NMGX Nano Magic Inc.

Overview and Growth

In fiscal 2023, Nano Magic Inc. recorded $2.78M of revenue, net loss of $2.86M, and an operating cash outflow of $1.54M. The $2.78M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 8.0% from $2.58M in fiscal 2022, increasing the company’s operating scale. The company reported diluted EPS of -$0.25, adding a shareholder-level measure to the absolute income figures considered below. Diluted shares averaged 11.48M; this is the reported share base over which the company’s diluted per-share earnings were spread. The diluted share count was 11.9% higher than fiscal 2022, when diluted shares averaged 10.26M, adding context to the EPS comparison. Total assets stood at $3.52M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.79x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $363.87K of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 13.1% of revenue, showing how much of the top line remained after direct costs. Operations produced a $2.84M operating loss before non-operating and tax effects. The operating loss equaled 102.1% of revenue, showing the scale of the operating deficit relative to sales. After all below-operating-line items, the company recorded a net loss of $2.86M for the fiscal year. Measured against revenue, the bottom-line deficit represented 102.6% after all recognized items. Negative EBITDA totaled $2.73M, confirming that the earnings deficit remained before depreciation and amortization. Relative to period-end equity, the net loss represented 218.0%. The net loss equaled 81.2% of period-end assets, showing the deficit relative to the asset base. The net loss widened to $2.86M from $2.10M in fiscal 2022.

Liquidity and Capital Structure

The company held $3.52M of assets against $2.21M of liabilities and $1.31M of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.70M of current assets with $1.24M of current liabilities at the reporting date. Current assets covered current liabilities by 1.37x, leaving a positive buffer for near-term obligations. Equity equaled 37.3% of assets, showing the shareholder-capital layer within the company’s balance sheet. Relative to total assets, liabilities measured 62.7%, complementing the separate equity-based view of the company’s capital structure. The asset base changed 14.1% from $4.09M in fiscal 2022, leaving current total assets lower year over year. Reported equity changed 19.0% from $1.62M in fiscal 2022, placing the current capital base lower year over year.

Cash Flow and Earnings Quality

Operating activities used $1.54M of cash, resulting in an operating cash outflow for the year. Capital expenditures used $9.35K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. The company recorded a $1.55M cash deficit after capital spending for the period. Free-cash-flow margin was -55.6%, reflecting a cash deficit equal to 55.6% of revenue after capital spending. Relative to total assets, the post-investment cash deficit measured 44.0%. The operating cash outflow narrowed to $1.54M from $1.71M in fiscal 2022.

Based on the annual report for the fiscal year ending Dec 31, 2023. Analysis generated Oct 21, 2026.