DXST — financial distress indicators
Financial-health summary
DXST's reported numbers place it in the 'Weak' financial-health band (distress score 65/100). The main indicators are cash runway under 12 months, market-implied default probability >20% and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 91% and the market-implied (Merton) default probability is 67.5%. 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 ~2 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.
Merton distance-to-default -0.45 σ → PD 68%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
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 -96% 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 2.29 → model probability 91%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Operating margin fell from 23% to -1% 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 (1.71).
- Revenue still growing (+12% YoY).
📰 Recent news scan
- Decent Holding Inc. Announces Closing of $1.23 Million Follow-on OfferingYahoo Finance · 2026-10-05
- Decent Holding Inc. Announces Pricing of $1.23 Million Follow-on OfferingYahoo Finance · 2026-10-02
- Decent Holding Launches RMB 500 AI-Powered In-Home Senior Care Subscription Through SunCareYahoo Finance · 2026-09-29
- Decent Holding’s SunCare Launches AI-Powered In-Home Senior Care Service Through Strategic Collaboration with Ruilan InternationalYahoo Finance · 2026-09-29
- Decent Holding Announces Planned Tiered Subscription Service Model for Suncare PlatformYahoo Finance · 2026-09-21
- Decent Holding Provides Operational Update: Community Healthcare Network Expands to 623 Centers and Over 210,000 Paid MembersYahoo Finance · 2026-08-25
⚖️ 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 DXST's financial-health indicators show?
As of 2026-10-08, DXST's public financial data places it in the 'Weak' band with a distress score of 65/100, driven by cash runway under 12 months, market-implied default probability >20% 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 DXST's financial distress score?
65/100 ('Weak'). Ohlson O-score 2.29 (model 1-year failure probability 91%). Merton distance-to-default -0.45 σ (model default probability 67.5%).
What works in DXST's favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (1.71). Revenue still growing (+12% YoY).
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 Unclassified companies with distress indicators
- CNEY (CNEY)Very weak 100/100
- EPOW (EPOW)Very weak 100/100
- GIBO (GIBO)Very weak 100/100
- GNS (GNS)Very weak 100/100
- HKPD (HKPD)Very weak 100/100
- HUBC (HUBC)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.