Share count
2Mpeak FY2018
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CHRN, ChronoScale Holdings Corporation
A capital-goods maker, whose demand swings with its customers' own spending.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$13M
−28.6% YoY · 8% 5-yr CAGR
Vital signs · TTM
The business in brief
What this business is and what moves its needle, from its own SEC filings.
- Situation
- Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Operating margin has run around −120% through the cycle on a 50% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 28% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −139%, above 15% in 0 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2013–2025
realized figures from each filing · older years to the left| 2013’13 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $0 | $7M | $11M | $14M | $9M | $11M | $13M | $18M | $18M | $13M | $12M | RevenueRevenue |
| — | 28% | 38% | 49% | 57% | 60% | 48% | 50% | 53% | 53% | 53% | Gross marginGross mgn |
| — | 146% | 103% | 53% | 87% | 95% | 85% | 59% | 49% | 78% | 99% | SG&A / revenueSG&A/rev |
| — | 129% | 52% | 33% | 28% | 23% | 28% | 27% | 22% | 24% | 23% | R&D / revenueR&D/rev |
| ($10M) | ($32M) | ($27M) | ($17M) | ($13M) | ($14M) | ($16M) | ($15M) | ($10M) | ($13M) | ($16M) | Operating incomeOp. inc. |
| — | −429.9% | −238.5% | −119.6% | −149.6% | −123.0% | −120.5% | −82.7% | −58.4% | −104.1% | −134.1% | Operating marginOp. mgn |
| ($12M) | ($29M) | ($27M) | ($12M) | ($16M) | ($10M) | ($15M) | ($15M) | ($11M) | ($12M) | ($16M) | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| ($12K) | ($31M) | ($22M) | ($16M) | ($9M) | ($11M) | ($15M) | ($12M) | ($10M) | ($12M) | ($12M) | Operating cash flowOp. cash |
| $469K | $1M | $1M | $690K | $620K | $1M | $887K | $2M | $2M | $2M | $2M | DepreciationDeprec. |
| $11M | ($6M) | $950K | ($7M) | $4M | ($5M) | ($3M) | ($412K) | ($1M) | ($3M) | $743K | Working capital & otherWC & other |
| $379K | $456K | $131K | $60K | $0 | $59K | $194K | $157K | $37K | $188K | $178K | CapexCapex |
| — | 6.2% | 1.2% | 0.4% | 0.0% | 0.5% | 1.5% | 0.9% | 0.2% | 1.5% | 1.5% | Capex / revenueCapex/rev |
| ($391K) | ($32M) | ($22M) | ($16M) | ($9M) | ($11M) | ($15M) | ($12M) | ($10M) | ($12M) | ($12M) | Owner earningsOwner earn. |
| — | −430.9% | −196.8% | −113.8% | −98.6% | −99.7% | −115.3% | −66.8% | −55.1% | −93.7% | −104.9% | Owner earnings marginOE mgn |
| ($391K) | ($32M) | ($22M) | ($16M) | ($9M) | ($11M) | ($15M) | ($12M) | ($10M) | ($12M) | ($12M) | Free cash flowFCF |
| — | −430.9% | −196.8% | −113.8% | −98.6% | −99.7% | −115.3% | −66.8% | −55.1% | −93.7% | −104.9% | Free cash flow marginFCF mgn |
| — | — | — | — | — | $0 | $5M | $0 | — | — | $0 | AcquisitionsAcquis. |
| — | -4566% | -39544% | — | — | — | -142% | -136% | -68% | -122% | -13170% | ROICROIC |
| — | -136% | -989% | -178% | -357% | -26% | -59% | -121% | -89% | -130% | -751% | Return on equityROE |
| — | −136% | −989% | −178% | −357% | −26% | −59% | −121% | −89% | −130% | −751% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $805K | $28M | $8M | $11M | $13M | $40M | $21M | $9M | $4M | $1M | $4M | Cash & investmentsCash+inv |
| $549K | $3M | $4M | $5M | $3M | $5M | $5M | $6M | $7M | $7M | $5M | ReceivablesReceiv. |
| $725K | $3M | $3M | $2M | $2M | $2M | $5M | $5M | $5M | $5M | $5M | InventoryInvent. |
| $1M | $2M | $3M | $2M | $2M | $3M | $3M | $2M | $2M | $1M | $2M | Accounts payablePayables |
| ($225K) | $3M | $4M | $6M | $4M | $4M | $7M | $9M | $10M | $11M | $7M | Operating working capitalOper. WC |
| $3M | $35M | $15M | $19M | $18M | $48M | $31M | $20M | $19M | $14M | $14M | Current assetsCur. assets |
| $12M | $9M | $10M | $8M | $5M | $7M | $9M | $8M | $8M | $9M | $9M | Current liabilitiesCur. liab. |
| 0.3× | 3.8× | 1.5× | 2.4× | 3.7× | 7.0× | 3.4× | 2.5× | 2.5× | 1.6× | 1.5× | Current ratioCurr. ratio |
| — | $189K | $189K | $189K | $0 | $0 | $431K | $431K | $431K | $431K | $431K | GoodwillGoodwill |
| $7M | $38M | $18M | $22M | $21M | $49M | $41M | $29M | $27M | $20M | $20M | Total assetsAssets |
| $867K | $7M | $5M | $3M | $3M | $2M | $4M | $5M | $4M | $798K | $2M | Total debtDebt |
| $62K | ($21M) | ($3M) | ($8M) | ($10M) | ($38M) | ($17M) | ($4M) | ($639K) | ($371K) | ($2M) | Net debt / (cash)Net debt |
| -6.0× | -48.8× | -45.0× | -43.3× | -95.6× | -122.4× | -99.7× | -50.0× | -38.9× | -43.1× | -40.8× | Interest coverageInt. cov. |
| ($36M) | $21M | $3M | $7M | $4M | $37M | $25M | $13M | $13M | $9M | $2M | Shareholders’ equityEquity |
| — | 32.8% | 25.3% | 16.2% | 27.1% | 20.7% | 19.7% | 10.2% | 7.7% | 11.5% | 11.6% | Stock comp / revenueSBC/rev |
| Per share | |||||||||||
| 31.5M | 53.4M | 91.8M | 7.2M | 10.7M | 18.4M | 19.4M | 20.8M | 20.2M | 2.4M | 3.6M | Shares out (diluted)Shares |
| $0.00 | $0.14 | $0.12 | $1.94 | $0.83 | $0.61 | $0.66 | $0.88 | $0.89 | $5.28 | $3.25 | Revenue / shareRev/sh |
| $-0.38 | $-0.55 | $-0.29 | $-1.69 | $-1.47 | $-0.53 | $-0.78 | $-0.73 | $-0.56 | $-4.82 | $-4.40 | EPS (diluted)EPS |
| $-0.01 | $-0.59 | $-0.24 | $-2.20 | $-0.81 | $-0.61 | $-0.77 | $-0.59 | $-0.49 | $-4.94 | $-3.41 | Owner earnings / shareOE/sh |
| $-0.01 | $-0.59 | $-0.24 | $-2.20 | $-0.81 | $-0.61 | $-0.77 | $-0.59 | $-0.49 | $-4.94 | $-3.41 | Free cash flow / shareFCF/sh |
| $0.01 | $0.01 | $0.00 | $0.01 | $0.00 | $0.00 | $0.01 | $0.01 | $0.00 | $0.08 | $0.05 | Cap. spending / shareCapex/sh |
| $-1.16 | $0.40 | $0.03 | $0.95 | $0.41 | $2.02 | $1.31 | $0.61 | $0.63 | $3.72 | $0.59 | Book value / shareBVPS |
The diluted share count moved ×1.7 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.72 into 2018 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1/12.77 into 2019 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.49 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.71 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Share counts before 2024 are restated ×1.5 for a stock split, so per-share figures sit on one basis.
The diluted share count moved ×1/8.31 into 2025 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.47 into TTM — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 12-yr | 5-yr | |
|---|---|---|
| Revenue / share | — | +44.9%/yr |
| Capital spending / share | +16.8%/yr | — |
| Book value / share | — | +55.2%/yr |
The record, charted
FY2013–2025Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.
ROIC
−122%low FY2018
Gross margin
53%low FY2017
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($12M)owner earningsvs.($12M)net incomelow FY2017
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business reported a $12M loss but ($12M) of owner earnings: $294K less than the profit line, taken out by capital spending and the timing of cash.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | ($12M) | ($11M) | ($15M) | ($15M) | ($10M) |
| Depreciation & amortizationnon-cash charge added back | +$2M | +$2M | +$2M | +$887K | +$1M |
| Stock-based compensationreal costnon-cash, but a real cost | +$1M | +$1M | +$2M | +$3M | +$2M |
| Working capital & othertiming of cash in and out, other non-cash items | −$3M | −$1M | −$412K | −$3M | −$5M |
| Cash from operations | ($12M) | ($10M) | ($12M) | ($15M) | ($11M) |
| Capital expenditurecash put back in to keep running and to grow | −$188K | −$37K | −$157K | −$194K | −$59K |
| Owner earnings | ($12M) | ($10M) | ($12M) | ($15M) | ($11M) |
| Owner-earnings marginowner earnings ÷ revenue | -94% | -55% | -67% | -115% | -100% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $1M), owner earnings is nearer ($13M).
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -43.1×Does not cover its interestOperating income ($13M) ÷ interest expense $309K
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net debt against an operating lossCash $1M − debt $2M
What this means
Netting $1M of cash and short-term investments against $2M of debt leaves $824K owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 208 + DIO 296 − DPO 88 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below average through the cycle6-yr median, range -39544%–-68%; -107% latest = NOPAT ($11M) ÷ invested capital $10MIndustry peers: median -6%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran -107% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Owner-earnings margin -100%Consumes cash through the cycle9-yr median margin, range -431%–-55%; latest ($12M) = operating cash ($12M) − maintenance capex $188KIndustry peers: median -19%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -94% of revenue this year, a -100% median across 9 years. Treating stock comp as the real expense it is (less $1M of SBC) leaves ($13M).
- Are earnings backed by cash? ($12M)Loss, and burning cashNet income ($12M) · cash from operations ($12M)
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.12×HarvestingCapex $188K ÷ depreciation $2M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $13M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity NearCurrent ratio ≥ 2× · 1.63×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $2M vs $5M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (10-yr record) · 10 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-3.58/share (latest year $-3.28), the averaged base the calculator's gate runs on, and book value is $2.53/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2013–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 0 of 10
What this means
Lost money in 10 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 6 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −263% → −82% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about −263% early to −82% lately, median −120% — pricing power intact or improving.
- Reinvestment, incremental ROIC —
What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
- Worst year 2017 · −429.9% op. margin
What this means
Operations went underwater in 2017, understand why before trusting the good years.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$14M
- Cash & short-term investments$4M
- Receivables$5M
- Inventory$5M
- Other current assets$874K
Current liabilities$9M
- Debt due within a year$2M
- Accounts payable$2M
- Other current liabilities$5M
Current ratio1.55×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.03×stricter: inventory excluded
Cash ratio0.44×strictest: cash alone against what's due
Working capital$5Mthe cushion left after near-term bills
Debt due this year vs. cash$2M due · $4M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Cash runway0.3 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Revenue, latest quarter vs. a year ago−36.6%the freshest read on whether the business is still growing
Current ratio, recent quarters2.4× → 1.5×
Deeper floors
Tangible book value($2M)equity stripped of goodwill & intangibles
Net current asset value$125KGraham's net-net: current assets less all liabilities
Debt incl. operating leases$2M$472K of it operating leases
Deferred revenue$3Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
Goodwill & intangibles$4M20% of all assets; the premium carried on the balance sheet for businesses acquired
Against book equity5%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital
Cash spent acquiring$5Mover 10 years buying other businesses, against $2M of capital spent building
$189K written down across 1 year (2020): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.
Management, ownership & pay
From the proxy: how much of the business the people running it own, and how they are paid.
- Stock-based compensation$1M
The slice of the business handed to employees in shares this year, 12% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why ChronoScale Holdings Corporation is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2013–2025.
1 of the 3 tests turned up something to look into; the other 2 came back clean.
- Look hereDid debt outgrow the business?$867K → $2M
Debt rose from $867K to $2M while owner earnings went from about ($18M) to ($11M): the borrowing grew and the earnings that would carry it are not there now. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
And these came back clean
- Is it less profitable than it was?
- Are "one-time" charges a yearly habit?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Industrial Machinery
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| GHMGraham Corporation | $245M | 22% | 1.9% | 3% | 6% |
| OUSTOuster Inc. | $169M | 27% | -297.0% | -101% | -224% |
| ERIIEnergy Recovery Inc. | $135M | 69% | 13.5% | 13% | 8% |
| CEPLCapstone Energy Plus Inc. | $106M | 14% | -23.2% | -74% | -19% |
| ASYSAmtech Systems Inc. | $79M | 37% | 1.8% | 1% | -4% |
| VELOVelo3D Inc. | $46M | -5% | -153.6% | -147% | -140% |
| CHRNChronoScale Holdings Corporation | $13M | 50% | -120.5% | -139% | -100% |
| RRRichtech Robotics Inc. | $5M | 65% | -86.5% | -6% | -279% |
| Group median | — | 32% | -54.9% | -40% | -59% |
The price
What a price has to assume.
What the price implies
reverse-DCFChronoScale Holdings Corporation is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
$
The assumptions
Revenue, delivered11%/yr’20→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−105%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "ChronoScale Holdings Corporation (CHRN), the owner's record," https://ownerscorecard.com/c/CHRN, data as of 2026-07-09.
Manual order: ← CHRD its page in the Manual CHRW →
Industry order: ← CEPL the Industrial Machinery chapter CMI →