MeritValue

SOLESENCE, INC.

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

SOLESENCE, INC. earns about -302% on invested capital, but has diluted owners by 54% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.26 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$29.5M1$37.3M2$37.3M3$52.3M4$62.1M4
Net income$2.32M5−$2.62M6−$4.39M7$4.24M8$1.79M8
Operating cash flow$2.32M9−$1.65M10−$2.01M11$1.97M12−$8.57M12
Capital expenditure$1.87M13$2.82M14$1.05M15$4.56M15—
Free cash flow (derived)$447,0009−$4.47M10−$3.06M11−$2.59M12—
Total debt$1M16$1M16———
Cash & equivalents$657,00017$2.19M18$1.72M19$1.41M20$1.29M20
Diluted shares47.0M49.1M49.6M65.0M72.6M

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
$2.43
your share of equity
Profit it earned you last year
$0.25
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $2.43 of net worth that earned you $0.25 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-302% avg · 5y
FY21 44%FY22 -40%FY23 -1556%FY24 31%FY25 11%

It earned an average -302% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+54% shares · 5y

Share count is up 54% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

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
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.26
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.79M
  • growthAssumed0.0%
Graham Number
$0.33
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001999371-24-004138 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001999371-25-003471 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001999371-26-007345 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001999371-24-004138 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001999371-25-003471 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001999371-26-007345 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001999371-24-004138 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001999371-25-003471 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001999371-26-007345 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001999371-24-004138 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001999371-25-003471 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001839882-23-007887 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001999371-24-004138 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001999371-25-003471 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001999371-26-007345 (CashAndCashEquivalentsAtCarryingValue)