Bimergen Energy Corporation — financial distress indicators
Financial-health summary
Bimergen Energy Corporation's reported numbers place it in the 'Watch' financial-health band (distress score 48/100). The main indicators are revenue collapse, operations consume cash and share price down >80% from 52-week high. 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.
Revenue changed -99% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
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.
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.
Net income negative in 3 of 3 fiscal years. Partly offset by positive operating cash flow and net cash.
Persistent losses erode equity and the capacity to absorb shocks.
Operating margin fell from -169% to -301210% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (38%) aligns management with survival.
📰 Recent news scan
- 3 BESS Stocks Poised for Long-Term Growth to Add to Your Watchlist - EquitymasterGoogle News · 2026-10-09
- Bimergen Energy Corporation (BESS) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-06
- A company that stores electricity reports its first profitable quarter: $1.6M in net income. - Stock TitanGoogle News · 2026-10-06
- Bimergen Energy Corporation (BESS) Stock Price | Live Quotes & Charts | AMEX - StocksToTradeGoogle News · 2026-10-03
- Sterling And Wilson Renewable Energy Stock Gains As Rs 985 Cr Solar, BESS Orders Boost Sentiment - TradingViewGoogle News · 2026-09-22
⚖️ 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 Bimergen Energy Corporation's financial-health indicators show?
As of 2026-10-08, Bimergen Energy Corporation's public financial data places it in the 'Watch' band with a distress score of 48/100, driven by revenue collapse, operations consume cash and share price down >80% from 52-week high. 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 Bimergen Energy Corporation's financial distress score?
48/100 ('Watch').
What works in Bimergen Energy Corporation's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (38%) aligns management with survival.
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.