Marwynn Holdings, Inc. — financial distress indicators
Financial-health summary
Marwynn Holdings, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 38/100). The main indicators are cash runway under 12 months, operations consume cash and losses in 2 of the last 3 years. In its favour: revenue still growing (+428% yoy).
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 ~0 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.
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.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from 12% to -77% 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
- Revenue still growing (+428% YoY).
📰 Recent news scan
- A passive investor reports ownership above 5% in Marwynn Holdings (MWYN). - Stock TitanGoogle News · 2026-10-07
- Marwynn Holdings, Inc. Financial Disclosures & SEC Filings - TradingViewGoogle News · 2026-09-30
- New bylaws take effect immediately at Marwynn Holdings (MWYN), replacing the previous rules. - Stock TitanGoogle News · 2026-09-28
- Marwynn Holdings updates bylaws to align with Nevada statutes By Investing.com - Investing.com UKGoogle News · 2026-09-28
- Marwynn Holdings, Inc. Common stock (NASDAQ: MWYN) Stock Price, News & Analysis - kalkine.caGoogle News · 2026-08-31
⚖️ 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 Marwynn Holdings, Inc.'s financial-health indicators show?
As of 2026-10-08, Marwynn Holdings, Inc.'s public financial data places it in the 'Watch' band with a distress score of 38/100, driven by cash runway under 12 months, operations consume cash and losses in 2 of the last 3 years. 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 Marwynn Holdings, Inc.'s financial distress score?
38/100 ('Watch').
What works in Marwynn Holdings, Inc.'s favour?
Revenue still growing (+428% 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.
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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.