Operating cash flow remains deeply negative at -$582.5K for 2024Q1, a trend exacerbated by questionable capital allocation including $38.8M in share repurchases despite minimal cash reserves.
| Cash from Operations | -677.2K | -3.11M | -1.32M | -129.86K | -717.26K |
| Operating CF Margin % | - | -155.71% | -36.05% | -4.12% | -21.92% |
| Operating CF Growth % | 0% | -135.2% | -919.06% | 81.89% | - |
| Net Income | -157.48K | -3.16M | -2.07M | -1.22M | -1.29M |
| Depreciation & Amortization | 0 | 542.97K | 563.04K | 528.11K | 600.63K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -611.54K | 126.87K | -30.34K | 165.13K | 242.5K |
| Working Capital Changes | 91.82K | -625.44K | 211.98K | 393.98K | -270.45K |
| Change in Receivables | 0 | -103.7K | 441.25K | -36.92K | -66.71K |
| Change in Inventory | 0 | -45.09K | -289.31K | 3.28K | -562.6K |
| Change in Payables | 0 | 114.8K | 99.35K | 0 | -58.32K |
| Cash from Investing | 39.29M | -834.94K | -1.3M | -428.13K | -1.01M |
| Capital Expenditures | 0 | -33.95K | -752.87K | -433.55K | -1.01M |
| CapEx % of Revenue | - | 1.7% | 20.51% | 13.75% | 30.78% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 496.88K | -800.99K | -544.83K | 5.42K | 0 |
| Cash from Financing | -38.63M | 3.58M | 3.14M | 605.7K | 1.48M |
| Debt Issued (Net) | 59.05K | 3.35M | 2.25M | 482 | 1.47M |
| Equity Issued (Net) | -1000K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -38.79M | 0 | 0 | 0 | 0 |
| Other Financing | 101.23K | 236.02K | 882K | 605.21K | 14.7K |
| Net Change in Cash | -20.04K | -330.7K | 507.42K | -76.43K | -259.37K |
| Free Cash Flow | -677.2K | -3.15M | -2.08M | -563.41K | -1.72M |
| FCF Margin % | - | -157.41% | -56.56% | -17.87% | -52.7% |
| FCF Growth % | - | -51.55% | -268.51% | 67.33% | - |
| FCF per Share | -0.11 | -0.18 | -0.12 | -0.03 | -0.10 |
| FCF Conversion (FCF/Net Income) | 4.30x | 1.24x | 0.83x | 0.10x | 0.56x |
| Interest Paid | 0 | 269.86K | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity depletion risk
As reported in recent financial filings, MKDW's 2024Q1 net income of $268.7K stands in stark contrast to an operating cash outflow of $582.5K, resulting in a deeply negative OCF/NI ratio of -2.17 that highlights a complete lack of cash-generative quality in the company's reported earnings.
The divergence between positive net income and negative operating cash flow suggests that the company's profitability is driven by non-cash or non-operating accounting adjustments rather than core business activities. Investors should monitor this disconnect, as it implies that the reported earnings do not reflect the actual cash-burning reality of the underlying operations.
Based on the company's latest quarterly disclosures, MKDW continues to exhibit a deteriorating free cash flow trajectory, with outflows reaching $582.5K in 2024Q1, a significant worsening from the $94.7K outflow observed in the preceding quarter as the business struggles to stabilize its cash position.
The consistent negative free cash flow indicates that the company is unable to fund its operations through internal cash generation. This trend suggests that the business model remains fundamentally unviable without continuous external capital injections, which may be difficult to secure given the current lack of revenue.
According to the 2024Q1 cash flow statement, MKDW experienced a $265.4K cash drain from working capital changes, which, as noted in recent SEC filings, further pressured the company's already limited liquidity and hindered its ability to manage short-term operational obligations effectively.
The negative impact of working capital changes suggests that the company is struggling with either inefficient collection cycles or the need to settle outstanding liabilities despite the absence of incoming revenue. This volatility in working capital appears to be a primary driver of the accelerated cash burn observed in the most recent quarter.
As reported in financial statements, MKDW utilized $38.8M for share repurchases in 2024Q1, a move that appears highly questionable given the company's meager $542,591 cash balance and its inability to generate positive operating cash flow from its core automotive component business.
This capital allocation strategy warrants significant investigation, as it appears to prioritize share reduction over the preservation of liquidity necessary for operational survival. Such deployment of capital in the face of mounting losses and zero revenue suggests a potential misalignment between management's actions and the company's immediate financial stability.
Quick answers to the most common questions about buying MKDW stock.
MKDWELL Tech Inc. (MKDW) generated $-3.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
MKDWELL Tech Inc. (MKDW) reported negative free cash flow of $3.1M in 2024, indicating capital requirements exceeded cash from operations.
MKDWELL Tech Inc. (MKDW) 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.