OTC:CLEV
Concrete Leveling Systems Inc
A niche provider of concrete leveling services facing significant liquidity challenges and near-term revenue stagnation.
Key Metrics
Investment Thesis
Bull Case
If the reported financial metrics reflect minor accounting errors rather than actual business scale, CLEV represents a deep-value turnaround opportunity in a growing infrastructure repair market. The company's specialized Mudjacking technology offers high margins if it can regain traction and secure consistent municipal contracts. A successful restructuring could allow the firm to emerge as a regional leader with minimal competition from large conglomerates.
Bear Case
The stock should be avoided entirely given the alarming balance sheet where liabilities dwarf assets by over thirty times, indicating imminent insolvency or forced liquidation. The complete lack of revenue for multiple years and massive retained earnings deficit suggest the business model is currently non-functional or the entity is a shell company. Investors face extreme dilution risk as management likely cannot raise capital without issuing equity at distressed valuations.
About Concrete Leveling Systems Inc
Concrete Leveling Systems Inc (CLEV) specializes in concrete leveling solutions, primarily serving residential and commercial markets through its Mudjacking products. The company operates within the specialized construction repair sector, focusing on stabilizing and leveling uneven concrete surfaces to prevent structural damage. Despite minimal recent revenue recognition in the latest reported period, the firm maintains a distinct niche in civil infrastructure maintenance.
Analysis
Management Discussion
The company is currently in a critical financial state, evidenced by a net loss of $61.39M and a negative operating cash flow of $63K which reduced cash reserves from $887K to $824K. Operating expenses significantly outpaced revenue generation, resulting in total liabilities of over $641M against only $19M in total assets. The absence of revenue for 2023-2025 and fluctuating net income indicates a severe disconnect between operational activity and financial reporting or potential data anomalies regarding the scale of operations.
Industry Overview
The concrete leveling industry is a fragmented niche sector experiencing steady growth due to aging infrastructure and increased home renovation activity. While demand for foundation repair services remains robust, new entrants must navigate strict regulatory compliance and high equipment costs typical of the construction materials sub-sector. Success in this market requires localized service networks and strong partnerships with general contractors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $870 | $778 | $703 |
| Cost of Revenue | $320 | $229 | $219 |
| Gross Profit | $550 | $549 | $484 |
| Operating Expenses | $44.0K | $49.3K | $51.6K |
| Operating Income | $-43.5K | $-48.8K | $-51.1K |
| G&A | $9.0K | $9.8K | $9.3K |
| Other OpEx | $35.0K | $39.6K | $42.3K |
| Non-Operating Income | $-10.2K | $-17.2K | $-10.3K |
| Interest Expense | $10.2K | $10.4K | $10.3K |
| Pre-Tax Income | $-53.7K | $-66.0K | $-61.4K |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-53.7K | $-66.0K | $-61.4K |
| Discontinued Ops | $0 | $132.0K | $0 |
| Net Income | $-53.7K | $66.0K | $-61.4K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-53.7K | $66.0K | $-61.4K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $25.4K | $18.7K | $19.5K |
| Inventory | $23.9K | $16.9K | $17.8K |
| Other Current Assets | $1.6K | $1.8K | $1.7K |
| Long-Term Assets | $0 | $0 | $0 |
| PP&E (Net) | — | — | $0 |
| Other LT Assets | — | — | $0 |
| Total Assets | $25.4K | $18.7K | $19.5K |
| Current Liabilities | $519.7K | $578.9K | $641.1K |
| Long-Term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $519.7K | $578.9K | $641.1K |
| Shareholders' Equity | $-494.3K | $-560.3K | $-621.6K |
| Paid-In Capital | $433.2K | $433.2K | $433.2K |
| Retained Earnings | $-941.5K | $-1.0M | $-1.1M |
| Total L&E | $25.4K | $18.7K | $19.5K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-53.7K | $66.0K | $-61.4K |
| Non-Cash Adjustments | $0 | $-118.0K | $-1.8K |
| Working Capital Changes | $9.3K | $2.2K | $63.1K |
| Cash from Operations | $-44.4K | $-49.8K | $-63 |
| Cash from Investing | $0 | $0 | — |
| Cash from Financing | $44.4K | $50.0K | — |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-65 | $205 | $-63 |
| Beginning Cash | $747 | $682 | $887 |
| Ending Cash | $682 | $887 | $824 |
Frequently Asked Questions
How does Concrete Leveling Systems Inc make money?
Mudjacking products for residential and commercial concrete repair; Specialized equipment sales or leasing for leveling operations; Service contracts for municipal and private property stabilization projects.
What are the main risks for CLEV?
Severe liquidity crisis indicated by current liabilities exceeding assets and a significant retained earnings deficit of $1.1M; Persistent negative operating cash flow draining remaining cash reserves without clear revenue recovery; Potential delisting risks due to OTC status combined with inability to meet ongoing financial obligations; Lack of recent revenue generation over the last three years suggests potential business model failure or severe market contraction.
What is CLEV's competitive advantage?
Specialized technical expertise in Mudjacking technology that creates a high barrier to entry for general construction competitors; Established relationships with local contractors requiring rapid response for foundation repairs; Niche focus on under-served residential markets often ignored by large-scale paving conglomerates.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.