Eco Science Solutions Inc (ESSI) reported a challenging QQ1 2026, with no disclosed revenue in the quarter and a continued pre-revenue burn that amplified balance sheet fragility. The quarter shows an operating loss of $254,295 and a net loss of $273,421, translating to an EPS of -$0.01. Despite a modest sequential improvement in operating metrics (QoQ operating income change of +0.66%), the company remains burn-focused with cash from operations of -$70,593 and an extremely tight cash balance of $1,699 at period end. Total liabilities stood at $16.94 million against only $104,669 in assets, yielding a negative equity position of -$16.84 million and a net debt load of $8.64 million. The capital structure and liquidity profile imply substantial financing risk and a narrow runway absent material improvements in revenue generation or cost optimization.
From a profitability perspective, YoY readings suggest some top-line and earnings per share stabilization relative to prior periods (operating income YoY change of -121.96% and net income YoY change of +78.52%), but the QQ1 2026 results remain materially negative. Management commentary from the earnings process (where available) is not included in the provided data, limiting the ability to attribute the earnings trajectory to specific strategic initiatives. Investors should closely monitor any disclosed forward-looking guidance, monetization milestones for the Herbo platform, and potential capital actions.
Overall, ESSI sits at a crossroads: it possesses a niche software platform aimed at cannabis and CBD hemp participants, yet it faces acute liquidity risk and a lack of visible revenue traction in QQ1 2026. The outcome will hinge on (a) evidence of revenue monetization for Herbo and related offerings, (b) cost discipline to extend liquidity, and (c) any external financing or strategic partnerships that provide credibility for future revenue growth.
Key Performance Indicators
Operating Income
-254.30K
QoQ: 0.66% | YoY:-121.96%
Net Income
-273.42K
QoQ: 0.69% | YoY:78.52%
EPS
-0.01
QoQ: -92.31% | YoY:58.33%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed (null in QQ1 2026 data)
Gross Profit: Not disclosed (null)
Operating Income: -$254,295; QoQ change +0.66%
Net Income: -$273,421; YoY change +78.52%; QoQ change +0.69%
EBITDA: -$254,295
Financial Highlights
Snapshot of QQ1 2026 financials and YoY/QoQ trends (USD thousands unless noted):
- Revenue: Not disclosed (null in QQ1 2026 data)
- Gross Profit: Not disclosed (null)
- Operating Income: -$254,295; QoQ change +0.66%
- Net Income: -$273,421; YoY change +78.52%; QoQ change +0.69%
- EBITDA: -$254,295
- EPS: -$0.01; YoY +58.33%; QoQ -92.31%
- Weighted Average Shares Outstanding: 52,957,572
Cash flow and liquidity:
- Net Cash from Operating Activities: -$70,593
- Free Cash Flow: -$70,593
- Cash and Cash Equivalents at period end: $1,699
- Cash at beginning of period: $2,817
- Net Change in Cash: -$1,118
Balance sheet (selected):
- Total Assets: $104,669
- Total Current Assets: $4,669
- Total Liabilities: $16,940,362
- Total Current Liabilities: $16,940,362
- Total Debt: $8,638,588
- Net Debt: $8,636,889
- Equity: -$16,835,693
- Intangible Assets: $100,000
- Cash and Cash Equivalents: $1,699
- Current Ratio: ~0.00x (4,669 / 16,940,362 ≈ 0.0003)
Notes on data quality: The revenue figure for QQ1 2026 is not disclosed in the provided data. The balance sheet presents an unusually low asset base relative to liabilities, resulting in a negative stockholders’ equity position. The dataset includes historical quarterly entries with mixed profitability signals, but no consistent, disclosed revenue trend for the latest quarter.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-254.30K
-121.96%
0.66%
Net Income
-273.42K
78.52%
0.69%
EPS
-0.01
58.33%
-92.31%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights unavailable: No earnings call transcript data provided in the material. As a result, there are no management quotes or thematic quotes to extract by theme (strategy, operations, market conditions) for QQ1 2026. If a transcript becomes available, highlights should cover monetization progress for the Herbo platform, customer engagement metrics, and any guidance-related commentary.
N/A
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N/A
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Forward Guidance
Guidance for QQ1 2026 is not provided in the supplied data. Management commentary, if issued in subsequent filings or press materials, should be evaluated for:
- Revenue growth plans for the Herbo enterprise software suite and any new customer acquisitions in cannabis-related industries.
- Path to profitability and operating leverage, including cost containment strategies for R&D and G&A.
- Cash runway and liquidity planning, including potential financing, debt restructuring, or equity offerings.
- Regulatory or market developments affecting cannabis and CBD software solutions and their impact on addressable market size.
Assessment: In the absence of explicit guidance, the investment thesis hinges on the ability to monetize Herbo, secure incremental customers, and extend liquidity through cost discipline or financing. Key factors to monitor include quarterly revenue disclosures, gross margin stabilization, any backlog or contract wins, and the timing of any capital initiatives.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Risk-reward remains highly skewed toward the downside in the near term given QQ1 2026 metrics: negative EBITDA and net income, negligible cash, and a balance sheet heavy with liabilities. The absence of revenue disclosure for the quarter complicates the ability to model cash flow catalysts. The potential upside hinges on material revenue realization from the Herbo platform, clear monetization milestones, successful customer wins, and credible plans to extend liquidity (through operating improvements or external financing). Investors should require transparent revenue growth indicators and confirmed cost-control measures before assigning a constructive multiple to ESSI. Until then, ESSI represents a high-risk, high-uncertainty opportunity with a focus on liquidity runway, platform adoption, and regulatory exposure.
Key Investment Factors
Growth Potential
Growth potential centers on ESSI’s Herbo enterprise software suite for cannabis and CBD hemp businesses, targeting operators, brands, and entrepreneurs. If monetization accelerates, ESSI could evolve from a pre-revenue/burn phase to a recurring SaaS revenue model with potential upsell opportunities within the cannabis ecosystem and adjacent sectors attracted to compliant cannabis operations software.
Profitability Risk
Key risks include (1) sustained liquidity pressure with current liabilities vastly exceeding assets, (2) lack of disclosed revenue in QQ1 2026, (3) negative stockholders’ equity raising concerns about capital structure and potential dilution, (4) regulatory volatility in cannabis markets, and (5) competitive SaaS solutions in healthcare information services and cannabis tech with higher visibility or revenue traction.
Financial Position
Financial position is fragile: total assets $104,669 vs. total liabilities $16.94 million, resulting in negative equity (-$16.84 million) and net debt of $8.64 million. Cash burn persists with operating cash flow at -$70.6k and a minimal cash balance of $1.7k, indicating a precarious liquidity runway absent material improvements in revenue or external financing.
SWOT Analysis
Strengths
Niche focus on cannabis and CBD hemp industries with an enterprise software angle (Herbo) that could address a clear market need for compliant operational tooling.
Intangible assets (estimated at $100,000) may reflect focused IP or platform components tied to the Herbo software suite.
Weaknesses
Material liquidity and solvency concerns: cash of $1,699 and negative working capital with current liabilities of $16.94 million.
No disclosed QQ1 2026 revenue; ongoing pre-revenue burn and lack of visible profitability.
Negative shareholders’ equity and a sizeable net debt load raise dilution and capital-structure risks for investors.
Opportunities
Cannabis industry growth and potential expansion of enterprise software adoption among operators, brands, and ancillary businesses.
Strategic partnerships or pilot programs to validate Herbo functionality and provide revenue visibility.
Potential monetization of platform features and services as regulatory clarity improves and market adoption accelerates.
Threats
Regulatory risk and policy shifts in cannabis markets may impact addressable market and compliance requirements.
Competition from other healthcare information services SaaS providers with stronger revenue traction or visibility.
Continued cash burn and external financing dependence could dilute existing holders or constrain strategic options.