PowerBank Corporation — financial distress indicators
Financial-health summary
PowerBank Corporation's reported numbers place it in the 'Weak' financial-health band (distress score 68/100). The main indicators are operating profit does not cover interest, market-implied default probability >20% and very high leverage. Independently, the Ohlson accounting model puts its 1-year failure probability at 92% and the market-implied (Merton) default probability is 93.1%. In its favour: operating cash flow is positive over the latest 12 months.
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 -1.12×.
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 -1.49 σ → PD 93%.
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 1232.2× EBITDA.
Debt above ~6× EBITDA is deep sub-investment-grade territory; refinancing becomes difficult when rates or earnings move against the company.
Price is -89% 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 2.51 → model probability 92%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Last price $0.23.
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.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+217% YoY).
📰 Recent news scan
- PowerBank Corporation Receives Additional 180-day Compliance Period from Nasdaq to Regain Compliance with Minimum Bid Price RequirementYahoo Finance · 2026-10-01
- PowerBank Corporation Announces Termination of At-The-Market Equity Offering ProgramYahoo Finance · 2026-09-30
- PowerBank Corp (PBK) (FY 2026) Earnings Call Highlights: Margin Expansion and Recurring Revenue ...Yahoo Finance · 2026-09-30
- PowerBank Announces Fiscal Year End ResultsYahoo Finance · 2026-09-29
- PowerBank Wins NYPA Contract for 1.6 MW SUNY Oneonta Solar ProjectYahoo Finance · 2026-09-03
- PowerBank Awarded Contract by New York Power Authority for 1.6 MW Ground-Mount Solar Project at SUNY OneontaYahoo Finance · 2026-09-03
⚖️ 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 PowerBank Corporation's financial-health indicators show?
As of 2026-10-08, PowerBank Corporation's public financial data places it in the 'Weak' band with a distress score of 68/100, driven by operating profit does not cover interest, market-implied default probability >20% and very high leverage. 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 PowerBank Corporation's financial distress score?
68/100 ('Weak'). Ohlson O-score 2.51 (model 1-year failure probability 92%). Merton distance-to-default -1.49 σ (model default probability 93.1%).
What works in PowerBank Corporation's favour?
Operating cash flow is positive over the latest 12 months. Revenue still growing (+217% 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.
Other Utilities & Power companies with distress indicators
- BRNX (BRNX)Very weak 100/100
- Stem, Inc. (STEM)Very weak 81/100
- NextNRG, Inc. (NXXT)Very weak 74/100
- Energy Vault Holdings, Inc. (NRGV)Very weak 72/100
- Abundia Global Impact Group Inc (AGIG)Weak 60/100
- Brookfield Renewable Corporation (BEPC)Weak 51/100
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.