Cash conversion efficiency is non-existent, with the company recording a negative free cash flow of $110.6K in 2026Q1, further depleting the limited capital reserves available for search activities.
| Cash from Operations | -536.6K | -674.03K | -74 |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -17.56% | -907384.35% | - |
| Net Income | 3.45M | 3.61M | 80 |
| Depreciation & Amortization | 0 | 0 | 8 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -4.38M | -4.28M | -190 |
| Working Capital Changes | 391.67K | 0 | 28 |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | 0 | 0 | -115.58K |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 0 | 0 | 115.93K |
| Other Investing | 0 | 0 | -115.58K |
| Cash from Financing | 225K | -10K | 116.56K |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 225K | -10K | 116.56K |
| Net Change in Cash | -311.6K | -684.03K | 914 |
| Free Cash Flow | -536.6K | -674.03K | -74 |
| FCF Margin % | - | - | - |
| FCF Growth % | -66.49% | -907384.35% | - |
| FCF per Share | -0.05 | -0.06 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.16x | -0.19x | 0.00x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation and redemption risk
As reported in financial statements, TAVI consistently records positive net income while simultaneously generating negative operating cash flow, with the 2026Q1 period showing $821.7K in net income against a $110.6K cash outflow, highlighting a complete lack of cash conversion quality for this shell entity.
The persistent divergence between accounting profits and cash burn suggests that reported net income is driven by non-cash accounting adjustments, such as warrant liability revaluations, rather than operational success. Investors should interpret this as a signal that the company's reported profitability is entirely decoupled from its actual liquidity position.
Based on TAVI's historical data, the company has maintained a negative free cash flow trajectory for every quarter since 2025Q1, with the most recent 2026Q1 figure of -$110.6K confirming that the entity is consuming its limited capital reserves without any offsetting cash generation.
This consistent cash burn indicates that the company is depleting its remaining resources to fund administrative overhead and search costs. The absence of positive free cash flow suggests that the entity remains entirely dependent on external financing or sponsor support to maintain its public listing status.
According to the provided quarterly data, the cumulative gap between net income and operating cash flow has widened significantly over the last ten quarters, as the company reports paper gains while its actual cash position remains constrained by ongoing operational expenses and a lack of revenue.
This structural divergence warrants further investigation, as it indicates that the company's financial statements may obscure the underlying reality of its cash-burning business model. The reliance on non-cash items to bolster the bottom line appears to be a mechanism to maintain the appearance of viability while the actual cash balance dwindles.
As indicated by the financial records, the cash flow statement obscures the true extent of the company's liquidity risk by failing to account for the potential impact of future redemption requests or the exhaustion of the remaining $229,625 in cash reserves held for working capital.
The lack of transparency regarding the specific nature of these cash outflows suggests that the company may be facing mounting pressure to finalize a business combination before its capital is fully depleted. Analysts should monitor the potential for further dilution or the necessity of additional sponsor-funded promissory notes to keep the entity operational.
Quick answers to the most common questions about buying TAVI stock.
Tavia Acquisition Corp. (TAVI) generated $-0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tavia Acquisition Corp. (TAVI) reported negative free cash flow of $0.7M in 2025, indicating capital requirements exceeded cash from operations.
Tavia Acquisition Corp. (TAVI) 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.