KeyStar Corp reported a challenging QQ1 2025, showing a net loss of $5.27 million on negative revenue of $3.34 thousand, a heavy interest burden, and a material drag from other operating items. While YoY revenue appears to rebound by approximately 98% and gross profit shows robust margin signals, the quarter’s headline numbers reflect significant impairments and a fragile liquidity position that constrains near-term operating leverage. EBITDA is negative at approximately $2.03 million, and free cash flow remains deeply negative, underscoring a high cash burn environment.
From a balance sheet perspective, the company carries a sizable debt load (total debt about $11.67 million) and negative stockholders’ equity (about -$18.41 million), with a current ratio near 0.041 and a cash ratio of ~0.013. These liquidity metrics imply a narrow cash runway and elevated refinancing risk unless operational improvements, asset optimization, or external financing are secured. Management commentary is not included in the provided transcript data, limiting insight into underlying strategic pivots. Investors should monitor cash burn, debt maturities, potential deleveraging actions, and any forthcoming guidance or restructuring updates.