Liquidity is severely constrained, evidenced by cash reserves falling to just $6,000 in 2025Q1 while the firm continues to sustain quarterly free cash flow outflows typically ranging between $4 million and $7 million.
| Cash from Operations | -19.65M | -20.88M | -21.95M | -22.56M | -19.55M |
| Operating CF Margin % | - | - | - | -29294.81% | -4588.73% |
| Operating CF Growth % | 36.58% | 4.86% | 2.7% | -15.39% | - |
| Net Income | -23.55M | -44.29M | -82.95M | -26.75M | -23.27M |
| Depreciation & Amortization | 1.37M | 1.31M | 1.2M | 1.21M | 1.24M |
| Stock-Based Compensation | 3.73M | 4.14M | 4.13M | 69K | 93K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 143K |
| Other Non-Cash Items | 196K | 17.95M | 53.44M | 2.89M | 1.3M |
| Working Capital Changes | -1.39M | 0 | 2.23M | 30K | 932K |
| Change in Receivables | 0 | 0 | 29K | -29K | 111K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.26M | 2.26M | 0 | 0 | 0 |
| Cash from Investing | -100K | -13K | -48K | -163K | -459K |
| Capital Expenditures | -52K | 0 | -48K | -101K | -459K |
| CapEx % of Revenue | 7.98% | - | - | 131.17% | 107.75% |
| Acquisitions | -35K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -13K | -13K | 0 | -62K | 171.62M |
| Cash from Financing | 19.49M | 20.85M | 22.16M | 22.49M | 20.16M |
| Debt Issued (Net) | -584K | 0 | 26.21M | 22.32M | 20.1M |
| Equity Issued (Net) | 1.87M | 0 | 1000K | 0 | 63K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 17.46M | 20.85M | -5.72M | 161K | 0 |
| Net Change in Cash | 1.49M | 1.7M | 159K | -234K | 152K |
| Free Cash Flow | -19.7M | -20.88M | -22M | -22.72M | -20.01M |
| FCF Margin % | -3021.32% | - | - | -29506.49% | -4696.48% |
| FCF Growth % | 6.65% | 5.07% | 3.19% | -13.56% | - |
| FCF per Share | -0.68 | -0.72 | -1.43 | -1.06 | -0.93 |
| FCF Conversion (FCF/Net Income) | 0.84x | 0.47x | 0.26x | 0.84x | 0.84x |
| Interest Paid | 131K | 0 | 241K | 35K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Clinical Trial Funding Dependency
According to recent SEC filings, NKGen's reported net income frequently diverges from operating cash flow, as evidenced by the 2025Q1 net income of $15.3 million contrasting with a $2.8 million cash outflow, highlighting the limited utility of GAAP earnings in assessing this clinical-stage firm's operational health.
The disconnect between net income and operating cash flow suggests that non-operating accounting adjustments are significantly distorting the bottom line. Investors should prioritize the cash burn rate over reported earnings, as the latter appears to be heavily influenced by non-cash items that do not provide liquidity for ongoing clinical trials.
As reported in financial statements, NKGen has maintained a consistent pattern of negative free cash flow, with quarterly outflows typically ranging between $4 million and $7 million, reflecting the heavy capital requirements inherent in the development of its autologous SNK01 cell therapy platform.
The persistent negative trajectory of free cash flow indicates that the company is entirely reliant on external financing to sustain its research and development pipeline. Without a commercial product to generate offsetting cash inflows, this trend suggests that the company's runway is strictly limited by its current liquidity position.
Based on NKGen's reported figures, working capital changes have fluctuated significantly, including a $1.6 million inflow in 2024Q3 and a $4 million outflow in 2024Q4, which complicates the assessment of the company's underlying operational efficiency and its ability to manage short-term liabilities.
These fluctuations in working capital appear to be driven by the timing of clinical trial expenses and related-party settlements rather than core business growth. Analysts should monitor these swings closely, as they can temporarily mask the true underlying cash burn rate required to support the company's manufacturing activities.
As indicated by the company's financial disclosures, stock-based compensation remains a recurring non-cash expense, averaging over $1 million per quarter in several periods, which effectively subsidizes the cash burn but obscures the true economic cost of talent retention in a highly competitive biotechnology labor market.
While stock-based compensation preserves cash, it represents a significant dilution risk for shareholders that is not fully captured in the operating cash flow statement. The reliance on this form of compensation warrants further investigation into the company's ability to attract and retain specialized personnel without further depleting its limited cash reserves.
Quick answers to the most common questions about buying NKGN stock.
NKGen Biotech, Inc. Common Stock (NKGN) generated $-20.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
NKGen Biotech, Inc. Common Stock (NKGN) reported negative free cash flow of $20.9M in 2024, indicating capital requirements exceeded cash from operations.
NKGen Biotech, Inc. Common Stock (NKGN) 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.