MeritValue

QUANTUM X LABS INC.

QXLdata completeness 75%16 fiscal years on file
The thesis, from the filings

QUANTUM X LABS INC. earns about -32% on invested capital, below its ~9% cost of capital, and has bought back 44% of its shares over 5 years — no moat visible in the numbers. The estimate methods put fair value between $2.04 and $2.23 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$45.2M1$96.6M2$79.6M3$26.9M3—
Net income$300,0004$28,0005−$7.32M6−$12.1M7−$19.3M7
Operating cash flow$4.37M8$3.24M9$934,00010$1.54M10−$2.77M11
Capital expenditure$311,00012$58,00013$16,00014$1,00014—
Free cash flow (derived)$4.06M8$3.18M9$918,00010$1.54M10—
Total debt$9.34M15$18.9M16$19M17$11.7M18$4.12M18
Cash & equivalents$5.21M19$4.2M20$1.77M21$24,00022$1.02M22
Diluted shares15.0M15.0M3.7M4.5M8.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$5.89
your share of equity
Profit it earned you last year
−$22.76
Free cash flow it threw off
—
Debt you’d be carrying
$4.86

10 shares is a claim on $5.89 of net worth that earned you −$22.76 last year, against $4.86 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-32% avg · 5y
FY21 3%FY22 3%FY23 -21%FY24 -15%FY25 -131%

It earned about -32% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−44% shares · 5y

Share count is down 44% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 56% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $2.04 and $2.23 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$2.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$1.54M
DCF · Growth Exit 5Y
$2.23
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$1.54M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$5.5
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $2.23
The three cases
Bear0.0%$2.23
Base0.0%$2.23
Bull5.0%$2.86

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001493152-26-013205 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2025-12-31 · accession 0001493152-26-013205 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  12. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2024-12-31 · accession 0001493152-26-013205 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2021-12-31 · accession 0001493152-23-008765 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0001493152-24-011132 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0001493152-25-011100 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0001493152-26-013205 (CashAndCashEquivalentsAtCarryingValue)