OTC:VMNT
Vemanti Group, Inc.
A deeply distressed OTC-listed entity reporting massive net losses and negative working capital with no tangible assets or revenue growth.
Key Metrics
Investment Thesis
Bull Case
An investor might consider this stock only for speculative short-term volatility or potential turnaround rumors not reflected in current books. The primary bullish argument rests on the possibility of a sudden asset acquisition or government grant that could instantly flip the negative equity position to positive, though no such catalyst is evident in the data.
Bear Case
The investment thesis is overwhelmingly negative due to a net loss of $1.5M, zero tangible assets, and a shareholders' equity deficit of $172k. With revenue trending flat at roughly $0.1M annually while losses widened from $1.0M to $1.5M over the last two years, the company faces high probability of delisting or insolvency.
About Vemanti Group, Inc.
Vemanti Group, Inc. (VMNT) is a publicly traded entity listed on the OTC market with significant operational losses and minimal asset base. The company reports revenue of approximately $123,000 alongside substantial negative cash flows from operations exceeding $370,000. Financial statements indicate heavy reliance on non-cash adjustments like share-based compensation to mask underlying profitability challenges.
Analysis
Management Discussion
Management has failed to turn the business profitable, posting a net loss of $1.5M against revenue of only $123k in the latest period. The company's ability to continue operations relies entirely on financing activities, evidenced by a $250k cash inflow from financing that partially offsets a $371k operational cash burn.
Industry Overview
The industry context for this specific entity appears to be one of extreme distress rather than a standard competitive market sector. The lack of long-term assets and zero depreciation suggests the business model may have shifted entirely to services with no physical footprint, yet it remains unable to cover its current liabilities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue | $138.7K | $123.1K |
| Cost of Revenue | $23.2K | $22.9K |
| Gross Profit | $115.6K | $100.2K |
| Operating Expenses | $1.2M | $1.6M |
| Operating Income | $-1.0M | $-1.5M |
| G&A | $1.1M | $1.3M |
| Stock-Based Comp | $876.6K | $734.8K |
| D&A | $632 | $0 |
| Depreciation | $632 | $0 |
| Amortization | $160.8K | — |
| Other OpEx | $16.1K | $305.5K |
| Non-Operating Income | $-32 | $-27.9K |
| Interest Income | — | $9.6K |
| Pre-Tax Income | $-1.0M | $-1.5M |
| Income Tax | $-919 | $844 |
| Continuing Ops | $-1.0M | $-1.5M |
| Discontinued Ops | $-1.8K | $0 |
| Net Income | $-1.0M | $-1.5M |
| Minority Interest | $0 | $0 |
| Net to Common | $-1.0M | $-1.5M |
| Metric | 2022 | 2023 |
|---|---|---|
| Current Assets | $500.7K | $144.9K |
| Cash & Equivalents | $257.5K | — |
| Accounts Receivable | $889 | $8.5K |
| Other Current Assets | $242.3K | $136.4K |
| Long-Term Assets | $305.5K | $0 |
| PP&E (Net) | $0 | $0 |
| Other LT Assets | $305.5K | $0 |
| Total Assets | $806.2K | $144.9K |
| Current Liabilities | $324.0K | $317.3K |
| Accounts Payable | $6.3K | $8.8K |
| Other Current Liab | $126.2K | $295.7K |
| Long-Term Liabilities | $0 | $0 |
| Total Liabilities | $324.0K | $317.3K |
| Shareholders' Equity | $482.2K | $-172.4K |
| Paid-In Capital | $4.8M | $5.6M |
| Retained Earnings | $-4.3M | $-5.8M |
| Total L&E | $806.2K | $144.9K |
| Metric | 2022 | 2023 |
|---|---|---|
| Net Income (CFO) | $-1.0M | $-1.5M |
| Non-Cash Adjustments | $415.9K | $1.5M |
| Working Capital Changes | $240.5K | $-399.6K |
| Cash from Operations | $-381.8K | $-371.1K |
| Cash from Investing | $5.9K | $0 |
| Cash from Financing | $337.5K | $250.0K |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-38.4K | $-121.1K |
| Beginning Cash | $295.9K | $257.5K |
| Ending Cash | $257.5K | $136.4K |
Frequently Asked Questions
How does Vemanti Group, Inc. make money?
Current financials suggest a single, highly loss-making operational segment where costs significantly outpace the $123,056 in recorded revenue, resulting in an operating profit deficit of $1.5M.
What are the main risks for VMNT?
The primary risks include severe liquidity constraints with negative working capital of nearly $200k, a retained earnings deficit of $5.8M, and an inability to generate positive operating cash flow without continued equity issuance.
What is VMNT's competitive advantage?
None identified based on current fundamentals; the company lacks tangible assets, positive cash flow, or market share data to suggest a sustainable competitive moat.
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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.