Solidus Communications, Inc.

SLDCdata completeness 75%9 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Solidus Communications, Inc. earns about -3221% on equity, but has diluted owners by 7610% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.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

Figure	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016
Revenue	—	—	—	$173,560¹	$146,731¹
Net income	−$1.13M²	−$2.58M²	−$225,210²	−$1.17M³	$644,287³
Operating cash flow	−$109,554⁴	−$107,715⁴	−$200⁴	−$128,191⁵	−$268,156⁵
Capital expenditure	—	—	—	—	—
Free cash flow (derived)	—	—	—	—	—
Total debt	—	—	—	—	—
Cash & equivalents	$470⁶	$2⁶	$2⁶	$7,592⁷	$21,414⁷
Diluted shares	8.7M	15.5M	15.9M	452.8M	671.5M

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

Net assets behind them

−$0.08

your share of equity

Profit it earned you last year

$0.01

Free cash flow it threw off

—

Debt you’d be carrying

—

10 shares is a claim on −$0.08 of net worth that earned you $0.01 last year.

iii. Is this a good business?

Moat signal · return on equity

-3221% avg · 5y

FY12 —FY13 —FY14 -3221%FY15 —FY16 —

It earned an average -3221% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →

Management signal · capital allocation

+7610% shares · 5y

Share count is up 7610% over 5 years — owners have been diluted. Worth asking what they got for it.

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

DCF · Growth Exit 10Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

DCF · Growth Exit 5Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

Earnings Power Value

not applicable

normalized (5y-median) earnings non-positive — EPV undefined

Graham Number

not applicable

book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts

10-K/A · period ending 2015-11-30 · accession 0001099910-22-000250 (Revenues)
10-K · period ending 2012-11-30 · accession 0001427644-15-000082 (NetIncomeLoss)
10-K/A · period ending 2015-11-30 · accession 0001099910-22-000250 (NetIncomeLoss)
10-K · period ending 2012-11-30 · accession 0001427644-15-000082 (NetCashProvidedByUsedInOperatingActivities)
10-K/A · period ending 2015-11-30 · accession 0001099910-22-000250 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2012-11-30 · accession 0001427644-15-000082 (CashAndCashEquivalentsAtCarryingValue)
10-K/A · period ending 2015-11-30 · accession 0001099910-22-000250 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)