Mobile Infrastructure Corporation — financial distress indicators
Financial-health summary
Mobile Infrastructure Corporation's reported numbers place it in the 'Very weak' financial-health band (distress score 75/100). The main indicators are market-implied default probability >20%, severe working-capital shortfall and losses in each of the last 3 years. Independently, the Ohlson accounting model puts its 1-year failure probability at 82% and the market-implied (Merton) default probability is 21.0%. In its favour: operating cash flow is positive over the latest 12 months.
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.
Merton distance-to-default 0.81 σ → PD 21%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Current ratio is 0.49 (current assets cover 49% 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.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Debt is 55% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 1.50 → model probability 82%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Short-term debt is 3.0× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
📰 Recent news scan
- Geiger Energy Corporation (BEEP.V) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-06
- A credit agreement tied to its co-chair gives Mobile Infrastructure (BEEP) more time to repay. - Stock TitanGoogle News · 2026-09-23
- Mobile Infrastructure Corporati BEEP Stock Forecast & Price Target - Yahoo FinanceGoogle News · 2026-09-20
- Mobile Infrastructure (BEEP) Stock Drops As Debt Fears Eclipse NOI Gain - Simply Wall StreetGoogle News · 2026-08-13
- Mobile Infrastructure Corp Declares Monthly Preferred Stock Dividends - The Globe and MailGoogle News · 2026-06-30
- $BEEP ($BEEP) Releases Q1 2026 Earnings - Quiver QuantitativeGoogle News · 2026-05-12
⚖️ 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 Mobile Infrastructure Corporation's financial-health indicators show?
As of 2026-10-08, Mobile Infrastructure Corporation's public financial data places it in the 'Very weak' band with a distress score of 75/100, driven by market-implied default probability >20%, severe working-capital shortfall and losses in each of the last 3 years. 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 Mobile Infrastructure Corporation's financial distress score?
75/100 ('Very weak'). Ohlson O-score 1.5 (model 1-year failure probability 82%). Merton distance-to-default 0.81 σ (model default probability 21.0%).
What works in Mobile Infrastructure Corporation's favour?
Operating cash flow is positive over the latest 12 months.
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.
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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.