CANNAPHARMARX, INC.
AI Executive Summary
AI-powered analysis of 10-Q filing content
CannaPharmaRx shows severe financial distress with a total shareholders' deficit of $(30.8) million, cash on hand of only $555, and total liabilities of $37.7 million dwarfing total assets of $6.9 million. While revenue grew and gross loss narrowed year-over-year, the company remains heavily dependent on related-party loans ($13.4M) and continues to accumulate losses (deficit now $(114.6) million), alongside a disclosed material weakness in internal controls.
Red Flags Detected (10)
Cash balance of only $555 as of June 30, 2026, down from $1,804
Total shareholders' deficit widened to $(30,830,561) from $(30,153,729)
Current liabilities of $32.6 million vastly exceed current assets of $1.3 million, indicating severe liquidity crisis
7 more red flags detected
Key Takeaways
Company remains deeply insolvent on a book basis with liabilities far exceeding assets
Revenue growth and improved gross margins are positive but insufficient to offset overhead and financing costs
2 more takeaways
Filing Overview
What This Means
High Risk Filing: This company is showing signs of financial stress or significant operational challenges.
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Quarterly Report: Interim filing with unaudited financial data for the quarter.