Cardio Diagnostics Holdings, Inc. — financial distress indicators
Financial-health summary
Cardio Diagnostics Holdings, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 71/100). The main indicators are losses in each of the last 3 years, revenue collapse and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 9.6%. 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.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Revenue changed -58% 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.
O-score 16.08 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Merton distance-to-default 1.31 σ → PD 9.6%.
Investment-grade issuers typically have 1-year PD well below 1%.
Price is -72% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Operating margin fell from -42440% to -43737% in two years.
Sharp margin compression signals loss of pricing power or cost control.
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 (15.76).
📰 Recent news scan
- Cardio Diagnostics Report Identifies Growing Rural Cardiovascular Care Gap Amid Ongoing Workforce Shortages and Access ChallengesYahoo Finance · 2026-08-26
- Cardio Diagnostics Holdings, Inc. to Host Investor Call on Thursday, August 20, 2026Yahoo Finance · 2026-08-05
- Cardio Diagnostics Holdings (CDIO) Showcases Precision Cardiovascular Solutions for Employers, Health PlansYahoo Finance · 2026-07-01
- Cardio Diagnostics Holdings (CDIO) Leverages Epigenetics to Reveal Hidden Heart Disease RisksYahoo Finance · 2026-06-30
- Cardio Diagnostics Holdings (CDIO) Brings Molecular Precision to a Blind Spot in Coronary Heart Disease DetectionYahoo Finance · 2026-06-29
- Cardio Diagnostics Holdings (CDIO) Expands Coverage of Precision Cardiovascular Tests Through Atlas Healthcare PhysiciansYahoo Finance · 2026-06-25
⚖️ 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 Cardio Diagnostics Holdings, Inc.'s financial-health indicators show?
As of 2026-10-08, Cardio Diagnostics Holdings, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 71/100, driven by losses in each of the last 3 years, revenue collapse and operations consume cash. 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 Cardio Diagnostics Holdings, Inc.'s financial distress score?
71/100 ('Very weak'). Ohlson O-score 16.08 (model 1-year failure probability 100%). Merton distance-to-default 1.31 σ (model default probability 9.6%).
What works in Cardio Diagnostics Holdings, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (15.76).
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 Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)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.