Horizon Quantum Holdings Ltd. — financial distress indicators
Financial-health summary
Horizon Quantum Holdings Ltd.'s reported numbers place it in the 'Watch' financial-health band (distress score 48/100). The main indicators are liabilities exceed assets (negative equity), severe working-capital shortfall and ohlson o-score signals likely failure. 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.
Total liabilities are 1.96× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Current ratio is 0.10 (current assets cover 10% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
O-score 15.20 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Revenue still growing (+599% YoY).
- High insider/promoter ownership (49%) aligns management with survival.
📰 Recent news scan
- Horizon Quantum Holdings Ltd. (HQ) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-08
- Student support for two Tennessee colleges exceeds $1 million. - Stock TitanGoogle News · 2026-10-08
- Peak XV Partners Operations LLC's Horizon Quantum Holdings Ltd(HQ) Holding History - GuruFocusGoogle News · 2026-10-07
- Top Horizon Quantum Computing Pte. (HQ) Competitors 2026 - MarketBeatGoogle News · 2026-10-04
- HQ Stock Price and Chart — NASDAQ:HQ - TradingViewGoogle News · 2026-09-09
⚖️ 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 Horizon Quantum Holdings Ltd.'s financial-health indicators show?
As of 2026-10-08, Horizon Quantum Holdings Ltd.'s public financial data places it in the 'Watch' band with a distress score of 48/100, driven by liabilities exceed assets (negative equity), severe working-capital shortfall and ohlson o-score signals likely failure. 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 Horizon Quantum Holdings Ltd.'s financial distress score?
48/100 ('Watch'). Ohlson O-score 15.2 (model 1-year failure probability 100%). Merton distance-to-default 4.38 σ (model default probability 0.0%).
What works in Horizon Quantum Holdings Ltd.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Revenue still growing (+599% YoY). High insider/promoter ownership (49%) 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.