Operational efficiency is non-existent, with the company recording a $91.2K cash outflow in 2026Q1 despite reporting a $2.0 million net income, highlighting a persistent disconnect between accounting profits and actual liquidity.
| Cash from Operations | -379.19K | -539.19K | -172.26K |
| Operating CF Growth % | -379099.69% | -213% | - |
| Net Income | 6.66M | 3.97M | -479 |
| Depreciation & Amortization | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -5.1M | -4.65M | -171.92K |
| Working Capital Changes | -22.07K | 138.85K | 132 |
| Cash from Investing | 0 | -231.15M | 0 |
| Purchase of Investments | 231.15M | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 0 |
| Net Investment Activity | 231.15M | 0 | 0 |
| Acquisitions | 0 | 0 | 0 |
| Other Investing | -231.15M | -231.15M | 0 |
| Cash from Financing | 393.16K | 231.69M | 173.62K |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Stock Issued | -232.05M | 232.05M | -328.6K |
| Net Stock Activity | -232.05M | 232.05M | -328.6K |
| Debt Issuance (Net) | 1M | -900K | 502.21K |
| Other Financing | 231.44M | 543.97K | 1 |
| Net Change in Cash | 12.79K | 4.79K | 1.35K |
| Exchange Rate Effect | 0 | 0 | 0 |
| Cash at Beginning | 6.14K | 1.35K | 0 |
| Cash at End | 14.89K | 6.14K | 1.35K |
| Interest Paid | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 |
| Free Cash Flow | -379.19K | -539.19K | -295 |
| FCF Growth % | -22.83% | -182675.25% | - |
Insolvency and liquidation risk
As reported in financial statements, DMAA's net income frequently diverges from operating cash flow, with the 2026Q1 period showing a $2.0 million profit against a $91.2K cash outflow, suggesting that reported earnings are driven by non-cash accounting adjustments rather than actual business performance.
The persistent negative operating cash flow despite reported net income highlights the absence of a functional business model. Investors should interpret this gap as a clear indicator that the company lacks the underlying cash-generating assets required to support its valuation.
Based on historical data, the company has consistently recorded negative free cash flow, with a peak outflow of $300.7K in 2025Q2, illustrating a trajectory of capital depletion that remains unmitigated by any revenue-generating activities or operational efficiency improvements.
The inability to generate positive free cash flow suggests that the entity is purely a capital-consuming vehicle. This trend warrants further investigation into how the company intends to sustain its administrative existence without further dilutive financing.
According to recent SEC filings, working capital changes have been erratic, swinging from a $82.3K inflow in 2025Q3 to a $67.4K outflow in 2025Q2, which appears to reflect the irregular timing of professional fee payments rather than any underlying operational cycle.
These fluctuations suggest that management is likely managing liquidity on a month-to-month basis to cover essential compliance costs. The lack of a predictable working capital cycle confirms the entity's status as a dormant shell rather than an active business.
Data indicates a significant cumulative divergence between reported net income and operating cash flow, where the company has recognized millions in accounting profits while simultaneously burning through its limited cash reserves to maintain its listing status.
This divergence is a critical signal that the reported net income is largely irrelevant to the company's actual financial health. Investors should monitor this trend as it suggests that the accounting profit is a byproduct of non-cash items that provide no liquidity for potential acquisitions.
As reported in financial statements, the cash flow statement obscures the true cost of maintaining the shell, as professional fees and regulatory compliance costs are consistently paid out of a dwindling cash balance that has now reached a critical $6,137.
The cash flow statement fails to capture the potential future liabilities associated with sponsor loans or promissory notes that may be required to keep the entity afloat. This suggests that the true cost of the company's inactivity is likely higher than the cash burn indicates.
Quick answers to the most common questions about buying DMAA stock.
Drugs Made In America Acquisition Corp. Ordinary Shares (DMAA) generated $-0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Drugs Made In America Acquisition Corp. Ordinary Shares (DMAA) reported negative free cash flow of $0.5M in 2025, indicating capital requirements exceeded cash from operations.
Drugs Made In America Acquisition Corp. Ordinary Shares (DMAA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.