Hyperscale Data, Inc. — financial distress indicators
Financial-health summary
Hyperscale Data, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 55/100). The main indicators are cash runway under 12 months, losses in each of the last 3 years and operations consume cash.
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 ~5 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.
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 -95% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
Last price $0.16.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- Hyperscale Data Sets November 12 as Investor Day to Discuss Michigan AI Expansion and Strategic Alternatives Across Its PortfolioYahoo Finance · 2026-10-05
- Hyperscale Data Exploring Strategic Alternatives for its askROI SubsidiaryYahoo Finance · 2026-10-02
- Ault & Company Purchases 10.4 Million Shares of Hyperscale Data Common Stock at $0.50 Per ShareYahoo Finance · 2026-10-01
- Ault & Company Has Invested $55 Million in Capital to Hyperscale DataYahoo Finance · 2026-09-25
- Hyperscale Data Provides Update on Progress of Michigan AI Data Center; More Than $70 Million Invested in Alliance Cloud Services and the Michigan FacilityYahoo Finance · 2026-09-17
- Hyperscale Data Announces a Special Dividend of Class B Common StockYahoo Finance · 2026-09-04
⚖️ 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 Hyperscale Data, Inc.'s financial-health indicators show?
As of 2026-10-08, Hyperscale Data, Inc.'s public financial data places it in the 'Weak' band with a distress score of 55/100, driven by cash runway under 12 months, losses in each of the last 3 years 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 Hyperscale Data, Inc.'s financial distress score?
55/100 ('Weak').
What works in Hyperscale Data, Inc.'s favour?
No material mitigating factors were found in the available data.
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.