Neighborhood Intelligence, Inc. — financial distress indicators
Financial-health summary
Neighborhood Intelligence, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 92/100). The main indicators are market-implied default probability >20%, losses in each of the last 3 years and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 93% and the market-implied (Merton) default probability is 64.6%.
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 -0.37 σ → PD 65%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
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 -86% 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 2.56 → model probability 93%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.76.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Revenue changed -25% year over year.
Falling sales reduce cash available for debt service.
Short-term debt is 1.4× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Share count up +28% in a year.
Large issuance usually funds operating losses rather than growth.
Revenue declined every year for three years.
Structural, not cyclical, decline.
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
- Neighborhood Intelligence to Streamline Supply Chain and Merchandise Planning with RELEXYahoo Finance · 2026-10-08
- Bed Bath & Beyond parent company calls off another dealYahoo Finance · 2026-10-07
- Neighborhood Intelligence CFO resignsYahoo Finance · 2026-10-06
- Neighborhood Intelligence Strengthens Financial and Operating Leadership as Company Advances IntegrationYahoo Finance · 2026-10-05
- Sector Update: Consumer Stocks Rise Late AfternoonYahoo Finance · 2026-10-05
- Neighborhood Intelligence Launches $45.5 Million Equity Financing; Shares FallYahoo Finance · 2026-10-05
⚖️ 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 Neighborhood Intelligence, Inc.'s financial-health indicators show?
As of 2026-10-08, Neighborhood Intelligence, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 92/100, driven by market-implied default probability >20%, 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 Neighborhood Intelligence, Inc.'s financial distress score?
92/100 ('Very weak'). Ohlson O-score 2.56 (model 1-year failure probability 93%). Merton distance-to-default -0.37 σ (model default probability 64.6%).
What works in Neighborhood Intelligence, 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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All Consumer Discretionary 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.