Wondr Gaming Corp (VRTS) AI Stock Analysis

• Market Cap: C$12.94M
• Dividend Yield: N/A
• Average Volume (3M): 143.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -10.05%
• EPS Growth: -199.17%
• Country: CA
• Employees: 3
• Sector: Communication Services
• Sector Strength: 78
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): >-0.01
• Shares Outstanding: 647,017,200
• 10 Day Avg. Volume: 324,541
• 30 Day Avg. Volume: 143,724
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.62
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Wondr Gaming Corp's overall stock score reflects significant financial distress, with negative profitability and high leverage being primary concerns. Although revenue growth is evident, it is overshadowed by severe financial instability. Technical analysis shows mixed signals, and valuation metrics further highlight the company's challenges. The stock may appeal to high-risk investors looking for speculative opportunities, but substantial risks need to be considered.

Wondr Gaming Corp Business Overview & Revenue Model

Company Description

Wondr Gaming Corp (VRTS) is a company focused on the gaming and entertainment industry, leveraging digital media and technology to engage with audiences. Its core offerings include digital media content, influencer partnerships, and e-sports tournaments. The company aims to create a comprehensive ecosystem around gaming and entertainment by integrating content creation, community building, and monetization strategies.

How the Company Makes Money

Wondr Gaming Corp makes money through various revenue streams, primarily focusing on digital media and e-sports. The company generates revenue from advertising and sponsorship deals through its digital content and influencer partnerships, where brands pay to reach engaged gaming audiences. Additionally, Wondr Gaming organizes e-sports tournaments, which provide revenue through entry fees, sponsorships, and broadcast rights. Strategic partnerships with gaming platforms and content creators also contribute to its earnings by expanding its reach and monetizing its content more effectively.

Wondr Gaming Corp Financial Statement Overview

Summary

Wondr Gaming Corp is experiencing revenue growth but is severely challenged by negative profitability and high leverage. The company's negative equity and cash flow problems pose significant risks. These financial difficulties highlight the need for strategic restructuring or capital infusion to stabilize and improve operational efficiency and financial health.

Income Statement

Wondr Gaming Corp shows moderate revenue growth with a significant increase in total revenue from $356,421 in 2022 to $4,877,527 in 2024 TTM, indicating potential market capture. However, the company is struggling with profitability, as evidenced by substantial negative net income and EBIT margins. The net profit margin remains negative, showing a lack of cost control or high operating expenses. These factors indicate revenue growth but poor profit conversion.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets, a sign of financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but the substantial total debt of $5,360,633 suggests high leverage. Poor return on equity due to negative net income further highlights financial distress and risk exposure.

Cash Flow

Cash flow analysis shows negative operating and free cash flow, indicating the company is not generating enough cash to sustain operations or fund capital expenditures internally. The operating cash flow to net income ratio is not favorable due to consistent net losses. This cash flow strain suggests liquidity issues and a dependence on external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.88M	4.85M	3.56M	186.92K	0.00	0.00
	Gross Profit
3.12M	-972.26K	2.34M	107.27K	-22.29K	0.00
	EBIT
-2.37M	-6.58M	-10.08M	-9.20M	-358.40K	-7.25K
	EBITDA
-44.03M	-50.40M	-9.34M	-9.30M	-1.91M	-7.25K
	Net Income Common Stockholders
-42.17M	-49.02M	-10.71M	-9.58M	135.85K	-27.25K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	1.16M	556.80K	3.75M	53.59K	0.00
	Total Assets
0.00	7.41M	49.56M	7.85M	57.48K	0.00
	Total Debt
455.39K	5.78M	3.99M	21.00K	63.80K	455.39K
	Net Debt
455.39K	4.62M	3.43M	-3.73M	10.21K	455.39K
	Total Liabilities
597.20K	9.48M	17.21M	1.70M	30.75K	597.20K
	Stockholders Equity
-597.20K	-2.07M	32.35M	6.15M	26.73K	-597.20K
Cash Flow		Free Cash Flow
-591.24K	-3.63M	-5.74M	-4.67M	-275.11K	0.00
	Operating Cash Flow
-591.25K	-3.63M	-5.48M	-4.66M	-91.41K	0.00
	Investing Cash Flow
-1.10M	-6.64M	-12.60M	-48.23K	-208.20K	0.00
	Financing Cash Flow
863.21K	10.86M	14.91M	8.20M	145.00K	0.00

Wondr Gaming Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VRTS, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VRTS.

Wondr Gaming Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCR	77 Outperform	C$5.27B	8.73	10.83%	3.09%	796.07%	-35.52%
BRAG	64 Neutral	C$125.84M	―	-7.16%	―	10.79%	-30.99%
Sector *	59 Neutral	$13.83B	7.37	-0.59%	3.89%	2.56%	-39.63%
EAGR	54 Neutral	C$31.80M	9.66	-1.73%	―	-4.44%	-638.10%
TGO	45 Neutral	C$22.20M	―	-119.27%	―	0.50%	0.06%
VRTS	43 Neutral	C$12.94M	―	-251.82%	―	-10.05%	-199.17%
TILT	40 Underperform	C$213.77M	―	-955.11%	―	-24.93%	30.59%

Wondr Gaming Corp Corporate Events

Vertiqal Studios Teams Up With Viral Nation

Vertiqal Studios, North America’s largest gaming and lifestyle social media channel owner, has partnered with influencer marketing leader Viral Nation to enhance its content creation and revenue streams. The collaboration includes acquiring four top-performing Instagram channels, boosting Vertiqal’s audience by over 1.7 million followers. Additionally, a revenue-sharing model has been established, where Vertiqal will receive 70% and Viral Nation 30% of media sales revenue.

Vertiqal Studios Partners with Ledge for In-Game Branding

Vertiqal Studios is partnering with Ledge to offer global brands immersive in-game opportunities through custom integrations in popular games like Fortnite and Roblox. This collaboration allows brands to engage with Gen Z and Millennial audiences by creating branded maps and challenges, enhancing the gaming experience and solidifying their presence in the gaming culture.

Vertiqal Studios Achieves First EBIT Positive Quarter

Vertiqal Studios has reported a record-breaking third quarter, achieving its first-ever EBIT positive quarter. The company saw a significant reduction in total expenses by 72%, contributing to an impressive financial turnaround. This marks a milestone as Vertiqal Studios continues to grow its digital-channel network and video-production capabilities.