Edgewater Wireless Systems (YFI) AI Stock Analysis

• Market Cap: C$13.08M
• Dividend Yield: N/A
• Average Volume (3M): 137.78K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.57
• Revenue Growth: -100.00%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 237,902,450
• 10 Day Avg. Volume: 116,056
• 30 Day Avg. Volume: 137,783
• PEG Ratio: 0.48
• Price to Book (P/B): -4.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.75
• 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: 35 Underperform
• Price Target: C$0.00 ▼(-100.00%Downside)

Edgewater Wireless Systems is currently facing significant financial and valuation challenges, reflected in the low scores for financial performance and valuation. Technical indicators suggest weak momentum, with potential oversold conditions. Recent corporate events point to strategic efforts to address these challenges, but substantial improvements are needed to change the company’s financial trajectory. Long-term success will depend on executing these strategies effectively and achieving sustainable revenue growth.

Edgewater Wireless Systems Business Overview & Revenue Model

Company Description

Edgewater Wireless Systems Inc. is a technology company operating in the wireless communication sector, specializing in developing and commercializing advanced wireless technologies. The company's core product is its patented WiFi3™ technology, which addresses the increasing demand for high-performance wireless connectivity by enabling multiple concurrent channels on a single radio. This innovation aims to improve the capacity and performance of wireless networks, catering to various industries, including telecommunications, enterprise, and public venues.

How the Company Makes Money

Edgewater Wireless Systems generates revenue primarily through the sale and licensing of its WiFi3™ technology and related products. Key revenue streams include hardware sales of its multi-channel access points and licensing agreements with original equipment manufacturers (OEMs) and technology partners who integrate WiFi3™ technology into their products. The company may also earn income from strategic partnerships and collaborations with telecommunications companies and service providers, who seek to enhance their wireless network offerings with Edgewater's solutions. Additionally, Edgewater Wireless may engage in joint ventures and receive funding from research grants that support the development and commercialization of its technologies.

Edgewater Wireless Systems Financial Statement Overview

Summary

Edgewater Wireless Systems faces significant financial challenges across income, balance sheet, and cash flow statements. The lack of revenue growth and persistent losses highlight operational struggles, while negative equity and high leverage pose substantial financial risks. Despite an increase in cash reserves from financing activities, sustainable operations and profitability remain areas of concern. Strategic restructuring and revenue generation efforts are essential for long-term viability.

Income Statement

Edgewater Wireless Systems shows a challenging financial picture in the TTM with zero total revenue, resulting in negative gross profit and significant net losses. The TTM gross profit margin and net profit margin are not calculated due to zero revenue. The company's revenue has been inconsistent, with fluctuations over the years. The EBIT and EBITDA margins remain negative, indicating ongoing operational challenges. This reflects a need for strategic shifts to generate positive revenue growth and improve profitability.

Balance Sheet

The balance sheet highlights a precarious financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, suggesting high leverage risk. Despite a modest increase in cash and short-term investments in the TTM, the equity ratio remains negative, underscoring financial instability. Improvement in asset management and debt reduction is critical for financial health.

Cash Flow

Cash flow analysis reveals substantial financing activities in the TTM, boosting cash reserves. However, operating cash flow remains negative, indicating cash burn from operations. The free cash flow is also negative, reflecting ongoing capital constraints. There is no free cash flow growth, and the ratio of operating cash flow to net income is adverse, necessitating strategic initiatives to enhance cash generation from core operations.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	0.00	13.35K	7.57K	11.37K	0.00	1.53K
Gross Profit	-9.14K	12.08K	7.02K	10.21K	-9.90K	-96.04K
EBITDA	-547.26K	-66.44K	-771.44K	-1.05M	-814.91K	-2.01M
Net Income	-656.80K	-90.67K	-799.44K	-1.06M	-773.45K	-2.04M
Balance Sheet
Total Assets	1.79M	285.40K	323.40K	406.74K	1.57M	224.92K
Cash, Cash Equivalents and Short-Term Investments	1.62M	110.47K	91.89K	178.20K	1.50M	28.68K
Total Debt	681.11K	274.06K	445.86K	200.01K	45.70K	122.47K
Total Liabilities	2.51M	1.94M	2.42M	2.02M	2.34M	2.37M
Stockholders Equity	-724.43K	-1.65M	-2.09M	-1.61M	-774.46K	-2.14M
Cash Flow
Free Cash Flow	-317.52K	-365.12K	-680.49K	-1.42M	-515.32K	-1.10M
Operating Cash Flow	-316.70K	-364.57K	-679.98K	-1.42M	-515.32K	-1.10M
Investing Cash Flow	-822.00	-546.00	-685.00	-3.48K	-10.58K	0.00
Financing Cash Flow	1.79M	383.41K	594.18K	100.00K	1.99M	1.07M

Edgewater Wireless Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YFI, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:YFI.

Edgewater Wireless Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTZ	66 Neutral	C$5.68M	19.37	5.94%	―	-5.36%	-32.32%
VTI	50 Neutral	C$4.88M	―	-22.77%	―	98.58%	51.85%
Sector *	49 Neutral	C$2.90B	2.14	-80.91%	2.95%	6.62%	-18.96%
NVI	45 Neutral	C$3.01M	―	27.31%	―	-19.37%	-772.00%
LTE	41 Neutral	C$6.73M	―		―	30.25%	67.07%
YFI	35 Underperform	C$13.08M	―	7.60%	―	-100.00%	―

Edgewater Wireless Systems Corporate Events

Edgewater Wireless Settles Debenture Interest with Share Issuance

Edgewater Wireless Systems Inc. announced the settlement of interest payments on its unsecured debentures through the issuance of common shares, subject to TSX Venture Exchange approval. This transaction, involving related parties, is exempt from certain regulatory requirements due to its size relative to the company’s market capitalization.

Edgewater Wireless Engages ITG for Market-Making Services

Edgewater Wireless Systems has engaged Independent Trading Group (ITG) to provide market-making services to improve the liquidity of its common shares, subject to regulatory approval. This move aims to maintain a reasonable market for the company’s shares, potentially enhancing its market presence and operational efficiency by increasing share liquidity.