Microalliance Group Inc. (MALG)

Price$1.76Cached quoteAs of 2026-09-05 05:06 UTC

AI: Overvalued

Price checkThe market price assumes a recovery far beyond anything current results support.

At the verified last trade, 609.3 million common shares imply a market value near $1.07 billion. That equals roughly 9,700 times unaudited 2025 sales and more than 200 times year-end equity, while 2025 produced a loss. Even using the audited 2021 peak profit of $18.7 million, the valuation is about 57 times earnings. Only 821 shares traded on the last recorded day, so the quote is fragile, but every supported comparison still indicates overvaluation.

Big pictureA brief liquor-led boom faded into collapsing sales, losses, and severe cash weakness.

Audited revenue jumped to $37.4 million in 2021 after the liquor acquisition, producing $18.7 million of profit. Revenue then fell to $14.4 million in the first nine months of 2022. Free cash flow—cash left after running and investing in the business—was only about $1.17 million in 2021, far below reported profit. The unaudited 2025 disclosure reported just $110,637 of sales, a $1.84 million loss, and a $12.2 million operating cash outflow, suggesting the earlier earnings were not durable.

Business strengthLow debt and stable shares help, but assets and control protections are weak.

The supplied September 2022 balance sheet showed $3.69 million of cash, $0.72 million of debt, and $30.55 million of equity. The unaudited 2025 update instead reported only $2,849 of cash, $1.81 million of liabilities, and $5.09 million of equity. Common shares remained at 609.3 million through 2025, while no buybacks or dividends were reported. However, 100 million preferred shares carry 100 votes each. A July 2025 filing also proposed a $100 million equity offering; nothing had been sold then, but future issuance could dilute owners.

What could change the storyOnly a large, cash-backed operating recovery could make today’s valuation reasonable.

At roughly $1.07 billion of market value, paying 20 times annual profit would require more than $53 million of sustainable profit, nearly three times the audited 2021 peak and far above the 2025 loss. The bull case is renewed liquor and coffee-franchise sales alongside collection of receivables and supplier advances. The bear case is continued minimal sales and cash depletion. The thesis needs audited revenue rebuilding to tens of millions, positive free cash flow, and no offering-related dilution; otherwise the quote prices in an unsupported turnaround.

AI: News

Annual disclosure shows collapseThe latest accounts show the operating business shrank dramatically and remained deeply unprofitable.

The 2025 annual disclosure, certified January 30, 2026, reported only $110,637 of revenue, a $1.84 million net loss, $2,849 of cash, and $5.09 million of equity. The accounts were unaudited and followed a $14.18 million loss in 2024. This sharply contradicts the profitable 2021–2022 record, resetting reasonable expectations toward a much smaller, weakened operating business. The disclosure’s timing cannot by itself establish any later market reaction.

Thin trade resets valuationA tiny July trade sharply raised the quote without confirming broader investor demand.

On July 16, 2026, only 821 shares traded while the last price rose 224.54% from the previous recorded close, following another tiny-volume reversal on July 13. This lifted the indicated market value near $1.07 billion without demonstrating broad liquidity. No matching company announcement was found, so linking the move to business developments would be speculative. The event matters because a handful of shares can reset a stale over-the-counter quote, making the headline valuation difficult to realize.

Loading local price history

Revenue

2019

2020

2021

Net income

2019

2020

2021

Free cash flow

2019

2020

2021

Total cash / debt

CashTotal debt

2019

2020

2021

Financial statements

	2021	2020	2019
Revenue	$37.4M	$1.2M	$2.1M
Gross profit	$27.0M	$1.0M	$1.8M
Gross margin	72.13%	85.23%	86.91%
Research & development	$44,396	$98,892	$99,687
Operating expenses	$2.1M	$1.6M	$2.2M
Operating income	$24.9M	−$609,882	−$332,221
Operating margin	66.48%	−51.06%	−15.76%
EBITDA	$25.0M	−$584,323	−$304,219
EBITDA margin	66.76%	−48.92%	−14.44%
Net income	$18.7M	−$627,870	−$305,081
Net profit margin	49.94%	−52.57%	−14.48%
Basic EPSper basic share	$0.03	-$0.00	-$0.00
Diluted EPSper diluted share	$0.03	-$0.00	-$0.00