneynull

Harrys Manufacturing Financial Statement Overview

Summary
Despite strong revenue growth (including +25.4% in 2025) and debt reduced to zero, profitability and cash generation remain very weak: gross profit is negative across all reported years, net margins are deeply negative, free cash flow is consistently negative, and shareholders’ equity is negative (and worsened in 2025), indicating elevated recapitalization and funding risk.
Income Statement
8
Very Negative
Revenue has grown meaningfully from 2023 to 2025 (including +25.4% in 2025), but profitability remains very weak. Gross profit is negative in every reported year, and operating results are deeply loss-making, with net margins around -10% in 2024–2025 (and far worse in 2023). Overall, the business is scaling revenue but has not demonstrated a viable cost structure yet.
Balance Sheet
12
Very Negative
Leverage has improved versus earlier years, with total debt falling to zero by 2023–2025. However, the balance sheet is still strained because shareholders’ equity is negative in 2022–2025 and has deteriorated further in 2025, which reduces financial flexibility and increases recapitalization risk. Assets are relatively small versus the accumulated deficit, making recovery more challenging.
Cash Flow
10
Very Negative
Cash generation is consistently negative, with operating cash flow and free cash flow below zero in every year shown. Cash burn improved sharply in 2025 versus 2024, but free cash flow still declined year over year in 2025 and remains negative, indicating the company likely depends on external funding or asset sales to sustain operations. Cash flow broadly tracks reported losses, offering limited evidence of near-term self-funding capacity.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue42.16K42.16K48.12K23.50K0.000.00
Gross Profit-75.79K-256.64K-6.85K-3.08K-23.81K-41.19K
EBITDA-508.44K-435.33K-514.00K-647.73K-1.03M-1.09M
Net Income-436.19K-436.19K-516.00K-650.14K-1.38M-1.27M
Balance Sheet
Total Assets98.33K98.33K74.44K94.28K289.13K1.05M
Cash, Cash Equivalents and Short-Term Investments59.01K59.01K10.84K16.87K9.24K363.80K
Total Debt0.000.000.000.00104.21K613.60K
Total Liabilities892.29K892.29K541.61K337.06K396.65K705.26K
Stockholders Equity-793.96K-793.96K-467.17K-242.78K-107.53K340.31K
Cash Flow
Free Cash Flow-24.67K-24.68K-163.20K-264.37K-443.62K-886.77K
Operating Cash Flow-24.68K-24.68K-163.20K-264.37K-443.62K-883.68K
Investing Cash Flow0.000.000.00200.00K-200.00K-203.09K
Financing Cash Flow72.85K72.85K157.17K72.00K289.07K1.21M

Harrys Manufacturing Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.07
Price Trends
50DMA
0.03
Positive
100DMA
0.02
Positive
200DMA
0.02
Positive
Market Momentum
MACD
0.01
Negative
RSI
72.52
Negative
STOCH
69.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HARY, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 72.52 is Negative, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HARY.

Harrys Manufacturing Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
49
Neutral
C$7.96M-17.07-54.09%-77.14%
44
Neutral
C$737.21K-6.62
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:HARY
Harrys Manufacturing
0.07
0.06
600.00%
TSE:GLG.H
GLG Life Tech
0.04
0.00
0.00%
TSE:BITE
Blender Bites
0.15
-0.25
-62.50%
TSE:MOOO.X
Happy Supplements Inc.
0.25
-1.03
-80.47%
TSE:ZOG.X
Zoglo's Incredible Food Corp.
0.05
-0.02
-25.00%
TSE:PTFY
Plantify Foods Inc
0.11
-0.30
-73.66%

Harrys Manufacturing Corporate Events

Financial DisclosuresRegulatory Filings and Compliance
Harrys Manufacturing Updates Investors on Management Cease Trade Order and Filing Delay
Negative
Jan 26, 2026

Harrys Manufacturing Inc. has issued a bi-weekly status report confirming that its audited annual financial statements for the year ended July 31, 2025, and related disclosures were not filed by the original November 28, 2025 deadline, resulting in a management cease trade order (MCTO) against its CEO and CFO. The company states that there have been no material changes or additional defaults since the MCTO was announced on December 1, 2025, and that no undisclosed material information exists, while it works to complete the required filings by the revised January 27, 2026 deadline. During this period, Harrys will continue to provide bi-weekly default status reports in line with National Policy 12-203 and comply with alternative information guidelines, signaling an effort to maintain transparency with regulators and investors despite the filing delay.

Business Operations and StrategyPrivate Placements and Financing
Harrys Manufacturing Raises $50,000 in Private Placement to Fund Operations
Positive
Jan 20, 2026

Harrys Manufacturing Inc. has completed a non-brokered private placement of 2,000,000 units at $0.025 per unit, raising gross proceeds of $50,000. Each unit consists of one common share and one transferable share purchase warrant, with each warrant allowing the purchase of an additional share at $0.05 for 24 months, and all securities are subject to a four-month-plus-one-day hold period under applicable securities laws. The company, which paid no finder’s fees on the transaction, plans to use the funds to support day-to-day operations and administrative costs, providing modest but targeted working capital support as it continues to position its value-priced, Canadian-made tobacco products in the domestic market.

Financial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Harrys Manufacturing Updates Market on Ongoing Management Cease Trade Order and Filing Delay
Negative
Jan 12, 2026

Harrys Manufacturing Inc. has issued a bi-weekly status report confirming that its previously announced management cease trade order remains in effect after the company failed to file its audited annual financial statements and related disclosures for the year ended July 31, 2025 by the original November 28 deadline. The order, which restricts trading by the CEO and CFO until the required filings are made, is expected to stay in place until the financial statements are submitted on or before January 27, 2026, with the company stating there have been no new material changes, additional defaults, or undisclosed information since the order was first announced and committing to continue issuing bi-weekly updates while it works to complete the filings.

Financial DisclosuresRegulatory Filings and Compliance
Harrys Manufacturing Maintains Management Cease Trade Order as It Works to Complete Overdue Annual Filings
Negative
Dec 29, 2025

Harrys Manufacturing Inc. reported that its previously announced management cease trade order remains in effect after the company missed the regulatory deadline to file its audited annual financial statements for the year ended July 31, 2025. The order restricts trading in the company’s securities by its chief executive officer and chief financial officer until the required annual filings are completed, with a current filing deadline of January 27, 2026. The company stated there have been no material changes since the initial announcement, no additional defaults, and no undisclosed material information, and it expects to complete and file the financial statements by the prescribed deadline while continuing to issue bi-weekly status updates under the alternative information guidelines.

Financial DisclosuresRegulatory Filings and Compliance
Harrys Manufacturing Delays Financial Statement Filing Amid Capital Challenges
Neutral
Dec 1, 2025

Harrys Manufacturing Inc. has announced a delay in filing its audited annual financial statements for the year ended July 31, 2025, due to a previous working capital deficiency. The company has since secured additional funds and expects to file the statements by January 16, 2026. A management cease trade order has been voluntarily applied for, affecting only the CEO and CFO, while other securityholders can continue trading.

Business Operations and StrategyExecutive/Board Changes
Harrys Manufacturing Grants Stock Options to Director
Positive
Nov 17, 2025

Harrys Manufacturing Inc. has announced the grant of 1,000,000 stock options to a company director, allowing the purchase of common shares at an exercise price of $0.05 per share, valid for five years. This move is part of Harrys’ strategic efforts to align management interests with shareholder value, potentially impacting its market positioning by reinforcing confidence among stakeholders.

Business Operations and StrategyPrivate Placements and Financing
Harrys Manufacturing Secures $45,000 in Private Placement
Positive
Nov 4, 2025

Harrys Manufacturing Inc. has successfully closed a non-brokered private placement, raising $45,000 through the issuance of 4,500,000 units. The funds will be allocated towards day-to-day operations and administrative expenses, with no finder’s fees paid in connection with the closing. This financial move is expected to support the company’s ongoing operational needs and potentially strengthen its market position by ensuring continued service to its customer base.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 02, 2026