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Edgewater Wireless Systems Inc (TSE:YFI)
:YFI

Edgewater Wireless Systems (YFI) AI Stock Analysis

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Edgewater Wireless Systems

(YFI)

34Underperform
Edgewater Wireless Systems is currently challenged by significant financial difficulties, including negative equity and ongoing operational losses. The company's technical indicators suggest a neutral to slightly bearish outlook, compounded by a negative P/E ratio and no dividend yield, indicating financial distress. While recent corporate initiatives are promising, they have yet to translate into measurable financial improvements.

Edgewater Wireless Systems (YFI) vs. S&P 500 (SPY)

Edgewater Wireless Systems Business Overview & Revenue Model

Company DescriptionEdgewater 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 MoneyEdgewater 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
20
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
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
13.35K7.57K11.37K0.001.53K
Gross Profit
12.08K7.02K10.21K-9.90K-96.04K
EBIT
-680.08K-759.29K-1.04M-824.49K-1.99M
EBITDA
-66.44K-771.44K-1.05M-814.91K-2.01M
Net Income Common Stockholders
-90.67K-799.44K-1.06M-773.45K-2.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
110.47K91.89K178.20K1.50M28.68K
Total Assets
285.40K323.40K406.74K1.57M224.92K
Total Debt
274.06K445.86K200.01K45.70K122.47K
Net Debt
174.67K364.77K32.42K-1.44M93.78K
Total Liabilities
1.94M2.42M2.02M2.34M2.37M
Stockholders Equity
-1.65M-2.09M-1.61M-774.46K-2.14M
Cash FlowFree Cash Flow
-365.12K-680.49K-1.42M-515.32K-1.10M
Operating Cash Flow
-364.57K-679.98K-1.42M-515.32K-1.10M
Investing Cash Flow
-546.00-685.00-3.48K-10.58K0.00
Financing Cash Flow
383.41K594.18K100.00K1.99M1.07M

Edgewater Wireless Systems Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.07
Negative
100DMA
0.07
Negative
200DMA
0.06
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.89
Neutral
STOCH
24.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YFI, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:YFI.

Edgewater Wireless Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCSU
71
Outperform
C$106.86B106.7130.90%0.11%21.56%31.90%
60
Neutral
$10.94B10.48-7.04%2.99%7.55%-12.20%
47
Neutral
$169.05M-8.01%5.05%70.18%
TSSAY
43
Neutral
$3.74M
-24.37%-114.29%
TSYFI
34
Underperform
C$14.27M7.60%-100.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:YFI
Edgewater Wireless Systems
0.06
<0.01
20.00%
TSE:QTRH
Quarterhill
1.46
-0.29
-16.57%
TSE:SAY
Sparta Capital
0.02
-0.02
-50.00%
TSE:CSU
Constellation Software
5,042.62
1,297.50
34.65%

Edgewater Wireless Systems Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Edgewater Wireless Settles Debenture Interest with Share Issuance
Neutral
May 1, 2025

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.

Spark’s Take on TSE:YFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:YFI is a Neutral.

Edgewater Wireless Systems’ overall stock score reflects significant financial difficulties, with operational struggles and high financial risks being the primary concerns. While technical analysis and corporate events provide some positive outlook with potential strategic partnerships and leadership changes, the lack of profitability and revenue growth remains a critical issue. The stock’s valuation also highlights the need for substantial financial improvements.

To see Spark’s full report on TSE:YFI stock, click here.

Business Operations and Strategy
Edgewater Wireless Engages ITG for Market-Making Services
Neutral
Apr 17, 2025

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.

Spark’s Take on TSE:YFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:YFI is a Neutral.

Edgewater Wireless Systems’ overall stock score is 48, reflecting significant financial challenges such as negative equity and lack of revenue growth. While technical analysis shows some positive trends, these are overshadowed by valuation concerns and operational struggles. Recent corporate events provide a glimmer of hope for strategic improvement, but substantial financial restructuring is critical for long-term viability.

To see Spark’s full report on TSE:YFI stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Edgewater Wireless CEO to Discuss Future of Intelligent Wi-Fi at CableLabs Conference
Positive
Feb 26, 2025

Edgewater Wireless Systems announced that its CEO, Andrew Skafel, will speak at the CableLabs Winter Conference 2025 about the future of managed Wi-Fi and the company’s recent collaboration with Arm’s Flexible Access program. This partnership aims to enhance Wi-Fi performance by integrating Arm’s AI-optimized compute platform with Edgewater’s patented Wi-Fi Spectrum Slicing technology. The collaboration is expected to drive intelligent connectivity, improve real-time traffic management, and offer economic value to service providers. Additionally, Edgewater will introduce a new line of low-bandwidth, high-reliability Access Points for industrial IoT applications.

Business Operations and StrategyRegulatory Filings and Compliance
Edgewater Wireless Emphasizes Transparency in Response to Valuation Report
Neutral
Feb 26, 2025

Edgewater Wireless Systems Inc. has provided additional commentary on a valuation report by Avon River Ventures LLC, emphasizing the importance of transparency and accuracy in its communications. The company has not received the final report and advises stakeholders to rely on verified information regarding its patent portfolio. This announcement serves as a corrective disclosure requested by the Ontario Securities Commission, highlighting Edgewater’s commitment to maintaining information integrity.

Executive/Board ChangesBusiness Operations and Strategy
Edgewater Wireless Appoints New CFO to Strengthen Financial Operations
Positive
Feb 20, 2025

Edgewater Wireless has announced the appointment of Mr. Jimmy Jeon as the new Chief Financial Officer, succeeding Chris Olney who is retiring. Mr. Jeon, a seasoned financial analyst with over seven years of experience, has already been involved with the company since May 2024 in preparation for their fiscal 2024 financial statements. His appointment is expected to strengthen Edgewater’s financial operations, further enhancing the company’s strategic position in the Wi-Fi technology industry.

Private Placements and FinancingBusiness Operations and Strategy
Edgewater Wireless Settles Debenture Interest with Share Issuance
Neutral
Feb 19, 2025

Edgewater Wireless has settled its interest payment obligations for unsecured debentures by issuing common shares, a move approved by the TSX Venture Exchange. This issuance includes a related party transaction under MI 61-101, highlighting the company’s strategic financial management and potential impact on its market capitalization.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.