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On February 21, 2019, we entered into an Agreement and Plan of Merger ( Merger Agreement ) with OWP Merger Subsidiary, Inc. ( OWP Merger Sub), our wholly-owned subsidiary, and OWP Ventures, Inc. ( OWP Ventures ). Under the Merger Agreement, the acquisition of OWP Ventures by us was effected by the merger of OWP Merger Sub with and into OWP Ventures, with OWP Ventures being the surviving entity …
The business is unprofitable at the operating level (-38494.63% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 35.9% YoY. Margins deteriorated 11075.1pp alongside, both lines moving the wrong way.
ROIC dropped from -187.45% to -882.91%, capital efficiency is deteriorating. Negative free cash flow of -$1M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$53K
▼ -35.9% YoY
Net Income (TTM)
$4M
▲ +0.5% YoY
Op. Margin
-1916.11%
▼ -11075.1pp YoY
ROIC
-882.91%
▼ -695.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$705K
▲ +6.5% YoY
Op. Cash Flow (TTM)
-$705K
▲ +6.1% YoY
Net Debt
-$169K
Net Cash Position
Cash & Equiv.
$169K
3Y CAGR: -49.7%
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