Operational liquidity is critically constrained, with the firm generating negative free cash flow in every quarter of the last ten periods, including a $1.0M outflow in 2025Q3.
| Cash from Operations | -5.26M | -7.87M | -10.97M | -11.77M | -15.73M | -20.61M |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | 147.17% | 28.23% | 6.82% | 25.16% | 23.67% | - |
| Net Income | -128.28M | -178.01M | -88.43M | -39.68M | -113.43M | -26.72M |
| Depreciation & Amortization | 105.11K | 129.09K | 121.86K | 113.5K | 123.59K | 391.42K |
| Stock-Based Compensation | 1.38M | 3.31M | 4.67M | 3.54M | 5.49M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 118.38M | 160.83M | 63.85M | 19.96M | 90.67M | 4.79M |
| Working Capital Changes | 3.29M | 5.86M | 8.81M | 4.31M | 1.42M | 932.13K |
| Change in Receivables | 96.66K | 1.15M | -1.11M | 46 | 1.59K | 342 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.25M | 3.11M | 4.06M | 3.89M | 1.08M | -272.32K |
| Cash from Investing | 1.51M | -500K | -1.26M | -29.77K | -5.16K | -48.89K |
| Capital Expenditures | -1.24K | 0 | -70.43K | -29.77K | -5.16K | -48.89K |
| CapEx % of Revenue | 5.91% | - | - | - | - | - |
| Acquisitions | 0 | 0 | -1.19M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 6.18M | 8.38M | 10.52M | 4.52M | 4.25M | 32.6M |
| Debt Issued (Net) | 1.2M | 6.98M | 8.05M | -1.12M | -560.85K | -546.65K |
| Equity Issued (Net) | 5.25M | 2.38M | 3M | 4.01M | 4.68M | 31.93M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -271.64K | -971.23K | -528.21K | 503.23K | 134.91K | 1.22M |
| Net Change in Cash | 2.23M | -127.77K | -1.65M | -7.3M | -11.49M | 11.97M |
| Free Cash Flow | -5.26M | -7.87M | -11.04M | -11.8M | -15.74M | -20.66M |
| FCF Margin % | -25114.87% | - | - | - | - | - |
| FCF Growth % | 38.13% | 28.68% | 6.46% | 24.99% | 23.82% | - |
| FCF per Share | -1.68 | -3.82 | -9.06 | -16.78 | -23.97 | -35.04 |
| FCF Conversion (FCF/Net Income) | 0.04x | 0.04x | 0.12x | 0.30x | 0.14x | 0.77x |
| Interest Paid | 17.12K | 24.55K | 20.13K | 352.33K | 79.72K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 34 | 0 |
Imminent insolvency and dilution
As reported in financial statements, LNAI exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a -7.86 reading in 2024Q3, which suggests that reported earnings provide little insight into the company's actual liquidity and operational health.
The extreme volatility in the OCF/NI ratio indicates that net income is heavily influenced by non-cash accounting adjustments rather than core business performance. Investors should monitor this divergence as it suggests that the company's reported profitability is largely decoupled from the actual cash required to sustain its research and administrative activities.
Based on LNAI's reported figures, the company has consistently generated negative free cash flow over the last ten quarters, with quarterly outflows frequently exceeding $1M, highlighting a structural inability to fund operations through internal cash generation and a total reliance on external capital markets for survival.
The persistent negative FCF trajectory confirms that the company remains in a cash-burning phase with no clear path to self-sustainability. This trend appears to be accelerating the depletion of the firm's limited cash reserves, necessitating further scrutiny of the company's ability to maintain operations without significant dilution.
According to recent SEC filings, LNAI's working capital changes have been highly erratic, with a significant $997.4K swing in 2025Q1, suggesting that the company's cash management is subject to unpredictable shifts that may reflect underlying instability in its operational and administrative payment cycles.
The frequent and large fluctuations in working capital suggest that the company may be struggling to manage its payables and receivables effectively. This volatility warrants further investigation, as it may indicate that the firm is prioritizing short-term cash preservation over stable operational management.
As indicated by historical data, LNAI relies heavily on stock-based compensation, which reached $1.5M in 2024Q3, effectively masking the true cost of talent acquisition and retention while simultaneously diluting existing shareholders to compensate for the lack of available cash to fund competitive salary packages.
The reliance on equity-based incentives suggests that the company is attempting to preserve its minimal cash balance by shifting the burden of compensation to shareholders. This practice may indicate that the firm's true operational burn rate is higher than the cash flow statement alone would suggest.
Quick answers to the most common questions about buying LNAI stock.
Lunai Bioworks Inc. (LNAI) generated $-7.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Lunai Bioworks Inc. (LNAI) reported negative free cash flow of $7.9M in 2024, indicating capital requirements exceeded cash from operations.
Lunai Bioworks Inc. (LNAI) 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.