The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We are looking at the extreme quartiles of our ratios to identify credit stresses. Our favorite leverage indicator is total liabilities/ market cap.  We prefer to use total liabilities rather than total debt,  because the former picks up both lease liabilities and tax liabilities.  We have found that 3x on this ratio signals significant chances of credit issues. Of the 24 companies we track in the Infused Products & Extracts sector, the six companies have measures over 7.3x.  Five of these also have free cash flow adjusted current ratios below 1.0x, indicating a probable need for additional financing within the year.  The five are all small companies; the largest is Gaby Inc. (GABY: CSE), the $2.8M market cap parent company of San Diego’s Mankind Dispensary.  Gaby has over 16x Liabilities/mkt cap and a free cash flow adjusted current ratio of .14.  Gaby has a $25.5M promissory note payable to the sellers of the Mankind dispensary.  Approximately $5.0M is due in April 2023.  Gaby management is in discussions with to the holders of the note to restructure payments.