The firm demonstrates a structural inability to generate internal liquidity, highlighted by a 2024Q4 free cash flow margin of -551.5% and a cash position that has plummeted to $412,000.
| Cash from Operations | -2.83M | -2.67M | -13.11M | -2.97M | -28.13M | 2.9M | 10.78M | 6.54M | 12.93M | 11.32M |
| Operating CF Margin % | - | -3731.31% | - | -12.72% | -31.44% | 4.06% | 16.57% | 10.24% | 21.03% | 21.35% |
| Operating CF Growth % | -189256.07% | 79.63% | -341.72% | 89.45% | -1068.67% | -73.05% | 64.68% | -49.4% | 14.3% | - |
| Net Income | -10.6M | -6.59M | -4.49M | -4.08M | -49.19M | 786.36K | 12.69M | 18.72M | 17.49M | 14.52M |
| Depreciation & Amortization | 1.65M | 380K | 380K | 58.75K | 2.19M | 880.88K | 674.25K | 682.46K | 119.76K | 125.92K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -3.92M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 7.79M | 3.44M | -7.94M | 1.53M | 7.66M | 684.02K | 134.29K | 13.92K | 17.41K | 17.05K |
| Working Capital Changes | -1.74M | 100.12K | -1.06M | -472.7K | 15.13M | 553.21K | -2.72M | -12.87M | -4.69M | -3.34M |
| Change in Receivables | -4.34M | 0 | -11.36K | 13.52K | 23.13M | -2.11M | 393.14K | -1.6M | -5.8M | -4.45M |
| Change in Inventory | 397.29K | 0 | 0 | 344.48K | 454.26K | 389.39K | -276.91K | 148.39K | 2.3M | -184.4K |
| Change in Payables | 921.77K | 0 | 0 | 1.31M | -4.85M | 6.72M | -32.72K | -3.38M | -1.19M | 1.13M |
| Cash from Investing | -26.79M | -27.05M | 11.7M | 89.32K | -8.48M | -13.19M | -1.16M | -277.16K | -157.97K | -1.1M |
| Capital Expenditures | 0 | 0 | 0 | 0 | -2.41M | -3.83M | -1.16M | -283.1K | -157.97K | -1.1M |
| CapEx % of Revenue | 0% | 0.01% | - | - | 2.69% | 5.36% | 1.78% | 0.44% | 0.26% | 2.07% |
| Acquisitions | -22.29M | -22.29M | 0 | 0 | -8M | -9.35M | 0 | 5.94K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 252.04K | 0 | 11.7M | 89.32K | 1.93M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 29.65M | 29.01M | 0 | 3.15M | 18.83M | 10.63M | 10.4M | 271.11K | -8.78M | -8.43M |
| Debt Issued (Net) | 642.31K | 158.09K | 0 | 0 | -46.81K | 44.14K | 1.06M | -356.52K | -671.87K | -8.43M |
| Equity Issued (Net) | 27M | 27M | 0 | 3M | 18.88M | 10.97M | 9.34M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -375K | 0 | 0 | -8.33M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.01M | 1.85M | 0 | 145.52K | 0 | 0 | 0 | 627.63K | 221.42K | 0 |
| Net Change in Cash | -624.49K | -80.42K | -1.71M | -17.68M | -16.83M | 2.9M | 18.85M | 5.92M | 4.62M | 4.27M |
| Free Cash Flow | -2.83M | -2.67M | -13.11M | -2.97M | -30.53M | 121.03K | 9.62M | 6.26M | 12.78M | 10.22M |
| FCF Margin % | -22.65% | -3731.32% | - | -12.72% | -34.11% | 0.17% | 14.78% | 9.79% | 20.78% | 19.28% |
| FCF Growth % | 94.68% | 79.63% | -341.72% | 90.28% | -25321.12% | -98.74% | 53.61% | -50.99% | 25.03% | - |
| FCF per Share | -4.02 | -3.79 | -332.39 | -62.71 | -1810.51 | 11.10 | 968.15 | 601.52 | 1212.14 | 969.50 |
| FCF Conversion (FCF/Net Income) | 0.27x | 0.35x | 0.74x | 0.04x | 0.57x | 3.69x | 0.85x | 0.35x | 0.74x | 0.78x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Existential Going Concern Risk
As reported in financial statements, the company exhibits a chronic inability to convert net income into operating cash flow, with the OCF/NI ratio frequently oscillating between negative values and extreme outliers, suggesting that reported earnings are fundamentally decoupled from the actual cash-generating capacity of the business.
The persistent gap between net income and operating cash flow suggests that non-cash charges and working capital volatility are masking the underlying cash burn. Investors should monitor this divergence as it indicates that the company's accounting results may not reflect the deteriorating liquidity position of the firm.
Based on recent SEC filings, PAVS has consistently reported negative free cash flow, with margins reaching as low as -551.5% in 2024Q4, highlighting a structural inability to fund operations through internal cash generation while the company undergoes its pivot toward entertainment technology.
The trajectory of free cash flow appears to be in a state of terminal decline, as the company lacks the scale to cover its operating expenses. This trend suggests that the firm is reliant on external financing or asset liquidation to maintain its listing status, which may be unsustainable.
According to historical cash flow data, working capital changes have been highly erratic, including a massive $16.5 million outflow in 2023Q4, which suggests that the company's management of receivables and payables is either highly inefficient or reflective of a business model in total flux.
The extreme swings in working capital appear to be a primary driver of the company's cash flow volatility. Such erratic movements may indicate significant difficulties in collecting payments from e-commerce partners or managing inventory levels during the transition away from traditional nutraceutical manufacturing.
As evidenced by the provided financial data, the company's cash flow statement is heavily impacted by significant depreciation and amortization charges, which in 2025Q2 reached $1.1 million, potentially obscuring the true extent of the cash burn occurring within the core operating segments.
The reliance on non-cash adjustments to reconcile net income to operating cash flow warrants further investigation into the nature of these assets. It appears that the company may be attempting to manage the optics of its cash position through accounting treatments that do not improve the actual liquidity available for operations.
Quick answers to the most common questions about buying PAVS stock.
Paranovus Entertainment Technology Ltd. (PAVS) generated $-2.7M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Paranovus Entertainment Technology Ltd. (PAVS) reported negative free cash flow of $2.7M in 2024, indicating capital requirements exceeded cash from operations.
Paranovus Entertainment Technology Ltd. (PAVS) 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.