Persistent negative free cash flow, evidenced by a $92,900 outflow in 2026Q1, highlights the entity's structural inability to fund its own search activities.
| Cash from Operations | -681.99K | -774.26K | -545.23K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -318.1% | -42% | - |
| Net Income | 4.74M | 5.54M | 4.21M |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -6.8M | -7.01M | -4.56M |
| Working Capital Changes | 1.38M | 701.2K | -195.09K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 30.74K | 0 | 41.25K |
| Cash from Investing | -3.25M | -3.25M | -160M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 172.92M | 171.41M | 164.41M |
| Other Investing | -3.25M | -3.25M | 0 |
| Cash from Financing | 3.25M | 3.18M | 161.42M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | -327.12K |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 162M |
| Net Change in Cash | -678.91K | -846.18K | 878.25K |
| Free Cash Flow | -681.99K | -774.26K | -545.23K |
| FCF Margin % | - | - | - |
| FCF Growth % | 6.94% | -42.01% | - |
| FCF per Share | -0.04 | -0.05 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.14x | -0.14x | -0.13x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation and capital exhaustion
As reported in financial statements, MACIW consistently records positive net income while simultaneously reporting negative operating cash flow, with the OCF/NI ratio reaching -0.12 in 2026Q1, highlighting a fundamental disconnect between accounting profitability and the actual cash resources available to the shell entity.
The persistent negative operating cash flow despite reported net income suggests that the company's earnings are driven by non-cash accounting adjustments rather than operational cash generation. Investors should interpret this divergence as a signal that the company lacks a self-sustaining cash engine, relying instead on external financing or sponsor support to cover its ongoing administrative obligations.
Based on the provided financial data, the company's free cash flow has remained consistently negative throughout the observed period, culminating in a $92.9K outflow in 2026Q1, which underscores the structural inability of the current shell vehicle to generate internal liquidity to fund its search mandate.
The absence of positive free cash flow is expected for a pre-combination SPAC, yet the trend indicates an increasing reliance on external capital to maintain operations. This trajectory suggests that the company may face significant liquidity pressure if the search for a target entity extends beyond current capital reserves.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $646.4K inflow in 2026Q1 to a $295.3K outflow in 2024Q2, which reflects the unpredictable nature of managing professional fees and legal accruals within a blank check company structure.
These fluctuations in working capital appear to be driven by the timing of administrative payments rather than operational efficiency. The volatility warrants further investigation into whether these shifts represent deferred liabilities that could create sudden cash demands as the company approaches its regulatory deadline.
As indicated by the cash flow statement, the company's reported cash burn is partially masked by working capital adjustments, yet the underlying reality remains a consistent drain on resources, with the 2026Q1 cash position of $32,075 appearing insufficient to support prolonged search activities.
The cash flow statement obscures the extent to which the sponsor is subsidizing the entity's existence through non-cash or deferred arrangements. Analysts should monitor the relationship between these reported cash figures and the sponsor's willingness to provide additional capital, as the current burn rate suggests a high risk of insolvency without a near-term merger.
Quick answers to the most common questions about buying MACIW stock.
Melar Acquisition Corp. I Warrant (MACIW) generated $-0.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Melar Acquisition Corp. I Warrant (MACIW) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
Melar Acquisition Corp. I Warrant (MACIW) 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.