ImagineAR (IP) AI Stock Analysis

• Market Cap: C$8.58M
• Dividend Yield: N/A
• Average Volume (3M): 163.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -80.20%
• EPS Growth: 39.39%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 285,953,430
• 10 Day Avg. Volume: 279,398
• 30 Day Avg. Volume: 163,888
• PEG Ratio: 0.07
• Price to Book (P/B): -6.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 30 Underperform
• Price Target: ―

ImagineAR's score is significantly impacted by poor financial performance and valuation concerns. While there are promising corporate events that might improve future prospects, the current financial instability and technical analysis suggest caution. The stock's negative earnings and financial discrepancies pose significant risks that outweigh the potential benefits of recent business developments.

ImagineAR Business Overview & Revenue Model

Company Description

ImagineAR (IP) is a technology company specializing in augmented reality (AR) solutions that enable businesses and organizations to create immersive and interactive digital experiences. The company's platform allows for the easy integration of AR features into mobile applications, enhancing user engagement across various sectors, including sports, retail, and entertainment.

How the Company Makes Money

ImagineAR generates revenue through a SaaS (Software as a Service) model, offering subscription-based access to its AR platform. Clients pay for the usage of the platform, which can include features like AR content creation, deployment, and analytics. Additionally, the company may earn revenue from strategic partnerships with sports teams, retail brands, and entertainment companies that use its technology to enhance fan and customer engagement. Licensing fees for proprietary technology and custom AR solutions for large-scale clients can also contribute to its income.

ImagineAR Financial Statement Overview

Summary

ImagineAR faces substantial financial challenges with continuous net losses, declining revenues, negative equity, and cash flow issues. These factors highlight a critical need for financial restructuring.

Income Statement

ImagineAR's income statement shows a concerning trend with continuous net losses and declining revenues. The Gross Profit Margin is negative, indicating that cost of goods sold exceeds revenues. The Net Profit Margin is also negative, highlighting deep profitability issues. There is a significant decline in revenue, with the TTM revenue significantly lower than prior periods, indicating challenges in sustaining growth.

Balance Sheet

The balance sheet reveals a critical negative equity position, indicating liabilities exceed assets, which raises solvency concerns. The Debt-to-Equity ratio is not applicable due to negative equity, but the overall high liabilities suggest potential financial instability. Cash reserves are dwindling, further exacerbating financial health concerns.

Cash Flow

Cash flow analysis shows persistently negative operating cash flow, indicating operational challenges. The Free Cash Flow remains negative, with no growth, suggesting ongoing cash burn. The Operating Cash Flow to Net Income ratio is also unfavorable, demonstrating inefficiencies in converting sales into cash.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	24.26K	45.31K	192.66K	61.35K	353.77K	54.15K
Gross Profit	-84.57K	-44.43K	-496.52K	-73.69K	-1.41M	-621.51K
EBITDA	-2.46M	-2.15M	-1.77M	-4.04M	-6.08M	-8.44M
Net Income	-2.50M	-2.16M	-1.79M	-4.07M	-6.11M	-9.39M
Balance Sheet
Total Assets	8.46M	153.46K	209.43K	643.13K	4.33M	4.83M
Cash, Cash Equivalents and Short-Term Investments	1.66M	101.90K	110.75K	481.24K	4.21M	4.66M
Total Debt	1.92M	0.00	53.03K	62.27K	47.90K	138.57K
Total Liabilities	2.48M	1.65M	1.07M	602.24K	479.76K	705.98K
Stockholders Equity	5.98M	-1.50M	-858.89K	40.89K	3.85M	4.13M
Cash Flow
Free Cash Flow	-794.99K	-868.33K	-791.48K	-3.73M	-3.36M	-2.13M
Operating Cash Flow	-794.99K	-868.33K	-791.48K	-3.71M	-3.36M	-2.13M
Investing Cash Flow	0.00	0.00	-4.88K	-36.88K	-11.21K	-21.87K
Financing Cash Flow	1.23M	859.48K	425.88K	20.00K	2.92M	6.38M

ImagineAR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IP, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IP.

ImagineAR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOO	63 Neutral	$4.37M	8.05	54.59%	―	2.87%	―
Sector *	49 Neutral	C$2.91B	2.04	-80.91%	2.67%	12.55%	-24.32%
PKK	36 Underperform	C$5.57M	―	-224.98%	―	-85.42%	51.62%
IP	30 Underperform	C$8.58M	―		―	-80.20%	39.39%
LTV	29 Underperform	C$836.04K	―	37.68%	―	―	40.19%

ImagineAR Corporate Events

ImagineAR Announces AGM Results and Strategic Consulting Agreements

ImagineAR announced the results of its annual general meeting, where shareholders elected three directors and approved key resolutions, including the appointment of an auditor and the continuation of a stock option plan. Additionally, FameDays entered a consulting agreement with Metsec Financial Corporation for sales and marketing advisory services for Immersive Entertainment Centres, with compensation tied to project milestones. The company also granted stock options to consultants and directors, aligning with its stock option plan.

ImagineAR to Develop $10 Million Immersive Center in Niagara Falls

ImagineAR’s subsidiary, FameDays, has secured a $10 million contract to develop a 25,000-square-foot immersive entertainment center at a hotel in Niagara Falls, Canada. This project marks the first implementation of ImagineAR’s AR-AI integrated revenue model, aiming to capitalize on Niagara Falls’ significant tourist traffic. The center will feature attractions such as AR racing and VR gaming, with ImagineAR providing ongoing support and receiving annual fees and royalties. This initiative is expected to enhance ImagineAR’s visibility and serve as a blueprint for future expansions in high-traffic global destinations.

ImagineAR Advances in Immersive Technology with New Milestones

ImagineAR announced significant milestones including a patented AR platform and AI integration to enhance personalized interactive experiences. The company is expanding into key industries such as retail and entertainment, forming strategic partnerships to drive AR adoption. With recognition for its innovative AI/AR-as-a-Service model, ImagineAR is poised to lead in the growing immersive technology market, focusing on making AR and AI tools accessible to businesses for improved customer engagement.

ImagineAR to Correct Financial Disclosures Following Regulatory Review

ImagineAR is amending and re-filing its interim financial statements and management discussions due to discrepancies in revenue reporting and credit risk concentrations. This move comes after a review by the British Columbia Securities Commission revealed non-compliance with International Financial Reporting Standards. The company also clarified issues regarding a property purchase project and the issuance of shares as a facilitation fee, reflecting efforts to rectify significant financial inaccuracies and maintain transparency with stakeholders.