1. Executive Summary
- Company: Amesite Inc.
- Ticker: AMST
- Industry: EdTech / Application Software
- Exchange: NASDAQ
- Investment Recommendation: Sell — Due to ongoing losses, declining revenue, and low liquidity, short-term investment attractiveness is limited.
2. Company Overview
- Business Model: Amesite develops AI-powered online learning platforms for businesses, universities, and individuals.
- Industry Position: A small-cap player in the competitive education technology sector, expanding gradually.
- Key Products/Services:
- Amesite Engage – Online learning platform for universities and businesses.
- NurseMagic™ – AI-powered assistant app for healthcare professionals.
- Leadership: Dr. Ann Marie Sastry serves as CEO.
3. Financial Analysis
- FY2024 Performance:
- Revenue: $166,881 (down 80.25% YoY).
- Net Loss: $4.4 million (up 6.02% YoY).
- EPS: -$1.74.
- Balance Sheet:
- Cash & Equivalents: $519,706 (down 75% YoY).
- Total Assets: $2.14 million.
- Total Liabilities: $144,785.
- Cash Flow: Negative cash flow from operations, indicating ongoing burn.
4. Stock Performance
- Current Price: $2.33
- 52-Week Range: $2.00 – $6.27
- Market Cap: ~$9.81 million
- Beta (Volatility): 0.97
- Trend: Stock has declined ~25% over the past year with high volatility.
5. Valuation Analysis
- P/E Ratio: N/A (net loss).
- P/S Ratio: ~58.8x (extremely high given low revenue).
- Analyst Price Target: $40.80 (not considered realistic given current fundamentals).
6. Industry & Market Analysis
- Trends: Growing demand for AI-based educational tools and platforms.
- Market Position: Small player in a fragmented and competitive market.
- Macro Factors: High interest rates and broader tech sell-offs are limiting capital access for microcaps like AMST.
7. Risk Analysis
- Market Risk: High volatility due to low float and limited institutional interest.
- Financial Risk: Persistent losses, limited cash reserves, and potential need for dilution.
- Regulatory Risk: Sensitive to changes in education and healthcare tech policies.
- Geopolitical Risk: Subject to global economic shifts that may affect enterprise and education spending.
8. Growth Catalysts
- New Products: Expansion of NurseMagic™ and enhancements to its Engage platform.
- Expansion Plans: Aiming to grow in B2B markets through corporate partnerships.
- Industry Tailwinds: Rising interest in AI and remote learning technologies.
9. Analyst Sentiment
- Consensus Rating: Sell
- Price Target: $40.80 (deemed highly speculative)
- Outlook: Analysts cite weak financials and cash burn as major concerns.
10. Conclusion
Amesite Inc. offers AI-powered educational solutions with unique products, but faces steep challenges including declining revenue, negative cash flow, and high operational risk. While the company operates in a promising sector, it currently lacks the financial strength and scale needed for sustained growth. For now, a Sell or very cautious position is recommended unless fundamental improvements are demonstrated.
11. Appendix
- Recent Stock Prices:
| Date | Closing Price |
|---|---|
| 2025-05-09 | $2.33 |
| 2025-05-08 | $2.46 |
| 2025-05-07 | $2.41 |
| 2025-05-06 | $2.30 |
| 2025-05-05 | $2.33 |
- References: