OTC:EVOH
EvoAir Holdings Inc.
EvoAir Holdings Inc. (EVOH) is a high-risk OTC stock reporting massive losses, shrinking cash reserves, and negligible revenue growth over the last five years.
Key Metrics
Investment Thesis
Bull Case
An investor might consider this stock only for a speculative turnaround play if management can successfully monetize the $45.2M in long-term assets or secure new financing to reverse the operational losses. The low market cap and OTC status offer high theoretical volatility potential if a restructuring event occurs.
Bear Case
Avoid this stock entirely as the company is burning through cash reserves with no visible path to profitability, indicated by five years of declining revenue and deepening net losses. The balance sheet is fragile with current liabilities significantly outweighing liquid assets, posing a high probability of default or delisting.
About EvoAir Holdings Inc.
EvoAir Holdings Inc. (EVOH) is an OTC-traded entity reporting significant accumulated losses while attempting to stabilize operations through cost management. The company reports minimal revenue streams with substantial non-cash adjustments and negative operating cash flows. Key assets include long-term investments and lease structures, though the firm faces severe solvency challenges.
Analysis
Management Discussion
Management has failed to halt the hemorrhage of capital, evidenced by a net profit deficit of $15.0M in 2025 compared to worsening losses in prior years. Operating cash flow remains negative at -$1.2M, draining the remaining cash reserves while accounts payable and accrued expenses swell to over $3 million. Despite non-cash adjustments totaling $13.8M, these do not offset the fundamental inability to generate positive operating income.
Industry Overview
The broader market for OTC entities with this financial profile suggests a sector where traditional operational efficiency has collapsed, often resulting in speculative trading detached from underlying fundamentals. Investors in such spaces must prioritize balance sheet solvency over historical growth narratives that no longer exist.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $110.1K | $135.6K | $284.7K |
| Cost of Revenue | $424.2K | $323.0K | $304.4K |
| Gross Profit | $-36.2K | $-8.3K | $-19.8K |
| Operating Expenses | $6.1M | $26.3M | $15.0M |
| Operating Income | $-6.1M | $-26.3M | $-15.0M |
| G&A | $6.1M | $26.3M | $14.9M |
| Marketing | $33.5K | $61.2K | $22.0K |
| Stock-Based Comp | — | — | $3.3M |
| Depreciation | $132.2K | $251.9K | $110.2K |
| Amortization | $4.2M | $4.2M | $3.0M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-184.2K | $4.4K | $21.7K |
| Pre-Tax Income | $-6.3M | $-26.3M | $-15.0M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-6.3M | $-26.3M | $-15.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-6.3M | $-26.3M | $-15.0M |
| Minority Interest | $-259.5K | $-436.8K | $-341.1K |
| Net to Common | $-6.1M | $-25.9M | $-14.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.1M | $790.8K | $527.7K |
| Cash & Equivalents | $779.0K | $153.0K | $93.3K |
| Accounts Receivable | $44.1K | $62.9K | $56.2K |
| Inventory | $630.5K | $460.0K | $316.5K |
| Other Current Assets | $617.5K | $114.8K | $61.7K |
| Long-Term Assets | $77.0M | $52.5M | $45.2M |
| PP&E (Net) | $463.4K | $357.8K | $264.6K |
| Operating Leases | $271.0K | $199.6K | $91.4K |
| Other LT Assets | $76.2M | $51.9M | $44.8M |
| Total Assets | $79.0M | $53.3M | $45.7M |
| Current Liabilities | $964.6K | $1.7M | $3.2M |
| Accounts Payable | $40.9K | $154.9K | $224.9K |
| Current Leases | $84.9K | $99.4K | $63.3K |
| Other Current Liab | $708.9K | $1.3M | $2.6M |
| Long-Term Liabilities | $208.7K | $113.2K | $34.8K |
| LT Operating Leases | $198.2K | $108.9K | $34.8K |
| Other LT Liab | $10.5K | $4.3K | $0 |
| Total Liabilities | $1.2M | $1.8M | $3.2M |
| Shareholders' Equity | $77.9M | $51.5M | $42.4M |
| Retained Earnings | $-13.5M | $-39.4M | $-54.0M |
| AOCI | $-17.0K | $-48.8K | $-85.6K |
| Total L&E | $79.0M | $53.3M | $45.7M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-6.3M | $-26.3M | $-15.0M |
| Non-Cash Adjustments | $5.0M | $26.4M | $13.8M |
| Working Capital Changes | $-328.0K | $-23.2K | $20.8K |
| Cash from Operations | $-1.7M | $30.8K | $-1.2M |
| Capital Expenditures | $14.2K | $146.3K | $17.0K |
| Cash from Investing | $-14.2K | $-146.3K | $-17.0K |
| Cash from Financing | $2.4M | $-456.3K | $1.2M |
| FX Effect | $-77.4K | $-54.4K | $-51.6K |
| Net Change in Cash | $704.1K | $-571.7K | $-8.1K |
| Beginning Cash | $152.3K | $779.0K | $153.0K |
| Ending Cash | $779.0K | $153.0K | $93.3K |
Frequently Asked Questions
How does EvoAir Holdings Inc. make money?
The financial profile suggests operations dominated by discontinued or severely underperforming lines given the negative gross profit and lack of distinct segment revenue data, with primary activities likely revolving around asset liquidation or non-operating income adjustments rather than core product sales.
What are the main risks for EVOH?
The company faces imminent liquidity risk with current liabilities exceeding current assets and negative net change in cash; persistent operational losses of over $15 million annually threaten solvency; reliance on non-cash adjustments obscures true cash burn rates; and the lack of revenue growth indicates a potential business model failure.
What is EVOH's competitive advantage?
Potential advantages include access to non-controlling interests providing capital support, existing long-term lease assets that may offer future revenue potential, and the ability to utilize share-based compensation to conserve cash in a loss-making environment.
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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.