The company's financial position appears vulnerable with a cash balance of only $389,651, which may be insufficient to support operations given the high overhead required for technical talent.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Total Current Assets | 2.27M | 1.43M | 352.75K |
| Cash & Short-Term Investments | 389.65K | 399.3K | 1.76K |
| Cash Only | 389.65K | 399.3K | 1.76K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 1.88M | 1.03M | 350.99K |
| Days Sales Outstanding | 248.31 | 132.92 | 157.17 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 346.28K | 390.44K | 173.82K |
| Property, Plant & Equipment | 90.32K | 50.53K | 4.84K |
| Fixed Asset Turnover | 30.58x | 55.91x | 168.51x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 255.96K | 339.91K | 168.98K |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 2.61M | 1.82M | 526.57K |
| Asset Turnover | 1.06x | 1.55x | 1.55x |
| Asset Growth % | 43.77% | 245.39% | - |
| Total Current Liabilities | 489.38K | 417.01K | 78.79K |
| Accounts Payable | 0 | 49.72K | 0 |
| Days Payables Outstanding | - | 14.29 | - |
| Short-Term Debt | 0 | 0 | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 |
| Other Current Liabilities | 0 | 57.55K | 0 |
| Current Ratio | 4.64x | 3.42x | 4.48x |
| Quick Ratio | 4.64x | 3.42x | 4.48x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 43.26K | 57.03K | 28.68K |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 0 |
| Deferred Tax Liabilities | 43.26K | 57.03K | 28.68K |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 532.65K | 474.04K | 107.47K |
| Total Debt | 0 | 44.82K | 0 |
| Net Debt | -389.65K | -354.48K | -1.76K |
| Debt / Equity | - | 0.03x | - |
| Debt / EBITDA | - | 0.04x | - |
| Net Debt / EBITDA | -0.65x | -0.31x | -0.00x |
| Interest Coverage | - | - | - |
| Total Equity | 2.08M | 1.34M | 419.09K |
| Equity Growth % | 54.85% | 220.85% | - |
| Book Value per Share | 0.08 | 0.05 | 0.02 |
| Total Shareholders' Equity | 2.08M | 1.34M | 419.09K |
| Common Stock | 1K | 101 | 101 |
| Retained Earnings | 1.72M | 1.34M | 419.09K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Liquidity and client concentration
As reported in recent financial disclosures, EDHL maintains a cash position of only $389,651, which provides a limited buffer against operational shocks and suggests that the company may struggle to fund ongoing technical development if client payment cycles for real estate projects are further extended.
The current cash balance appears insufficient to support the firm's high-overhead, talent-dependent business model during periods of revenue volatility. Investors should monitor whether this liquidity constraint forces management to prioritize short-term cash collection over long-term strategic investments in VR/AR capabilities.
Based on the company's reported figures, the firm's financial trajectory appears to be weakening as revenue declines by 2.25% year-over-year, signaling that the balance sheet lacks the necessary scale to absorb the cyclical downturns inherent in the Hong Kong property and event marketing sectors.
The combination of contracting top-line growth and a thin liquidity cushion suggests a deteriorating business quality trajectory. This trend warrants further investigation into whether the firm can maintain its current operational footprint without seeking external financing or dilutive capital raises.
According to the provided financial data, the reliance on percentage-of-completion accounting for metaverse projects may mask underlying cash flow volatility, as the firm's reported revenue may not align with actual cash receipts from its concentrated base of Hong Kong real estate developer clients.
This accounting nuance creates a potential distortion where the balance sheet appears more stable than the actual cash position suggests. Analysts should be wary that headline profitability may be overstated if project milestones are recognized aggressively while actual cash collection remains subject to the payment cycles of institutional clients.
As indicated by the firm's financial snapshot, the equity base remains highly sensitive to the company's ability to retain specialized technical talent, which serves as the primary intangible asset driving the firm's 58.91% gross margin in the competitive Hong Kong digital services market.
The lack of significant tangible assets suggests that the firm's equity value is almost entirely dependent on human capital and client relationships. Any turnover in the creative team could lead to a rapid impairment of the firm's competitive position and a subsequent erosion of shareholder equity.
Quick answers to the most common questions about buying EDHL stock.
As of 2024, Everbright Digital Holding Limited Ordinary Shares (EDHL) had total assets of $2.6M including $2.3M in current assets.
Everbright Digital Holding Limited Ordinary Shares (EDHL) carries total debt of $0.0M, offset by $0.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Everbright Digital Holding Limited Ordinary Shares (EDHL) has total shareholders' equity (book value) of $2.1M ($0.08 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Everbright Digital Holding Limited Ordinary Shares (EDHL) reported a current ratio of 4.64x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.