BTQ Technologies Corp. — financial distress indicators
Financial-health summary
BTQ Technologies Corp.'s reported numbers place it in the 'Weak' financial-health band (distress score 69/100). The main indicators are cash runway under 12 months, losses in each of the last 3 years and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
At the current free-cash-flow burn, cash covers ~7 months.
Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Revenue changed -53% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -80% 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 15.13 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (7.06).
- High insider/promoter ownership (35%) aligns management with survival.
📰 Recent news scan
- BTQ Technologies signs three-year Kaia deal to secure LINE NEXT's Unifi WalletYahoo Finance · 2026-09-30
- BTQ Technologies Corp (BTQ) (Q1 2027) Earnings Call Highlights: Quantum-Safe Milestones and ...Yahoo Finance · 2026-08-19
- BTQ Technologies Appoints Dr. Michael Grace to Advance QCIM Product Security and CommercializationYahoo Finance · 2026-08-18
- BTQ Technologies Signs MOU with ITCENGLOBAL, a KRW 8.9 Trillion Korean IT Group, to Advance Post-Quantum Security Across Korea's Financial, Public-Sector, and Enterprise InfrastructureYahoo Finance · 2026-08-13
- BTQ Technologies to Host Live Webinar on Q2 2026 Financial Results and General Corporate UpdateYahoo Finance · 2026-08-11
- BTQ and ITRI clear first milestone in quantum-security chip roadmapYahoo Finance · 2026-08-07
⚖️ 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 BTQ Technologies Corp.'s financial-health indicators show?
As of 2026-10-08, BTQ Technologies Corp.'s public financial data places it in the 'Weak' band with a distress score of 69/100, driven by cash runway under 12 months, losses in each of the last 3 years 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 BTQ Technologies Corp.'s financial distress score?
69/100 ('Weak'). Ohlson O-score 15.13 (model 1-year failure probability 100%). Merton distance-to-default 4.13 σ (model default probability 0.0%).
What works in BTQ Technologies Corp.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (7.06). High insider/promoter ownership (35%) 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.
Other IT & Software companies with distress indicators
- Cyabra, Inc. (CYAB)Very weak 100/100
- Exyn Technologies, Inc. (EXYN)Very weak 100/100
- The OLB Group, Inc. (OLB)Very weak 100/100
- Roadzen, Inc. (RDZN)Very weak 100/100
- Rekor Systems, Inc. (REKR)Very weak 100/100
- Veea Inc. (VEEA)Very weak 100/100
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.