Solidion Technology, Inc. — financial distress indicators
Financial-health summary
Solidion Technology, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 87/100). The main indicators are liabilities exceed assets (negative equity), market-implied default probability >20% and severe working-capital shortfall. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 37.0%. 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.
Total liabilities are 2.55× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Merton distance-to-default 0.33 σ → PD 37%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Current ratio is 0.10 (current assets cover 10% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
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 -84% 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 30.00 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +183% in a year.
Survival financing: repeated equity raises at depressed prices.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- High insider/promoter ownership (58%) aligns management with survival.
📰 Recent news scan
- Daily Markets Briefing: STI down 3.49%; Top stock is Jardine Matheson - Singapore Business ReviewGoogle News · 2026-10-08
- Singapore's STI Tumbles 1.6% as Surging Oil Prices Shake Investor Sentiment - Yahoo Finance SingaporeGoogle News · 2026-10-07
- Polar Power reported $183,000 in cash; Solidion sees no basis to raise its proposal. - Stock TitanGoogle News · 2026-10-06
- Why Is Flux Power Stock Falling Monday? - Solidion Tech (NASDAQ:STI), Flux Power Holdings (NASDAQ:FLUX) - BenzingaGoogle News · 2026-10-05
- Flux needs at least $10 million in new funding, Solidion says. The buyer won't raise its offer. - Stock TitanGoogle News · 2026-10-05
- STI Stock Extends Triple-Digit Rally: Solidion Highlights Commercial-Ready Lithium Battery Technology - StocktwitsGoogle News · 2026-10-04
⚖️ 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 Solidion Technology, Inc.'s financial-health indicators show?
As of 2026-10-08, Solidion Technology, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 87/100, driven by liabilities exceed assets (negative equity), market-implied default probability >20% and severe working-capital shortfall. 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 Solidion Technology, Inc.'s financial distress score?
87/100 ('Very weak'). Ohlson O-score 30.0 (model 1-year failure probability 100%). Merton distance-to-default 0.33 σ (model default probability 37.0%).
What works in Solidion Technology, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). High insider/promoter ownership (58%) 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 Industrials & Capital Goods companies with distress indicators
- ADSE (ADSE)Very weak 100/100
- Nuburu, Inc. (BURU)Very weak 100/100
- Liberty Defense Holdings, Ltd. (DETX)Very weak 100/100
- GreenPower Motor Company Inc. (GP)Very weak 100/100
- Hydrofarm Holdings Group, Inc. (HYFM)Very weak 100/100
- Nexus Advanced Technologies Inc. (NXAT)Very weak 100/100
All Industrials & Capital Goods 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.