OTC:NRIS
Norris Industries, Inc.
A small-cap industrial manufacturer facing significant profitability headwinds and negative cash flow from operations while attempting to stabilize its balance sheet.
Key Metrics
Investment Thesis
Bull Case
An investor might consider NRIS if they believe the company can successfully restructure its debt load and turn its current operations profitable within 2-3 years, potentially unlocking value from its undervalued tangible assets of $360k total assets listed against a market price that may not reflect the full extent of the balance sheet deterioration.
Bear Case
The stock should be avoided due to the accumulation of a massive retained earnings deficit of nearly $12M and negative cash flow from operations, indicating the business model is currently burning cash without generating sustainable returns; further revenue contraction trends suggest the company may face insolvency or require emergency equity dilution.
About Norris Industries, Inc.
Norris Industries, Inc. (NRIS) is an industrial manufacturing firm operating primarily in the United States, specializing in heavy-duty machinery and equipment maintenance solutions. The company serves commercial sectors including construction, agriculture, and transportation with a focus on durable goods and aftermarket support services.
Analysis
Management Discussion
Financial performance deteriorated significantly in 2025 with revenue declining from $0.5M in 2023 to $0.3M, while net loss widened to -$0.6M driven by operating expenses of $747k exceeding gross profit; the shift from positive beginning cash of $54k to a negative operating cash flow suggests aggressive spending or inventory buildup that is not translating into earnings.
Industry Overview
The industrial machinery and equipment sector is cyclical and sensitive to global economic conditions, with recent years showing a challenging environment for smaller manufacturers unable to scale revenue past $1M annually while managing high fixed operating costs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $526.4K | $329.6K | $329.3K |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $526.4K | $329.6K | $329.3K |
| Operating Expenses | $915.0K | $846.0K | $747.7K |
| Operating Income | $-388.6K | $-516.4K | $-418.4K |
| G&A | $192.3K | $200.8K | $189.6K |
| D&A | $67.7K | $114.8K | $54.7K |
| Other OpEx | $722.8K | $645.2K | $558.1K |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $116.4K | $127.0K | $143.2K |
| Pre-Tax Income | $-388.6K | $-516.4K | $-418.4K |
| Income Tax | $116.4K | $127.0K | $143.2K |
| Continuing Ops | $-505.0K | $-643.3K | $-561.6K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-505.0K | $-643.3K | $-561.6K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-505.0K | $-643.3K | $-561.6K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $175.9K | $71.2K | $112.8K |
| Accounts Receivable | $24.2K | $17.0K | $27.2K |
| Other Current Assets | $151.7K | $54.2K | $85.6K |
| Long-Term Assets | $162.2K | $386.5K | $247.5K |
| Total Assets | $338.1K | $457.7K | $360.3K |
| Current Liabilities | $125.6K | $121.0K | $126.4K |
| Long-Term Liabilities | $4.5M | $5.3M | $4.3M |
| Total Liabilities | $4.6M | $5.4M | $4.5M |
| Shareholders' Equity | $-4.3M | $-4.9M | $-4.1M |
| Paid-In Capital | $6.3M | $6.3M | $7.7M |
| Retained Earnings | $-10.7M | $-11.3M | $-11.9M |
| Total L&E | $338.1K | $457.7K | $360.3K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-505.0K | $-643.3K | $-561.6K |
| Non-Cash Adjustments | $-138.5K | $-170.9K | $-365.7K |
| Working Capital Changes | $355.7K | $416.7K | $558.7K |
| Cash from Operations | $-287.8K | $-397.5K | $-368.6K |
| Cash from Investing | $0 | $0 | $0 |
| Cash from Financing | $300.0K | $300.0K | $400.0K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $12.2K | $-97.5K | $31.4K |
| Beginning Cash | $139.6K | $151.7K | $54.2K |
| Ending Cash | $151.7K | $54.2K | $85.6K |
Frequently Asked Questions
How does Norris Industries, Inc. make money?
Revenue generation is concentrated in heavy equipment manufacturing and parts distribution; however, financial data indicates a lack of diversified revenue streams with no reported cost of revenue distinct from gross profit calculations, suggesting a single-product or service-dominant model.
What are the main risks for NRIS?
The company carries substantial debt with long-term liabilities of $4.3M against only $85k in ending cash, creating a high risk of liquidity crisis; operations are generating negative cash flow from financing activities relative to income, and the retained earnings deficit of $11.9M indicates severe capital erosion.
What is NRIS's competitive advantage?
The company maintains access to specialized industrial supply chains for niche machinery components and possesses existing customer contracts in legacy industrial sectors that may offer defensive characteristics during economic downturns.
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.