NewGenIvf Group Limited — financial distress indicators
Financial-health summary
NewGenIvf Group Limited's reported numbers place it in the 'Weak' financial-health band (distress score 62/100). The main indicators are operating profit does not cover interest, market-implied default probability >20% and share price down >80% from 52-week high. Independently, the Ohlson accounting model puts its 1-year failure probability at 68% and the market-implied (Merton) default probability is 89.4%. In its favour: strong current ratio (3.12).
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.
Interest coverage (EBIT / interest) is -17.40×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Merton distance-to-default -1.25 σ → PD 89%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Price is -100% 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 0.77 → model probability 68%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +63610% in a year.
Survival financing: repeated equity raises at depressed prices.
Last price $0.08.
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 margin fell from 1% to -227% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Operating cash flow negative in 3 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.
0 severe and 1 moderate distress-related headlines in the last 6 months.
Headlines are corroborating evidence only; they are weighted lightly and never drive a flag alone.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (3.12).
- High insider/promoter ownership (42%) aligns management with survival.
📰 Recent news scan
- restructurNewGenIVF Completes Exchange of Convertible Notes with Institutional InvestorYahoo Finance · 2026-08-17
- BC-Most Active StocksYahoo Finance · 2026-10-07
- NewGen Announces Pricing of $1.25 Million Public OfferingYahoo Finance · 2026-09-29
- NewGen Provides Update on K25.ai Investment and Strengthened Financial PositionYahoo Finance · 2026-07-30
- NewGen to Acquire Additional 3% of K25.ai at US$250 Million Valuation Following Strong Community Beta; Strengthening Market Cap Above US$5 MillionYahoo Finance · 2026-07-27
- NewGen Issues 3,666,667 New Shares in Connection with Strategic K25.ai Acquisition, Reaches Milestone of US$7.6 Million Market CapitalizationYahoo Finance · 2026-06-22
⚖️ 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 NewGenIvf Group Limited's financial-health indicators show?
As of 2026-10-08, NewGenIvf Group Limited's public financial data places it in the 'Weak' band with a distress score of 62/100, driven by operating profit does not cover interest, market-implied default probability >20% and share price down >80% from 52-week high. 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 NewGenIvf Group Limited's financial distress score?
62/100 ('Weak'). Ohlson O-score 0.77 (model 1-year failure probability 68%). Merton distance-to-default -1.25 σ (model default probability 89.4%).
What works in NewGenIvf Group Limited's favour?
Strong current ratio (3.12). High insider/promoter ownership (42%) 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 Healthcare & MedTech companies with distress indicators
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- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
All Healthcare & MedTech companies with distress indicators →
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.