Persistent cash burn is evident, with the company reporting a $1.4 million free cash flow deficit in 2026Q1, confirming a total dependence on external capital to sustain operations.
| Cash from Operations | -4.42M | -3.81M | -3.42M | -3.23M | -5.1M | -4.1M | -798.74K | -1.24M | -506.5K | -623.23K | -650.99K |
| Operating CF Margin % | - | - | -1628.1% | -1227.11% | -1293.67% | -935.38% | -343.88% | -707.97% | -118.73% | -181.21% | -202.19% |
| Operating CF Growth % | -232.42% | -11.38% | -5.76% | 36.58% | -24.37% | -413.09% | 35.83% | -145.76% | 18.73% | 4.26% | - |
| Net Income | -10.27M | -4.16M | -5.35M | -6.52M | -5.78M | -4.82M | -1.59M | -1.99M | -356.89K | -672.14K | -599.49K |
| Depreciation & Amortization | 150K | 71K | 18K | 21.16K | 54.72K | 58.21K | 45.2K | 27.35K | 38.89K | 16.74K | 19.81K |
| Stock-Based Compensation | 181K | 91K | 747K | 0 | 940.24K | 0 | 0 | 438.67K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.94M | 288K | 995K | 2.98M | -13.73K | 716.04K | 715.64K | 21.84K | 40.85K | 75.41K | -468.6K |
| Working Capital Changes | -197.99K | -102K | 168K | 286.65K | -298.51K | -51.94K | 33.55K | 257.77K | -173.86K | -11.32K | 256.69K |
| Change in Receivables | 67.69K | 9K | -36K | 85.59K | -19.97K | -24.69K | -83.94K | 71.29K | 4.12K | 20.93K | 72.31K |
| Change in Inventory | -1.8K | 7K | 101K | -39.81K | -59.1K | -6.25K | -54 | 21.78K | -23.12K | -9.32K | 23.75K |
| Change in Payables | -23.55K | -20K | 12K | -90.95K | -116.58K | 337.68K | -32.54K | 39.31K | 41.3K | -10.04K | 84.16K |
| Cash from Investing | -2.51M | -3.23M | -1.89M | -1.52M | -51.69K | -82.79K | -6.73K | -81.66K | 5.78K | 292.3K | 262.5K |
| Capital Expenditures | 0 | 0 | 0 | 0 | -51.69K | -67.75K | 0 | -23.33K | -2.53K | -54.48K | 0 |
| CapEx % of Revenue | 0% | - | - | 0% | 13.12% | 15.46% | - | 13.27% | 0.59% | 15.84% | - |
| Acquisitions | 362K | 0 | -1.01M | 22.79K | 0 | 0 | 1.03K | -7.57K | 5.77K | 297.43K | 262.5K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -4.04M | -3.23M | -656K | 0 | 0 | -15.04K | -12.63K | -50.76K | 2.54K | 49.36K | 0 |
| Cash from Financing | 8.52M | 8.86M | 3.05M | 3.47M | 4.09M | 10.73M | 741.76K | 1.18M | 912.21K | 354.73K | 100K |
| Debt Issued (Net) | -1.56M | 1.38M | -88K | 0 | -8.39K | 266.13K | 352.73K | 336.74K | -107.12K | -24.5K | 0 |
| Equity Issued (Net) | -1.5M | 3.33M | 0 | 0 | 4.1M | 10.5M | 430K | 840.69K | 1.02M | 379.24K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 11.58M | 4.15M | 3.13M | 3.47M | 0 | -38.97K | -40.97K | 0 | 0 | 0 | 100K |
| Net Change in Cash | 1.59M | 1.8M | -2.27M | -1.27M | -1.06M | 6.54M | -63.71K | -148.99K | 411.49K | 23.81K | -288.49K |
| Free Cash Flow | -4.42M | -3.81M | -3.42M | -3.23M | -5.15M | -4.17M | -798.74K | -1.27M | -509.03K | -677.71K | -650.99K |
| FCF Margin % | 6693.94% | - | -1628.1% | -1227.11% | -1306.79% | -950.84% | -343.88% | -721.24% | -119.32% | -197.05% | -202.19% |
| FCF Growth % | -101.69% | -11.38% | -5.76% | 37.21% | -23.59% | -421.57% | 37.01% | -149.12% | 24.89% | -4.1% | - |
| FCF per Share | -0.01 | -0.00 | -0.02 | -0.09 | -0.34 | -0.44 | -0.13 | -0.22 | -0.13 | -0.75 | -1.84 |
| FCF Conversion (FCF/Net Income) | 0.43x | 0.95x | 0.66x | 0.50x | 0.89x | 0.85x | 0.50x | 0.63x | 1.42x | 0.93x | 1.09x |
| Interest Paid | -77K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and insolvency risk
According to the provided financial data, NITO exhibits a persistent disconnect between net income and operating cash flow, with the 2025Q4 period showing a $1.3 million net profit alongside a $1.4 million cash outflow, suggesting that reported earnings are not currently supported by actual cash generation.
The wide variance between accounting profits and cash flow suggests that non-cash items or accounting adjustments are significantly inflating the bottom line. Investors should monitor this divergence, as it indicates that the company's reported profitability does not reflect the underlying economic reality of its cash-burning operations.
As reported in recent quarterly filings, NITO has consistently failed to generate positive free cash flow, with the most recent 2026Q1 period showing a $1.4 million burn, confirming that the company remains entirely dependent on external financing to sustain its ongoing operational and research activities.
The absence of a positive free cash flow trajectory suggests that the business model has yet to achieve the scale necessary to cover its fixed cost base. This persistent cash drain warrants further investigation into how long the company can sustain operations before requiring additional dilutive capital infusions.
Based on the company's reported figures, working capital changes have been highly erratic, swinging from a $330.4K inflow in 2024Q4 to a $520.0K outflow in 2025Q4, which appears to reflect the lack of a stable, recurring revenue cycle or predictable inventory management processes.
These fluctuations in working capital suggest that the company lacks a mature operational rhythm, likely due to the total cessation of commercial activity. Such volatility makes it difficult to forecast future cash needs and may indicate underlying inefficiencies in how the company manages its limited resources.
As indicated by the financial statements, NITO has utilized stock-based compensation, such as the $2.0 million adjustment in 2025Q2, to manage its cash position, which effectively obscures the true extent of the company's operational cash burn from the perspective of a traditional cash flow analysis.
The reliance on equity-based incentives to preserve cash suggests that management is attempting to mitigate liquidity pressures without addressing the core issue of negative operating cash flow. Investors should be wary of this practice, as it dilutes existing shareholders while failing to improve the company's fundamental ability to generate cash from operations.
Quick answers to the most common questions about buying NITO stock.
Nexentis Technologies Inc. (NITO) generated $-3.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nexentis Technologies Inc. (NITO) reported negative free cash flow of $3.8M in 2025, indicating capital requirements exceeded cash from operations.
Nexentis Technologies Inc. (NITO) 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.