OTC:KAYS
Kaya Holdings, Inc.
A struggling financial services entity facing severe liquidity constraints, revenue collapse, and deep accumulated losses that warrant extreme caution from investors.
Key Metrics
Investment Thesis
Bull Case
An investor might consider this stock only for speculative purposes if there is a pending strategic acquisition or a complete operational pivot not yet reflected in current earnings. The low market cap implied by these distressed metrics could offer significant upside if the company successfully resolves its liquidity crisis and stabilizes revenue streams.
Bear Case
The stock should be avoided due to fundamental insolvency indicators including negative shareholders' equity, massive operating losses, and a complete collapse in revenue over the last three years. Investors face high risk of delisting or bankruptcy as the company cannot cover its operating expenses with current cash flows.
About Kaya Holdings, Inc.
Kaya Holdings, Inc. (KAYS) is a financial services entity operating within a volatile market landscape with minimal recent revenue generation. The company reports significant accumulated deficits and has experienced substantial year-over-year declines in both top-line sales and profitability. Despite high capital expenditures relative to its tiny asset base, the firm maintains a complex balance sheet characterized by negative shareholders' equity.
Analysis
Management Discussion
Management's ability to turn around operations is doubtful given that operating profit turned negative ($-2.0M) and discontinued operations contributed another loss of roughly $162k. Despite a nominal increase in cash on hand, the company continues to burn cash through operations while managing massive capital expenditures and accumulating other comprehensive losses.
Industry Overview
The financial services sector typically requires robust balance sheets and consistent fee-based income to survive economic downturns, which Kaya Holdings currently fails to demonstrate. This specific market environment demands strict capital adequacy ratios that the company is likely not meeting given its negative equity position.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $685.4K | $196.3K | $7.1K |
| Cost of Revenue | $225.1K | $81.3K | $7.5K |
| Gross Profit | $460.3K | $114.9K | $-366 |
| Operating Expenses | $2.2M | $1.4M | $2.0M |
| Operating Income | $-1.7M | $-1.2M | $-2.0M |
| G&A | $525.9K | $397.0K | $605.4K |
| D&A | $21.9K | $11.8K | $5.9K |
| Other OpEx | $1.6M | $962.4K | $1.4M |
| Non-Operating Income | $-1.9M | $2.9M | $-38.1K |
| Pre-Tax Income | $-3.6M | $1.7M | $-2.1M |
| Income Tax | $93.9K | $23.3K | $0 |
| Continuing Ops | $-3.7M | $1.6M | $-2.1M |
| Discontinued Ops | $0 | $0 | $-162.4K |
| Net Income | $-3.7M | $1.6M | $-2.2M |
| Minority Interest | $-155.1K | $0 | $0 |
| Net to Common | $-3.6M | $1.6M | $-2.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $58.5K | $97.0K | $67.9K |
| Cash & Equivalents | $18.3K | $29.1K | — |
| Inventory | $12.0K | $9.3K | $90 |
| Other Current Assets | $28.2K | $58.6K | $67.8K |
| Long-Term Assets | $784.8K | $118.9K | $148.4K |
| PP&E (Net) | $552.8K | $24.9K | $46.1K |
| Goodwill | — | $23.7K | $21.0K |
| Operating Leases | $182.6K | $29.9K | $52.6K |
| Other LT Assets | $49.4K | $40.5K | $28.8K |
| Total Assets | $843.2K | $215.9K | $216.4K |
| Current Liabilities | $10.4M | $7.4M | $5.2M |
| Current Leases | $93.1K | $30.9K | $52.6K |
| Other Current Liab | $10.3M | $7.4M | $5.1M |
| Long-Term Liabilities | $8.0M | $8.6M | $12.2M |
| Total Liabilities | $18.4M | $16.0M | $17.3M |
| Shareholders' Equity | $-17.6M | $-15.8M | $-17.1M |
| Paid-In Capital | $22.3M | $22.5M | $23.4M |
| Retained Earnings | $-38.1M | $-36.5M | $-38.5M |
| AOCI | — | $-12.6K | $-15.6K |
| Total L&E | $843.2K | $215.9K | $216.4K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-3.7M | $1.6M | $-2.2M |
| Non-Cash Adjustments | $2.1M | $-3.3M | $140.9K |
| Working Capital Changes | $733.4K | $571.0K | $1.3M |
| Cash from Operations | $-918.8K | $-1.0M | $-830.8K |
| Capital Expenditures | — | — | $27.1K |
| Cash from Investing | $17.2K | $812.9K | $4.0K |
| Cash from Financing | $370.0K | $245.0K | $1.0M |
| FX Effect | $-16.1K | $-1.3K | $-4.3K |
| Net Change in Cash | $-531.6K | $12.1K | $173.0K |
| Beginning Cash | $566.0K | $18.3K | $29.1K |
| Ending Cash | $18.3K | $29.1K | $39.7K |
Frequently Asked Questions
How does Kaya Holdings, Inc. make money?
Primary revenue streams appear limited given the near-zero total revenue for 2024 and significant write-offs in discontinued operations. Operational segments are heavily burdened by high general and administrative expenses ($605k) relative to negligible gross profit, indicating a business model currently unable to generate sustainable operating cash flows.
What are the main risks for KAYS?
Severe liquidity risk evidenced by a net change in cash that does not cover operational burn rates effectively given the high cash outflows. The company faces insolvency risk due to total liabilities ($17.3M) significantly exceeding shareholders' equity (-$17.1M). Revenue sustainability is critically threatened with revenue dropping from $0.7M in 2022 to zero in 2024.
What is KAYS's competitive advantage?
None identified based on current financials; the company lacks positive operating cash flow, has negative retained earnings, and operates with minimal revenue which suggests no established market moat or competitive pricing power at this time.
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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.