Operating cash flow of -$1.5 million in 2024Q4 against a mere $146,514 in cash reserves suggests an imminent depletion of liquidity.
| Cash from Operations | -2.82M | -5.69M | -4.6M | -4.72M |
| Operating CF Margin % | -729.74% | -180.01% | -67.52% | -29.51% |
| Operating CF Growth % | 50.4% | -23.71% | 2.45% | - |
| Net Income | -30.11M | -7.45M | -9.77M | -10.35M |
| Depreciation & Amortization | 3.3M | 2.99M | 3.94M | 5.46M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 20.71M | -74.11K | 2.18M | 1.27M |
| Working Capital Changes | 3.29M | -1.17M | -956.8K | -1.09M |
| Change in Receivables | -288.63K | 1.73M | -613.51K | 7.55M |
| Change in Inventory | 2.16M | 1.26M | 2.7M | 781.48K |
| Change in Payables | 0 | 0 | 0 | 0 |
| Cash from Investing | -7.78M | -548.93K | -1.07M | -815.71K |
| Capital Expenditures | -976 | -548.93K | -1.15M | -815.71K |
| CapEx % of Revenue | 0.25% | 17.36% | 16.93% | 5.1% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -775K | 0 | 83.25K | 0 |
| Cash from Financing | 10.6M | 6.37M | 4.22M | 3.27M |
| Debt Issued (Net) | 3.59M | 2.13M | -6.92M | 1.71M |
| Equity Issued (Net) | 1.05K | 4.24M | 1.4M | 1.56M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 7M | -1.2M | 9.74M | 0 |
| Net Change in Cash | 9.42K | -856.97K | -185.63K | -2.55M |
| Free Cash Flow | -2.82M | -6.24M | -5.76M | -5.53M |
| FCF Margin % | -729.99% | -197.36% | -84.45% | -34.61% |
| FCF Growth % | 54.75% | -8.45% | -4.02% | - |
| FCF per Share | -3.83 | -341.69 | -147.20 | -141.51 |
| FCF Conversion (FCF/Net Income) | 0.09x | 0.76x | 0.47x | 0.46x |
| Interest Paid | 22.88K | 60.49K | 453.21K | 380.1K |
| Taxes Paid | 0 | 2.15K | 0 | 0 |
Imminent liquidity insolvency risk
As reported in recent financial statements, the company's operating cash flow of -$1.5 million in 2024Q4 against a net loss of $28.2 million suggests that accruals and non-cash charges are masking the true severity of the underlying cash burn required to sustain current operations.
The minimal OCF/NI ratio of 0.05 indicates that the company is not generating cash from its core business activities, relying instead on accounting adjustments to bridge the gap between reported losses and actual cash outflows. Investors should monitor this divergence as it suggests that the company's earnings quality is essentially non-existent.
Based on the latest quarterly data, the company's free cash flow margin of -7.3% in 2024Q4 highlights a persistent inability to achieve self-sustaining operations, as the cash burn continues to outpace any potential revenue generation from its specialized battery manufacturing activities.
The consistent negative FCF trajectory suggests that the company is trapped in a cycle of capital consumption without a clear path to positive cash generation. This trend warrants further investigation into whether the current business model can ever reach a break-even point given the extreme scale of its losses.
According to the provided cash flow data, the $3.9 million working capital inflow in 2024Q4 appears to be a temporary anomaly rather than a sign of operational efficiency, as the company struggles to manage its inventory and payables in a declining revenue environment.
This sudden shift in working capital may indicate aggressive efforts to liquidate assets or defer payments to suppliers to preserve the remaining $146,514 in cash. Such measures appear unsustainable and suggest that the company is facing severe pressure on its liquidity position.
As evidenced by the company's reported figures, the cash flow statement fails to account for the imminent depletion of liquidity, with the $1.5 million quarterly burn rate effectively exhausting the remaining $146,514 in cash reserves, rendering the current operational structure highly vulnerable to collapse.
The lack of disclosure regarding potential off-balance sheet financing or emergency credit lines suggests that the company may be nearing a total cessation of operations. Investors should interpret these figures as a clear warning that the current cash position is insufficient to support ongoing manufacturing requirements.
Quick answers to the most common questions about buying ELPW stock.
Elong Power Holding Limited (ELPW) generated $-2.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Elong Power Holding Limited (ELPW) reported negative free cash flow of $2.8M in 2024, indicating capital requirements exceeded cash from operations.
Elong Power Holding Limited (ELPW) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.