Odysight.ai Inc. — financial distress indicators
Financial-health summary
Odysight.ai Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 65/100). The main indicators are losses in each of the last 3 years, operations consume cash 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.
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.
O-score 8.12 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~17 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Revenue changed -24% year over year.
Falling sales reduce cash available for debt service.
Price is -65% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Share count up +30% in a year.
Large issuance usually funds operating losses rather than growth.
Operating margin fell from -351% to -601% 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
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (7.58).
- High insider/promoter ownership (40%) aligns management with survival.
📰 Recent news scan
- Odysight.ai (ODYS) to Present at the LD Micro 20th Annual Main Event Conference on October 20, 2026Yahoo Finance · 2026-10-06
- Odysight.ai to Participate in Upcoming Investor ConferencesYahoo Finance · 2026-08-12
- Odysight.ai Receives Purchase Order from Elbit Systems on Behalf of the Israeli Ministry of Defense for Deployment of Its Vision-Based Prognostics and Health Management SystemYahoo Finance · 2026-07-08
- Odysight.ai® Receives Purchase Order from Honeywell Aerospace APU Division to Launch Proof of Concept of Odysight.ai's Advanced Predictive Maintenance Vision-Based Monitoring System on Honeywell Aerospace Auxiliary PowerYahoo Finance · 2026-06-18
- Odysight.ai to Participate in the 16th Annual ROTH London Conference on June 17 and 18Yahoo Finance · 2026-06-03
- U.S. Navy AI Maintenance Partnership Puts Odysight.ai (ODYS) in FocusYahoo Finance · 2026-05-11
⚖️ 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 Odysight.ai Inc.'s financial-health indicators show?
As of 2026-10-08, Odysight.ai Inc.'s public financial data places it in the 'Weak' band with a distress score of 65/100, driven by losses in each of the last 3 years, operations consume cash 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 Odysight.ai Inc.'s financial distress score?
65/100 ('Weak'). Ohlson O-score 8.12 (model 1-year failure probability 100%). Merton distance-to-default 5.81 σ (model default probability 0.0%).
What works in Odysight.ai Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (7.58). High insider/promoter ownership (40%) 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 Hardware & Electronics companies with distress indicators
- Foxx Development Holdings Inc. (FOXX)Very weak 100/100
- Algorhythm Holdings, Inc. (RIME)Very weak 100/100
- USBC, Inc. (USBC)Very weak 100/100
- Telesat Corporation (TSAT)Very weak 79/100
- Q/C Technologies, Inc. (QCLS)Very weak 77/100
- Boxlight Corporation (BOXL)Very weak 76/100
All Hardware & Electronics 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.