AIAI Holdings Corporation — financial distress indicators
Financial-health summary
AIAI Holdings Corporation's reported numbers place it in the 'Very weak' financial-health band (distress score 70/100). The main indicators are liabilities exceed assets (negative equity), severe working-capital shortfall and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 100%.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 480.00× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Current ratio is 0.00 (current assets cover 0% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Revenue changed -99% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Price is -83% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 30.00 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- AIAI Holdings to Obtain a Controlling Position in Messier 42 Marketing AgreementYahoo Finance · 2026-09-18
- AIAI Holdings Enters into Extended Lock-up Agreements to Protect Long-Term Stockholder ValueYahoo Finance · 2026-09-11
- AIAI Holdings Announces Letter of Intent with Messier 42 LLC to Acquire Controlling Interest in Defense & National Security CompanyYahoo Finance · 2026-09-03
- AIAI Holdings' Constellation Network Launches Dôr Retail Intelligence: Transformational AI-Powered Retail IntelligenceYahoo Finance · 2026-08-11
- AIAI Holdings' MediGuide Enters the State-of-the-Art Medicine Market With AI-Driven InnovationYahoo Finance · 2026-07-14
- AIAI Holdings' Constellation Network Launches Gate AI: Real-Time Security for AI ApplicationsYahoo Finance · 2026-07-08
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do AIAI Holdings Corporation's financial-health indicators show?
As of 2026-10-08, AIAI Holdings Corporation's public financial data places it in the 'Very weak' band with a distress score of 70/100, driven by liabilities exceed assets (negative equity), severe working-capital shortfall and revenue collapse. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is AIAI Holdings Corporation's financial distress score?
70/100 ('Very weak'). Ohlson O-score 30.0 (model 1-year failure probability 100%).
What works in AIAI Holdings Corporation's favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Industrials & Capital Goods companies with distress indicators
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.