OTC:OMCC
OLD MARKET CAPITAL Corp
A cash-rich OTC-traded entity facing persistent operational deficits but holding a fortress balance sheet with nearly $25M in liquid assets.
Key Metrics
Investment Thesis
Bull Case
The stock offers a deep value play for distressed asset investors given its massive $24.5M cash position against only $10.7M in total liabilities; A potential turnaround candidate where the company could leverage its low debt load to finance aggressive growth or pay down obligations quickly; Current market price likely does not reflect the intrinsic value of its net tangible assets and liquidity reserves.
Bear Case
Investors should avoid due to consistent negative profitability with a $-5.3M net loss and worsening revenue trend from $44.3M in 2023 to $9.4M; High operating expenses and administrative costs create an unsustainable burn rate that cash reserves may not cover indefinitely; The significant treasury stock value of $82.4M suggests massive share repurchases or dilution risks that could impact future shareholder equity.
About OLD MARKET CAPITAL Corp
OLD MARKET CAPITAL Corp operates within a specialized industrial or commodity sector, generating $9.4M in revenue with significant cash reserves of $24.5M despite recent operating losses. The company manages substantial treasury positions and non-controlling interests while navigating high general and administrative costs relative to its sales volume.
Analysis
Management Discussion
The company reported a net profit loss of $5.3M in the latest period, driven by operating losses that offset some gains from discontinued operations. While cash flow from investing remains positive at $12.5M, indicating asset sales or acquisitions, the negative cash flow from operations of -$1.9M suggests core business liquidity constraints despite a healthy ending cash balance of $24.8M.
Industry Overview
The company operates in a volatile market sector where revenue contraction from over $40M to under $10M reflects intense competition or regulatory headwinds; Success depends on balancing high fixed costs against shrinking top-line growth typical of cyclical industrial or trading environments; The industry likely rewards companies with strong balance sheets but penalizes those unable to achieve positive operating cash flow.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2025 |
|---|---|---|
| Revenue | $44.3M | $9.4M |
| Cost of Revenue | $0 | $0 |
| Gross Profit | $44.3M | $9.4M |
| Operating Expenses | $77.0M | $16.3M |
| Operating Income | $-32.7M | $-7.0M |
| G&A | $30.9M | $10.8M |
| Marketing | — | $308.0K |
| Stock-Based Comp | $106.0K | $473.0K |
| Depreciation | — | $1.5M |
| Other OpEx | $46.2M | $5.2M |
| Non-Operating Income | $0 | $-1.3M |
| Interest Expense | $3.9M | — |
| Pre-Tax Income | $-32.7M | $-8.3M |
| Income Tax | $1.4M | $63.0K |
| Continuing Ops | $-34.1M | $-8.4M |
| Discontinued Ops | $0 | $3.0M |
| Net Income | $-34.1M | $-5.3M |
| Minority Interest | $0 | $0 |
| Net to Common | $-34.1M | $-5.3M |
| Metric | 2023 | 2025 |
|---|---|---|
| Current Assets | — | $27.4M |
| Cash & Equivalents | — | $24.5M |
| Accounts Receivable | — | $109.0K |
| Prepaid Expenses | — | $941.0K |
| Other Current Assets | — | $1.9M |
| Long-Term Assets | — | $50.2M |
| PP&E (Net) | $222.0K | $30.9M |
| Intangibles | — | $3.7M |
| Goodwill | — | $12.3M |
| Operating Leases | $176.0K | $3.0M |
| Other LT Assets | — | $375.0K |
| Total Assets | $110.3M | $77.7M |
| Current Liabilities | — | $2.9M |
| Accounts Payable | — | $1.3M |
| Current Leases | — | $286.0K |
| Deferred Revenue | — | $600.0K |
| Other Current Liab | — | $716.0K |
| Long-Term Liabilities | — | $7.8M |
| LT Operating Leases | — | $3.0M |
| Other LT Liab | — | $4.8M |
| Total Liabilities | $30.5M | $10.7M |
| Shareholders' Equity | $79.8M | $67.0M |
| Paid-In Capital | — | $41.6M |
| Retained Earnings | $121.4M | $93.9M |
| Treasury Stock | $76.8M | $82.4M |
| Total L&E | $110.3M | $77.7M |
| Metric | 2023 | 2025 |
|---|---|---|
| Net Income (CFO) | $-34.1M | $-5.3M |
| Non-Cash Adjustments | $36.1M | $2.4M |
| Working Capital Changes | $-4.1M | $975.0K |
| Cash from Operations | $-2.2M | $-1.9M |
| Capital Expenditures | $59.0K | $8.4M |
| Cash from Investing | $29.9M | $12.5M |
| Share Buybacks | $2.4M | — |
| Cash from Financing | $-32.0M | $-4.8M |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-4.3M | $5.8M |
| Beginning Cash | $4.8M | $19.0M |
| Ending Cash | $454.0K | $24.8M |
Frequently Asked Questions
How does OLD MARKET CAPITAL Corp make money?
Core revenue generation from specialized industrial services or commodity trading; Secondary segments likely include asset management or financial leasing given the high non-controlling interests and lease liabilities; Third segment involves significant capital expenditures suggesting infrastructure development or heavy asset maintenance operations.
What are the main risks for OMCC?
Persistent negative operating profit of -$7.0M and net loss of -$5.3M indicate fundamental business model challenges or declining demand; High general and administrative expenses of $10.8M significantly erode margins on a $9.4M revenue base; Significant retained earnings deficit of $93.9M highlights long-term profitability issues requiring strategic restructuring.
What is OMCC's competitive advantage?
Possesses a fortress balance sheet with $24.5M in cash and equivalents providing substantial liquidity buffer against operational volatility; Strong paid-in capital base of $41.6M indicates robust historical financing or equity backing; Significant goodwill of $12.3M suggests ownership of valuable intangible assets, customer relationships, or proprietary technology.
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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.