Liquidity is critically constrained as the firm continues to burn cash, evidenced by negative free cash flow reaching $543.3K in 2023Q4 and a cash position that has dwindled to just $769.
| Cash from Operations | -877.91K | -6.22M | -4.89M | -6.54M |
| Operating CF Margin % | - | -101.84% | -1117.12% | -2346.38% |
| Operating CF Growth % | 85.89% | -27.21% | 25.17% | - |
| Net Income | -215.49K | -5.98M | -6.62M | -5.26M |
| Depreciation & Amortization | 0 | 752.95K | 674.57K | 477.18K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.41M | 1.48M | 247.36K | 240.37K |
| Working Capital Changes | 743.71K | -2.48M | 803.63K | -1.99M |
| Change in Receivables | 0 | -2.02M | -51.94K | -65.98K |
| Change in Inventory | 0 | 465.4K | -1.65M | -2.25M |
| Change in Payables | 0 | -238.05K | -18.8K | 427.23K |
| Cash from Investing | 42.4M | -1.6M | -166.17K | -242.17K |
| Capital Expenditures | 0 | -51.29K | -166.17K | -883.25K |
| CapEx % of Revenue | - | 0.84% | 37.94% | 316.96% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | -668.26K | -1.55M | 0 | -171.86K |
| Cash from Financing | -41.52M | 8.74M | 6.18M | 3.23M |
| Debt Issued (Net) | 1.55M | 5.7M | 2.36M | 2.52M |
| Equity Issued (Net) | -1000K | 889.82K | 1000K | 848.9K |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -43.07M | -132.62M | 0 | 0 |
| Other Financing | 0 | 2.15M | -120.47K | -136.32K |
| Net Change in Cash | 732 | 908.38K | 991.35K | -3.56M |
| Free Cash Flow | -877.92K | -6.28M | -5.06M | -7.42M |
| FCF Margin % | - | -102.68% | -1155.06% | -2664.52% |
| FCF Growth % | 86.01% | -24.04% | 31.87% | - |
| FCF per Share | -0.12 | -0.09 | -0.07 | -0.10 |
| FCF Conversion (FCF/Net Income) | 4.07x | 0.81x | 0.51x | 1.17x |
| Interest Paid | 0 | 0 | 46.78K | 11.6K |
| Taxes Paid | 0 | 0 | 0 | 0 |
Imminent Liquidity Exhaustion
As reported in financial statements, the persistent divergence between net income and operating cash flow, highlighted by an OCF/NI ratio that reached 4.72 in 2024Q2, suggests that reported earnings are disconnected from the company's actual ability to generate cash from its core industrial activities.
The wide variance between accounting profits and cash outflows indicates that net income is likely influenced by non-cash adjustments or accounting anomalies rather than operational success. Investors should monitor this disconnect, as it implies that the company's reported bottom-line figures provide little insight into its true liquidity position.
Based on recent SEC filings, SCAG has consistently reported negative free cash flow, with quarterly outflows reaching as high as $543.3K in 2023Q4, confirming that the company remains in a cash-burning phase without any evidence of a self-sustaining commercial trajectory.
The absence of positive free cash flow suggests that the company is entirely dependent on external financing to fund its operations. This trajectory warrants further investigation into how the firm intends to bridge its funding gap given the reported cash balance of only $769.
According to the provided data, working capital changes have been highly erratic, including a $335.9K inflow in 2024Q4, which appears to be a temporary accounting artifact rather than a sign of improved operational efficiency in managing receivables or inventory cycles.
These fluctuations in working capital suggest that the company may be attempting to manage its cash position through timing differences in payables or other accruals. Such maneuvers often indicate underlying stress and should be viewed with skepticism by analysts evaluating the firm's long-term viability.
As reported in financial statements, the company utilized $16.2M and $26.9M for share repurchases in 2024, a move that appears highly questionable given the firm's reported cash position of only $769 and its ongoing inability to generate positive operating cash flow.
The decision to prioritize share buybacks while the company is in a pre-revenue, cash-burning state suggests a potential misalignment between capital allocation and the firm's immediate survival needs. This strategy may indicate that management is attempting to support the share price at the expense of essential operational liquidity.
Based on reported figures, the extreme discrepancy between the company's reported cash balance of $769 and its significant quarterly cash burn suggests that the financial statements may be failing to capture the full extent of the firm's immediate solvency and liquidity risks.
The lack of clarity regarding how the company intends to fund its ongoing R&D and administrative costs suggests that the current financial disclosures may be masking a critical funding crisis. Analysts should treat the reported cash position as a potential indicator of an imminent going concern risk.
Quick answers to the most common questions about buying SCAG stock.
Scage Future American Depositary Shares (SCAG) generated $-0.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Scage Future American Depositary Shares (SCAG) reported negative free cash flow of $0.9M in 2024, indicating capital requirements exceeded cash from operations.
Scage Future American Depositary Shares (SCAG) 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.
In 2024, Scage Future American Depositary Shares (SCAG) spent $43.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.