LGPS — financial distress indicators
Financial-health summary
LGPS's reported numbers place it in the 'Watch' financial-health band (distress score 38/100). The main indicators are market-implied default probability >20%, very high leverage and trading below $1. Independently, the Ohlson accounting model puts its 1-year failure probability at 47% and the market-implied (Merton) default probability is 86.6%. In its favour: strong current ratio (2.40).
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.
Merton distance-to-default -1.11 σ → PD 87%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Total debt is 12.9× EBITDA.
Debt above ~6× EBITDA is deep sub-investment-grade territory; refinancing becomes difficult when rates or earnings move against the company.
Last price $0.72.
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.
Operating cash flow negative in 2 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (2.40).
- High insider/promoter ownership (73%) aligns management with survival.
📰 Recent news scan
- LogProstyle Inc. Announces Publication of Company-Sponsored Research Initiation ReportYahoo Finance · 2026-09-08
- LogProstyle Announces Payment of US$0.0115 per Share, Representing First Installment of US$0.046 per Share Cash DividendYahoo Finance · 2026-09-03
- LogProstyle to Participate in North American Investor ConferencesYahoo Finance · 2026-09-02
- LogProstyle Inc. Enters into Agreement to Acquire 100% of I-FLATZ CorporationYahoo Finance · 2026-08-27
- LogProstyle Celebrates 20th Anniversary of FoundingYahoo Finance · 2026-08-03
- LogProstyle Inc. Announces Cash Dividend of US$1,086,047 (US$0.046 Per Share)Yahoo Finance · 2026-07-13
⚖️ 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 LGPS's financial-health indicators show?
As of 2026-10-08, LGPS's public financial data places it in the 'Watch' band with a distress score of 38/100, driven by market-implied default probability >20%, very high leverage and trading below $1. 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 LGPS's financial distress score?
38/100 ('Watch'). Ohlson O-score -0.13 (model 1-year failure probability 47%). Merton distance-to-default -1.11 σ (model default probability 86.6%).
What works in LGPS's favour?
Strong current ratio (2.40). High insider/promoter ownership (73%) 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 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.