Non-Invasive Monitoring Systems, Inc. 2024 10-K Review

Introduction

Non-Invasive Monitoring Systems, Inc. (NIMS) has filed its annual report on Form 10-K for the fiscal year ending July 31, 2024. This report provides a comprehensive overview of the company's financial health, business operations, and potential risks. As an investment consultant, I have analyzed the key sections of the 10-K to assess the investment potential of NIMS.

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Business Overview

NIMS was incorporated in Florida in 1980 and is headquartered in Miami, Florida. Historically, the company was involved in the research, development, manufacturing, marketing, and sales of non-invasive, motorized, whole-body periodic acceleration (WBPA) platforms. These platforms were designed to aid in increasing local circulation, relieving minor aches and pains, and reducing morning stiffness.

However, in May 2019, NIMS discontinued its operations and is now classified as a shell company. The company currently has no inventory or products available for sale and is actively seeking potential mergers or acquisitions to revitalize its business.

Financial Performance

Income Statement

For the fiscal year ending July 31, 2024, NIMS reported a net loss of $113,000, a slight improvement from the $199,000 net loss in the previous year. This reduction in net loss was primarily due to an accounts payable adjustment of $118,000, which offset increased interest expenses and professional fees.

Balance Sheet

As of July 31, 2024, NIMS had total assets of $34,000, up from $23,000 in the previous year. The company's liabilities totaled $759,000, resulting in a shareholders' deficit of $725,000. The company's cash position improved slightly to $25,000, but it still faces negative working capital of approximately $127,000.

Cash Flow

NIMS used $182,000 in operating activities during the fiscal year, an increase from $158,000 in the previous year. This increase was mainly due to higher accounts payable and accrued expenses. The company raised $200,000 through related party notes to finance its operations.

Risk Factors

NIMS faces several significant risks that could impact its future operations and financial performance:

1. Going Concern: The company has a history of operating losses and does not expect to become profitable in the near future. Without additional financing, NIMS may not be able to continue as a going concern.
2. Funding Requirements: NIMS will require additional funding to continue its operations and pursue potential mergers or acquisitions. There is no guarantee that such funding will be available on acceptable terms.
3. Penny Stock Risks: NIMS's common stock is classified as a "penny stock," which may make it more difficult for investors to sell shares and could adversely affect the stock's market price.
4. Volatility: The company's stock price has been volatile, with significant fluctuations in price and volume. This volatility may continue in the future.
5. Internal Controls: NIMS has identified material weaknesses in its internal controls over financial reporting, which could impair its ability to produce accurate financial statements.

Conclusion

NIMS is currently a shell company with no active business operations. The company is seeking potential mergers or acquisitions to revitalize its business, but it faces significant financial challenges and risks. The company's financial position is weak, with a substantial shareholders' deficit and negative working capital.

Given these factors, NIMS presents a high-risk investment opportunity. Potential investors should carefully consider the company's financial health, risk factors, and future prospects before making an investment decision.

Investment Score

Based on the analysis of NIMS's 10-K filing, I would assign an investment score of 2.5 out of 10. This score reflects the company's current status as a shell company, its financial challenges, and the significant risks it faces. While there may be potential for future growth through mergers or acquisitions, the current investment potential is limited.