OTC:NNAX
New Momentum Corp.
A distressed OTC stock characterized by negligible revenue, massive current liabilities, and deepening shareholder equity deficits over the last five years.
Key Metrics
Investment Thesis
Bull Case
An investor might consider NNAX only as a speculative bet on a potential turnaround or restructuring event given the massive cash flow from financing activity which could fund future operations if strategic assets are acquired.
Bear Case
The stock is a high-risk asset with no earnings power, negative working capital, and a balance sheet that implies insolvency, making it unsuitable for value investors seeking sustainable revenue or profit growth.
About New Momentum Corp.
New Momentum Corp. (NNAX) is an OTC-traded entity operating with minimal reported revenue and significant accumulated losses, primarily serving a niche market or holding position currently devoid of active commercial operations.
Analysis
Management Discussion
Recent financial performance highlights a deteriorating balance sheet where operating expenses have turned negative in reporting but are outweighed by massive financing cash inflows, likely indicating dilution rather than organic growth; the company continues to bleed cash with revenue falling from $200k to zero while net losses remain substantial.
Industry Overview
Operating in an undefined sector due to zero cost of revenue and negligible assets, the company faces the universal risks of the OTC market including liquidity constraints and lack of analyst coverage.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue | $182.5K | $6 |
| Cost of Revenue | $179.7K | $0 |
| Gross Profit | $2.7K | $6 |
| Operating Expenses | $-304.3K | $-157.2K |
| Operating Income | $-301.6K | $-157.2K |
| G&A | $142.2K | $134.3K |
| Depreciation | $26.7K | $26.8K |
| Other OpEx | $-446.5K | $-291.5K |
| Non-Operating Income | $-102.4K | $14.3K |
| Interest Expense | $104.4K | $1.1K |
| Interest Income | $245 | $33 |
| Pre-Tax Income | $-403.9K | $-142.9K |
| Income Tax | $0 | $0 |
| Continuing Ops | $-403.9K | $-142.9K |
| Discontinued Ops | $0 | $0 |
| Net Income | $-403.9K | $-142.9K |
| Minority Interest | $0 | $0 |
| Net to Common | $-403.9K | $-142.9K |
| Metric | 2023 | 2024 |
|---|---|---|
| Current Assets | $37.6K | $11.7K |
| Accounts Receivable | $906 | $0 |
| Other Current Assets | $36.7K | $11.7K |
| Long-Term Assets | $26.8K | $0 |
| Operating Leases | $26.8K | $0 |
| Other LT Assets | $0 | $0 |
| Total Assets | $64.4K | $11.7K |
| Current Liabilities | $721.9K | $733.7K |
| Accounts Payable | $9.2K | $5.5K |
| Current Leases | $27.4K | $0 |
| Other Current Liab | $685.2K | $728.2K |
| Long-Term Liabilities | $0 | $0 |
| Total Liabilities | $721.9K | $733.7K |
| Shareholders' Equity | $-657.5K | $-722.0K |
| Paid-In Capital | $4.3M | $4.0M |
| Retained Earnings | $-5.4M | $-5.6M |
| AOCI | $-346 | $-4.3K |
| Total L&E | $64.4K | $11.7K |
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income (CFO) | $-403.9K | $-142.9K |
| Non-Cash Adjustments | $133.1K | $42.7K |
| Working Capital Changes | $95.2K | $3.9K |
| Cash from Operations | $-175.6K | $-96.3K |
| Cash from Investing | $0 | $0 |
| Cash from Financing | $133.7K | $91.2K |
| FX Effect | $-576 | $-3.9K |
| Net Change in Cash | $-42.5K | $-9.0K |
| Beginning Cash | $59.2K | $16.8K |
| Ending Cash | $16.8K | $7.8K |
Frequently Asked Questions
How does New Momentum Corp. make money?
The company's financials indicate a lack of traditional operating segments, with reported revenue dropping to near zero and no cost of revenue or gross profit, suggesting an asset-light or dormant operational structure.
What are the main risks for NNAX?
1) Severe liquidity crisis evidenced by negative cash flow from operations and a $96k net change in cash; 2) Solvency risk with current liabilities ($734k) vastly exceeding current assets ($12k); 3) Persistent losses resulting in a $5.6M retained earnings deficit.
What is NNAX's competitive advantage?
As a micro-cap OTC entity with negligible assets, the primary advantage is low capital requirement for entry; however, tangible moats are absent given the lack of proprietary products, market share, or recurring revenue streams.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.