Vivos Therapeutics, Inc. — financial distress indicators

Total liabilities are 1.05× 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).

At the current free-cash-flow burn, cash covers ~1 months.

Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.

Merton distance-to-default -1.80 σ → PD 96%.

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 0.27 (current assets cover 27% 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.

Debt is 49% of assets while EBITDA is not positive.

With no operating earnings, repayment depends entirely on asset sales or fresh capital.

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 -95% 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 7.42 → 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 +58% in a year.

Survival financing: repeated equity raises at depressed prices.

Last price $0.15.

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.

Short-term debt is 5.6× cash on hand.

Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.