TKOI TELKONET INC

Overview and Growth

Fiscal 2022 results for TELKONET INC combined $8.45M of revenue with net loss of $1.29M and an operating cash outflow of $3.60M. Revenue of $8.45M sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 34.6% from $6.27M in fiscal 2021, increasing the company’s operating scale. Diluted earnings per share were $0.00, translating the period’s attributable earnings into the amount reported for each diluted share. Total assets stood at $7.88M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 1.07x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $4.20M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 49.7%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $1.25M, reflecting costs that exceeded gross profit. An operating margin of -14.8% reflected costs exceeding revenue-level gross profit by 14.8% of sales. The bottom-line result was a net loss of $1.29M after operating, financing, tax, and other recognized items. Net margin was -15.2%, reflecting a loss equal to 15.2% of reported revenue. EBITDA was negative $1.20M, showing a deficit before interest, taxes, depreciation, and amortization. Before income taxes, the company recorded a loss of $1.27M, bridging the operating result to the final net loss. The pretax loss equaled 15.0% of revenue, measuring the pre-tax deficit against sales. Income tax expense totaled $15.04K, providing the reported tax component that separates pretax and after-tax earnings. The loss-to-equity relationship was 28.0%, placing the bottom-line deficit against shareholder capital. The loss-to-assets relationship was 16.3%, placing the bottom-line deficit against the company’s resource base. The bottom-line deficit increased from $412.79K in fiscal 2021 to $1.29M.

Liquidity and Capital Structure

At period end, the $7.88M asset base was financed through $3.28M of liabilities and $4.60M of equity. The near-term balance sheet paired $7.31M of current assets with $2.66M of current liabilities at the reporting date. Current assets covered current liabilities by 2.74x, leaving a positive buffer for near-term obligations. The company held $3.24M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 121.8% of current liabilities, showing how much near-term coverage came from cash alone. Book equity represented 58.3% of total assets, quantifying the balance-sheet share supported by shareholder capital. Liabilities represented 41.7% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 41.2% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 34.4% higher than fiscal 2021 assets of $5.86M, measuring the company’s own balance-sheet change. Against $911.74K of equity in fiscal 2021, the current book-equity balance moved 404.2% and ended higher. The reported cash balance changed 37.4% from $2.36M in fiscal 2021, ending higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $3.60M, showing that operations absorbed cash during the period. Capital expenditures used $87.55K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Negative free cash flow was $3.69M, leaving a cash deficit after capital spending and reducing financial flexibility. Relative to revenue, the post-investment cash deficit represented 43.6%. Relative to total assets, the post-investment cash deficit measured 46.8%.

Based on the annual report for the fiscal year ending Dec 31, 2022. Analysis generated Oct 21, 2026.